Okaloosa County, Florida Taxable Airport Revenue Bonds, Series 2007, $9,980,000, Dated: December 13, 2007 Okaloosa County, Florida, Airport Revenue Bonds, Series 2003 (AMT), $10,860,000, Dated August 15, 2003 HISTORICAL OPERATING RESU LTS Historical Operating Results of the Airport For the frscal years ended 2016-2613 2010 2011 2012 OPERATI NG REVENUES Charges for Services $8,656,082 $9,451,744 $9,208,230 Miscellaneous 101,441 2,393 802 TOTAL OPERATING REVENUES ~8. 757,523 ~9,454, 137 ~9. 21'i9, 1'i32 OPERATING EXPENSES Personal Services 1,425,680 1,395,918 1,840,328 Contractual Services 1,608,640 1,920,115 2,118,909 Supplies 565,966 797,664 828,649 Utilities 785,564 876,743 808,259 Other Operating Expenses 1,651,014 2,903,169 2,459,902 Depreciation 3,182,841 3.325,226 3,524,789 TOTAL OPERATING EXPENSES ~ ~ ~~~.,~~ 11. ~1~.~~~ 11. ~~~.~~~ OPERATI NG INCOME (LOSS) (462, 182) (1,759,698) (2,371,804) NON-OPERATING REVENUES (EXPENS ES) Intergovernmental Revenues 267,673 47,941 9,553 Investment Income 361,149 148,620 293,061 Other Non-Operating Income 2,544,993 15,210 12,000 Interest Expense (1 '199,270) (1,172,013) (1,208,154) Other Debt Service Costs (152,531) (141,510) (133,120) PFC/CFC (1) (2,539,492) 3,217,536 2,910,080 Gain/Loss on Disposal of Fixed Assets (1,800) 558 (4,617) TOTAL NON-OPERATING REVENUES(EXPENSES) 1,820,214 2,116,342 1,878,803 INCOME (LOSS) BEFORE OPERATING TRANSFERS 1,358,032 356,644 (493,001) Capital Contributions 12,217,146 8,916,994 Operating Transfers In 100,000 Operating Transfers Out (1,119,595) (1,039,095) (460,785) NET INCOME (LOSS) 238,437 11,534,695 8,063,208 (1) Formerly incuded in Other Non-Operating Income 2013 $9,128,g18 289,226 ~9.418, 144 2,062,950 2,019,837 802,572 796,080 1,436,061 3,913,963 11. ~~1. 4~~ (1,613,319) 228,101 (83,839) 12,000 (1,235,061) (151,196) 2,954,642 (29,092) 1,695,555 82,236 3,498,413 3,580,649
NORTHWEST FLORIDA REGIONAL AIRPORT Northwest Florida Regional Airport (VPS) derives its Airline revenues from landing fees and terminal rentals charged to the airlines serving the Airport and non-aeronautical revenues from a variety of non-airline sources such as retail cars, parking, concessions, retail and other services and amenities provided to passengers, visitors, service providers and employees. In addition, the maxim allowed $4.50 Passenger Facility Charge (PFC) on each sold ticket is collected by Airlines on behalf of the Airport and $4.39 is remitted to the airport on a monthly basis. PFCs are being primarily used to fund the Airport's Current debt service on its 2003 series of bonds and the conventional loan secured to refinance those bonds earlier in 2014 and have been approved to assist with providing the local matching funds for federal and state grants for FAA eligible and airline approved capital projects. The Airport al so collect a $3.75 Customer Facility Charge (CFC) per rental car day from the rental car companies to fund the bond debt issued in 2007 for the construction of a consolidated Rental Car Service Facility on an additional 22.6 acres leased from the Air Force. The total leasehold for VPS is just over 130 acres for which the Airport paid $368,649 in FY 2013 up 3% from the $357,912 paid in FY 2012. Landing Fees for the joint use of the Air Force airfield facilities amounted to $120,131 in FY 2013 based on 15,642 operations. The Airport is currently served by Delta Airlines which includes Pinnacle and Atlantic Southeast Airlines providing service through its hub in Atlanta; by United Airlines to its Houston hub; and American Airlines to its Dallas hub. US Airways provides daily service to its Charlotte hub and soon to be discontinued daily service to Washington's Regan National Airport. The Oka loosa County Airports System also operates two General Aviation airports Bob Sikes Airport (CEW near Crestv iew, Florida), and Destin-Fort Wa lton Beach Airport (DTS Dest in, Florida). Airline Revenue: Landing fees, terminal space rental, security fees, baggage handling and loading bridge fees charged to Airlines comprised 18 percent of the Airport' s operating revenues in FY 2013. The overall result was a 24.7 percent decrease in Airline revenue compared to FY 2012. This decrease in airline revenue reflected the downturn in the economy and the fact that the Airport significantly reduced its operating costs in 2013 from the 2012 numbers that had anticipated increased revenue from the now defunct Vision Airlines service. The final FY2013 cost per enplaned passenger (CEP) was $4.63 or $1.43 per enplanement lower than the final FY2012 cost per enplaned passenger of $6.06. Non-Airline Revenues: These revenues are derived primarily from percentage of gross commissions and counter space rentals from rental car companies and a revenue public parking struct ure. These two sources t oget her accounted for about 54 percent of all Airport operating revenue in FY 2013. There was no increase in the parking rates in 2013, but parking revenue decreased 15 percent largely from the decrease in passenger enplanements due to economic conditions. Rental Car revenues also declined by 6 percent in real terms after the adjustment for abated counter space rental revenue provided by the Airport Customer Facility Charges (CFC). Non-operating Revenues: PFC revenues decreased 4.0 percent due to the reduction in passenger traffic in 2013, while the CFC from car rentals increased 7.6 percent. This may be due to longer rental terms with people choosing to rent rather than fly. Operating Expenses: Operating expenses of $11,580,836 (including depreciation) remained virtually flat compared with the prior fiscal year due to a concerted effort to reduce expenditures in anticipation of reduced revenues related to passenger enplanements.
Reg ional Shares of Enplanements {see sheet2, f able 1} Historical Enplanements Fiscal Enplaned Year Passengers ### 388,958 ### 407,053 ### 370,558 ### 396,045 ### 399,690 ### 386,321 ### 369,230 2011 2012 ### 2004-2013 448,870 385,428 Annual Percent Change 9.5% 4.7% -9.0% 6.9% 0.9% -3.3% -4.4% 21.6% -1 4. 1%..;:3"-7-i'4'-'4.;:.31.;... -2.9% Average Compounded Annual Growth Rate -0.42% Historical Enplaned Passengers by Airline {see Sheet 2. Table 2} Top 10 Origin and Destination City Markets- Fiscal Year 2012 Total O&D Rank City Pai rs Passengers Percent 1 DFW 70, 128 10.29% 2 DCA 44,239 10.29% 3 ATL 21,541 10.29% 4 DEN 16,482 10.29% 5 LAS 14,706 10.29% 6 LGA 14,608 10.29% 7 IAH 14,273 10.29% 8 LAX 14,212 10.29% 9 CLT 13,994 10.29% 10 MSP 13,803 10.29% Top 10 O&D Passengers 237,987 Remaining O&D Passengers 443,402 Total O&D Passengers 681,384 Commerc ial Operati ons Fiscal Majors/ Regionals/ Ai rport Year Nationals Commuters Total 2006 3,964 10,726 14,690 2007 9,126 5,590 14,716 2008 9,346 6,716 16,062 2009 7,680 7,338 15,018 2010 6,654 12,038 18,692 2011 17,958 2,544 20,502 2012 15,678 46 15,724 2013 15,342 0 15,342 Compounded Annual Growth Rate FY 2006-2013 21.3% -100.0% 0.6%
Landed Weight {see sheet 2. ta61e 3} Air Carrier Market Share of Total Origin & Destination Passengers - 2013 Air Carrier O&D Passengers Market Share Delta United (Continental) American US Airways TOTAL 385,667 51.8% 80,569 10.8% 163,078 21.9% 115,175 15.5% 744,489 100.0% 2013 Market Share American 21.9% Delta 51.8% United/Continental 10.8%
FY2013 DEBT SERVICE COVERAGE CALCULATION Calculation of Amounts Available for Debt Service Operating Revenues Operating Expenses (less depreciation) 9,418,144.00 7,117,500.00 Net Revenues 2,300,644.00 Other Revenues: Interest Earnings on Debt Service and DSRF Accounts PFC Revenues Applied to Eligible Series 2003 Debt Service CFC Revenues Applied to Eligible Series 2007 Debt Service Coverage Amounts from PFC and CFC Revenue 33,714.74 797,393.75 88 7, 075.00 421,117.19 Total Other Revenues 2,139,300.68 Total Amounts Available for Debt Service 4,439,944.68 t '~ ~ '~' '-..., < ~ ~ I...._ "' -. '," ~ '_ ',,,., ~,_ ;' ' I~,.f"" ". " ;: ' ; ~ 'J.' ' j ', I Debt Service Coverage Calculation Total Amounts Available for Debt Service Series 2003 Bond Debt Service Series 2007 Bond Debt Service 4,439,944.68 797,393.75 887,075.00 Total Revenue Bond Debt Service Revenue Bond Debt Service Coverage 1,684,468.75 2.64
Regional Shares of Enplanements TABLE 1 Northwest Florida Regional Pensacola International Northwest Florida Beaches (Panama Cit)() Calendar International YMr ~opl a n e m e nts Reqional Share ~nqi a n e m e nt s R~<li9lJ_a l_~h a re ~ nola ne m e n ts Reqional Share Reqional Total 2001 388,275 35.7% 526,628 56.6% 173,385 15.9% 1,008,288 2002 342,183 28.9% 668,832 56.6% 171,456 14.5% 1 '182,471 2003 359,219 29.1% 690,095 55.8% 187,066 15.1% 1,236,380 2004 395,01 2 29. 7% 741,311 55.7% 195,688 14.7% 1,332,011 2005 404,783 28.6% 821,477 58.0% 189,938 13.4% 1,416,198 2006 365,045 27.0% 812, 121 60.0% 176,640 13.0% 1,353,806 2007 396,045 28.2% 840,483 59.8% 169,660 12.1% 1,406,188 2008 399,690 29.7% 776,440 57.8% 167,877 12.5% 1,344,007 2009 386,321 31.1% 700,662 56.3% 156,643 12.6% 1,243,626 2010 369,230 27.4% 719,648 53. 4% 259,337 19.2% 1,348,215 2011 447,242 27. 1% 772,997 46.8% 433,081 26.2% 1,653,320 2012 383,981 24.3% 759,215 48.0% 439, 183 27.8% 1,582,379 2013 370,261 24.1% 756,553 49.3% 408,037 26.6% 1,534,851 Historical Enplaned Passengers by Airline TABLE 2 FY 2009 FY 2010 FY 201 1 FY 2012 FY 2013 Enplaned Enplaned Enplaned Enplaned Enplaned Passengers Share Passengers Share Passengers Share Passengers Share Passengers Share Airline Delta 189,831 49.1% 204,530 55.4% 207,182 56.1% 202,360 52.5% 192,996 51.5% Northwest 59,619 15.4% 7,666 2.1% 0 0.0% 0 0.0% 0 0.0% American 74,587 19.3% 71,283 19.3% 76,989 20.9% 79,782 20.7% 82,221 22.0% United/Contin 25,734 6. 7% 37,161 10. 1% 38,973 10.6% 40, 11 3 10.4% 41,388 11.1% US Airways 36,550 9.5% 48,590 13.2% 50,507 13.7% 60,035 15.6% 57,826 15.4% Vision 75,219 20.4% 2,875 0.7% 0 0. 0% AIRPORT 386,321 100.0% 369,230 100.0% 448,870 100.0% 385,165 100.0% 374,431 100.0% TOTAL -- Landed Weight TABLE 3 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Landed Landed Landed Landed Landed Airline Weight Share Weight Share Weight Share Weight Share Weight Share (1,000 lbs) (1,000 lbs) (1,000 lbs) (1,000 lbs) (1,000 lbs) Delta 207,066 43.6% 241,044 42.7% 236,845 41.9% 230,281 52.9% 235,635 53.6% Northwest 80,629 17.0% 12,080 2.1% 0 0.0% 0 0. 0% 0 0.0% American 90,318 19. 0% 86,947 15.4% 82,236 14.6% 82, 596 19.0% 87,008 19.8% United/Continental 47,962 10.1 % 41,06 1 7. 3% 38,492 6.8% 41, 154 9.4% 42,432 9.7% US Airways 49, 062 10.3% 73,652 13.0% 64,567 11.4% 76,542 17.6% 74,340 16.9% Vision 142941 25.3% 5, 084 1.2% 0 AIRPORT TOTAL 475,037 100.0% 454,784 100.0% 565,081 100.0% 435,657 100.0% 439,415 100.0%