2001 Annual Report - Edmonton International Airport

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(a)The cost of capital assets in the tables above includes only the amounts expended by EdmontonAirports on capital assets and does not include the cost of the facilities which are leased from thelandlords.(b)(c)Effective January 1, 2001 Edmonton Airports revised the estimated useful lives of certain terminalfacilities. The impact of this change in estimate was to reduce 2001 amortization expense by $1,552over what would have been recorded utilizing the original estimates.At December 31, 2001, $8,941 (2000 – $7,651) of capital assets were under construction and not yetsubject to amortization.(d) Included in accounts payable and accrued liabilities at December 31, 2001 is $10,357 (2000 –$18,912) relating to unpaid capital expenditures.(e)(f)Capital assets include $50 (2000 – $2,635) in interest capitalized during the year.The commencement of construction of the new Central Hall facility in 2001 resulted in the demolitionof existing facilities with a net book value of $2,249 (2000 - $1,897). These amounts have beenwritten off as of December 31, 2001.5. Obligations under capital leases:2002 $ 1562003 1562004 1562005 1562006 163Total thereafter –Total minimum lease payments 787Less amount representing interest at 8.123% ( 206)Present value of net minimum capital lease payments 581Current portion of obligations under capital leases ( 107 )$ 474The obligations under capital leases are secured by specific items of office equipment with a net book valueof $462 at December 31, 2001.6. Long-term debt:2001 20007.214% Revenue bond, Series A payable in semi-annual installmentswith interest payable on May 1 and November 1 in 2001 andsemi-annual payments of principal and interest in each yearcommencing May 1, 2002 until November 1, 2030 $ 250,000 $ 250,000Current portion of long-term debt ( 394 )–$ 249,606 $ 250,000(a)Bond issue:Edmonton Airports completed a $250 million Revenue Bond issue effective October 2000. The bondshave an interest rate of 7.214% paid in semi-annual installments of interest paid on May 1 andNovember 1 in 2001 and payable in semi-annual payments of principal and interest in each yearcommencing May 1, 2002 and until November 1, 2030. The net proceeds from the offering were usedto retire the existing bank syndicate credit facility arranged by Edmonton Airports in connection withPhase 1 and 2 of the Air Terminal Redevelopment Project (ATR); to fund a $9 million Debt ServiceReserve Fund pursuant to the Master Trust Indenture (“Indenture”); and to fund the remainingconstruction of Phase 3 of the ATR Project.48
The bonds are secured by a first leasehold mortgage on the International Airport and related AmendedCanada Lease; a security interest over all of the present and future personal property of EdmontonAirports including without limitation all book debts and sources of revenue, and all assets and anyreserve funds; and a floating charge over all of the other present and future property and assets ofEdmonton Airports.Pursuant to the terms of the Indenture, Edmonton Airports is required to maintain a $9 million DebtService Reserve Fund and a $7 million Operating and Maintenance Contingency Fund. The Operatingand Maintenance Contingency Fund can be satisfied by cash, Letter of Credit, or undrawn availabilityof the Royal Bank credit facilities described below. At December 31, 2001 the Interest BearingDeposits include $9,527 of funds restricted to debt service requirements.In addition to the bond issuance, Edmonton Airports maintains, with the Royal Bank of Canada, a$5 million revolving credit facility to support operations, and a $40 million term revolving loan forgeneral corporate purposes and to assist in the interim financing of construction projects. Nodrawdowns on the credit facility were made in 2001. As at December 31, 2001, $7 million of the termrevolving loan had been set aside for the Operating and Maintenance Contingency Fund.(b)(c)(d)Interest expense (income):2001 2000Bond interest $ 18,305 $ 3,046Interest income and other ( 4,984) ( 1,570 )Revolving credit facilities – 4,73613,321 6,212Less capitalized interest ( 50)( 2,635 )$ 13,271 $ 3,577The future annual principal payments required to retire the debt are as follows:2002 $ 3942003 6492004 9242005 1,2222006 1,545Total thereafter 245,266$ 250,000Deferred financing costs:2001 2000Deferred financing costs $ 6,720 $ 6,645Less accumulated amortization ( 237 )–$ 6,483 $ 6,6457. Airport improvement fee:Effective April 12, 1997, Edmonton Airports implemented an airport improvement fee (“AIF”) to fund capitalexpenditures and the related financing costs, including the planned redevelopment and expansion of theterminal facilities (see note 13) at the International Airport. To December 31, 2001, cumulativeexpenditures of $238,924 (2000 – $190,923) exceeded cumulative net AIF revenue collected of $66,183(2000 – $50,832) by $172,741 (2000 – $140,092).49
Page 1 and 2: there’sin the airEDMONTON AIRPORT
Page 3 and 4: CONTENTSThere’s Change in the Air
Page 5 and 6: THERE’S CHANGE IN THE AIRThe them
Page 7 and 8: OUR EYES ON THE SKYBusiness Leaders
Page 9: Bringing the World to Edmonton:Air
Page 13 and 14: WestJet HangarIn 2001, Executive Fl
Page 15: THE WIND AT OUR BACKCustomer Satisf
Page 19 and 20: The loss of Canada 3000 was a signi
Page 21: OUR EAR TO THE GROUNDStakeholder/Co
Page 24 and 25: H. GLENN RAINBIRD, APPOINTED BY THE
Page 26 and 27: PETER BIDLOCK, APPOINTED BY STRATHC
Page 28 and 29: HAROLD D. IRWIN, APPOINTED BY THE F
Page 30 and 31: "GO CONFIDENTLY IN THE DIRECTION OF
Page 33 and 34: 2001 FINANCIAL REVIEW
Page 35 and 36: In 1996, Edmonton Airports renegoti
Page 37 and 38: AIF collection costs totaled $1.2 m
Page 39 and 40: Edmonton Airports remains focused o
Page 41 and 42: FINANCIAL STATEMENTSEDMONTON REGION
Page 43 and 44: AUDITORS’ REPORT TO THE BOARD OF
Page 45 and 46: STATEMENTS OF OPERATIONS AND EQUITY
Page 47 and 48: NOTES TO FINANCIAL STATEMENTS(000
Page 49: (v)Receivable from Landlord:Account
Page 53 and 54: 9. Directors’ and officers’ rem
Page 55 and 56: 13. Commitments:Edmonton Airports h
Page 58: Edmonton International AirportEdmon

2001 Annual Report - Edmonton International Airport

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