Page 22 - BAA CAFR 2017

BIRMINGHAM AIRPORT AUTHORITY
Management's Discussion and Analysis (Unaudited) (continued)
Fiscal Years Ended June 30, 2017,2016, and 2015

FINANCIAL OPERATIONS HIGHLIGHTS
The increase in net position for 2017 was $3.2 million as compared to $5.8 million in 2016 and
$8.9 million in 2015.

 Operating Revenues decreased by (0.5%) from $44 million in 2016 to $43.8 million in 2017.
Applicable airline user revenues increased by 2.1%. Concession fees increased by 5%. Ground
hangar rentals decreased by (5.9%).
 Operating Expenses before depreciation and amortization decreased by (4.4%) from $30.2
million in 2016 to $28.9 million in 2017. Operating expenses increased for personnel costs,
security and fire protection, materials and supplies, and repairs and maintenance. They
decreased for pension expense, utilities, professional services, and other services.

 The net result of the above was operating income before depreciation and amortization
increased from $13.8 million in 2016 to $14.9 million in 2017 or 8.0%. The operating loss
before non-operating revenues and expenses decreased from ($2.5) million in 2016 to ($2.4)
million in 2017.

 Non-Operating Revenues and Expenses, net decreased from $695 thousand in 2016 to $681
thousand in 2017.

 Capital contributions received in the form of grants from the Federal government decreased
from $7.6 million in 2016 to $4.9 million in 2017 due to a reduction in FAA funded capital
projects.

SUMMARY OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
2017 2016 2015

Operating revenues $ 43,829,278 $ 44,046,195 $ 44,053,522
Operating expenses (28,908,956) (30,225,569) (27,485,962)
Total operating income before depreciation,
amortization and non-operating revenues
and expenses 14,920,322 13,820,626 16,567,560
Depreciation and amortization (17,342,863) (16,311,707) (15,572,715)
Operating income (loss) before other non-
operating
revenues and expenses (2,422,541) (2,491,081) 994,845
Non-operating revenues and expenses, net 680,885 694,680 1,077,460
Income (loss) before capital
contributions from federal agency (1,741,656) (1,796,401) 2,072,305
Capital contributions from federal agency 4,937,446 7,600,907 6,844,392
Increase in net position 3,195,790 5,804,506 8,916,697
Total net position, beginning of the
year-restated (Note 19) 431,839,367 426,034,861 417,118,164
Total net position, end of the year $ 435,035,157 $ 431,839,367 $ 426,034,861
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