MANAGEMENT’S DISCUSSION AND ANALYSIS (In Thousands) Financial Highlights o The Authority’s net position (amount assets exceeded liabilities) was $1,498,836 at the close of fiscal year 2018; $1,367,899 at the close of fiscal year 2017; and $1,253,568 at the close of fiscal year 2016. o The Authority’s total net position increased $130,937 and $114,331 during fiscal years 2018 and 2017, respectively. These net changes are further reflected in the Authority’s statements of revenues, expenses and changes in net position. o The Authority’s total long-term debt (plus current maturities) decreased by $26,857 or 100%, during fiscal year 2018 and decreased by $2,400 during fiscal year 2017. The Authority retired all debt obligations in fiscal year 2018 and fiscal year 2017 decrease is related to principal payments. o The Authority generated record annual operating revenues of $426,382 for fiscal year 2018, representing an increase of approximately 14.3% compared to fiscal year 2017, resulting from US economic growth compounded by realignment of cargo movement to the east coast from the expanded Panama Canal locks. Operating revenues during fiscal year 2017 were $372,983, representing an increase of 7.7% over fiscal year 2016. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction of Georgia Ports Authority’s basic financial statements. The Statements of Net Position present information on all of the Authority’s assets, deferred outflows, liabilities and deferred inflows, with the net position reported as assets plus deferred outflows less liabilities and deferred inflows. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Authority is improving or deteriorating. The Statements of Revenues, Expenses and Changes in Net Position present information showing how the Authority’s net position changed during the fiscal year. All changes in net position are reported on an accrual basis. 5