MANAGEMENT’S DISCUSSION AND ANALYSIS Financial Statements (Continued) Total fiscal year 2019 operating expenses of the Authority were $325,548 or 11.5% greater than fiscal year 2018 expenses of $291,963. Fiscal year 2018 expenses were 12.4% greater than fiscal year 2017 expenses of $259,687. The net expense increase during the past two years was primarily attributable to operating activities from increased cargo volumes. Operating incomes of $148,071 and $134,419 for fiscal years 2019 and 2018, respectively, were the result of the different growth rates in revenues and expenses. Non-operating income / (expense) for fiscal years 2019 and 2018 includes investment income, gain/(loss) on sale / impairment of capital assets, expense on the Authority’s debt, and expense for harbor deepening costs, as well as repayments of capital contributions to the State of Georgia. During fiscal year 2019, Georgia Ports Authority sold 5 parcels within the Savannah River International Trade Park resulting in a gain of $39,245, which compared to the fiscal year 2018 impairment loss of capital assets of $5,491 due to the ceased operation at the Colonel’s Island Bulk Facility and fiscal year 2017 which had $0 impairment loss of capital assets. In fiscal years 2019, 2018 and 2017 respectively, $0, $2 and $12,776 were received from the State of Georgia for G.O. Bond non-capital contributions. Capital contributions during fiscal years 2019 and 2018 included capital contributions from the Federal government, were $21,047 and $4,214. The extraordinary item during fiscal year 2017 was net expense for debris removal and repairs related to Hurricane Matthew. Capital Asset and Debt Administration Capital Assets: The Authority’s investment in capital assets was $1,310,360 as of June 30, 2019 representing a 14.8% increase for the year, and $1,141,563 as of June 30, 2018 representing a 6.9% increase over the prior year. These investments in capital assets include land, buildings, improvements, and machinery. Major capital investments during the past two fiscal years included the following: Rail additions at Garden City Terminal Purchase and upgrade Ship-to-Shore Container Cranes Purchase and upgrade Rubber-Tired-Gantry Cranes Dock and Berth upgrades at Garden City Terminal Additional gates and paving at the Garden City Terminal Construct Appalachian Regional Port Colonel’s Island paving and land improvements Properties acquisitions Purchase Empty Handlers Additional information on the Authority’s capital assets can be found in Note 4 to the financial statements. 11
