FY2014 FEBUARY HIGHLIGHTS

Ridership and Revenue

Metrorail February rail ridership was 14.4 million: 1.8 million below budget and 1.3 million below February last year.

The FY2014 budget assumed six months of revenue service for the Silver Line to Wiehle Avenue beginning in January 2014, with net additional ridership of 0.7 million trips per month. Due to the delay of the Silver Line, this negative ridership variance will continue during the second half of the year until the Silver Line opens.

Winter weather affected ridership on a number of weekdays in February: the federal government was closed on February 13 and opened two hours late on February 14, and there were two other days (February 5 and 26) where OPM allowed unscheduled leave and telework for federal employees. Many local governments, school districts, and private sector employers were also closed on some or all of these days

Metrobus February bus ridership was 9.9 million: 0.3 million above budget but 0.3 million below February last year.

Bus ridership was down compared to its normal weekday average on the same weather days indicated above for rail, including a complete suspension of Metrobus service on February 13.

MetroAccess February MetroAccess ridership was 157,000: 12,000 above budget and 6,000 below February last year.

After being below budget in January following six months of above budget performance, MetroAccess ridership once again exceeded budget in February.

Operating Revenue

Total operating revenue in February was $58.6 million: $8.2 million below budget, or -12.3 percent.

Passenger fares and parking fees were $7.0 million below budget in February as a result of lower rail and parking revenues due to the weather and the delayed Silver Line opening. Non-transit sources were also $1.2 million below budget during the month as a result of small negative variances in advertising and miscellaneous revenues.

For the year to date, operating revenues are $12.5 million below budget: o Passenger fares and parking fees are below budget by $16.9 million, primarily as a result of the

October government shutdown, winter weather, and the delay of Silver Line service. o Non-transit revenues are $4.4 million above budget through February. In addition to positive

performances in fiber optic and joint development revenues, Metro received a one-time insurance payment in the second quarter that boosted non-transit revenues.

Operating Expenses February year-to-date operating expenses are favorable to budget by $20.0 million or 1.8 percent.

Salaries and Wages Salaries and Wages are favorable year-to-date by $6.5 million or 1.3 percent, primarily due to Authority-wide

vacancy levels. The vacancy rate at the end of February was 6.3 percent. The favorability was partially offset by higher personnel expenses associated with the new Collective Bargaining Agreements.

February year-to-date overtime was $0.8 million lower than the same period last year. Year-to-date overtime is $13.2 million over budget primarily due to Car Maintenance (CMNT) 2K, 3K and 5K work, vacancy coverage, leave coverage, and special events.

Fringe benefits are $3.9 million over budget year-to-date. The overage is partially due to higher than expected D.C. workers’ compensation assessment costs of $1.6 million. Due to the unpredictability of the D.C. workers’ compensation assessment billing, it is difficult to predict payments. Higher allocation for fringe benefits related to overages in operating labor of $2.3 million also contributed to the negative variance.

1

Materials and Supplies Materials and Supplies are $7.7 million unfavorable year-to-date mainly due to $7.4 million negative variance

associated with the maintenance on the 2K, 3K and 5K railcars, and Bus overruns of $5.1 million as a result of accidents and vandalism. The overruns are partially offset by favorability in Financial Services (CFO), Communications (CSCM) and Safety (SAFE).

Services Services expenses are $20.6 million favorable year-to-date due to in part to lower than anticipated expenses

related to a contract closeout in the Safety Department (SAFE), which is favorable by $5.5 million. Other contributors to favorability include timing of a Treasury contract settlement of $4.0 million; timing of Transit Infrastructure and Engineering Services (TIES) contracts of $3.3 million, which includes Plant (PLNT), System Maintenance (SMNT) and Car Maintenance (CMNT); Access Services (ACCS) contract closeout claims, offset by increased ridership of $2.8 million; timing of contract services procurements for DGMO of $1.7 million, timing in Bus Services (BUS) of $0.9 million; and in CSCM of $0.8 million.

Fuel, Propulsion, and Utilities Fuel, Propulsion, and Utilities are favorable to budget by $15.1 million year-to-date due to lower than projected

power consumption, favorable diesel rates in Metro’s hedges, the CNG tax credit, and a delay in the Silver Line service. Of the variance, approximately $4.1 million is due to price favorability, $9.2 million is due to lower volume, $0.9 million due to other lubricants and $0.9 million due to the CNG credit. The Silver Line service favorability of $1.4 million is included in the rate and volume variance above. The CNG tax credit incentive program was not extended by the U.S. Congress after December 2013 therefore; the monthly accrual of $0.3 million has been dropped in February and reversed for January.

Capital Program

Metro has invested $427 million of the $996 million FY2014 Capital Improvement Program (CIP) budget through February, which is $9 million less than was invested in the same period last year. This decline is the result of the new bus contract, which provides for full payment upon acceptance of buses instead of periodic milestone/progress payments. All figures below are year to date.

Grant Closure As of the end of February, Metro has closed 15 FTA Grants.

Bus Acquisition A multi-year contract is in place for the acquisition of new buses. The FY2014 order includes 85 forty-foot

hybrid/electric buses that will replace buses at the end of their useful life. As of the end of February, the first pilot bus has been received for inspection and testing. Metrobus broke ground on the environmentally friendly Cinder Bed Road facility, which replaces the 70-year-old Royal Street Bus Garage and enables Metro to run modern buses on these routes. Metrobus also purchased 35 acres of land at Andrews Federal Campus in District Heights, MD to build a replacement facility for Southern Ave. bus garage.

Access Vehicle Replacement A contract is in place for the acquisition of 120 paratransit vans. The first article inspection is complete and

delivery is expected to begin in April 2014.

Escalator and Elevator Rehabilitation and Replacement Fifteen escalators rehabilitations are complete and six are in progress. Three escalator replacements at

Pentagon Station are complete and in service. Six of the seven additional escalator replacements planned for completion during FY2014 are in progress at Van Ness-UDC (2), Georgia Ave-Petworth, Mt Vernon Sq., Bethesda, and Friendship Heights.

Nine elevator rehabilitations are complete and three are in progress.

Station Rehabilitation and Lighting Improvements Five of the 12 planned full station enhancement projects are complete and four are in progress. Seven of the

12 planned mini station enhancements are complete and two are in progress.

Metro awarded a multi-year contract for the replacement of over 13,000 parking garage light fixtures in 25 parking facilities.

Metro began installing new, brighter mezzanine lighting at underground stations. Lighting upgrades have been completed at 14 stations. The remaining 33 stations are expected to be completed by 2015. 2

Track Rehabilitation Metro welded 490 open weld joints, rehabilitated 4,012 linear feet of grout pads, tamped 20.89 miles of track,

repaired 1,855 leaks, and replaced 6.52 miles of running rail, 3.01 miles of third rail, 8,070 cross ties, 20,039 fasteners, 4,405 insulators, 22 yard turnouts, 4 mainline turnouts, and 767 safety signs.

Benefits to Customers Testing the new 7000-Series railcars on the rail system. The new railcars are equipped with state-of-the-art

safety technology and numerous features designed with extensive customer input.

Replacing Metro’s existing fare collection system with a state-of-the-art system that enables customers to continue to use their SmarTrip cards while expanding fare payment to chip-enabled credit cards, identification cards, and mobile phones using near field communications.

Replacing the carpet in the existing railcar fleet with new resilient, slip resistant flooring. The new flooring also reflects some interior and exterior light, creating a brighter, more open feel inside the car.

3

REVENUE AND RIDERSHIP February FY2014

REVENUE (in Millions)

RIDERSHIP (trips in Thousands)

MONTHLY RIDERSHIP FOR RAIL AND BUS (in Millions)

77

74

70

77

66

66

72

67

78

85

79

81

79

74

72

78

67

63

65

59

$50M

$55M

$60M

$65M

$70M

$75M

$80M

$85M

$90M

Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun

FY2013 Actual FY2014 Budget FY2014 Actual

1.6 1.1 3.3 5.1 5.5 2.5

(4.3)

(12.5) -$15M-$10M

-$5M$0M$5M

$10MCumulative Revenue Variance

19.8

18.3

17.0

18.7

16.2 15.9

17.6

16.2

19.1

20.6

19.5

20.4

19.4

18.0

16.9 17.2

15.7

14.7 15.2

14.4

11.6 11.4 11.2 11.6

10.3 10.4

10.9

9.6

11.4 11.4 11.5

11.2 11.6 11.6 11.5

12.2

10.8 10.4

10.5

9.9

8M

10M

12M

14M

16M

18M

20M

22M

Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun

Rail Budget Rail Actual Bus Budget Bus Actual

Bus

Rail

MTD Q2-FY2013

Actual Actual Budget Prior Year Budget

Metrorail 15,704 14,413 16,176 -8.2% -10.9%Metrobus 10,219 9,939 9,590 -2.7% 3.6%

MetroAccess 163 157 145 -3.9% 8.2%System Total 26,086 24,509 25,912 -6.0% -5.4%

YTD FY2013

Actual Actual Budget Prior Year Budget

Metrorail 134,933 131,474 139,690 -2.6% -5.9%Metrobus 86,354 88,639 87,085 2.6% 1.8%

MetroAccess 1,328 1,385 1,316 4.3% 5.2%System Total 222,614 221,498 228,091 -0.5% -2.9%

Q2-FY2014 Variance FY14

FY2014 Variance FY14

4

OPERATING BUDGET February FY2014

OPERATING EXPENDITURES ($ in Millions)

OPERATING BUDGET ($ in Millions)

YTD OVERTIME BUDGET VS ACTUAL ($ in Millions)

14

1

13

7

13

3

14

2

13

5

13

9

14

3 1

32

13

8

13

9

14

0

13

7

13

7

13

4

13

1

13

6

13

2

14

2

14

3

12

6

$80M

$90M

$100M

$110M

$120M

$130M

$140M

$150M

Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun

FY2013 Actual FY2014 Budget FY2014 Actual

3.1 6.5 8.4

14.2 17.2

14.2 14.7 20.0

$0M

$10M

$20M

$30MCumulative Operating Variance

5.2 4.9 5.0 5.1

4.9

5.3

5.1

4.8 5.1 4.9 4.9 5.2

8.1

7.0 7.4

5.9 5.2

7.8

5.5

6.8

$3M

$4M

$5M

$6M

$7M

$8M

$9M

$10M

$11M

Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun

FY2013 Actual FY2014 Budget FY2014 Actual

-2.8 -4.9

-7.3 -8.1 -8.3

-10.8 -11.2 -13.2

0.0 0.0 0.0 0.0

-$15M

-$10M

-$5M

$0MCumulative Overtime Variance

MTD Feb-FY2013

Actual Actual Budget $ Percent

Revenue 63.7$ 58.6$ 66.8$ (8.2)$ -12.3%Expense 125.0$ 126.4$ 131.6$ 5.3$ 4.0%Subsidy 61.2$ 67.8$ 64.9$ (2.9)$ -4.5%

Cost Recovery 51.0% 46.4% 50.7%

YTD FY2013

Actual Actual Budget $ Percent

Revenue 545.5$ 555.9$ 568.3$ (12.5)$ -2.2%Expense 1,007.4$ 1,081.4$ 1,101.4$ 20.0$ 1.8%Subsidy 461.9$ 525.6$ 533.1$ 7.5$ 1.4%

Cost Recovery 54.1% 51.4% 51.6%

Variance FY14

Feb-FY2014

FY2014

Variance FY14

5

CAPITAL PROGRAM February FY2014

CIP EXPENDITURES ($ in Millions)

FY2014 USES OF FUNDS ($ in Millions)

FY2014 PLANNED SOURCES OF FUNDS ($ in Millions)

$0M

$100M

$200M

$300M

$400M

$500M

$600M

$700M

$800M

$900M

$0M

$20M

$40M

$60M

$80M

$100M

$120M

$140M

$160M

$180M

$200M

Ju

l

Au

g

Sep

Oct

No

v

Dec

Ja

n

Fe

b

Ma

r

Ap

r

Ma

y

Ju

n

Cu

mu

lati

ve

Mo

nth

ly E

xp

en

dit

ure

s

Mo

nth

ly E

xp

en

dit

ure

s

FY2014 Expenditures FY2013 Expenditures

Budget Forecast Expended % Exp.

FY2014 CIP 996$ 919$ 427$ 43%Safety & Security 10 10 0 1%

ARRA 3 3 0 11%Reimbursable 69 79 30 43%

Total 1,078$ 1,011$ 457$ 42%

CIP Planned ReceivedFederal Reimbursement 491$ 23$

State and Local 401 302

Other Sources/Rollover 104 66

Subtotal 996$ 391$

Safety & Security 10$ 2$

ARRA 3 3

Reimbursable 69 10

Subtotal 82$ 15$

Total 1,078$ 407$

6

PROCUREMENT February FY2014

SOLICITATION ACTIONS

HISTORICAL SOLICITATIONS

Note: 'Contract Mod' includes any written alteration in the specifications, delivery point, frequency of delivery,

period of performance, price, quantity, or other provisions of the contract

New Awards 58

18%

Sole Source 11 3%

Contract Mod 174 53%

Contract Option

85 26%

YTD FEBRUARY SOLICITATION ACTIONS

(328 TOTAL ACTIONS)

0

10

20

30

40

50

60

70

80

90

100

Jul Aug Sep Oct Nov Dec Jan Feb

2014 - Sole Source 2014 - Contract Option 2014 - Contract Mod 2014 - New Awards

New Awards $458.5

71%

Sole Source $11.5

2%

Contract Mod

$74.2 12%

Contract Option $98.6 15%

YTD FEBRUARY SOLICITATION AMOUNTS

($642.8M TOTAL)

7

FUND BALANCES February FY2014

TOTAL CASH (RESTRICTED and UNRESTRICTED)

UNRESTRICTED CASH

85.5 85.3

225.3

186.9 168.4

314.1

238.4

149.0

288.0

180.0

83.9

157.0

92.6

$0M

$50M

$100M

$150M

$200M

$250M

$300M

$350M

Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun

Forecast Actual

4.3 3.3

129.0

90.4

74.4

254.3

172.0

86.0

209.7

102.5

10.8

83.0

10.5

$0M

$50M

$100M

$150M

$200M

$250M

$300M

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Forecast Actual

45

40 40

$25M

$50MLOC Borrowing ACTUAL

LOC Borrowing FCST

NOTE: Unrestricted Cash Balance included a $45 million draw on WMATA's Line of Credit in December (repaid in January), a $55 million draw in February and another anticipated $40 million in March, both with expected repayment in April.

8

OP

ER

AT

ING

FIN

AN

CIA

LSFe

brua

ry F

Y20

14

FIS

CA

L Y

EA

R 2

01

4

Pri

or

Ye

ar

Dol

lars

in M

illio

nsP

rio

r Y

ea

r

Act

ua

lA

ctu

al

Bu

dg

et

Act

ua

lA

ctu

al

Bu

dg

et

Pa

sse

ng

er

Re

ve

nu

e$4

5.5

$41.

6$4

7.5

($5.

9)-1

2%M

etro

rail

$389

.8$3

83.8

$404

.1($

20.3

)-5

%

9.7

10.2

10.3

(0.0

)0%

Met

robu

s87

.893

.191

.02.

12%

0.7

0.5

0.6

(0.1

)-1

3%M

etro

Acc

ess

5.2

5.0

5.1

(0.1

)-2

%

3.6

3.4

3.9

(0.5

)-1

3%Pa

rkin

g29

.630

.131

.3(1

.2)

-4%

0.7

0.1

0.6

(0.5

)-8

0%D

.C. Sc

hool

s4.

87.

75.

12.

652

%

$60.

1$5

5.9

$62.

9(7

.0)

-11%

subt

otal

$517

.1$5

19.7

$536

.6(1

6.9)

-3%

No

n-P

ass

en

ge

r R

eve

nu

e

1.5

0.9

1.6

($0.

7)-4

6%Adv

ertis

ing

10.8

12.6

12.7

($0.

1)-1

%

0.4

0.4

0.5

(0.1

)-1

6%Jo

int

Dev

/Pro

pert

y R

ent

3.5

4.6

4.5

0.2

4%

1.5

1.3

1.2

0.1

6%Fi

ber

Opt

ic10

.410

.39.

70.

77%

0.3

0.2

0.6

(0.4

)-7

3%O

ther

3.

78.

74.

74.

086

%

0.0

(0.0

)0.

0(0

.0)

-102

%In

tere

st0.

1(0

.2)

0.2

(0.4

)-1

69%

0.0

0.0

0.0

0.0

SE

Clo

sure

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

SC

R F

undi

ng0.

00.

00.

00.

0

$3.6

$2.7

$3.9

(1.2

)-3

0%

su

btot

al$2

8.4

$36.

2$3

1.7

4.4

14%

$6

3.7

$5

8.6

$6

6.8

($8

.2)

-12

.3%

TO

TA

L R

EV

EN

UE

$5

45

.5$

55

5.9

$5

68

.3($

12

.5)

-2.2

%

$53.

4$5

7.1

$56.

5($

0.6)

-1%

Sala

ry/W

ages

$448

.2$4

86.9

$493

.4$6

.51.

3%

$5.7

$6.8

$4.8

(2.0

)-4

3%O

vert

ime

$54.

4$5

3.6

$40.

4(1

3.2)

-33%

29.4

32.0

31.3

(0.7

)-2

%Fr

inge

Ben

efits

228.

025

8.2

254.

3(3

.9)

-2%

16.8

10.8

16.5

5.7

35%

Serv

ices

123.

011

6.0

136.

620

.615

%

7.6

4.3

5.9

1.6

27%

Supp

lies

50.7

57.3

49.6

(7.7

)-1

5%

6.9

9.2

9.3

0.1

1%Po

wer

/Die

sel/CN

G54

.262

.974

.711

.716

%

3.0

3.3

4.1

0.8

19%

Util

ities

22.8

24.4

27.8

3.4

12%

2.1

2.8

3.2

0.4

13%

Insu

ranc

e/O

ther

26.2

22.1

24.6

2.6

10%

$1

25

.0$

12

6.4

$1

31

.6$

5.3

4.0

%T

OT

AL E

XP

EN

SE

$1

00

7.4

$1

08

1.4

$1

10

1.4

$2

0.0

1.8

%

$6

1.2

$6

7.8

$6

4.9

($2

.9)

-4.5

%

SU

BS

IDY

$4

61

.9$

52

5.6

$5

33

.1$

7.5

1.4

%

Va

ria

nce

V

ari

an

ce

MO

NT

HLY

RE

SU

LT

SY

EA

R-T

O-D

AT

E R

ES

ULT

S

Cu

rre

nt

Ye

ar

Cu

rre

nt

Ye

ar

9