Vancouver 2010 operational expenses in line with business plan projections - Cash balance positive at $56.5 million and strong sponsor revenue received
March 14, 2008
Vancouver, BC – Operational activities
are ramping up, venue construction continues to wind down, and the
second quarter financial statements of the Vancouver Organizing
Committee for the 2010 Olympic and Paralympic Winter Games (VANOC)
released today reflect this stage of planning for the Games. In
addition VANOC is in a favourable cash balance position, at $56.5
million.
VANOC’s financial reporting reflects the two components of its business: 1) venue development activities, and 2) operating revenues and expenses. The quarterly report includes a management discussion and analysis and interim financial statements for the second quarter ended January 31, 2008. It is available at www.vancouver2010.com.
“Financially, we’re in a positive position with a cash balance of $56.5 million and a sound contingency on the capital construction side,” said VANOC Chief Financial Officer John McLaughlin. “These factors will help us as we meet the inevitable challenges that all organizing committees face in the final two years. VANOC’s operational spending in the past quarter was largely in areas such as sport and technology, all of which occurred in line with our business plan projections.”
VANOC’s net deferred operating expenses in the current quarter were $57.3 million as compared to $6.4 million for the period ending October 31, 2007. Excluding the impact of unrealized foreign exchange losses and gains, deferred operating expenses were $43.1 million for the quarter ended January 31, 2008, and $25.7 million for the quarter ended October 31, 2007. The $17.4 million increase over the preceding quarter is the result of higher spending across all divisions as activity increases organization-wide in the move from a planning phase to an operational phase.
Said John Furlong, VANOC Chief Executive Officer, “While we’re pleased with the progress to date, we also know that many tests lie ahead, as is expected in the normal course of staging the Games. With construction at the mountain venues substantially complete and our first Sport Event under our belt, our team is moving deeper into the operational phase. We’ve already had to quickly adapt to different weather conditions and make adjustments following feedback from athletes and our sport partners. It’s an important time for our team as we learn valuable lessons that will ultimately prepare us to stage extraordinary Games in 2010.”
VANOC’s net deferred operating revenue from sponsorship and other sources for the quarter ending January 31, 2008 was $43.1 million, as compared to $6.7 million in the last quarter.
Domestic sponsorship revenue increased significantly over the prior quarter, from $4.3 million to $43 million, as several large cash milestone payments were received, and $4.1 million in domestic value-in-kind (VIK) revenue was recorded during the quarter. VANOC has now entered into domestic sponsorship agreements worth approximately $709 million in total, or over 90 per cent of the overall target of $760 million.
VANOC’s total venue development expenditures for the quarter were $38.4 million, as compared to $63.3 million in the previous quarter, and now total $466.3 million. VANOC’s venue development central contingency remains adequate to protect against the remaining $125.5 million in the venue construction budget.
The venue construction timeline ensures venue readiness through Sport Events and other training and competition in advance of the Games. In particular, VANOC completed its field-of-play testing at the first official VANOC Sport Event for alpine skiing – the recently completed FIS Alpine World Cup, at Whistler Creekside.
VANOC’s workforce continues to grow substantially as the 2010 Winter Games draw near – increasing by 87 during the reporting period, to reach a total of 590 full-time staff.
In accordance with Canadian generally accepted accounting principles, all operating revenues and expenses are deferred prior to Games time. VANOC’s next quarterly report, covering the three months ending April 30, 2008, will be available in June 2008.
VANOC is responsible for the planning, organizing, financing and staging of the XXI Olympic Winter Games and the X Paralympic Winter Games in 2010. The 2010 Olympic Winter Games will be staged in Vancouver and Whistler from February 12 to 28, 2010. Vancouver and Whistler will host the Paralympic Winter Games from March 12 to 21, 2010. Visit www.vancouver2010.com.
VANOC’s financial reporting reflects the two components of its business: 1) venue development activities, and 2) operating revenues and expenses. The quarterly report includes a management discussion and analysis and interim financial statements for the second quarter ended January 31, 2008. It is available at www.vancouver2010.com.
“Financially, we’re in a positive position with a cash balance of $56.5 million and a sound contingency on the capital construction side,” said VANOC Chief Financial Officer John McLaughlin. “These factors will help us as we meet the inevitable challenges that all organizing committees face in the final two years. VANOC’s operational spending in the past quarter was largely in areas such as sport and technology, all of which occurred in line with our business plan projections.”
VANOC’s net deferred operating expenses in the current quarter were $57.3 million as compared to $6.4 million for the period ending October 31, 2007. Excluding the impact of unrealized foreign exchange losses and gains, deferred operating expenses were $43.1 million for the quarter ended January 31, 2008, and $25.7 million for the quarter ended October 31, 2007. The $17.4 million increase over the preceding quarter is the result of higher spending across all divisions as activity increases organization-wide in the move from a planning phase to an operational phase.
Said John Furlong, VANOC Chief Executive Officer, “While we’re pleased with the progress to date, we also know that many tests lie ahead, as is expected in the normal course of staging the Games. With construction at the mountain venues substantially complete and our first Sport Event under our belt, our team is moving deeper into the operational phase. We’ve already had to quickly adapt to different weather conditions and make adjustments following feedback from athletes and our sport partners. It’s an important time for our team as we learn valuable lessons that will ultimately prepare us to stage extraordinary Games in 2010.”
VANOC’s net deferred operating revenue from sponsorship and other sources for the quarter ending January 31, 2008 was $43.1 million, as compared to $6.7 million in the last quarter.
Domestic sponsorship revenue increased significantly over the prior quarter, from $4.3 million to $43 million, as several large cash milestone payments were received, and $4.1 million in domestic value-in-kind (VIK) revenue was recorded during the quarter. VANOC has now entered into domestic sponsorship agreements worth approximately $709 million in total, or over 90 per cent of the overall target of $760 million.
VANOC’s total venue development expenditures for the quarter were $38.4 million, as compared to $63.3 million in the previous quarter, and now total $466.3 million. VANOC’s venue development central contingency remains adequate to protect against the remaining $125.5 million in the venue construction budget.
The venue construction timeline ensures venue readiness through Sport Events and other training and competition in advance of the Games. In particular, VANOC completed its field-of-play testing at the first official VANOC Sport Event for alpine skiing – the recently completed FIS Alpine World Cup, at Whistler Creekside.
VANOC’s workforce continues to grow substantially as the 2010 Winter Games draw near – increasing by 87 during the reporting period, to reach a total of 590 full-time staff.
In accordance with Canadian generally accepted accounting principles, all operating revenues and expenses are deferred prior to Games time. VANOC’s next quarterly report, covering the three months ending April 30, 2008, will be available in June 2008.
VANOC is responsible for the planning, organizing, financing and staging of the XXI Olympic Winter Games and the X Paralympic Winter Games in 2010. The 2010 Olympic Winter Games will be staged in Vancouver and Whistler from February 12 to 28, 2010. Vancouver and Whistler will host the Paralympic Winter Games from March 12 to 21, 2010. Visit www.vancouver2010.com.
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