TO2015 Releases Latest Quarterly Financials

Conference call with TO2015 CEO and executives today at 1:30 p.m.

TORONTO, March 4, 2014 /CNW/ - The TORONTO 2015 Pan Am/Parapan Am Games Organizing Committee (TO2015) is continuing to track on target with its annual budgetary spending, with almost $1 billion of its $1.4-billion budget remaining.

TO2015's quarterly financials were reviewed by the Organizing Committee's Audit Committee. Documents outlining its infrastructure budget and quarterly financial graphs covering the fiscal period ending December 31, 2013 (FY 2014, Q3) are available at TORONTO2015.org.

TO2015's senior leadership team will be available to the media at 1:30 p.m. (ET) today. For details on how media can dial in, please see below.

"With 17 months left to go before Games time, TO2015 is continuing to track well against its financial budgetary forecasting. It's steady as we go — with a careful eye always watching for additional efficiencies and best practices," said Saäd Rafi, who took over as chief executive officer of TO2015 on January 6.

In the third quarter, TO2015's operating expenses were $16.9 million and were predominantly spent in the areas of technology, risk management, transportation, sport operation and broadcast. Since inception, the Organizing Committee has spent $100.1 million or 13.1 per cent of its total operations budget of $767 million.

TO2015's total venue construction expenditures for the quarter were $58.4 million, including: $21.6 million for the CIBC Hamilton Pan Am Soccer Stadium, $11.1 million for the Atos Markham Pan Am/Parapan Am Centre, $10.2 million for the CIBC Pan Am/Parapan Am Aquatics Centre and Field House; $6.9 million for the CIBC Pan Am/Parapan Am Athletics Stadium; $5.7 million for the Cisco Milton Pan Am/Parapan Am Velodrome; and the balance on other smaller projects.

Project-to-date venue construction expenditures amounted to $321 million, representing 44 per cent of the total capital budget.

TO2015's overall capital building program is continuing to come in under budget. The $57.5-million positive variance in the capital budget first reported in the November 2012 Quarterly Report remains unchanged.

Other highlights include:

  • An extra day has been added to the TORONTO 2015 Parapan Am Games sport schedule. The start date for the largest Parapan Am Games ever held remains Friday, August 7, 2015, however they will now close on Saturday, August 15, 2015. For more information, visit TORONTO2015.org.

  • TO2015 has added five new corporate sponsors: Premier Partner Atos and Official Suppliers: Allstream, Coca-Cola, Schenker of Canada and CAA South Central Ontario. Additional sponsor announcements are in the works.

  • TO2015 has posted its Q3 summary (ending December 31, 2013) of expense claims for its executive and board of directors at TORONTO2015.org.

  • Three new venues have been confirmed for the Games: Toronto International Trap & Skeet Club (shooting); Planet Bowl (bowling) and Will O' Wind (equestrian cross-country).

  • Currently at 338 employees, TO2015 is continuing to ramp up hiring for Games time with almost 100 anticipated staff yet to be recruited.

  • Since inception, 835 businesses have sold goods and services to TO2015, totaling more than $35.5 million as of February 28, 2014. Seventy per cent went to businesses operating in the Greater Golden Horseshoe region. Of the suppliers used, 182 were diverse suppliers, meaning they are 51 per cent owned by women, visible minorities, Aboriginal peoples, persons with disabilities or from the LGBTQ community. Diverse suppliers accounted for $5.1 million in business with TO2015.

  • TO2015 also opened its online store last quarter and announced it had selected five key official licensees through a request for proposals process. The licensees are: Northern Gifts; Trimark Sportswear Group; The Pin People of Regina; Staples Promotional Products; and, Promotion Resource Group.

  • Since mid-July 2013, TORONTO 2015 Games mascot PACHI the porcupine has attended 203 events, including 90 school visits in southern Ontario, and greeted approximately 53,000 people. His plush likeness is now available in stores and online at TORONTO2015.org.

Enterprise Risk Management
Since mid-2012, TO2015 has implemented a robust enterprise risk management process that is continuing to evolve in preparation for the delivery of the Games.

TO2015 Budget Background
The overall budget for the TORONTO 2015 Games remains unchanged at $1.441 billion. Of the total amount, $674 million is dedicated to a capital budget for new venues and renovating existing facilities and $767 million is dedicated to the operations of staging the Games.

The budget is composed of up to $500 million from the Government of Canada, $500 million from the Government of Ontario, along with $288 million from municipal governments, universities and venue owners and an estimated $153 million raised through sponsorships, ticketing and other revenue measures.

The budget includes the costs of overlay, some essential services and the need for appropriate contingencies for the capital and operating components of the Games. It has been reviewed and confirmed by independent third-party financial experts and by experts in staging large-scale, international, multi-sport events.

In addition to the $674-million capital budget, there are other supportive investments being made. As per the Bid Book, the construction of the CIBC Pan Am/Parapan Am Athletes' Village, which will be a permanent residential community following the Games, is not included in the TO2015 capital budget.

The construction of the Field House in Markham is funded solely by the City of Markham for $34 million. As announced in 2011, the Province of Ontario is investing an additional $22.3 million in Hamilton's new stadium.

When it announced its budget in May 2012, TO2015 committed to regular updates to the public. Today's Quarterly Report is the sixth in an ongoing series of regular, quarterly organizational updates as the Organizing Committee moves forward to Games time.

Like the Province of Ontario, TO2015's financial reporting follows the fiscal year, which ends March 31, rather than the calendar year, which ends on December 31. This is why the bulk of the Organizing Committee's operating expenses, for example, will be paid in fiscal year 2016; though occurring in the summer of 2015, the Games will take place during the second quarter of fiscal year 2016.

The next Quarterly Report will be released in May 2014 and will cover the final quarter of fiscal 2014.

TO2015 Quarterly Report Media Conference Call Details

When:           Tuesday, March 4, 2014
          1:30 p.m. to 2:30 p.m. (ET)
           
Who:           Saäd Rafi, chief executive officer, TO2015
          Barbara Anderson, chief financial officer, TO2015
          Murray Noble, senior vice-president, infrastructure, TO2015
          Kathy Henderson, senior vice-president, marketing and revenue, TO2015
          Jason Fellen, senior director, capital projects, sport and venues, TO2015
           

To access the conference call by telephone, dial toll-free 1.800.901.1807 within North America. Please connect approximately 10 minutes prior to the beginning of the call.

About TO2015
The TORONTO 2015 Pan Am/Parapan Am Games Organizing Committee (TO2015) is tasked with the responsibility of planning, managing and delivering the Games. Its mission is to ignite the spirit through a celebration of sport and culture. The TORONTO 2015 Pan American Games will take place July 10-26 and the Parapan American Games August 7-15.

The 2015 Games are funded by the Government of Canada, the Province of Ontario, as well as other partners and sponsors. CIBC is the Lead Partner of the Games.

For more information about the Games, please visit TORONTO2015.org.

SOURCE Toronto 2015 Pan/Parapan American Games

For further information:

Teddy Katz
Director, media relations and chief spokesperson, TO2015
416.957.2117
teddy.katz@toronto2015.org