Cash balance positive at $56.5 million and strong sponsor revenue
VANCOUVER, March 14 /CNW/ - 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
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
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.
For further information:
For further information: Media Contacts: Chris Brumwell, Vancouver 2010,
(778) 328-6269; Margaret Nevin, Vancouver 2010, (778) 328-6475