VANOC's positive cash position in latest quarterly report tempered by tough economy and challenging market conditions



    VANCOUVER, June 16 /CNW/ - The Vancouver Organizing Committee for the
2010 Olympic and Paralympic Winter Games (VANOC) today released its report for
the third quarter of the fiscal year, which includes a positive cash position
of $127 million, largely due to the timing of payments received and
expenditures made while operating in the most challenging economic conditions
in recent history. The report includes a management discussion and analysis,
and interim financial statements for the period ending April 30, 2009. VANOC's
quarterly report is available at www.vancouver2010.com.
    "We are pleased with our positive cash position for the quarter, which is
almost entirely due to the timing of payments from various partners and ticket
sales revenue. However, as we've said before, we are not immune to the issues
and challenges posed by the economic downturn so the final eight months will
be very challenging with the biggest spending quarters ahead of us," said Dave
Cobb, executive vice president and deputy chief executive officer. "Like all
companies, we continue to carefully review revenues and costs and apply
rigorous scrutiny to every decision that has any kind of financial
ramification."
    John McLaughlin, VANOC's chief financial officer added, "We are actively
in the market procuring a wide range of goods and services required for the
Games. The busiest procurement period is ahead of us with 62 per cent of our
overall spending to come. While many potential suppliers are cautious or
simply unable to get involved with us due to the prevailing economic
conditions, many companies see the compelling opportunity provided by the
Games. We're very pleased with the quality of suppliers and contractors who
are engaging. We negotiate every contract carefully, balancing costs and
service levels against our commitments to athletes, spectators and partners."
    The management discussion and analysis portion of this report includes a
detailed discussion and analysis of financial results, venue development
activities and financial position. In summary:

    
    -   Deferred operating revenues exceeded deferred operating expenses by
        $128.9 million for the quarter, compared to $145.9 million in the
        previous quarter ending January 31, 2009. On a project-to-date basis,
        there is an excess of deferred operating revenues over deferred
        operating expenses of $182.3 million.

    -   The Organizing Committee's net deferred operating revenue for this
        quarter was $234.8 million and was comprised mainly of contributions
        from the IOC ($92.6 million), ticket sales ($52.9 million),
        international and domestic sponsorship ($36.3 million), Paralympic
        contributions ($24.7 million), licensing and merchandising ($2.2
        million) and other revenue ($38.5 million).On a project-to-date
        basis, deferred operating revenues were $847.4 million.This
        represents approximately 48.3 per cent of budgeted operating revenues
        for the project.

    -   VANOC's net deferred operating expenses in the quarter were $105.8
        million. Excluding the impact of the net foreign exchange gain,
        deferred operating expenses were $106.1 million. On a project-to-date
        basis, deferred operating expenditures totalled $665.1 million, or
        about 37.9 per cent of the project budget. In accordance with
        Canadian generally accepted accounting principles, all revenues and
        expenses are deferred prior to Games time.

    -   VANOC's total venue construction expenditures for the quarter were
        $10.6 million. Project-to-date venue construction expenditures now
        total $543.7 million, which represents 91.9 per cent of the venue
        construction budget. In addition, an $8.3-million central contingency
        draw for BC Place has been approved by the Organizing Committee's
        board of directors, reducing the contingency balance from $9.6
        million to $1.3 million.
    

    The quarterly report contains the updated Games operating budget,
approved by VANOC's board of directors in January, as well as a summary of the
Organizing Committee's operating budget, current and project-to-date revenues
and expenditures. VANOC continues to refine and update its forecast of the
Games operating budget on an ongoing basis.
    The next financial report will be released in October 2009 and will
include the audited financial statements for the year ending July 31, 2009.

    About VANOC

    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. Please visit www.vancouver2010.com for
more information.





For further information:

For further information: Media Contacts: Jason Macnaughton, Vancouver
2010, (604) 403-2734, jason_macnaughton@vancouver2010.com; Greg Alexis,
Vancouver 2010, (604) 403-1627, greg_alexis@vancouver2010.com

Organization Profile

VANCOUVER ORGANIZING COMMITTEE FOR THE 2010 OLYMPIC AND PARALYMPIC WINTER GAMES

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