BC Ferries releases second quarter results
VICTORIA,
During the second quarter, vehicle and passenger traffic increased by 4.3 per cent and 1.7 per cent respectively over the same period last year. During the quarter, BC Ferries provided over 48,000 sailings, carrying 7.2 million customers and 2.7 million vehicles. "Many customers took advantage of our summer CoastSaver fare program," said David L. Hahn, BC Ferries' President and CEO.
Total revenue for the three-month period ended
"We continue to see the benefits of the cost containment program we implemented last year," said Hahn. "In this period of economic uncertainty, we must continue to manage our business in a fiscally prudent manner." Administration expenses decreased
As expected, amortization and interest expense increased as a result of new vessels (Coastal Inspiration, Coastal Celebration, Northern Expedition and Island Sky) coming into service, and a major ship upgrade (Queen of New Westminster). Amortization expense increased by
BC Ferries completed its major financing requirements in fiscal 2009. The company's ongoing capital expenditures are expected to be significantly lower than in the previous few years. At
Notable events during the period included increases in fuel rebates from 5 per cent to 8 per cent for minor routes on
Full financial statements, including notes and Management's Discussion & Analysis, are filed on SEDAR and will be available at www.sedar.com.
BC Ferries is one of the largest ferry operators in the world based on passengers transported annually and transportation infrastructure, and carried 20.7 million passengers and 8.1 million vehicles during the fiscal year ended
This release contains historical information and may contain certain forward-looking statements that relate to future events or future performance. These forward-looking statements are based upon management's currentexpectations and assumptions as to a number of factors, including, the risks, uncertainties and other factors as described in BC Ferries' Management's Discussion & Analysis and certain of the other BC Ferries' documents available at www.sedar.com. These forward-looking statements are based upon information currently availableto management and BC Ferries assumes no obligation to update or revise them to reflect new events orcircumstances. If management's expectations and assumptions prove to be incorrect, or factors change, thenactual results could differ materially from the forward-looking information contained in this release.
BRITISH COLUMBIA FERRY SERVICES INC. Consolidated Balance Sheets (expressed in thousands) ------------------------------------------------------------------------- September 30, 2009 March 31, 2009 (unaudited) ------------------------------------------------------------------------- Assets Current assets: Cash and cash equivalents $ 55,040 $ 12,402 Restricted cash and short-term investments 37,240 37,240 Other short-term investments 178 153 Accounts receivable 19,192 12,883 Prepaid expenses 5,748 8,132 Inventories 19,274 16,835 Derivative assets 1,810 - Regulatory assets 4,775 4,775 ----------------------------------------------------------------------- 143,257 92,420 Property, plant and equipment 1,652,354 1,683,576 Intangible assets 23,782 19,866 Assets held for sale 3,308 435 Regulatory assets 312 11,687 Long-term land lease 33,666 33,896 ------------------------------------------------------------------------- $ 1,856,679 $ 1,841,880 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Liabilities and Shareholders' Equity Current liabilities: Accounts payable and accrued liabilities $ 26,942 $ 41,153 Short-term debt - 17,956 Interest payable on long-term debt 18,427 18,395 Accrued employee costs 48,660 51,923 Deferred revenue 13,680 15,783 Derivative liabilities 75 923 Regulatory liabilities 103 2,858 Current portion of long-term debt 9,000 9,000 Current portion of accrued employee future benefits 800 800 Current portion of obligations under capital lease 459 541 ----------------------------------------------------------------------- 118,146 159,332 Accrued employee future benefits 11,647 12,047 Long-term debt 1,352,211 1,356,239 Obligations under capital lease 322 537 Other long-term liabilities 178 153 ------------------------------------------------------------------------- 1,482,504 1,528,308 ------------------------------------------------------------------------- Shareholders' equity: Share capital 75,478 75,478 Retained earnings 298,697 238,094 ----------------------------------------------------------------------- 374,175 313,572 Commitments ------------------------------------------------------------------------- $ 1,856,679 $ 1,841,880 ------------------------------------------------------------------------- ------------------------------------------------------------------------- BRITISH COLUMBIA FERRY SERVICES INC. Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings (unaudited) (expressed in thousands) ------------------------------------------------------------------------- Three months ended Six months ended September 30 September 30 2009 2008 2009 2008 ------------------------------------------------------------------------- Revenue: Tariffs $ 161,336 $ 151,994 $ 269,379 $ 259,989 Ferry service fees 45,614 37,811 83,848 69,459 Federal-Provincial Subsidy Agreement 6,731 6,574 13,462 13,147 Retail 28,875 27,198 48,764 46,891 Other income 9,267 8,506 14,625 14,507 ----------------------------------------------------------------------- 251,823 232,083 430,078 403,993 ------------------------------------------------------------------------- Expenses: Operations 110,076 108,833 210,535 207,584 Maintenance 14,130 16,477 37,832 34,812 Administration 7,016 8,401 14,462 17,469 Cost of retail goods sold 10,350 9,688 17,883 16,862 Amortization 28,748 22,443 55,703 42,697 ----------------------------------------------------------------------- 170,320 165,842 336,415 319,424 ------------------------------------------------------------------------- Earnings from operations 81,503 66,241 93,663 84,569 Gain on foreign exchange 34 123 37 220 Interest expense (17,307) (12,556) (33,072) (23,826) (Loss) gain on disposal of capital assets (25) (62) (25) 1,139 ------------------------------------------------------------------------- Net earnings 64,205 53,746 60,603 62,102 Other comprehensive income - - - - ------------------------------------------------------------------------- Net earnings and comprehensive income 64,205 53,746 60,603 62,102 Retained earnings, beginning of period 234,492 243,459 238,094 235,103 ------------------------------------------------------------------------- Retained earnings, end of period $ 298,697 $ 297,205 $ 298,697 $ 297,205 ------------------------------------------------------------------------- ------------------------------------------------------------------------- BRITISH COLUMBIA FERRY SERVICES INC. Consolidated Statements of Cash Flows (unaudited) (expressed in thousands) ------------------------------------------------------------------------- Three months ended Six months ended September 30 September 30 2009 2008 2009 2008 ------------------------------------------------------------------------- Cash provided by (used in): Operations: Net earnings $ 64,205 $ 53,746 $ 60,603 $ 62,102 Items not involving cash: Amortization 28,748 22,443 55,703 42,697 Other non-cash charges 467 (112) (249) (1,084) Long-term regulatory costs deferred 3,529 1,737 6,254 741 Change in non-cash operating working capital (19,189) (4,296) (20,983) (26,045) ----------------------------------------------------------------------- 77,760 73,518 101,328 78,411 ------------------------------------------------------------------------- Financing: Proceeds from issuance of bonds - - - 90,000 Establishment of debt service reserve - - - (2,225) Repayment of long-term debt (4,500) - (4,500) - (Repayment of) proceeds from short-term loans (19,990) 10,974 (17,956) 10,974 Repayment of capital lease obligations (142) (202) (297) (330) Deferred financing costs incurred - (3) - (243) ----------------------------------------------------------------------- (24,632) 10,769 (22,753) 98,176 ------------------------------------------------------------------------- Investing: (Cost of) proceeds from disposal of property, plant and equipment and intangible assets - (28) 4 1,381 Purchase of property, plant and equipment and intangible assets (13,456) (88,252) (35,916) (283,075) (Purchase of) proceeds from short-term investments (25) 2,399 (25) (4,993) ----------------------------------------------------------------------- (13,481) (85,881) (35,937) (286,687) ------------------------------------------------------------------------- Increase (decrease) in cash and cash equivalents 39,647 (1,594) 42,638 (110,100) Cash and cash equivalents, beginning of period 15,393 7,823 12,402 116,329 ------------------------------------------------------------------------- Cash and cash equivalents, end of period $ 55,040 $ 6,229 $ 55,040 $ 6,229 ------------------------------------------------------------------------- -------------------------------------------------------------------------
%SEDAR: 00020627E
For further information: Media Contact: BC Ferries, Media Relations, Victoria: (250) 978-1267; Customer Contact: Victoria: (250) 386-3431, Toll-free: 1-888-BCFERRY (1-888-223-3779)
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