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)
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September 30, 2009 March 31, 2009
(unaudited)
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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
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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
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$ 1,856,679 $ 1,841,880
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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
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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
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1,482,504 1,528,308
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Shareholders' equity:
Share capital 75,478 75,478
Retained earnings 298,697 238,094
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374,175 313,572
Commitments
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$ 1,856,679 $ 1,841,880
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BRITISH COLUMBIA FERRY SERVICES INC.
Consolidated Statements of Earnings, Comprehensive Income and Retained
Earnings (unaudited)
(expressed in thousands)
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Three months ended Six months ended
September 30 September 30
2009 2008 2009 2008
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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
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251,823 232,083 430,078 403,993
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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
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170,320 165,842 336,415 319,424
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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
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Net earnings 64,205 53,746 60,603 62,102
Other comprehensive income - - - -
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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
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Retained earnings, end
of period $ 298,697 $ 297,205 $ 298,697 $ 297,205
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BRITISH COLUMBIA FERRY SERVICES INC.
Consolidated Statements of Cash Flows (unaudited)
(expressed in thousands)
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Three months ended Six months ended
September 30 September 30
2009 2008 2009 2008
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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)
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77,760 73,518 101,328 78,411
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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)
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(24,632) 10,769 (22,753) 98,176
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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)
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(13,481) (85,881) (35,937) (286,687)
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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
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Cash and cash equivalents,
end of period $ 55,040 $ 6,229 $ 55,040 $ 6,229
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%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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