Year-end financial report shows VANOC on track to meet balanced budget goal

    
    Cash outflows to rise as payouts to suppliers begin in earnest as Games
    approach
    

VANCOUVER , Oct. 26 /CNW/ - The Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) today released its year-end fiscal report, which includes a net positive cash position of $182.2 million . The surplus is largely due to the timing of payments received and expenditures made and VANOC remains on track to finish the Games with a balanced budget. The report, which includes audited financial statements for the period ending July 31, 2009 , is available at www.vancouver2010.com.

"Our financial results over the past year were positive despite being in the midst of one of the toughest economic environments in a very long time. And while we're pleased with the result, it's important to highlight that we are in a positive cash position because of the timing of payments and expenditures," explained John McLaughlin, VANOC's chief financial officer.

"Because of the nature of this project we shouldn't take these results as necessarily indicative of the future - Games' budgets simply don't work that way. We've entered into substantial commitments for the goods and services required for the Games and soon our cash outflows will increase dramatically as we pay our suppliers. We need to continue to move forward cautiously with a disciplined financial strategy in the remaining 112 days to ensure we finish with a balanced budget."

The management discussion and analysis portion of VANOC's year-end report includes a detailed discussion and analysis of financial results, venue development activities and financial position. In summary:

VANOC's excess of deferred operating revenues over deferred operating expenditures for the year ending July 31, 2009 was $225.4 million , compared to a deficit of $48.1 million for the previous year. On a project-to-date basis, there is an excess of deferred operating revenues over deferred operating expenses of $198 million . In accordance with Canadian generally accepted accounting principles, all revenues and expenses are deferred until the staging of the Games in 2010.

The Organizing Committee's total deferred operating revenue for the year was $629.3 million and comprised mainly of ticket sales, international and domestic sponsorship, contributions from the International Olympic Committee (IOC), Paralympic contributions, licensing and merchandising, and other revenue. On a project-to-date basis, deferred operating revenues were $966 million .

VANOC's total deferred operating expenses for the year were $403.9 million , compared with $170.4 million in 2008. On a project-to-date basis, deferred operating expenditures totalled $768 million .

VANOC's total venue construction expenditures for the year were $62.9 million . Project-to-date venue construction expenditures now total $555.4 million .

VANOC's next financial report will be released in December 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. Visit www.vancouver2010.com.

For further information: Media Contacts: Jason Macnaughton, Vancouver 2010, [phone], [email protected]; Greg Alexis, Vancouver 2010, [phone], [email protected]