BC Ferries releases 2010 year-end results
Wednesday, June 16th, 2010 - 9:30 am
British Columbia Ferry Services Inc. (BC Ferries) on June 10th released its financial results for the year ended March 31, 2010.
- Consolidated net earnings were $3.4 million for the year, compared to net earnings of $9.0 million the previous year.
- Revenues for the year increased from $681.8 million to $732.3 million, while operating expenses increased from $624.2 million to $660.0 million. The increase in expenses includes $22.1 million in amortization costs, $8.4 million in maintenance costs, and $6.3 million in wage rate increases from an average 3 per cent increase in accordance with the collective agreement. In addition, interest expense increased by $17.5 million over the previous fiscal year.
- Capital expenditures for the year totalled $81.4 million. As part of the federal government’s “Infrastructure Stimulus Fund” program, BC Ferries will qualify for partial reimbursements of eligible costs for eleven terminal upgrades including eight sewage pump-ashore and waste water treatment projects. The net funding expected to be received is $7.5 million.
- In fiscal 2010, BC Ferries experienced an increase of 1.5 per cent in both passenger and vehicle traffic as economic conditions began to improve and fuel prices declined compared to the previous year. BCF carried 21 million passengers and 8.3 million vehicles during the fiscal year ended March 31, 2010.
- BC Ferries serves 25 routes, currently supported by 36 vessels and 47 terminals, and also manages other remote routes through contracts with independent operators. During the last fiscal year, the new Northern Expedition entered service on the Inside Passage between Port Hardy and Prince Rupert and the Queen of Vancouver and the Queen of Prince Rupert were decommissioned. The Queen of Vancouver and the previously decommissioned Queen of Saanich were sold during the year, while the Queen of Prince Rupert remains available for sale.
BC FERRIES INCOME STATEMENT
| Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings | ||
| (expressed in thousands) | ||
| Year-end March 31 | ||
| 2010 | 2009 | |
| Revenue: | ||
| Tariffs | 450,508 | 429,063 |
| Ferry service fees | 149,507 | 124,485 |
| Federal-Provincial Subsidy Agreement | 26,924 | 26,294 |
| Retail | 80,809 | 78,060 |
| Other income | 24,557 | 23,898 |
| $732,305 | $681,800 | |
| Expenses: | ||
| Operations | 398,792 | 387,782 |
| Maintenance | 85,579 | 77,124 |
| Administration | 30,330 | 37,220 |
| Cost of retail goods sold | 30,127 | 28,929 |
| Amortization | 115,175 | 93,088 |
| 660,003 | 624,143 | |
| Earnings from operations | $72,302 | $57,657 |
| Gain on foreign exchange | 144 | 244 |
| Interest expense | -67,638 | -50,111 |
| (Loss) gain on disposal and impairment of capital assets | -1,386 | 1,239 |
| Net earnings | $3,422 | $9,029 |
| Other comprehensive income | - | - |
| Net earnings and comprehensive income | 3,422 | 9,029 |
| Retained earnings, beginning of year | 238,094 | 235,103 |
| Preferred share dividend | -6,038 | -6,038 |
| Retained earnings, end of year | $235,478 | $238,094 |
BC Ferries’ full financial statements, including notes and Management’s Discussion and Analysis are now available on SEDAR. (Source: BC Ferries press release)
