June 17, 2009 (Vancouver, BC) – The Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) has 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.