Coastal Renaissance.

[Urban trekker]

``I even withdrew from a golf tournament because of it....wimp`

 

Careful PD - someone might remind you that has nothing to do with cruising unless there are little boats and ponds on the course that one could sail on.

 

I will be heading down around 5:30PM - probably will be in the Abbott crowd so keep an eye out for me.

 

GO CANUCKS GO !!!

 

Cheers

 

Dennis

[Putterdude]

Sorry, I forgot myself....:o

[scottbee]

BC FERRIES RELEASES THIRD QUARTER RESULTS

 

VICTORIA, Feb. 23 /CNW/ - British Columbia Ferry Services Inc. (BC Ferries) released its third quarter results today for fiscal 2010/11. The Company reported a net loss of $12.4 million for the three months ended December 31, 2010, compared to a net loss of $20.4 million in the same quarter last year. The current year third quarter results included a one-time gain of $9.3 million from the sale of the Company's former head office building. Net earnings for the nine-month period ended December 31, 2010 were $42.8 million, up from $40.2 million for the same period in the previous year.

Quarterly results are affected by the seasonality of leisure travel patterns. The second quarter, covering the summer period, experiences the highest traffic levels and highest net earnings. The third and fourth quarters reflect a seasonal reduction in traffic as well as higher refit and maintenance expenses.

For the three months ended December 31, 2010, total revenue increased by $2.4 million to $162.3 million compared to the same period the year prior. Total revenue for the nine months ended December 31, 2010, increased $8.6 million to $598.6 million.

For the three months ended December 31, 2010, total operating expenses increased $3.8 million to $165.6 million, compared to the same period last year, with expenses in the nine month period ended December 31, 2010 increasing by $12.3 million to $510.5 million compared to the nine months ended December 31, 2009. The increase in expenses reflects higher vessel and terminal maintenance costs; an increase in wages and benefits; and an increase in fuel prices.

On October 1, 2010, the Government of Canada announced that BC Ferries' request for duty remission on the four vessels built overseas had been granted. The $119.4 million in remission of import taxes and related GST has been utilized in an across the board ferry fare reduction of approximately 2 per cent effective October 18, 2010, and will be included in determining future fares in performance term three, which covers the period from April 1, 2012 through March 31, 2016. $20.0 million of this amount will be allocated to upgrade key assets in the ship repair and maintenance business in British Columbia.

In the third quarter of fiscal 2010/11, vehicle traffic declined by 0.9 per cent and passenger traffic increased by 0.4 per cent compared to the same period the year prior. Drop-trailer traffic increased, while bus and other commercial traffic decreased. On a year-to-date basis, vehicle traffic was 1.5 per cent lower and passenger traffic was 0.5 per cent lower than the prior year.

"With continued low traffic volumes and our commitment to fund on-going ship repair and maintenance programs as well as safety programs, we are currently forecasting a net loss for the year ending March 31, 2012, in the range of $20 million," said David L. Hahn, BC Ferries' President and CEO. "As a Crown Corporation in the past when faced with economic challenges, capital expenditures and other spending were cut to the detriment of the business. We will maintain all programs to ensure long-term safety and reliability."

In addition to low traffic levels, other factors contributing to the anticipated loss are such items such as the Harmonized Sales Tax, Transport Canada mandates and Freedom of Information overhead expenses. BC Ferries' strong balance sheet and cash position (aided significantly by the $119.4 million remission of federal import taxes and related GST on new vessels) will enable the Company to continue investing in its vessels, terminals and other assets. The Company expects to return to profitability in 2013.

By October 2010, BC Ferries relocated its head office to a new building in downtown Victoria. The initial term of the lease is 15 years, with four renewal options of five years each. On November 1, 2010, BC Ferries advanced the developer of the property $24.2 million for a term of 15 years, secured by a second mortgage on the property. Incidental to the loan, the developer has granted BC Ferries a purchase option for up to 50 per cent of their equity interest in the new building at a price of $24.2 million. On November 1, 2010, the previous head office building was sold for approximately $11.0 million, resulting in a net gain on the sale of $9.3 million.

On December 1, 2010, fuel rebates were removed from the major and minor routes. Currently, no fuel rebates or surcharges are in place on any of BC Ferries' 25 routes. In mid-December 2010, the Queen of Cumberland and Queen of Nanaimo returned to service in the Southern Gulf Islands after the completion of $6 million and $4 million refit and asset betterment projects respectively.

BC Ferries' full financial statements, including notes and Management's Discussion and Analysis, are filed on SEDAR and will be available at www.sedar.com.

FORWARD LOOKING STATEMENTS

This release contains certain "forward looking statements". These statements relate to future events or future performance and reflect management's expectations regarding our growth, results of operations, performance, business prospects and opportunities and industry performance and trends. They reflect management's current internal projections, expectations or beliefs and are based on information currently available to management. Some of the market conditions and factors that have been considered in formulating the assumptions upon which forward looking statements are based include traffic, the Canadian Dollar relative to the US Dollar, fuel costs, construction costs, the state of the local economy, fluctuating financial markets, demographics, tax changes, and the requirements of the Coastal Ferry Services Contract.

Forward looking statements included in this release include statements with respect to traffic levels; our short and long-range business plans; expectations regarding the impacts of the Harmonized Sales Tax, certain Transport Canada mandates, and Freedom of Information and Protection of Privacy Act overhead expenses; and expectations of a net loss in 2012 and a return to profitability in 2013. In some cases, forward looking statements can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue" or the negative of these terms or other comparable terminology. A number of factors could cause actual events or results to differ materially from the results discussed in the forward looking statements. In evaluating these statements, prospective investors should specifically consider various factors including, but not limited to, the risks and uncertainties associated with traffic volume and tariff revenue risk, safety and security, asset risk, accident risk, tax risk, environmental risk, regulatory risk, labour disruption risk, limitations of vessel repair facilities, risk of default under material contracts and aboriginal land claims.

Actual results may differ materially from any forward looking statement. Although management believes that the forward looking statements contained in this release are based upon reasonable assumptions, investors cannot be assured that actual results will be consistent with these forward looking statements. These forward looking statements are made as of the date of this release, and British Columbia Ferry Services Inc. assumes no obligation to update or revise them to reflect new events or circumstances except as may be required by applicable law.

[Putterdude]

Now let's see, Abbot lost, the Canucks lost, Kessler was heading for the Roxy, now did the sun come up this moring and shine on Burrard Inlet?

[LeftcoastBC]

as I see it Christy won :)

[Urban trekker]

No the sun is not shining on Burrard Inlet - in fact an icy chill descended over the Province around 6:30 PM last night. Here`s one comment I heard last night from one of the women MLA`s - that women - Clark - is talking about change and hasn`t talked to any of us in caucus about it before talking to the media etc. Going to be an interesting couple of weeks during and after the transition.

 

Looking forward to reading the earnings report for CCL, NCL, RCCL, Princess etc

 

Starting to warm up - slush is becoming the order of the day downtown.

 

PD - you will like this - they had the Hornby Street bike lane plowed and cleared first thing this morning while the main street was a snowy slushy mess.

 

Time to cruise on out of here and upload some snow photos to the Facebook page. A favorite will be two people cross country skiing along Sunset Beach.

 

Cheers

 

Dennis

[scottbee]

The new German ferries are only the 3rd vessel (½ day) on SWB-TSW and aren't running at all on HSB-NAN. I thought they were supposed to be the be-all end-all?

[porsena]

BCF announced last week that the Klitsa will replace the Mill Bay on the Mill Bay run this June, the latter being put up for sale. The replacement requires modifications to the docks in Mill Bay and Brentwood, which means no sailings on this route May 2 - May 31. The Klitsa takes 26 cars compared to the Mill Bay's 16. While that seems a big improvement, it still won't clean up the summer lineups.

 

You'd think BC residents would know better than to vote for a Premier named Clark.

[Putterdude]

Got the press release on the offering of the Mill Bay....it will be interesting who steps to up the plate.

Chirsty was my number 3 choice behind Falcon and Abbot but now will just have to wait and see. She has said that she will allow ministers to make more decisions...so once the power has been re-distributed there will likely be a lot of smiling faces.

However I sure had to giggle at that team of Barnsworth and Dicks....wow the bench strength has to be pretty weak when that is the best the opposition can field.:eek:

And don't tell me about the bike lanes being plowed...call the mayor's office...I'm to busy playing golf.:)

[scottbee]

BCF announced last week that the Klitsa will replace the Mill Bay on the Mill Bay run this June, the latter being put up for sale. The replacement requires modifications to the docks in Mill Bay and Brentwood, which means no sailings on this route May 2 - May 31. The Klitsa takes 26 cars compared to the Mill Bay's 16. While that seems a big improvement, it still won't clean up the summer lineups.

 

Like most of the locally built ferries (MV Mill Bay, Victoria Machinery Depot, 1956), she had a long long life.

[Putterdude]

You are living in the past, there hasn't been a decent ship of any size built in BC yards since the Spirit Class vessels. Unfortunatley the craft of shipbuilding is dead is BC. I am not sure when even a cruise ship was last built in North America.....which is also to bad.

[Urban trekker]

The new Premier`s initials are CC and here we are posting on a site with the initials CC.

 

Cheers

 

Dennis

[LeftcoastBC]

PD your third pick of CC put her over the top on the third ballet count :)

 

I remember watching the Spirit Class ships being put together on River Road in Delta. Didn't the hulls get built off shore for them too.?

[Putterdude]

PD your third pick of CC put her over the top on the third ballet count :)

 

I remember watching the Spirit Class ships being put together on River Road in Delta. Didn't the hulls get built off shore for them too.?

 

OK, I am to blame.:)

As I recall the hulls were built in a couple of BC yards then assembled in Delta.

By the way I noted the obituary today for George Forbes who who had a long career in BC shipbuilding. I didn't know him personally but knew his partner in Bel-Aire Shipyards and know that he was very highly thought of. Another link in the BC shipbuilding industry is gone.