ANNUAL REPORT 2008/09 - BC Transit

Performance SummaryNon-GAAP Financial MeasuresThroughout this performance summary and management’sdiscussion and analysis, BC Transit uses the terms “ridership”,“rides per capita”, “service hours”, “revenue passengers”, “netdebt service costs”, “FTEs” and “total capitalization”. Theseterms do not have any standardized meaning as prescribedby Canadian generally accepted accounting principles (GAAP)and, therefore, may not be comparable with the calculation ofsimilar measures presented by others.The terms used are considered to be industry-wide standardindicators and performance measures used throughout theNorth American transit industry and are used to measure theachievement of BC Transit’s strategic goals. Data reliabilityis obtained as follows: ridership information is collectedusing an industry-standard reporting protocol and commondefinitions. (The same information is used by Statistics Canadafor its Standard Industrial Classification reports.) Estimatesare derived using statistically valid sampling measuresfrom sources of data which include comparisons betweenrevenue, farebox passenger counts and automated passengercounts. Per capita estimates use population figures from themost recently published census, adjusted annually by B.C.Statistics and collated for the respective Transit Service Areasby BC Transit. Service hours delivered is calculated based onbillings and operating statements in the Municipal SystemsProgram, which are verified by audits. Service hours deliveredin Victoria are based on payroll records. Actual financial resultsare derived from BC Transit’s audited financial statementswhich are prepared in accordance with Canadian generallyaccepted accounting principles.Forward Looking StatementsThis performance summary and management’s discussionand analysis contain certain “forward looking statements”.These statements relate to future events or futureperformance and reflect management’s expectationsregarding our growth, results of operations, performance,business prospects and opportunities and industryperformance and trends. They reflect management’s currentinternal projections, expectations or beliefs and are based oninformation currently available to management.Some of the market conditions and factors that have beenconsidered in formulating the assumptions upon whichforward looking statements are based include ridership,the Canadian Dollar relative to U.S. Dollar, fuel costs, fleetmaintenance costs, labour costs and availability, transit systemrequest for proposal costs, facilities and environmentalcompliance and the provincial and local economies inwhich BC Transit operates. In some cases, forward lookingstatements can be identified by terminology such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”,“predict”, “potential”, “continue” or the negative of theseterms or other comparable terminology. A number of factorscould cause actual events or results to differ materially fromthe results discussed in the forward looking statements.In evaluating these statements, readers should specificallyconsider various factors including, but not limited to, the risksand uncertainties associated with ridership risk, currency risk,commodity risk, asset risk, safety and security, environmentalrisk, regulatory risk, labour disruption risk, risk of default undermaterial contracts.Actual results may differ materially from any forward lookingstatement. Although management believes that theforward looking statements contained in this management’sdiscussion and analysis are based upon reasonableassumptions, readers cannot be assured that actual resultswill be consistent with these forward looking statements.These forward looking statements are made as of the dateof this management’s discussion and analysis, and BC Transitassumes no obligation to update or revise them to reflectnew events or circumstances.Impact from Changes in Accounting PolicyUnless otherwise stated, budget and target informationincluded in management’s discussion and analysis doesnot reflect the impact of changes in accounting policy.See “Significant Accounting Changes” section in themanagement discussion and analysis and BC Transit’s auditedfinancial statements for accounting policy changes andimpact to comparative year.19BC TRANSIT 2008/09 ANNUAL REPORT