ANNUAL REPORT 2008/09 - BC Transit

Management Discussion and AnalysisDated May 22, 2009The following is our discussion and analysis of the financial condition and results of operations for BC Transit as of May 22, 2009.This should be read in conjunction with our audited financial statements and related notes for the years ended March 31, 2009(fiscal 2009) and March 31, 2008 (fiscal 2008). These documents are available at http://www.bctransit.com/corporate/general_info/annual_reports.cfm.Except where indicated, all financial information herein is expressed in thousands and Canadian dollars.Financial ReportManagement Discussion and AnalysisFigures in thousands, except FTEs 2004/05 2005/06 2006/07 2007/08 2008/09Actual * Actual * Actual * Actual Actual Target Variance (Un)FavourableRevenuePassenger and advertising 44,996 47,366 50,917 55,925 59,632 62,333 (2,701)Investment and other income 1,486 1,748 2,364 3,380 2,859 2,516 343Provincial Contributions 47,102 52,055 52,065 58,126 71,874 69,874 2,000Amortization of deferred capital contributionson capital assets 5,185 4,266 5,960 7,237 9,743 12,452 (2,709)Contributions from municipalities 30,877 32,948 39,734 47,606 53,847 54,093 (246)Total Revenues 129,646 138,383 151,040 172,274 197,955 201,268 (3,313)ExpendituresOperations 73,915 83,802 89,325 98,031 114,437 114,197 (240)Maintenance 24,987 25,014 27,660 30,226 36,237 34,795 (1,442)Administration 12,005 12,739 13,291 16,600 18,752 17,611 (1,141)Debt Service 18,962 16,950 22,332 25,127 28,253 34,665 6,412Total Expenditures 129,869 138,505 152,608 169,984 197,679 201,268 3,589Revenue From Transit Operations (223) (122) (1,568) 2,290 276 0 276Adjustments for Non-Transit Operating Items:Amortization of capital assets under lease (15,861) (14,895) (15,291) (32,654) (32,654) (32,654) 0Amortization of deferred capital contributionson capital assets under lease 15,861 14,895 15,291 31,242 31,242 32,654 (1,412)Loss on disposal of assets 103 800 26 (94) (329) 0 (329)Loss on foreign exchange and derivatives 0 0 0 821 (1,073) 0 (1,073)Net Revenue (Expenditures) for the Year (120) 678 (1,542) 1,605 (2,538) 0 (2,538)Capital expendituresVehicle 3,983 16,869 15,753 35,893 63,933 68,775 4,842Non-Vehicle 4,229 4,544 1,033 2,399 5,041 5,050 98,212 21,413 16,786 38,292 68,974 73,825 4,851FTEs (as at year end) 579 609 646 706 760 789 (29)Service hours 1,601 1,654 1,716 1,827 2,011 2,056 (45)Passengers 38,609 40,716 42,534 44,685 47,576 48,307 (731)* Excludes impact of changes in accounting policies adopted during 2008/0921BC TRANSIT 2008/09 ANNUAL REPORT