Reviewing BC Ferries financial statements this week, I was reminded of a radio interview I heard early in the tenure of the current BC Ferries CEO. That was shortly after he banked a $200,000 bonus, provided to him by the ferry corporation because he was not going to collect bonuses in the future. (Don’t worry if this seems odd; no one else understands the logic either.)
Mike Corrigan appeared on Sean Leslie’s CKNW program June 17, 2012, explaining how a net loss at BC Ferries was actually good news.
…Throughout the year, we lost $30 million more in revenue than we expected but we were able to claw back all of that and a bit more through good financial management…”
…Our gift shops – that part of the business is actually really growing significantly over the last year. We’re seeing double digit increases year over year. So we’re doing what we can to generate revenues wherever we can and managing costs…
Actually…. According to audited financial statements, BCF revenue in fiscal year 2012 was up by $15 million over the previous year, while traffic was down 1.5%. Unfortunately, expenses increased $21 million. So much for good management clawing something back.
Additionally, had retail sales been growing by double digit increases, year over year? Here are the actual results:
Further demonstrating Corrigan’s error, in 2014, sales and gross profits of retail operations were less than the amount in 2010.
Categories: BC Ferries