The Pacific National Exhibition said it had its best Playland and Fright Night seasons in 2015, but the weather-battered annual fair put a damper on its financial results.
The city-owned PNE reported $48.84 million revenue, 6.2 per cent better than 2014, and a $115,467 surplus, down almost $300,000, according to the July 7-released annual financial report.
The Aug. 29 windstorm that cut power to 700,000 across Metro Vancouver contributed to a decrease in attendance of 91,000 visits. PNE reported 678,193 turnstile clicks for the 105th edition of the fair. Attendance was 259,000 less than in 2010, when 937,485 celebrated its centennial.
“As a result of the storm, however, the fair saw its lowest attendance in 15 years and a 7.7 per cent decrease in revenues,” said the report. “As the fair accounts for such a significant proportion of overall revenues, this had an impact of over $3 million.”
Playland net income increased 23 per cent and Fright Nights saw 84,000 visits, up 13 per cent from its Halloween 2014 run.
The PNE claimed strong trade and consumer show business and increased revenues from film and TV shoots. The report, however, only showed revenue as a single line item with a lump-sum dollar figure. Concert business fell along with the decrease in the loonie, but “this PNE portfolio saw a 22 per cent increase in total revenue and 39 per cent increase in net contribution. In summary, 2015 was an incredibly positive year in that the organization not only delivered a positive net income for the year but did so despite fair revenues being so down.”
The year was marked by uncertainty about the organization’s registered charity status under the Income Tax Act. On July 12, 2014, Canada Revenue Agency revoked the status, meaning the PNE could no longer use the special GST reporting method for charities or issue donation receipts.
The KPMG-audited report included a note that said: “Subsequent to July 12, 2014, the CRA has indicated that PNE may qualify for an annulment rather than a revocation. If the revocation is upheld, PNE would be assessed a revocation tax, which is comprised of 100 per cent of PNE’s assets after all debts and liabilities have been repaid. Under an annulment, no such tax would be incurred.”
Revocation would cost the PNE $250,000 to $300,000. The report said the process is ongoing, but, based on correspondence with CRA, management is confident that the outcome will be annulment. PNE was granted charity status in 1977.
Still a not-for-profit, the PNE operated is Prize Home Lottery again in 2015 and sold more than 1.1 million tickets for $5.45 million revenue. Proceeds supported agricultural, multicultural and family programming.
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