london convention centre corporation | annual report 2014londoncc.com/sites/default/files/pdfs/2014...

London Convention Centre Corporation | Annual Report 2014

Contents

Introduction

LCC In 2014

The Delegate

Business Composition

Financial Performance

2014/2015 Conferences

Raving Fans!

Bring the World to London

It’s Our Responsibility

2015 Strategic Goals

LCC Board of Directors


The London Convention Centre ... is the largest convention facility in Southwestern Ontario with over 70,000 sq.ft. of event space

... is owned by the City of London and is managed by the London Convention Centre Corporation

... contributes to the economic prosperity of the region by hosting conventions, conferences and multi-day meetings

... pledges to be the preferred venue for customized knowledge transfer and entertainment experience by delighting guests with every act


336 events32 Conferences | 140 One-Day Meetings

4 Trade & Consumer Shows | 158 Special Events

118,483 daysAccumulated by Conference

Delegates in London

$17,532,224in economic impact for London’s economy

“Just a neutral location or an abstract point on a map. Space is not really anywhere in particular until it is infused with some narrative or lived experience. This infusion of shared

events and social practices - of rituals, traditions, or even the smallest joyful disruptions from daily routines - are what it takes to turn spaces into meaningful places, this is what it takes to

turn anywhere into somewhere”. ~ Sarah Gelbard

“The greatest value of meetings, conventions and exhibits is in terms of the contribution they make to business, economic, professional and overall academic/knowledge enhancement. A secondary (but more readily measurable) value is in the economic impacts they generate

in the host community.”~ unknown


Average Ontario Delegate Spend (per day)

Accommodation | $128

Transportation | $83

Parking| $7

Entertainment| $5

Attractions| $2

Meals & Drinks| $52

Shopping| $27

Other| $3

The average non-resident delegate/attendee spends an average of $309 per delegate day staying 2.8 nights in Ontario.

Exhibitors on average spend $2,543 per stay.

Provincial delegates spend $222 while those from the rest of Canada spend $491 per day.

Recreation| $2


CONVENTION Assemblage of delegates, representatives and members of anorganization convened for a common purpose; usually of limited duration with set objectives, but no determined frequency. There is a secondary exhibit component.

CONFERENCE Meeting to exchange views, convey a message, open a debate or give publicity to some area of opinion on a specific issue. Although not generally limited in time, conferences are usually of short duration with specific objectives.

TRADE SHOWS Exhibits of products and services that are not open to the public; usually held for members of a common or related industry.

CONSUMER SHOWS Exhibitions that are open to the public; usually requiring an entrance fee.

MEETING A general term indicating the coming together of a number of people in one place, to confer or carry out a particular activity. This can be on an ad hoc basis or according to a set pattern.

SPECIAL EVENT (FOOD & BEVERAGE) Any catered or concession service provided by a facility. Attendance is rooted in a food function. This includes social events such as weddings, celebrations and luncheons.

of total Event Revenue at the LCC in 2014 was from Conventions & Conferences

of total Event Revenue at the LCC in 2014 was from Trade & Consumer Shows

of total Event Revenue at the LCC in 2014 was from Meetings

of total Event Revenue at the LCC in 2014 was from Special Events

What do we mean by ...

38.7%

2.1%

16.2%

43.0%


The London Convention Centre received $569,000 in 2014 from the City of London that

was transferred directly to the LCC capital reserve for future building investment.

Since 2007, all funds received from the City have been directed to LCC reserves.

The LCC has directly contributed over $1.56 million to LCC reserves from operational

surpluses over the last eight years.


The London Convention Centre excels in customer service. From initial planning, to the hectic few weeks leading up to the event, communication was both thorough and efficient. I much appreciated the level of details and forward thinking that Bridget (Assistant Manager, Event Planning) brought to the planning process. On-site staff were friendly and responsive. Victoria Vanveen Event Planner AMO

Raving Fans!

From Sales, ... to (Event Planning) ... to the onsite team we were very pleased from beginning to end. Porters were very helpful and friendly assisting us with moving some heavy items. It was flawless. We truly felt that you wanted and appreciated our business. We will highly recommend this venue to other planners and to our other clients. Pro Planners Inc. Ontario Agencies Supporting Individuals with Special Needs.

LCC Staff are one of the most professional groups I have worked with and since I have traveled across 24 States (2 events in Times Square) and Canada as an Event Planner coordinating events I know when venue staff truly look after the clients needs and are not just going through the motions - LCC Staff get it. Sue Howe, CEP

In a word - fabulous. That’s exactly how I would describe our experience at the London Convention Centre. From the early planning stages, to our on-site program to the follow-up details - every single element of our event was flawlessly executed by the fantastic staff at the LCC. Lina and Bridget were absolutely brilliant ... They assisted with some of our local arrangements and made my life as a planner so much easier. Our conference attendees commented on how lovely the meeting space was and there were many accolades pertaining to the food. Michelle Arbuckle Ontario Library Association

The team at the London Convention Centre is a valuable extension of our own planning team for meetings and events. They are professional on all levels to ensure our experience and that of our guests is a positive one.Maureen Spencer Golovchenko Pillar Non Profit Network


when we

we’re building a stronger community

www.BringtheWorldtoLondon.comLaunched June 2014

Since 2000 the London Convention Centre has been recognizing local individuals who have played a key role in London, and specifically the London

Convention Centre, being selected as host for provincial, national and international meetings; we call these individuals Ambassadors.

We know that having a local connection to an association can give us an added advantage to security an event for our community, which will

contribute to the economic impact.

www.BringtheWorldtoLondon.com was developed as a tool to help individuals self identify as potential ambassador’s to bring their association’s event to our

city. This site introduces individuals to the resources that are available when planning an event in London at the London Convention Centre, with the hope

of eliminating any doubts about championing London as a host city.


#LdnCCArt | 2014 Mural Project“A Moment of Natural Reflection” by Tracy RootThe London Convention Centre, in partnership with the London Arts Council was excited to announce the first mural art installation at the facility. London artist Tracy Root was selected by the LCC Board of Directors’ Arts Committee through the London Arts Council’s Mural Roster.The artwork injects colour and whimsy into the highly trafficked area spanning more than 100 feet of the pedway connecting the LCC to Hilton London. Root completed the mural in only 50 Days, with a 1 inch brush.

Ice Bucket ChallengeFollowing LCC CEO & GM Lori Da Silva’s nomination by John Winston, General Manager of Tourism London, the LCC’s senior administration team took part in the 2014 viral campaign to raise awareness and funds for ALS.

20 Minute MakeoverIn 2014 the LCC staff participated in the Clean & Green 20 Minute Makeover Challenge. This annual event brings the LCC team together to beautify the environment surrounding the LCC and in the downtown community.


32 Trees Planted with ReForest Londonsince 2012 in honour of every new conference

or event hosted worth greater than $25,000

6,401 meals donated to the Men's Mission of London & Salvation Army

2013: 670 Continental Breakfasts | 3,096 Hot Breakfasts |2,185 Lunches|450 Dinners

536lbs of food & $415.75 donated by the LCC staffto the London Food Bank in 2013

Backpacks of school supplies donated annuallyto Supplies for Students supporting TVDSB & LDCSB since 2011

Turkeys prepared for St. Paul’s Cathedral Christmas Meal

300 pounds of turkey prepared annually

It is our responsibility to give back to our community.


The London Convention Centre team will provide an EXPERIENCE THAT GUESTS WILL RAVE ABOUT.

Bringing the world to meet in London DRIVES ECONOMIC IMPACT

for the community

Providing quality space where everyone wants to CONNECT, SHARE AND PLAY

2015 Strategic Goals


LCC Board of Directors 2014Mr. Brian Soanes | Chair | Executive Committee District VP, Commercial Banking | TD

Ms. Jeannine Cookson | Executive Committee Former Chair, School of Hospitality and Tourism | Fanshawe College

Mr. Michael Seabrook President & CEO | London International Airport

Dr. Ron Holliday Professor Emeritus | Western University

Mr. John Irwin | Executive Committee CFO, CIO, VP | The Ivey Group of Companies

Mr. Titus Ferguson Emerging Leaders Representative

Mr. Crispin Colvin Regional Representative

Mr. Peter White ED, Government Relations and Strategic Partnerships | Western University

Appointed to LCC BoardMayor Matt Brown

Member of Municipal Council

Deputy Mayor Paul Hubert | Executive Committee Member of Municipal Council

Councillor Jared Zaifman Member of Municipal Council

Mr. Art Zuidema City of London Representative|City Manager

Ms. Lori Da Silva Corporate Officer | CEO of London Convention Centre

Mr. Scott Switzer Secretary | Director, Corporate Services, London Convention Centre

Financial Statements of

THE LONDON CONVENTION CENTRE

CORPORATION

Year ended December 31, 2014

THE LONDON CONVENTION CENTRE CORPORATIONStatement of Financial Position

December 31, 2014, with comparative information for 2013

2014 2013

Financial AssetsCash and cash equivalents $ 1,630,139 $ 1,469,162

Accounts receivable 275,932 343,714

Other receivables 82,147 71,545

Receivable from The City of London - 33,7301,988,218 1,918,151

Financial Liabilities Accounts payable and accrued liabilities 384,517 477,228

Payable to The City of London 37,153 43,132

Accrued sick and vacation 48,590 53,770

Advance deposits 538,565 678,7351,008,825 1,252,865

Net financial assets 979,393 665,286

Non-Financial AssetsTangible capital assets (note 4) 15,450,986 16,401,651

Prepaid expenses 26,200 14,945

Inventory (note 2) 56,800 49,17015,533,986 16,465,766

Accumulated surplus (note 6) $ 16,513,379 $ 17,131,052

See accompanying notes to financial statements.

On behalf of the Board:

Director Director

THE LONDON CONVENTION CENTRE CORPORATIONStatement of Operations

Year ended December 31, 2014, with comparative information for 2013

Budget 2014 2014 2013

Revenue: Food and beverage $ 3,576,775 $ 3,812,591 $ 3,264,700 Space rental 558,225 550,688 434,175 Parking 465,000 520,662 491,382 Technical 348,085 342,128 300,276 City capital funding 600,000 800,052 932,101 Other 149,750 138,719 142,184

5,697,835 6,164,840 5,564,818

Cost of goods sold: Food and beverage 943,565 965,505 849,668 Technical 16,400 18,655 20,164 Other 20,213 31,181 29,699

980,178 1,015,341 899,5314,717,657 5,149,499 4,665,287

Expenditures: Amortization of tangible capital assets 1,206,179 1,206,720 1,206,179 Event services and culinary 1,325,158 1,348,618 1,156,419 City appropriation 600,000 569,000 600,000 Corporate services 846,652 856,074 816,068 Facility services 457,471 428,853 406,164 Energy 423,000 447,670 434,099 Sales and catering 787,291 694,284 718,395 Cleaning 119,759 105,964 91,105 Technical 30,680 29,655 25,071 Parking 45,079 44,904 44,864 Other 53,763 35,430 36,938

5,895,032 5,767,172 5,535,302

Annual deficit (1,177,375) (617,673) (870,015)

Accumulated surplus, beginning of year 17,131,052 17,131,052 18,001,067

Accumulated surplus, end of year $ 15,953,677 $ 16,513,379 $ 17,131,052


THE LONDON CONVENTION CENTRE CORPORATIONStatement of Change in Net Financial Assets


2014 2013

Annual deficit $ (617,673) $ (870,015)Acquisition of tangible capital assets (256,055) (528,374)Amortization of tangible capital assets 1,206,720 1,206,179

332,992 (192,210)

Acquisition of inventories of supplies (56,800) (49,170)Acquisition of prepaid expenses (26,200) (14,945)Consumption of inventories of supplies 49,170 46,604Use of prepaid expenses 14,945 17,732

(18,885) 221

Increase (decrease) in net financial assets 314,107 (191,989)

Net financial assets, beginning of year 665,286 857,275

Net financial assets, end of year $ 979,393 $ 665,286


THE LONDON CONVENTION CENTRE CORPORATIONStatement of Cash Flows


2014 2013

Cash provided by (used in):

Operating activities:Annual deficit $ (617,673) $ (870,015)Item not involving cash:

Amortization of tangible capital assets 1,206,720 1,206,179Changes in non-cash operating working capital:

Accounts receivable 67,782 393,684Other receivables (10,602) 59,999Receivable from The City of London 33,730 116,411Inventory (7,630) (2,566)Accounts payable and accrued liabilities (92,711) 43,708Accrued sick and vacation (5,180) (24,149)Payable to The City of London (5,979) (141,983)Advance deposits (140,170) 344,156Prepaid expenses (11,255) 2,787

417,032 1,128,211

Capital activities:Acquisition of tangible capital assets (256,055) (528,374)

Increase in cash and cash equivalents 160,977 599,837

Cash and cash equivalents, beginning of year 1,469,162 869,325

Cash and cash equivalents, end of year $ 1,630,139 $ 1,469,162

Cash and cash equivalents consist of:Cash $ 1,125,161 $ 1,469,162Investments held by the City of London with yields

ranging from 1.25% to 3.46% 504,978 -

$ 1,630,139 $ 1,469,162


THE LONDON CONVENTION CENTRE CORPORATIONNotes to Financial Statements


1. Significant accounting policies:

The financial statements of The London Convention Centre Corporation are prepared inaccordance with Canadian generally accepted accounting principles as defined in the CharteredProfessional Accountants Canada Public Sector Accounting Handbook.

(a) Basis of accounting:

Sources of financing and expenditures are reported on the accrual basis of accounting.

The accrual basis of accounting recognizes revenues as they become available andmeasurable; expenditures are recognized as they are incurred and measurable as a resultof receipt of goods or services and the creation of a legal obligation to pay.

(b) Tangible capital assets:

Tangible capital assets are recorded at cost which includes amounts that are directlyattributable to acquisition, construction, development or betterment of the asset. The cost,less residual value, of the tangible capital assets are amortized on a straight-line basis overtheir estimated useful lives as follows:

Asset Rate

Buildings and building improvements 5 - 40 yearsFurniture and equipment 5 - 20 yearsInfrastructure 3 - 10 yearsVehicles 10 - 20 years

(c) Revenue recognition:

Revenue from events is recorded in the statement of operations in the year in which theevent is held, and the related receivable is considered collectible.

Government transfer payments from the City of London are recognized in the financialstatements in the year in which the payment is authorized and the events giving rise to thetransfer occur, performance criteria are met, and a reasonable estimate of the amount canbe made. Funding that is stipulated to be used for specific purposes is only recognized asrevenue in the fiscal year that the related expenses are incurred or services performed. Iffunding is received for which the related expenses have not yet been incurred or servicesperformed, these amounts are recorded as a liability at year end.

THE LONDON CONVENTION CENTRE CORPORATIONNotes to Financial Statements (continued)


1. Significant accounting policies (continued):

(d) Inventory:

Inventory is valued at the lower of cost, being laid down cost, and net realizable value, usingthe specific item costing method.

(e) Use of estimates:

The preparation of financial statements in conformity with generally accepted accountingprinciples requires management to make estimates and assumptions about future events.These estimates and the underlying assumptions affect the reported amounts of assets andliabilities and disclosure of contingent assets and liabilities at the date of the financialstatements and the reported amounts of revenues and expenses during the reportingperiods. Such estimates include valuation of accounts receivable, inventory, and tangiblecapital assets. Management evaluates its estimates and assumptions on an ongoing basisusing historical experience and other factors, including the current economic environment,and makes adjustments in the financial statements on a prospective basis. As future eventsand their effects cannot be determined with precision, actual results could differ significantlyfrom these estimates.

(f) Budget figures:

Budget figures have been provided for comparison purposes. Given differences between thebudgeting model and generally accepted accounting principles established by PSAB, certainbudgeted amounts have been reclassified to reflect the presentation adopted under PSAB.



2. Inventory:

At December 31, inventory consists of:

2014 2013

Food $ 22,523 $ 16,980Beverages 34,277 32,190

$ 56,800 $ 49,170

3. Capital reserve:

A capital reserve is managed by The City of London to finance future capital expenditures. Thereserve has not been recognized in these financial statements and will be accounted for as thefunds are received and expended.

2014 2013

Opening balance $ 2,972,989 $ 2,644,132Contributions during the year 569,000 600,000Interest 60,258 53,362Capital expenditures (289,784) (324,505)

Closing balance $ 3,312,463 $ 2,972,989

4. Tangible capital assets:

Balance at Balance at December 31, December 31,

Cost 2013 Additions Disposals 2014

Building $ 27,192,165 $ 117,304 - $ 27,309,469Building improvements 3,430,118 99,496 - 3,529,614Equipment 1,391,060 - - 1,391,060Furniture 786,103 24,370 - 810,473Infrastructure 628,480 14,885 - 643,365Vehicles 41,217 - - 41,217

$33,469,143 $ 256,055 $ - $33,725,198



4. Tangible capital assets (continued):

Balance at Balance at December 31, Amortization December 31,

Accumulated amortization 2013 Disposals expense 2014

Building $ 13,645,770 $ - $ 708,884 $ 14,354,654Building improvements 1,571,047 - 278,413 1,849,460Equipment 1,038,969 - 83,383 1,122,352Furniture 306,700 - 54,400 361,100Infrastructure 475,018 - 80,421 555,439Vehicles 29,988 - 1,219 31,207

$ 17,067,492 $ - $ 1,206,720 $ 18,274,212

Net book value Net book value December 31, December 31,

2013 2014

Building $ 13,546,395 $ 12,954,815Building improvements 1,859,071 1,680,154Equipment 352,091 268,708Furniture 479,403 449,373Infrastructure 153,462 87,926Vehicles 11,229 10,010

$ 16,401,651 $ 15,450,986

Ownership of capital assets is vested with the City of London. The London Convention CentreCorporation operates the facilities on behalf of the City of London. There fixed assets and therelated amortization have been included in the financial statements of The London ConventionCentre Corporation in order to reflect the assets over which it has stewardship and theamortization costs related to those assets.



5. Pension agreement:

The London Convention Centre Corporation contributes to the Ontario Municipal EmployeesRetirement Fund (OMERS) which is a multi-employer plan, on behalf of its staff. The plan is adefined benefit plan which specifies the amount of the retirement benefit to be received by theemployees based on the length of service and rates of pay.

The amount contributed to OMERS for 2014 was $190,805 (2013 - $188,245) for current service.

6. Accumulated surplus:

Accumulated surplus consists of individual fund surplus and reserves funds as follows:

2014 2013

Surplus:Invested in tangible capital assets $ 15,450,986 $ 16,401,651

Reserves:Special projects 562,393 229,401Operating reserve 500,000 500,000

1,062,393 729,401

$ 16,513,379 $ 17,131,052

london convention centre corporation | annual report 2014londoncc.com/sites/default/files/pdfs/2014...

Documents