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2019 Western Fair District Annual Report

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2019 Western Fair District Annual Report November 26, 2019 Page 1 of 14 C 7 - CW Info November 26, 2019 Page 2 of 14 C 7 - CW Info 2019 Annual Report November 26, 2019Message From the Chair Page 3 of 14 Message From the CEO C 7 - CW Info Whatever you can do or dream you can, begin it. Boldness has genius, and magic and power in it. Begin it As the fiscal year began in July 2018, I did not anticipate that in eight months time, on a crisp February day, now.” – Goethe the Board of Governors would elect me to the role of CEO. Always an aspiration of mine, the reality of the role, especially one bearing full responsibility for the Association’s success or failure, gave me pause, but On behalf of the Board of Governors, we are pleased to present this annual report and at the AGM, share a also a renewed sense of loyalty and pride in how far this organization has come in 150 years and how much glimpse of the impactful future vision of your Western Fair Association. potential remains to be seen. The past fiscal year presented its own challenges and opportunities, as we worked through the gaming PHOTO Four months into my first year as CEO, I am learning daily what it takes to hold the top job. I have begun negotiations and prepared for potential future business models. In December 2018, we learned that gaming to see WFA from a new perspective. In my previous roles as CFO and CAO, I was often focused internally would be relocating from Western Fair to a location in the south-west end of London. This announcement on business units, budgets, fiscal well-being and corporate administration. In the role of CEO, one’s focus focused the Board and Management on envisioning a new future for the Association. As the quote above quickly turns to vision, strategy, building solid, productive relationships, communicating with stakeholders, acknowledges, if we could dream it, we could do it, and much of the past fiscal year has been spent and setting the tone for a strong work culture. preparing for a bright, new future. It’s early days, but I am lucky to have a knowledgeable and supportive Board, a strong membership, a The path ahead is becoming clear as our leadership, management and the Board develop and begin management team that is passionate and dedicated and staff that are hard working and knowledgeable. executing on a transformational strategic plan. This is the exciting beginning of the next era of the Western With everyone’s support, and my own commitment to the Association, together we will work towards Fair Association without gaming. The WFA has significant resources to focus on the evolution of the a successful, re-envisioned future for the site, a focused business strategy that will honour our deep organization: our existing commercial operations, valuable physical assets, financial resources and most agricultural roots, and a commitment to the communities we serve. I am looking forward to the year ahead importantly, people. We are confident in the continued success of Western Fair Association as we diversify and I thank you all for your support thus far. and grow our revenue streams as a sustainable organization which will benefit our stakeholders in the City of London, surrounding region and agriculture community. Reg Ash The Board would like to thank our CEO, Reg Ash and our dedicated employees for their effort and creativity CEO, Western Fair Association in building the future. We would also like to honour Hugh Mitchell and Mike Woods for their excellent leadership and contributions. Finally, I would like to thank our Board of Governors for their passionate engagement in the long-term success of our WFA. Thank you for your commitment to the Western Fair Association. Respectfully, Joseph G. Dales Chair, Board of Governors 2 3 WESTERN FAIR ASSOCIATION November 26, 2019 Page 4 of 14 Consolidated Statement of Financial Position C 7 - CW Info 2018-2019 Governance As of June 30th, 2019 June 30, 2019, with comparative information for 2018 2019 2018 Assets Current assets: BOARD OF GOVERNORS PROGRAMMING COUNCIL SENATORS Cash $ 4,948,318 $ 5,318,247 Financials JOE DALES, Chair MARY ANNE ZWAMBAG, President TIM KELLY, Chair Accounts receivable 910,809 1,227,509 ANN STRAATMAN, Vice Chair CARRIE FRALEIGH DE SCHUTTER, VP Michelle Campbell Investments 4,181,241 4,057,109 Prepaid expenses 195,354 100,185 Bill Boyce Tom Baker Jan Delaney Advances to joint venture 142,090 180,671 John Finan Patricia Graham Bill Grieve 10,377,812 10,883,721 John Leitch Warren Hoy Ken Levy Investment in joint venture 2,737,766 2,383,531 Dave Little Councillor Arielle Kayabaga Denny Lang Capital assets 46,402,159 47,782,801 Dianne McComb Stacy King Al Marr Councillor Josh Morgan Betty Ann MacKinnon Don McCallum Intangible assets 272,500 397,500 David Ross Sharon Peters Karl Nevin $ 59,790,237 $ 61,447,553 Peter Whatmore Rhonda Persichilli John White Tim Kelly, Past Chair Councillor Mohamed Salih Gary Williams Liabilities and Net Assets Don McCallum,2nd Past Chair Brian Slaughter Current liabilities: Mary Anne Zwambag, President of the Warden Kurtis Smith SOLICITOR Accounts payable and accrued liabilities $ 2,261,098 $ 3,464,974 Programming Council Eric Thomson Tim McCullough, Harrison Pensa Deferred revenue 189,280 212,826 County Councillor Alison Warwick J. Robert Cowan, Q.C. (Honourary Solicitor) Current portion of long-term debt 1,290,755 1,290,762 LIFE MEMBERS Joe Dales, Board of Governors Chair 3,741,133 4,968,562 Dorinda Greenway Long-term debt 5,340,976 6,631,725 Bernie MacDonald Deferred capital contributions 431,632 146,711 Pauline Richards Employee future benefits 1,594,985 1,443,606 Net assets: Unrestricted 48,681,511 48,256,949 $ 59,790,237 $ 61,447,553 4 November 26, 2019 Page 5 of 14 WESTERN FAIR ASSOCIATION C 7 - CW Info Consolidated Statement of Cash Flows WESTERN FAIR ASSOCIATION Consolidated Statement of Operations Year ended June 30, 2019, with comparative information for 2018 2019 2018 Year ended June 30, 2019, with comparative information for 2018 Cash provided by (used in): 2019 2018 Operating activities: Financials Revenue: Excess of revenue over expenses $ 526,728 $ 258,186 Facilities rentals $ 8,436,790 $ 8,430,191 Adjustments for: Racing 3,729,288 3,793,948 Amortization of capital assets 2,658,176 2,604,159 Association shows 2,560,257 3,472,630 Amortization of intangible assets 125,000 125,000 Fall exhibition 1,664,322 1,788,986 Amortization of deferred capital contributions (14,390) (14,389) Change in employee future benefits liability 56,933 160,363 16,390,657 17,485,755 Equity in earnings of joint venture (361,955) (306,142) Changes in non-cash operating working capital (967,310) (106,570) Expenses: 2,023,182 2,720,607 General, administrative and operating 13,876,812 15,219,896 Amortization of capital and intangible assets 2,783,176 2,729,159 Financing activities: Interest on long-term debt 299,007 297,355 Repayments of long-term debt (1,290,756) (1,314,993) 16,958,995 18,246,410 Investing activities: Deficiency of revenue over expenses before the undernoted (568,338) (760,655) Purchase of capital assets (1,277,534) (245,761) Financials Acquisition of business - (300,000) Other income 493,576 477,516 Contributions received for capital purposes 299,311 - Proceeds from repayment of notes receivable - 93,047 Purchase of investments, net (124,132) (98,597) Management fees from joint venture 239,535 235,183 (1,102,355) (551,311) Equity in earnings of joint venture 361,955 306,142 Increase (decrease) in cash (369,929) 854,303 Excess of revenue over expenses $ 526,728 $ 258,186 Cash, beginning of year 5,318,247 4,463,944 Cash, end of year $ 4,948,318 $ 5,318,247 November 26, 2019 Page 6 of 14 Western Fair C 7 - CW Info Memories continued to be made by the Association’s signature event. The beloved wagon rides returned to the fair, taking people back and forth to the Agriplex. Double Sunday derbies offered demolition fans their fix of adrenaline and crashes on both weekends of the fair. Super Sunday was introduced offering discounted gate admission paired with a ride all day midway deal on the final day of the fair. Bandaloni the one-man Band and Racing Pigs and Ducks provided some nostalgic attraction entertainment having been missed by fairgoers. The Progress Building was not in use in anticipation of master site plan changes to support gaming, with shopping vendors moved to a large tented pavilion off of the main midway. Agriculture education and attractions were divided between the outdoor pastured areas in the park displaying various breeds of sheep, cattle, alpacas, rabbits and more, while the Agriplex showcased Rodeo, Dairy, Swine, Goats, 4-H and a new family fun area called the Bouncing Barnyard. Weather was decent throughout the fair except for the first Sunday and Monday, when cold, damp weather prevailed. 9 November 26, 2019 Page 7 of 14 People C 7 - CW Info Casual for a Cause is a campaign that encourages employees to dress casually every Friday in exchange for making a donation (minimum of $2 per week through payroll deduction) to the registered charity of their choice. Western Fair Association then matches each employee’s charity of choice contribution to a maximum of $100.00 per annum. In 2018 WFA employees were able to raise $4,290 in employee contributions, in addition to Western Fair District’s corporate contribution of $3,100, raising a total of $7,390.
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