Item - 2021.EP19.4

The Board of Governors of Exhibition Place:

1.  Directed the Chief Executive Officer to submit another update to the 2021 operating budget impact due to COVID-19 at the December 3, 2021 Board meeting.

This report provides a further update since June 2021 on the year-end forecast from the impact of COVID-19.

Since our June 2021 update, there have been additional cancellations / postponements of events except for film shoots. In addition to cost cutting measures, the Board has experienced additional operational savings, and staff have worked collectively with Toronto Hydro to obtain a one-time hydro rebate for 2018 and 2019. Exhibition Place staff have been in constant communications with the City Manager's Office and the City Financial Planning Department regarding financing opportunities to cover the Board's cash shortfall requirements.

The Board's operations are highly dependent on the cash flow and net income from our trade and consumer shows, conferences, conventions, socials, galas, meetings and tenants operations. Since early in 2021, given the rise in concern over COVID-19, staff has been monitoring its cash flow from operations on a daily basis and have put a hold on all non-essential costs and discretionary expenditures such as travel, training, etc.

The Board approved 2021 operating budget is a Budget Loss of ($7.577) million. The estimated impact from COVID-19 to the Boards operating budget as at August 31, 2021 is an additional pressure of ($5.087) million for an overall forecasted net loss of ($12.664) million before City funding. The Board's approved 2021 Budget prepared in August 2020 included the assumption that events, as well as, tenants operations would become normal starting to reopen in April 2021, which did not occur.   

The continued pressure from lost business on the Board's operations and resultant cash flow is a continued concern not only to Exhibition Place, but also to the City of Toronto as the Board operates, manages and maintains Exhibition Place on behalf of the City, and the City is entitled to any surplus resulting from the Board’s activities, and is responsible for any deficit the Board incurs.