Administrative Overhead Increase

A1: Administrative Overhead

BC Ferries first quarter administration expenses to June 30, 2004 increased by about $600,000 over the same period last year. What factors explain this?

BC Ferries’ Answer:

BC Ferries first quarter expenses are higher than last quarter due to the impact of Deas Pacific Marine (DPMI) and the new structure to support it. DPMI became a subsidiary to BC Ferries in July 2003 (2nd quarter 2003) and is therefore required to have a fully independent executive and Board of Directors.