Stock Name: ICE
Amount: CAD 0.0015
Announcement Date: 11/11/2011
Record Date: 29/12/2011
Dividend Detail:
Revenue up 5%; EBITDA breakeven in Q3
BURNABY, BC, Nov. 11, 2011 /CNW/ - Canlan Ice Sports Corp.,
industry-leading providers of recreational and leisure multi sport
facilities across North America, today announced its financial results
for the three-and nine-month period ended September 30, 2011.
Q3 2011 Key Financial Metrics
In thousands except share data | Q3 2011 | Q3 2010 | Change |
Total revenue | $14,843 | $14,208 | +5% |
EBITDA1 | $2 | ($128) | +$130 |
Net earnings (loss) before taxes | $368 | ($2,090) | +$2,458 |
Net earnings (loss) after taxes | $117 | ($1,530) | +$1,647 |
Net earnings (loss) per share | $0.01 | ($0.11) | +$0.12 |
| Sept. 30, 2011 | Sept. 30, 2010 | |
Total Assets | $106,658 | $104,691 | +2% |
Cash and Cash equivalents | $5,946 | $4,450 | +34% |
Total Interest bearing debt | $47,085 | $47,026 | 0% |
Nine-months ended 2011 Key Financial Metrics
In thousands except share data | 2011 | 2010 | Change |
Total revenue | $51,621 | $49,918 | +3% |
EBITDA | $5,407 | $5,112 | +6% |
Net earnings (loss) before taxes | $1,857 | ($879) | +$2,736 |
Net earnings (loss) after taxes | $963 | ($723) | +$1,686 |
Net earnings (loss) per share | $0.07 | ($0.05) | +$0.12 |
"Revenues grew 5% for the third quarter while our expenses continued to
stabilize, resulting in improved operating results," said Joey
St-Aubin, President and CEO of Canlan Ice Sports. "The successful sale
of the Regina facility and the recognized gain of $2.3 million provided
a significant boost to our bottom line for the quarter. The recent
purchase of the Romeoville facility and the sale of the Regina facility
demonstrate our ability to identify opportunities to best capitalize
our assets and manage our portfolio of facilities."
___________________________________
1 Earnings before interest, taxes, depreciation and amortization (EBITDA)
is often used as a measure of financial performance. However, EBITDA is
a not a term that has specific meaning in accordance with IFRS, and may
be calculated differently by other companies. Canlan reconciles EBITDA
to its net earnings.
Q3 2011 Operational and Financial Highlights
Revenue of $14.8 million for Q3 2011, an increase of 5% over Q3 2010
Same store sales were $14.5 million for Q3 2011, an increase of 2% over
Q3 2010
Breakeven EBITDA compared to a loss of $128,000 in Q3 2010
Net earnings of $0.1 million for Q3 2011 compared to a loss of $1.5
million for Q3 2010
Recorded a gain of $2.3 million from the completed sale of the Regina
facility
Newest acquisition, Ice Sports Romeoville, continued to ramp up
operations
Highlights Subsequent to Quarter-end
Arranged favourable term financing with a major US lender relating to
the acquisition of Ice Sports Romeoville
Dividend Policy
Canlan's Board of Directors has approved the continuation of the
dividend policy which was announced last year and declared eligible
dividends totaling $0.015 per common share that will be next paid on
January 16, 2012 to shareholders of record at the close of business
December 31, 2011. Canlan's Board of Directors does review the
Company's dividend policy on a quarterly basis. Canlan's dividend is
designated as an "eligible" dividend under the Income Tax Act (Canada)
and any corresponding provincial legislation. Under this legislation,
individuals resident in Canada may be entitled to enhanced dividend tax
credits, which reduce income tax otherwise payable.
Review of Financial Results
Canlan derives its revenue from the rental of its playing surfaces,
registrations for internal programming, food and beverage sales, sports
stores sales, tournament registrations, management and consulting fees
and other related fees.
Canlan reported consolidated revenue of $14.8 million for the
three-month period ended September 30, up 4.5% from $14.2 million for
the corresponding period of 2010. The revenue growth was primarily due
to a $501,000 increase in ice related revenue such as contract
ice/field rentals, adult hockey leagues, instructional programs and
youth hockey leagues. Revenue from the Adult Safe Hockey League
(ASHL), the Company's largest component of ice revenue, was $4.4
million for the quarter, up 4.1% or $181,000 compared to the same
period last year. Same store sales were $14.5 million for the quarter,
an increase of $306,000 or 2.2% year-over-year.
Food and beverage revenue for Q3 2011 was $2.1 million, down 6.3% or
$136,000 from Q3 2010. The decline is a result of a combination of
factors such as effects of changes to driving legislation negatively
affecting business, menu offerings and the closing of Ice Sports
Regina's restaurant two months prior to the sale of the facility.
On a nine-month basis, Canlan generated consolidated revenue of $51.6
million for FY2011, up 3.4% from $49.9 million for FY2010. The revenue
growth on a nine-month basis was principally due to higher revenue
contributions from contract ice/field rentals, instructional programs,
ASHL, youth hockey leagues and soccer leagues which added $1.3 million
to top line growth for the period compared to the first nine months of
2010. Same store revenue was $51.2 million for the nine-month period,
up 2.7% or $1.3 million compared to the same period last year. The ASHL
generated approximately $16.8 million of sales and accounts for
approximately 44% of ice and soccer sales.
Direct operating expenses were $13.8 million, up 5.0% from $13.2 million
for Q3 2010. The year-over-year increase was mainly attributable to an
increase in wages repairs and maintenance, and higher utility costs due
to increased Provincial energy surcharges.
For the nine-month period of FY2011 operating expenses were $43.0
million, up 3.4% from $41.6 million for FY2010. The year-over-year
increase was due to higher wages and higher utility expense as
previously discussed.
Corporate general and administrative expenses totaled $1.0 million, down
slightly from $1.2 million for Q3 2010 due mainly to a reduction of
compensation costs and the elimination of Provincial capital taxes in
2011. On a nine-month basis, general and administrative expenses
totaled $3.3 million for FY2011 and $3.3 million for FY2010,
respectively.
EBITDA broke even in the quarter versus a loss of $128,000 for Q3 2010.
The improvement in EBITDA was a result of a growth in revenue while the
majority of expenses stabilized year-over-year. EBITDA for the
nine-month period of FY2011 was $5.4 million, up 5.8% from $5.1 million
for the prior period. As a percentage of revenue, EBITDA was 10.5%
compared to 10.2% for the corresponding period in the prior year.
Canlan generated a net gain before taxes of $0.4 million, up 117.6% from
a loss of $2.1 million for Q3 2010. The improvement being primarily
due to an accounting gain of $2.3 million recorded from the September
26, 2011 sale of Ice Sports Regina as well as improved operating
results discussed above and a 6.7% decrease in interest expense. On a
year-to-date basis, Canlan generated earnings before taxes of $1.9
million for FY2011 compared to loss before taxes of $879,000 for
FY2010.
Net earnings for the quarter were $117,000, or $0.01 per share fully
diluted. In Q3 2010, Canlan generated a net loss of $1.5 million, or
$0.11 per share. For the nine-month period of FY2011, Canlan generated
net earnings of $963,000 or $0.07 per fully diluted share. This
compares to net loss of $723,000 or $0.05 per share for same period of
FY2010.
Outlook
"The ramping up of operations at the state-of-the-art Romeoville
facility are progressing well and are on schedule" said Mr. Michael
Gellard, Canlan's CFO. "The proceeds from the sale of the Regina
facility will used to pursue other opportunities that fit our criteria
of high quality, accretive facilities at attractive valuations."
"Registrations for the winter hockey leagues have exceeded last year's
levels and we are focused on recapturing traffic into our food and
beverage establishments," said Mr. St-Aubin. "Stable revenue growth
and focused cost controls, along with the contributions from our new
facility, positions us for a successful winter season which is
typically our strongest period of the year."
Canlan's financial statements and Management Discussion & Analysis for
the period ended September 30, 2011 will be available via SEDAR on or
before November 14, 2011 and through the Company's website, www.icesports.com.
About Canlan
Canlan Ice Sports Corp. is the North American leader in the development,
operations and ownership of multi-purpose recreation and entertainment
facilities. We are the largest private sector owner and operator of
recreational ice sports facilities in North America and currently own
and/or manage 21 facilities in Canada and the United States with 64 ice
surfaces, as well as indoor soccer fields, ball diamonds, curling rinks
and volleyball courts.
Canlan Ice Sports Corp. is listed on the Toronto Stock Exchange under
the symbol "ICE."
Caution concerning forward-looking statements
Certain statements in this MD&A may constitute ''forward looking''
statements which involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or
achievements of the Company to be materially different from any future
results, performance or achievements expressed or implied by such
forward looking statements. When used in this MD&A, such statements may
use such words as ''may'', ''will'', ''expect'', ''believe'', ''plan''
and other similar terminology. These statements reflect management's
current expectations regarding future events and operating performance
and speak only as of the date of this MD&A. These forward looking
statements involve a number of risks and uncertainties. Some of the
factors that could cause actual results to differ materially from those
expressed in or underlying such forward looking statements are the
effects of, as well as changes in: international, national and local
business and economic conditions; political or economic instability in
the Company's markets; competition; legislation and governmental
regulation; and accounting policies and practices. The foregoing list
of factors is not exhaustive.
For further information:
| Canlan Ice Sports Corp. Michael F. Gellard Senior Vice President & CFO 604 736 9152 | | | | | | | | | TMX Equicom Philip Dale 416 815 0700 ext. 253 pdale@equicomgroup.com |
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