Business
Canlan Solidifies Its Growth Footing with Strong 2022 Operations Performance, Renewed Lending Facilities and U.S. Expansion
Burnaby, British Columbia--(Newsfile Corp. - March 24, 2023) - Canlan Ice Sports Corp. (TSX: ICE)...
About this update from Canlan Ice Sports Corp.
[{"type":"text","content":"Canlan Solidifies Its Growth Footing with Strong 2022 Operations Performance, Renewed Lending Facilities and U.S. ExpansionBurnaby, British Columbia--(Newsfile Corp. - March 24, 2023) - Canlan Ice Sports Corp. (TSX: ICE) (the \"Corporation\") today reported its financial results for the year ended December 31, 2022.Overview of Year Ended December 31, 2022Total operating revenue of $73.7 million increased by $33.3 million compared to a year ago;Same-facility ice, field and court revenue reached approximately 93% of FY2019 pre-pandemic levels (Q4 2022 reached 100% of Q4 2019);Operating earnings of $10.6 million increased by $4.8 million compared to a year ago;The Company completed another significant phase of its roof remediation program ($2.3 million expense) after pausing the projects temporarily during the pandemic;Net earnings for the year was $4.7 million compared to a net loss of $1.1 million in 2021;The Company refinanced its bank credit facilities with a package that reduces cash requirements on annual debt service by approximately 37% and fixes interest rates until 2027 at 5.50% or lower on 87% of its debt to reduce interest rate risk. As at the date of this release, $25.5 million of credit lines are available for operating and capital requirements; Cash consideration of $4.5 million was received in September 2022 to surrender the Company's lessee position of a sports complex lease prior to the maturity date of the lease agreement; By end of 2022, 60% of the Company's ice re-surfacers have been transitioned to electrified models, which helps to reduce carbon emissions and improve facilities' air quality. The electrification program, along with investments in new roofs and enhanced building automation systems, are green initiatives that will be continued in the coming years;The Company reviewed its dividend policy in November 2022 and resumed a quarterly dividend distribution of $0.03 a share; andSubsequent to year end the Company exercised its option to purchase Canlan Sports Libertyville in Libertyville, Illinois, further affirming the Company's long-term commitment to its U.S. expansion strategy.\"Fiscal 2022 was an outstanding bounce-back year for Canlan. After responding to health orders that closed Ontario operations for the month of January 2022, our teams had to manage the impact of labour supply shortages that wer...