TSX: TWH
TORONTO, May 11 /CNW/ -
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Financial Highlights
2005 2004
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Revenue $96,000 $111,000
EBITDA ($2,408,000) ($1,489,000)
Investment income $592,000 $242,000
Interest (expense) ($476,000) ($238,000)
Other income (expense) $591,000 $161,000
Equity earnings (loss) ($973,000) ($1,344,000)
Net earnings (loss) ($2,304,000) ($2,415,000)
Earnings (loss) per share ($0.10) ($0.11)
Dividends $1,374,000 $1,374,000
Shares Outstanding 22,898,000 22,901,000
First Quarter Operating Highlights
Revenue originates from the port operations and tour excursions at
Tri-White Corporation's ("Tri-White" or the "Company") wholly-owned
subsidiary, White Pass. These tourist operations and the golf operations of
ClubLink Corporation ("ClubLink") are both highly seasonal with the majority
of the revenue and earnings from these businesses generated during the third
quarter of the year. Accordingly, the reported earnings of the Company will
fluctuate with those of the underlying business units.
During the period from January to March, the Company's main operating
subsidiary, White Pass remains closed for the winter months. Small amounts of
revenue are reported during the period as pre-selling commenced for the
upcoming 2005 season.
Similarly, virtually all of the Company's operating income originates
from White Pass, based in Alaska. The results of this subsidiary, which is
deemed self-sustaining, are translated into Canadian currency using average
rates during the period. Changes in exchange rates can impact the net earnings
of Tri-White.
EBITDA (defined as revenue less cost of sales and operating expenses) for
the three months ended March 31, 2005 was ($2,408,000) compared with
($1,489,000) for the period ended March 31, 2004. The operating performance
was impacted by additional costs in Alaska and through foreign exchange
fluctuations.
Tri-White has significant ownership in two public companies, for which it
records income on an equity basis. ClubLink is Canada's largest owner,
operator and developer of high quality Member Golf Clubs, Daily Fee Golf Clubs
and Golf Resorts with 34 courses open for play in 2005. Like White Pass,
ClubLink operates in a highly seasonal market. For the three months ended
March 31, 2005 the Company recorded an equity loss of $1.5 million compared to
a loss of $1.3 million in 2004. This loss was based on a weighted average
share ownership of 31.2% in 2005 and 30.6% in 2004. The Company recorded
dividends of $214,000 during the quarter ($188,000 in 2004).
Tri-White also accounts for its investment in Clearlink Capital
Corporation ("Clearlink") using the equity method. Clearlink is a leading
provider of innovative financial solutions in technology and equipment leasing
and equipment trading. During the three month period ending March 2005,
Tri-White recorded equity earnings of $545,000 (2004 - nil) from this
investment. The Company also received dividends of $310,000 (2004 - nil)
during the quarter.
As at March 31, 2005, details of these long-term investments include
5.4 million shares of ClubLink carried at $22.1 million and 3.1 million shares
of Clearlink carried at $25.2 million. The market value of these investments
exceeds their carrying cost by $31.7 million at March 31, 2005.
During the quarter, the Company advanced $7.0 million as part of its
participation in a syndicated bridge lending fund. The term of the loan is
24 months, with renewal options, and provides Tri-White with market yields for
such a loan. The loan was financed through existing credit facilities.
Normal Course Issuer Bid
On September 6, 2004 Tri-White announced a normal course issuer bid,
expiring on September 5, 2005, which enables the Company to purchase up to
1,143,587 common shares for cancellation. During 2004, the company acquired
and cancelled 65,300 shares.
Dividend
The Company announced today that the Board of Directors has approved the
regular quarterly dividend of $0.06 per share, payable on June 30th to
shareholders of record as at June 16th, 2005.
Financial Statements
Tri-White Corporation's Consolidated Balance Sheets, Consolidated
Statements of Earnings and Retained Earnings and Consolidated Statements of
Cash Flow can be found under the Company name at www.sedar.com .
Tri-White, through its merchant banking focus and corporate management
has a proven record of identifying and delivering value. The Company also
capitalizes on short term trading opportunities as they are identified in the
market. In the near term, there is the expectation of producing real cash
returns while building the underlying value of the investments.
TRI-WHITE CORPORATION
CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
March 31, 2005
Tri-White Corporation
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
As at As at
March 31, December 31,
2005 2004
(in thousands of dollars) $ $
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ASSETS
Current
Cash and cash equivalents - 4,908
Accounts receivable 1,493 1,516
Loan receivable 7,000 7,000
Income and other taxes recoverable 1,443 286
Material and supplies 3,913 3,635
Prepaid expenses and other assets 1,935 407
Portfolio investments 1,348 2,310
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17,132 20,062
Long-term investments 47,332 48,829
Long-term loan receivable 7,000 -
Capital assets 72,990 71,583
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Total assets 144,454 140,474
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Bank indebtedness 14,562 7,265
Promissory notes 17,935 6,000
Accounts payable and accrued liabilities 1,365 1,498
Current provision for asset retirement obligations 183 207
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34,045 14,970
Long term promissory note - 11,935
Future income tax liabilities 17,483 17,391
Provision for asset retirement obligations 320 317
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Total liabilities 51,848 44,613
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Shareholders' equity
Share capital 61,058 60,931
Cumulative translation adjustment (10,833) (11,084)
Contributed surplus 113 68
Retained earnings 42,268 45,946
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Total shareholders' equity 92,606 95,861
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Total liabilities and shareholders' equity 144,454 140,474
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Tri-White Corporation
CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS
(UNAUDITED)
Three months ended
March 31, March 31,
2005 2004
(in thousands of dollars, except for (Restated)
per share amounts) $ $
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REVENUE 96 111
Cost of sales and operating expenses 2,504 1,600
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Earnings from operations before the undernoted (2,408) (1,489)
Amortization 800 803
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Earnings before other income (expense)
and income taxes (3,208) (2,292)
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OTHER INCOME (EXPENSE)
Investment income 592 242
Interest expense (476) (238)
Net gain on sale of investments 506 161
Unrealized foreign exchange gain 85 -
Loss on equity accounted investments (973) (1,344)
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(266) (1,179)
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Earnings before income taxes (3,474) (3,471)
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Provision for income taxes
Current (1,191) (1,208)
Future 21 152
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(1,170) (1,056)
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Net earnings for the period (2,304) (2,415)
Retained earnings, beginning of period
as previously stated 45,946 42,648
Adjustments due to retroactive changes
in accounting policies of equity
accounted investments - (1,110)
Dividends paid (1,374) (1,374)
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Retained earnings, end of period 42,268 37,749
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Net earnings per share
Basic (0.10) (0.11)
Diluted (0.10) (0.10)
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Tri-White Corporation
CONSOLIDATED STATEMENTS OF CASH FLOW
(UNAUDITED)
Three months ended
March 31, March 31,
2005 2004
(in thousands of dollars, except for (Restated)
per share amounts) $ $
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OPERATING ACTIVITIES
Net income for the period (2,304) (2,415)
Items not affecting cash
Amortization 800 803
Future income taxes 21 152
Net (gain) on sale of assets and investments (506) (161)
Loss of equity accounted investments 973 1,344
Unrealized foreign exchange gain (85) -
Stock compensation expense 45 -
Asset retirement obligation expenditures (21) -
Distributions from equity accounted investments 524 188
Net change in operating assets and liabilities (3,073) (2,252)
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Cash (used in) operating activities (3,626) (2,341)
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FINANCING ACTIVITIES
Promissory note - 6,000
Dividends paid (1,350) (1,355)
Net proceeds of bank indebtedness and loans 7,297 14,800
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Cash provided by financing activities 5,947 19,445
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INVESTING ACTIVITIES
Proceeds on sale of assets and investments 1,468 2,643
Purchase of capital assets (1,839) (1,743)
Advances of loans receivable (7,000) (7,000)
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Cash (used in) investing activities (7,371) (6,100)
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Net effect of currency translation adjustment
on cash balances and cash flows 142 (1,007)
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Net (decrease) increase in cash and cash
equivalents during the period (4,908) 9,997
Cash and cash equivalents (deficiency),
beginning of period 4,908 (8,763)
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Cash and cash equivalents (deficiency),
end of period - 1,234
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