- Grows revenue and reduces debt despite negative economic conditions -
BURNABY, BC, May 14 /CNW/ - Canlan Ice Sports Corp., providers of the on-ice experience to youth and adults across North America, today announced its financial results for the first quarter ended March 31, 2009.
First Quarter Operational and Financial Highlights
- Consolidated revenue was $19.4 million, up 3.0% from $18.9 million
for the first quarter of 2008.
- Same store revenue grew by 1.6% to $19.2 million.
- EBITA(1) was $5.0 million or $0.37 per share compared to $5.3 million
or $0.39 per share for Q1 2008, on a post-consolidated basis.
- Revenue for the Adult Safe Hockey League, Canlan's flagship hockey
program, increased by $0.5 million or 6.8% over Q1 2008.
- Food and beverage sales decreased by 5.2% or $0.2 million to $3.4
million.
- Invested $0.2 million in capital expenditures relating to new
equipment purchase and improvements to facilities.
- Net earnings before taxes were $3.0 million compared to $3.3 million
for Q1 2008.
- Net earnings after taxes were $2.0 million or $0.15 per share,
compared to $2.6 million or $0.19 per share for Q1 2008.
- Completed the integration of Ice Sports Vineland in Vineland, New
Jersey into the Company's operations.
"We are pleased with our solid financial results for the first quarter," said Joey St-Aubin, President and CEO of Canlan Ice Sports. "Against a backdrop of negative economic conditions, we grew our revenue and reduced our debt load on the strength of our programs and increased utilization of our recreational ice facilities. Through our strong brand and high customer loyalty as well as through the launch of new programs and revenue streams, we are solidly positioned to sustain our performance growth over the past 10 years."
Financial Results
Canlan reported consolidated revenue of $19.4 million for the three-month period ended March 31, 2009, up 3% from $18.9 million for Q1 2008. The growth was principally attributable to an expanded facility portfolio following the acquisition of Ice Sports Vineland, a two-pad facility in Vineland, New Jersey.
On a same store basis, revenue in Q1 2009 grew by $309,000 or 1.6% to $19.2 million compared to $18.9 million for the first quarter of 2008. The growth was due to higher registrations for Canlan's branded on-ice programs, including the Adult Safe Hockey League.
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.
EBITA for Q1 2009 was $5.0 million, down 5.8% or $0.3 million from $5.3 million for the first quarter of 2008. The decrease was mainly attributable to higher corporate general and administrative expenses relating to increased labour costs stemming from new hires in strategic business areas. The new positions are primarily intended to support sales and sponsorship activities.
Net income before taxes for Q1 2009 was $3.0 million, down 6.7% or $0.2 million when compared to $3.3 million for the first quarter of 2008.
Net income for the first quarter of 2009 was $2.0 million or $0.15 per basic and fully diluted share after a future income tax expense of $1.1 million was recorded. In Q1 2008, net income was $2.6 million or $0.19 per basic and fully diluted share after a future income tax expense of $0.7 million was recorded. All per share totals have been adjusted to reflect Canlan's share consolidation effected December 2, 2008.
As at March 31, 2009, Canlan held cash and cash equivalents of $4.2 million compared to $2.0 million as at March 31, 2008.
Outlook
"Although we have not seen any softening of demand for registrations related to our programs or utilization of our recreational ice facilities, we are prudently managing our costs, particularly as we enter our typically slower seasonal periods," said Michael Gellard, Chief Financial Officer of Canlan Ice Sports. "These efforts, coupled with our recent investments in revenue-generating activities, provide a platform for long term success."
Canlan will file its March 31, 2009 consolidated financial statements and Management Discussion & Analysis with SEDAR on or before May 15, 2009.
About Canlan
Canlan Ice Sports Corp. is the largest private sector operator of recreational ice facilities in North America with 65 playing surfaces at 22 facilities in Canada and the United States. Through the ASHL, Canlan operates the largest adult recreational hockey league in North America with more than 63,000 registered players in the winter and summer seasons, and offers a variety of other programs including youth leagues, hockey and figure skating schools and tournaments.
Canlan Ice Sports Corp. is listed on the Toronto Stock Exchange under the symbol "ICE."
Caution concerning forward-looking statements
This document contains forward-looking statements, which may be identified by words like "expects", "anticipates", "plans", "intends", "indicates" or similar expressions. These statements are not a guarantee of future performance and are inherently subject to risks and uncertainties. The Company's actual results could differ materially from those currently anticipated due to a number of factors set forth in reports and other documents filed by the Company with Canadian securities regulatory authorities from time to time.
Selected First Quarter Financial Highlights
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In thousands, except for per share
information (unaudited)
Three months ended
March 31
2009 2008
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Revenue:
Ice rinks $ 19,445 $ 18,886
Expenses:
Ice rinks 13,463 12,734
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Earnings from operations 5,982 6,152
General and administration expenses 959 821
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Earnings before the undernoted 5,023 5,331
Other expenses:
Amortization 1,102 1,030
Interest 918 1,038
Gain on held-for-trading financial
liabilities (15) -
Other (28) (3)
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1,977 2,065
Earnings before taxes 3,046 3,266
Future income tax 1,064 670
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Net earnings $ 1,982 $ 2,596
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Basic and fully diluted earnings per
common share $ 0.15 $ 0.19
Shares outstanding and diluted 13,337 13,337
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(1) Earnings before interest, taxes and amortization (EBITA) is often
used as a measure of financial performance. However, EBITA is not a
term that has specific meaning in accordance with generally accepted
accounting principles, and may be calculated differently by other
companies. Canlan reconciles EBITA to its net earnings.