BURNABY, BC, Nov. 13 /CNW/ - Canlan Ice Sports Corp. today reported results for the three months and nine months ended September 30, 2007
Third Quarter Results (in thousands of dollars)
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Three months ended Nine months ended
September 30 September 30
2007 2006 2007 2006
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Revenue:
Ice rinks $ 12,308 $ 10,845 $ 43,800 $ 37,218
Expenses:
Ice rinks 11,259 9,953 35,489 30,511
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Earnings from
operations 1,049 892 8,311 6,707
General and
administration
expenses 804 695 2,638 2,071
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Earnings before
the undernoted 245 197 5,673 4,636
Other expenses:
Interest on debt
on ice rinks 933 903 2,798 2,349
Other interest 191 224 406 505
Loss on foreign
exchange 1 2 17 365
Amortization 1,100 995 3,262 2,846
Gain on sale of
capital assets - - - (16)
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2,225 2,124 6,483 6,049
Loss before taxes (1,980) (1,927) (810) (1,413)
Income tax (expense)
recovery:
Current - (2) - (2)
Future 395 646 139 452
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395 644 139 450
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Net loss (1,585) (1,283) (671) (963)
Deficit, beginning
of period (23,932) (25,880) (24,846) (26,200)
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Deficit, end of
period $ (25,517) $ (27,163) $ (25,517) $ (27,163)
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Basic earnings (loss)
per share $ (0.01) $ (0.01) $ 0.00 $ 0.00
Fully diluted earnings
(loss) per share $ (0.01) $ (0.01) $ 0.00 $ 0.00
Basic and diluted
weighted average
number of shares
outstanding
(in thousands) 266,747 266,747 266,747 266,747
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Third quarter results (three months ended September 30, 2007 compared
with three months ended September 30, 2006):
- Total revenue of $12.3 million increased by $1.5 million or 13.5%
compared to 2006
- Same store revenue increased by $1.1 million or 11.3% principally due
to growth in the Company s Adult Safe Hockey League ("ASHL"), ice
programs and Canlan s youth leagues
- Total direct operating expense of $11.3 million increased by
$1.3 million or 13.1% compared to the prior year.
- Same store operating expense was $10.9 million, which represents an
increase of $919,000 or 9.2%
- Increase was principally due to added costs required to service the
higher demand in Canlan s various programs, and to increased utility
costs
- Corporate general and administration costs of $804,000 increased by
$109,000 or 15.7% compared to 2006 principally due to higher labour
costs resulting from added capacity required to service rink
operations
- EBITA of $245,000 was $48,000 or 24% higer than the prior year;
however, on a same store basis, EBITA increased by $133,000 or 68% as
Ice Sports York (purchased in August 2006) had negative EBITA for the
month of July 2007
- Interest on ice rink debt of $933,000 increased by $30,000 compared
to 2006
- After recording a future income tax recovery of $395,000, net loss
for the quarter was $1.6 million compared to $1.3 million a year ago.
Year-to-date results (nine months ended September 30, 2007 compared with
nine months ended September 30, 2006):
- Total revenues of $43.8 million increased by $6.6 million or 17.7%
from the prior year
- Same store revenues of $39.9 million increased by $2.7 million or
7.3%, principally due to growth in the Company s various hockey
leagues, soccer leagues, instructional programs and Canlan's in-house
tournaments
- Total operating expenses of $35.5 million increased by $5.0 million
or 16.3% compared to 2006
- Same store operating expenses of $32.5 million increased by
$2.0 million or 6.4% mainly due to added material and labour costs
required to meet additional volume and higher hydro electric expense
- Corporate general and administration expense of $2.6 million
increased by $567,000 or 27.4% compared to 2006 principally due to
increased labour costs and accounting for stock-based compensation
expense
- EBITA of $5.7 million increased by $1.0 million or 22.4% from the
prior year while same store EBITA of $4.9 million increased by
$250,000 or 5.4% from 2006
- Interest on ice rink debt increased by $350,000 compared to 2006 due
to increased debt incurred to purchase Ice Sports York
- After interest, amortization, and tax expense, net loss was $671,000
compared to $963,000 a year ago
Grant Ballantyne, President and CEO said that results for the nine months to September 30, 2007 met management s expectations and was pleased to see improvements in almost every category of ice sales, a sign that the Company s focus on good customer service is paying off. In addition, the 2007/08 ASHL season, which got underway in September 2007, continued its growth year over year and is expected to contribute strong earnings to fourth quarter results.
Canlan Ice Sports Corp. is the largest private sector operator of recreational ice facilities in North America with 64 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 53,000 players and offers a variety of other programs including youth leagues, hockey and figure skating schools and tournaments.
The Company will file its September 30, 2007 unaudited consolidated financial statements and Management Discussion & Analysis with SEDAR on or before November 14, 2007.
Canlan Ice Sports Corp. is listed on the Toronto Stock Exchange under the symbol "ISE".