BURNABY, BC, March 27 /CNW/ - Canlan Ice Sports Corp. today reported results for the year ended December 31, 2006
Fourth Quarter and Annual Results
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(in thousands of dollars, except number of shares)
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Three months ended December 31 Year ended December 31
2006 2005 2006 2005
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Revenue:
Ice rinks $18,013 $14,621 $55,231 $48,768
Expenses:
Ice rinks 12,596 9,932 43,107 37,607
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Earnings from operations 5,417 4,689 12,124 11,161
General and
administration expenses 703 631 2,775 2,764
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Earnings before
undernoted 4,714 4,058 9,349 8,397
Other expenses (income):
Interest 1,101 1,002 3,955 3,477
Amortization 1,041 1,002 3,888 3,687
Other (8) 3 341 (14)
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2,134 2,007 8,184 7,150
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Earnings from continuing
operations before taxes 2,580 2,051 1,165 1,247
Income tax expense
(recovery) 264 144 (189) 2
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Net earnings from
continuing operations 2,316 1,907 1,354 1,245
Loss from discontinued
operations - 205 - 205
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Earnings for the period $2,316 $1,702 $1,354 $1,040
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Basic and fully diluted
earnings per common
share $0.01 $0.00 $0.01 $0.00
Weighted average
common shares
issued 266,747,663 266,747,663 266,747,663 266,747,663
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Fourth quarter results (three months ended December 31, 2006 compared
with three months ended December 31, 2005):
- Gross revenue of $18.0 million grew by $3.4 million or 23.3%;
including revenue from a six-pad rink facility in Toronto (Ice Sports
York), that was purchased on August 1, 2006
- Same store revenue of $15.6 million increased by $1.1 million or
7.5%;
- EBITA was $4.7 million compared to $4.1 million in 2005 with
increased earnings derived mainly from Ice Sports York;
- On a same store basis, EBITA was unchanged from the prior year;
- Net earnings for the quarter was $2.3 million compared to
$1.7 million in 2005.
2006 year end results (year ended December 31, 2006 compared with year
ended December 31, 2005):
- Total consolidated revenue from operations reached $55.2 million
compared to $48.8 million in 2005, an increase of $6.5 million or
13.3%;
- The addition of Ice Sports York contributed $3.3 million to the
increase in gross revenue;
- Same store revenue of $52 million increased by $3.2 million or 6.5%
principally due to growth in the Company's adult hockey leagues and
youth programs;
- EBITA of $9.3 million increased by $950,000 or 11.3% from a year ago;
- On a same store basis, EBITA improved by $200,000 or 2.4%;
- The increase in same store EBITA was not commensurate with the growth
in same store revenues as utility and repairs and maintenance
expenses increased by more than expected;
- Many of the large repairs and maintenance cost items were related to
building and refrigeration systems, that are not expected to be
recurring in nature;
- Total interest expense increased by $467,000 principally due to the
additional debt required to finance the purchase of Ice Sports York,
which was financed with an $8 million bank loan and a $3.25 million
preferred share issuance to an affiliate of the Company's controlling
shareholder;
- Net earnings after taxes and discontinued operations increased to
$2.3 million ($0.01 per share)compared to $1.7 million ($0.00) in
2005;
Grant Ballantyne, President and CEO, said the addition of Ice Sports York and the new management contracts helped Canlan grow revenues to over $55 million and EBITA grew to $9.3 million. The acquisition of Ice Sports York was pivotal to Canlan. The Company's ability to finance the purchase demonstrates the confidence that our corporate lenders and majority shareholder have in the Company. With the full year contribution from York and the addition of more management contracts we expect our revenue to exceed $60 million in 2007.
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 Adult Safe Hockey League, Canlan operates the largest adult recreational hockey league in North America with more than 45,000 players and offers a variety of other programs including youth leagues, hockey and figure skating schools and tournaments.
The Company will be filing its 2006 consolidated financial statements, Management Discussion & Analysis and Annual Information Form with SEDAR on or before March 30, 2007.
Canlan Ice Sports Corp. is listed on the Toronto Stock Exchange under the symbol "ISE".