TSX: TWH
TORONTO, May 14 /CNW/ -
Financial Highlights
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Three Months Ended
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(thousands of dollars except March 31, March 31,
per share amounts) 2008 2007
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Revenue 19,863 110
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EBITDA(1) 2,991 (2,699)
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Interest and other income (expense) (6,291) 241
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Equity income (loss) 83 (1,100)
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Non controlling interest (1,116) -
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Net loss (5,765) (3,461)
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Total assets 664,788 147,479
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Shareholders' equity 99,510 106,227
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Basic and diluted loss per share (0.25) (0.15)
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Weighted average shares outstanding (000) 22,787 22,932
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(1) EBITDA is not a recognized performance measure under Canadian GAAP.
EBITDA is defined as earnings before taxes, interest, depreciation,
amortization, non-controlling interest and earnings from equity
accounted investments. Management believes that in addition to net
earnings, this measure is useful supplemental information to provide
investors with an indication of income available prior to debt
service, capital expenditures and income taxes. Investors should be
cautioned, however, that this measure should not be construed as an
alternative to net earnings determined in accordance with GAAP as an
indicator of the Company.
TODAY, THE COMPANY ANNOUNCED THE REGULAR ELIGIBLE DIVIDEND OF $0.06
PER SHARE TO BE PAID ON JUNE 30, 2008 TO SHAREHOLDERS OF RECORD AS AT
JUNE 16, 2008.
First Quarter Operating Highlights
The tourist operations at White Pass and Yukon Route ("White Pass") and the golf operations of ClubLink Corporation ("ClubLink") are highly seasonal. The majority of the revenue and earnings from these businesses occur during the third quarter of the year. Accordingly, the earnings of the Company will fluctuate with those of the underlying business units.
The above quarterly results have been impacted by the consolidation of ClubLink effective June 1, 2007. This has led to significant increases in all financial statement line items from a year ago.
EBITDA from the rail, tourism and port segment increased to a loss of US$2,019,000 in 2008 from US$1,864,000 for the first quarter of 2007.
The majority of the earnings of the rail, tourism and port operations are generated in US dollars. For the quarter ended March 31, 2008, the impact of the strengthening US dollar is estimated to have reduced the reported loss by approximately $0.01 per share.
Consolidated EBITDA for the quarter ended March 31, 2008 was $2,991,000 compared with a loss of $2,699,000 for the period ended March 31, 2007. The positive variance of $5,690,000 over the same period last year is mainly due to the acquisition of ClubLink on June 1, 2007, which contributed $5,461,000 in EBITDA for the quarter. ClubLink's EBITDA for the quarter was impacted by the pro rata allocation of the annual dues revenue for the 2008 season.
Amortization and rent increased to $6,216,000 for the quarter ended March 31, 2008 from $888,000 in 2007 due to the consolidation of ClubLink's results.
Interest and other income (expense) totaled an expense of $6,291,000 for the quarter ended March 31, 2008 compared to income of $241,000 for the same period in 2007. This change relates mainly to the increase in interest expense from the consolidation of ClubLink's results and funding of the acquisition of ClubLink shares on June 1, 2007.
Loss per share increased to $0.25 per share for the period ended March 31, 2008 from $0.25 in 2007.
Consolidated assets at March 31, 2008 totaled $664,788,000 compared with $626,765,000 at December 31, 2007. The increase of $38,023,000 is mainly due to the collection of Clublink's annual dues for the 2008 golf season which has increased the cash balances to $30,697,000 at March 31, 2008 from $6,177,000 at December 31,2007.
Corporate Developments
No purchases have been made under the normal course issuer bid program in the quarter.
The Company continued with its regular quarterly dividend program and paid an eligible dividend of $0.06 per share, or $1,377,000 on March 31, 2008. The Company today announced the continuation of its dividend program in June.
Outlook
For 2008, the Company believes it is well positioned to capitalize on its unique assets and their competitive strengths. It is unclear whether golf club operations and the rail, tourism and port operations would be impacted by a potential downturn in the economy. Tri-White anticipates that opportunities will arise to add quality assets in this environment. With the strength of the existing brands, experienced management, and a focus on cost control, stable returns are expected.
Currency fluctuations may continue to impact reported results.
Financial statements are attached.
Statements contained herein that are not based on historical or current fact, including without limitation statements containing the words "anticipates," "believes," "may," "continue," "estimate," "expects," and "will" and words of similar import, constitute "forward-looking statements". Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, among others, the following: general economic and business conditions, both nationally and in the regions in which the Company operates; changes in business strategy or development/acquisition plans; environmental exposures, financing risk; existing governmental regulations and changes in, or the failure to comply with, governmental regulations; liability and other claims asserted against the Company; and other factors referenced in the Company's filings with Canadian securities regulators. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The Company does not assume the obligation to update or revise any forward-looking statements.
Management's discussion and analysis, financial statements and other disclosure information relating to the Company is available through SEDAR and at www.sedar.com and on the Company website at www.tri-white.com.
TRI-WHITE CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31, December 31,
(in thousands of dollars) 2008 2007
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ASSETS
Current
Cash and cash equivalents $ 30,697 $ 6,177
Accounts receivable 11,655 2,675
Mortgages and loans receivable 831 763
Income taxes receivable 1,937 -
Inventories and prepaid expenses 9,897 5,386
Other assets 3,230 3,230
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58,247 18,231
Long-term investments 6,350 6,267
Mortgages and loans receivable 6,444 6,306
Capital assets 556,689 558,784
Intangible assets 10,369 10,488
Goodwill 26,689 26,689
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Total assets $ 664,788 $ 626,765
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Bank indebtedness $ 36,164 $ 31,629
Long-term debt 12,976 12,820
Capital lease obligations 4,179 4,269
Notes payable 37,000 35,000
Accounts payable and accrued liabilities 17,731 18,823
Income taxes payable - 2,783
Prepaid annual dues and deposits 50,778 5,021
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158,828 110,345
Long-term debt 280,810 284,127
Capital lease obligations 8,409 9,082
Deferred membership fees 56,341 57,025
Future income tax liabilities 12,332 11,991
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Total liabilities 516,720 472,570
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Non-controlling interest 48,558 50,007
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Shareholders' equity
Share capital 61,505 60,775
Contributed surplus 268 253
Retained earnings 60,107 67,249
Accumulated other comprehensive loss (22,370) (24,089)
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Total shareholders' equity 99,510 104,188
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Total liabilities and shareholders' equity $ 664,788 $ 626,765
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TRI-WHITE CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE EARNINGS
(Unaudited)
For the
3 Months Ended
(thousands of dollars, March 31, March 31,
except per share amounts) 2008 2007
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REVENUE
Operating revenue $ 19,863 $ 110
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EXPENSES
Cost of sales and operating expenses 16,872 2,809
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Earnings (loss) before other items, income
taxes and non-controlling interest 2,991 (2,699)
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OTHER ITEMS
Amortization of capital assets 5,058 888
Amortization of intangible assets 119 -
Land lease rent 1,039 -
Investment and other income (675) (677)
Interest expense 6,966 436
Loss (income) on equity accounted
investments
- ClubLink Corporation - 1,122
- Renasant Financial Partners Ltd. (83) (22)
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12,424 1,747
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Loss before income taxes and non-controlling
interest (9,433) (4,446)
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Provision for (recovery of) income taxes
Current (2,270) (1,085)
Future (282) 100
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(2,552) (985)
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Loss before non-controlling interest (6,881) (3,461)
Non-controlling interest 1,116 -
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Net loss (5,765) (3,461)
Other comprehensive loss (income):
Unrealized foreign currency translation
loss (gain) (1,719) 429
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Total comprehensive loss $ (4,046) $ (3,890)
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Loss per share
Basic and diluted $ (0.25) $ (0.15)
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TRI-WHITE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
For the
3 Months Ended
March 31, March 31,
(in thousands of dollars) 2008 2007
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OPERATING ACTIVITIES
Net loss for the period $ (5,765) $ (3,461)
Items not affecting cash:
Amortization of capital assets 5,058 888
Amortization of intangible assets 119 -
Amortization of deferred financing costs 230 -
Future income taxes (recovery) (282) 100
Amortization of membership fees (3,286) -
Loss on sale of assets 69 -
Loss of equity accounted
investment-ClubLink - 1,122
Income from equity accounted
investment-Renasant (83) (22)
Non-controlling interest - ClubLink (1,116) -
Net unrealized foreign exchange loss - 2
Stock compensation expense 15 16
Distributions from equity accounted investments - 343
Collection of membership fee installments 2,602 -
Net change in operating assets and liabilities 26,454 (4,405)
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Cash provided by (used in) operating activities 24,015 (5,417)
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FINANCING ACTIVITIES
Reduction of minority interest (32) -
Proceeds on issue of common shares 718 -
Shares purchased for cancellation - (946)
Dividends paid (1,365) (1,360)
Dividends paid - minority interest (301) -
Capital lease obligations (763) -
Notes payable 2,000 -
Long-term debt (3,391) -
Bank indebtedness 4,535 431
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Cash provided by (used in) financing activities 1,401 (1,875)
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INVESTING ACTIVITIES
Purchase of capital assets (876) (1,066)
Proceeds from real estate sales 469 -
Return of capital - 9,480
Advances of loan receivable (206) (4,765)
Repayment of loans receivable - 9,185
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Cash provided by (used in) investing activities (613) 12,834
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Net effect of currency translation adjustment
on cash and cash equivalents (283) (74)
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Net increase in cash and cash equivalents
during the period 24,520 5,468
Cash and cash equivalents, beginning of period 6,177 21,853
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Cash and cash equivalents, end of period $ 30,697 $ 27,321
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Represented by
Cash $ 3,841 $ 7,821
Cash equivalents 26,856 19,500
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$ 30,697 $ 27,321
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