TSX: TWH
TORONTO, Aug. 13 /CNW/ -
Financial Highlights
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Three months ended Six months ended
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(in thousands of dollars June 30, June 30, June 30, June 30,
except per share amounts) 2008 2007 2008 2007
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Revenue 63,151 44,314 83,014 44,424
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EBITDA(1) 16,625 18,089 19,616 15,390
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Interest, net and other expense 6,245 1,713 12,536 1,472
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Equity income (loss) 424 (1,256) 507 (2,356)
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Non-controlling interest 143 (1,323) 1,259 (1,323)
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Net earnings (loss) 2,429 4,894 (3,336) 1,433
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Total assets 668,918 690,185
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Shareholders' Equity 100,297 103,213
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Basic and diluted earnings
(loss) per share $0.10 $0.21 $(0.15) $0.06
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Weighted average shares
outstanding (000) 22,853 22,875
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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 DIVIDEND OF $0.06 PER SHARE TO
BE PAID ON SEPTEMBER 30TH TO SHAREHOLDERS OF RECORD AS AT SEPTEMBER 15TH
Second Quarter Operating Highlights
The quarterly results have been impacted by the consolidation of ClubLink Corporation ("ClubLink") effective June 1, 2007. This has led to significant increases in all statement of earnings line items from a year ago.
Effective April 1, 2008, Tri-White acquired 50% of Global Source, LLC ("Global Source") for US$1,000,000. As part of the same transaction, Global Source purchased 100% of the technology equipment trading business from Renasant Financial Partners Ltd. ("Renasant"). There was no gain or loss by Renasant on the sale of its technology equipment trading business. Tri-White accounts for its investment in Global Source using the equity method. During the quarter ended June 30, 2008, Tri-White recorded $260,000 in equity income from Global Source.
EBITDA from golf operations remained relatively unchanged for the quarter ending June 30, 2008 at $10,251,000 as compared to $10,210,000 for 2007.
EBITDA from rail, tourism and port operations decreased to US$7,066,000 in 2008 from US$7,575,000 for the second quarter of 2007 due to a decline in the number of railroad passengers to 156,749 from 165,468 in 2007. The decline in passengers has been attributed to economic factors.
The majority of the earnings of rail, tourism and port operations are generated in US dollars. For the quarter ended June 30, 2008, the impact of the strengthening Canadian dollar from 2007 is estimated to have reduced the reported income by approximately $0.02 per share as compared to 2007.
Consolidated EBITDA for the quarter ended June 30, 2008 was $16,625,000 compared to $18,089,000 for the three month period ended June 30, 2007. This decline is mainly due to the decline in rail, tourism and port earnings and the impact of the strengthening Canadian dollar.
Amortization and rent increased to $6,081,000 for the quarter ended June 30, 2008 from $2,625,000 in 2007 due to the consolidation of ClubLink's results.
Net interest and other expense totaled an expense of $6,245,000 for the quarter ended June 30, 2008 compared to $1,713,000 for the same period in 2007. This change relates 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.
Tri-White has approximately 37% ownership position in Renasant and accounts for its investment in Renasant using the equity method on a three-month trailing basis. The equity income recorded by Tri-White for the quarter ended June 30, 2008 was $164,000 (2007 - equity loss of $282,000). This was based on the operating results of Renasant for the three months ended March 31, 2008.
Net earnings decreased to $2,429,000 for the quarter ended June 30, 2008 compared to $4,894,000 in 2007 due to the higher amortization, rent and interest expense from a full quarter of consolidating ClubLink's results.
Net earnings for the six months ended June 30, 2008 declined to a loss of $3,336,000 as compared to earnings of $1,433,000 in 2007 due to the higher amortization, rent and interest expense from a full period of consolidating ClubLink's results as compared to consolidating one month in 2007.
Corporate Developments
On July 9, 2008, Tri-White Corporation closed on a term loan financing with Wells Fargo Bank in the amount of $35,000,000. The proceeds of this financing was used to pay down related party loans.
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 at www.sedar.com and on the Company website at www.tri-white.com.
TRI-WHITE CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30, December 31,
(in thousands of dollars) 2008 2007
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ASSETS
Current
Cash and cash equivalents $ 20,235 $ 6,177
Accounts receivable 22,242 2,675
Mortgages and loans receivable 701 763
Inventories and prepaid expenses 14,362 5,386
Other assets 3,230 3,230
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60,770 18,231
Long-term investments 7,788 6,267
Mortgages and loans receivable 6,543 6,306
Capital assets 556,877 558,784
Intangible assets 10,251 10,488
Goodwill 26,689 26,689
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Total assets $668,918 $626,765
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Bank indebtedness $ 34,885 $ 31,629
Long-term debt 11,017 12,820
Capital lease obligations 4,404 4,269
Notes payable 38,300 35,000
Accounts payable and accrued liabilities 32,672 18,823
Income taxes payable 501 2,783
Prepaid annual dues and deposits 37,742 5,021
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159,521 110,345
Long-term debt 280,266 284,127
Capital lease obligations 10,087 9,082
Deferred membership fees 58,684 57,025
Future income tax liabilities 12,188 11,991
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Total liabilities 520,746 472,570
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Non-controlling interest 47,875 50,007
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Shareholders' equity
Share capital 61,578 60,775
Contributed surplus 284 253
Retained earnings 61,159 67,249
Accumulated other comprehensive loss (22,724) (24,089)
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Total shareholders' equity 100,297 104,188
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Total liabilities and shareholders' equity $668,918 $626,765
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TRI-WHITE CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE EARNINGS
(Unaudited)
For the For the
3 Months Ended 6 Months Ended
(thousands of dollars, June 30, June 30, June 30, June 30,
except per share amounts) 2008 2007 2008 2007
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REVENUE
Operating revenue $ 63,151 $ 44,314 $ 83,014 $ 44,424
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EXPENSES
Cost of sales and
operating expenses 46,526 26,225 63,398 29,034
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Earnings before other items,
income taxes and
non-controlling
interest 16,625 18,089 19,616 15,390
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OTHER ITEMS
Amortization of
capital assets 4,902 2,168 9,960 3,056
Amortization of
intangible assets 118 57 237 57
Land lease rent 1,061 400 2,100 400
Investment and other income (540) (685) (1,215) (1,362)
Interest expense 6,785 2,398 13,751 2,834
Loss (income) on equity
accounted investments (424) 1,256 (507) 2,356
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11,902 5,594 24,326 7,341
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Earnings (loss) before
income taxes and
non-controlling interest 4,723 12,495 (4,710) 8,049
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Provision for (recovery of)
income taxes
Current 2,447 5,363 177 4,278
Future (10) 915 (292) 1,015
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2,437 6,278 (115) 5,293
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Earnings (loss) before
non-controlling interest 2,286 6,217 (4,595) 2,756
Non-controlling interest 143 (1,323) 1,259 (1,323)
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Net earnings (loss) 2,429 4,894 (3,336) 1,433
Unrealized foreign currency
translation gain (loss) (354) (5,611) 1,365 (6,040)
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Total comprehensive
income (loss) $ 2,075 $ (717) $ (1,971) $ (4,607)
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Earnings (loss) per share
Basic and diluted $ 0.10 $ 0.21 $ (0.15) $ 0.06
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TRI-WHITE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
For the For the
3 Months Ended 6 Months Ended
June 30, June 30, June 30, June 30,
(in thousands of dollars) 2008 2007 2008 2007
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OPERATING ACTIVITIES
Net earnings (loss)
for the period $ 2,429 $ 4,894 $ (3,336) $ 1,433
Items not affecting cash:
Amortization of capital
assets 4,902 2,168 9,960 3,056
Amortization of
intangible assets 118 57 237 57
Amortization of deferred
financing costs 188 94 418 94
Future income taxes
(recovery) (10) 915 (292) 1,015
Amortization of
membership fees (3,514) (1,228) (6,800) (1,228)
Loss (gain) on sale
of assets 36 (7) 105 (7)
Loss (income) from equity
accounted investments (424) 1,256 (507) 2,356
Non-controlling
interest - ClubLink (143) 1,323 (1,259) 1,323
Net unrealized foreign
exchange gain - (123) - (121)
Stock compensation expense 16 15 31 31
Distributions from equity
accounted investments - 321 - 664
Collection of membership
fee installments 5,857 2,137 8,459 2,137
Net change in operating
assets and liabilities (8,534) (9,512) 17,920 (13,917)
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Cash provided by (used in)
operating activities 921 2,310 24,936 (3,107)
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FINANCING ACTIVITIES
Reduction of non-controlling
interest (240) - (272) -
Proceeds on issue of
subsidiary common shares - 16 - 16
Proceeds on issue of
common shares 63 - 781 -
Shares purchased
for cancellation - (960) - (1,906)
Dividends paid (1,367) (1,352) (2,732) (2,712)
Dividends paid -
non-controlling interest (300) - (601) -
Capital lease obligations 1,903 1,114 1,140 1,114
Deferred financing costs (50) (95) (50) (95)
Notes payable 1,300 4,000 3,300 4,000
Long-term debt (2,641) 8,671 (6,032) 8,671
Bank indebtedness (1,279) 13,686 3,256 14,117
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Cash provided by (used in)
financing activities (2,611) 25,080 (1,210) 23,205
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INVESTING ACTIVITIES
Purchase of capital assets (8,033) (10,437) (8,909) (11,503)
Investments (1,014) (52,918) (1,014) (52,918)
Proceeds from real
estate sales 103 - 572 -
Return of capital - - - 9,480
Cash acquired by increasing
interest in ClubLink - 1,603 - 1,603
Loans receivable 31 12,490 (175) 16,910
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Cash used in investing
activities (8,913) (49,262) (9,526) (36,428)
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Net effect of currency
translation adjustment
on cash and cash
equivalents 141 (722) (142) (796)
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Net increase in cash and
cash equivalents during
the period (10,462) (22,594) 14,058 (17,126)
Cash and cash equivalents,
beginning of period 30,697 27,321 6,177 21,853
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Cash and cash equivalents,
end of period $ 20,235 $ 4,727 $ 20,235 $ 4,727
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Represented by
Cash $ 6,218 $ 4,727
Cash equivalents 14,017 -
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$ 20,235 $ 4,727
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