TSX:TWH
TORONTO, Nov. 12 /CNW/ -
Financial Highlights
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(in thousands of dollars Three months ended Nine months ended
except per share amounts) -------------------------------------------
September September September September
30, 2008 30, 2007 30, 2008 30, 2007
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Revenue 95,355 96,992 178,369 141,416
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EBITDA (1) 41,229 40,424 60,845 55,814
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Interest, net and other
expense 6,448 6,293 18,984 7,765
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Equity income (loss) (218) 117 289 (2,239)
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Non-controlling interest (3,003) (2,611) (1,744) (3,934)
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Net earnings 14,544 12,712 11,208 14,145
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Total assets 661,078 671,062
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Shareholders' Equity 113,978 111,434
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Basic earnings per share $0.64 $0.56 $0.49 $0.62
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Weighted average shares
outstanding (000) 22,877 22,800
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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 DECEMBER 31st TO SHAREHOLDERS OF RECORD AS
AT DECEMBER 15th
Third Quarter Operating Highlights
ClubLink's championship golf rounds decreased 1.2% to 520,817 from 527,327 in the third quarter of 2007 due to wet weather conditions in Ontario and Quebec. The number of rounds per 18-hole golf course decreased to 13,185 from 13,350 in 2007.
White Pass train passengers decreased 5.1% to 280,911 from 295,912 in 2007 due to a decline in the number of cruise ship passengers resulting from US economic factors which have impacted the tourist industry.
Revenue declined 1.7% to $95,355,000 from $96,992,000 in 2007 due primarily to a decline in White Pass revenues in the amount of US $1,445,000 and also a decline in the average exchange rate used for conversion purposes to 1.0187 in 2008 from 1.1049.
Cost of sales and operating expenses declined 4.3% to $54,126,000 from $56,568,000 in 2007 due to certain cost control measures undertaken at both ClubLink and White Pass, in addition to US $1,578,000 in costs recorded in 2007 relating to the settlement of, and a multi-year extension to, the train operating union agreements. The decline in exchange rates also impacted this decrease.
Consolidated EBITDA for the three month period ended September 30, 2008 increased 2.0% to $41,229,000 compared to $40,424,000 for the three month period ended September 30, 2007. This increase is mainly due to the positive impact of the golf operations.
EBITDA from golf operations for the quarter ending September 30, 2008 increased 5.4% to $25,335,000 from $24,047,000 for 2007 due to the positive impact on merchandise and food and beverage sales of the 2008 RBC Canadian Open hosted by Glen Abbey Golf Club from July 21 to July 27, 2008.
EBITDA from rail, tourism and port operations increased to US $15,821,000 in 2008 from US $15,200,000 for the third quarter of 2007. The results were impacted by the decline in operating expenses previously referenced above which was offset by a decrease in the number of railroad passengers, attributed to economic factors.
The majority of the earnings of the rail, tourism and port operations are generated in US dollars. For the quarter ended September 30, 2008, the impact of the strengthening Canadian dollar from 2007 is estimated to have reduced the reported income by approximately $0.03 per share as compared to 2007.
Amortization and rent decreased slightly to $6,245,000 for the quarter ended September 30, 2008 from $6,294,000 in 2007.
Interest, net and other expense increased 2.5% to $6,448,000 for the quarter ended September 30, 2008 compared to $6,293,000 in 2007. This change relates primarily to the receipt of $308,000 of non-recurring fee income in 2007.
The equity earnings recorded by Tri-White on its Renasant investment for the quarter ended September 30, 2008 was a loss of $323,000 (2007 - equity income of $117,000). During this period, the three month trailing basis was eliminated resulting in the recording of six months of equity income/loss for Renasant.
Net earnings increased to $14,544,000 for the quarter ended September 30, 2008 compared to $12,712,000 in 2007 due to improved operating results from ClubLink Corporation which had an increase of $1,341,000 in earnings.
Corporate Developments
On September 18, 2008, Tri-White announced a normal course issuer bid which expires on September 19, 2009 to purchase up to 1,146,304 common shares of Tri-White. As of November 12, 2008, Tri-White has purchased 7,628 common shares for a total purchase price of $43,400 or $5.69 per common share.
On November 6, 2008, Tri-White completed the sale of its investment in Renasant to Paros Enterprises Limited, a related party, for cash proceeds in the amount of $5,545,000. This sale was completed based on a price range established by an independent third party valuation of Renasant.
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)
September 30, December 31,
(in thousands of dollars) 2008 2007
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ASSETS
Current
Cash and cash equivalents $ 17,083 $ 6,177
Accounts receivable 19,149 2,675
Mortgages and loans receivable 518 763
Inventories and prepaid expenses 10,160 5,386
Other assets 3,230 3,230
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50,140 18,231
Long-term investments 7,341 6,267
Mortgages and loans receivable 6,519 6,306
Capital assets 560,257 558,784
Intangible assets 10,132 10,488
Goodwill 26,689 26,689
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Total assets $ 661,078 $ 626,765
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Bank indebtedness $ 21,000 $ 31,629
Long-term debt 32,145 12,820
Capital lease obligations 4,132 4,269
Notes payable 4,000 35,000
Accounts payable and accrued liabilities 32,259 18,823
Income taxes payable 6,785 2,783
Prepaid annual dues and deposits 19,104 5,021
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119,425 110,345
Long-term debt 292,655 284,127
Capital lease obligations 9,421 9,082
Deferred membership fees 61,485 57,025
Future income tax liabilities 13,645 11,991
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Total liabilities 496,631 472,570
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Non-controlling interest 50,469 50,007
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Shareholders' equity
Share capital 61,583 60,775
Contributed surplus 299 253
Retained earnings 74,321 67,249
Accumulated other comprehensive loss (22,225) (24,089)
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Total shareholders' equity 113,978 104,188
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Total liabilities and shareholders' equity $ 661,078 $ 626,765
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CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE EARNINGS
(Unaudited)
For the For the
3 Months Ended 9 Months Ended
(thousands of dollars, Sept 30, Sept 30, Sept 30, Sept 30,
except per share amounts) 2008 2007 2008 2007
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REVENUE
Operating revenue $ 95,355 $ 96,992 $ 178,369 $ 141,416
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EXPENSES
Cost of sales and
operating expenses 54,126 56,568 117,524 85,602
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Earnings before other items,
income taxes and non-
controlling interest 41,229 40,424 60,845 55,814
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OTHER ITEMS
Amortization of capital
assets 5,082 5,066 15,042 8,122
Amortization of intangible
assets 119 185 356 242
Land lease rent 1,044 1,043 3,144 1,443
Investment and other
income (241) (556) (1,456) (1,918)
Interest expense 6,689 6,849 20,440 9,683
Loss (income) on equity
accounted investments 218 (117) (289) 2,239
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12,911 12,470 37,237 19,811
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Earnings before income taxes
and non-controlling
interest 28,318 27,954 23,608 36,003
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Provision for income taxes
Current 9,911 10,274 10,088 14,552
Future 860 2,357 568 3,372
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10,771 12,631 10,656 17,924
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Earnings before non-
controlling interest 17,547 15,323 12,952 18,079
Non-controlling interest (3,003) (2,611) (1,744) (3,934)
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Net earnings 14,544 12,712 11,208 14,145
Comprehensive loss on
available for sale
financial assets from
equity accounted investment (229) - (229) -
Unrealized foreign currency
translation gain (loss) 728 (3,150) 2,093 (9,190)
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Total comprehensive income
(loss) $ 15,043 $ 9,562 $ 13,072 $ 4,955
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Earnings per share
Basic $ 0.64 $ 0.56 $ 0.49 $ 0.62
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Diluted $ 0.64 $ 0.55 $ 0.49 $ 0.61
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CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
For the For the
3 Months Ended 9 Months Ended
Sept 30, Sept 30, Sept 30, Sept 30,
(in thousands of dollars) 2008 2007 2008 2007
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OPERATING ACTIVITIES
Net earnings for the
period $ 14,544 $ 12,712 $ 11,208 $ 14,145
Items not affecting cash:
Amortization of capital
assets 5,082 5,066 15,042 8,122
Amortization of
intangible assets 119 185 356 242
Amortization of deferred
financing costs 327 99 745 193
Future income taxes 860 2,357 568 3,372
Amortization of
membership fees (3,693) (3,465) (10,493) (4,693)
Loss (gain) on sale of
assets 137 - 242 (7)
Loss (income) from
equity accounted
investments 218 (117) (289) 2,239
Non-controlling interest
- ClubLink 3,003 2,611 1,744 3,934
Net unrealized foreign
exchange loss - 121 - -
Stock compensation expense 15 15 46 46
Distributions from equity
accounted investments - - - 664
Collection of membership
fee installments 6,494 7,727 14,953 9,864
Net change in operating
assets and liabilities (5,473) (5,622) 10,273 (19,539)
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Cash provided by operating
activities 21,633 21,689 44,395 18,582
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FINANCING ACTIVITIES
Reduction of non-
controlling interest (110) - (382) -
Proceeds on issue of
subsidiary common shares - 34 - 50
Proceeds on issue of
common shares - - 780 -
Shares purchased for
cancellation (12) - (12) (1,906)
Dividends paid (1,364) (1,356) (4,096) (4,068)
Dividends paid -
non-controlling interest (299) (301) (900) (301)
Capital lease obligations (938) 665 202 1,779
Deferred financing costs (623) - (673) (95)
Notes payable (34,300) (4,000) (31,000) -
Long-term debt 32,407 (3,297) 26,375 5,374
Bank indebtedness (13,885) (12,032) (10,629) 2,085
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Cash provided by (used in)
financing activities (19,124) (20,287) (20,335) 2,918
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INVESTING ACTIVITIES
Purchase of capital assets (5,846) (5,130) (12,580) (16,633)
Investments - - (1,014) (52,918)
Proceeds from real estate
sales - - 572 -
Return of capital - - - 9,480
Cash acquired by
increasing interest in
ClubLink - - - 1,603
Loans receivable 207 4,701 32 21,611
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Cash used in investing
activities (5,639) (429) (12,990) (36,857)
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Net effect of currency
translation adjustment on
cash and cash equivalents (22) (1,216) (164) (2,012)
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Net increase (decrease) in
cash and cash equivalents
during the period (3,152) (243) 10,906 (17,369)
Cash and cash equivalents,
beginning of period 20,235 4,727 6,177 21,853
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Cash and cash equivalents,
end of period $ 17,083 $ 4,484 $ 17,083 $ 4,484
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Represented by
Cash $ 5,189 $ 4,484
Cash equivalents 11,894 -
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$ 17,083 $ 4,484
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