Canlan reports first quarter 2009 financial results

    - Grows revenue and reduces debt despite negative economic conditions -

    BURNABY, BC, May 14 /CNW/ - Canlan Ice Sports Corp., providers of the
on-ice experience to youth and adults across North America, today announced
its financial results for the first quarter ended March 31, 2009.

    First Quarter Operational and Financial Highlights

    -   Consolidated revenue was $19.4 million, up 3.0% from $18.9 million
        for the first quarter of 2008.
    -   Same store revenue grew by 1.6% to $19.2 million.
    -   EBITA(1) was $5.0 million or $0.37 per share compared to $5.3 million
        or $0.39 per share for Q1 2008, on a post-consolidated basis.
    -   Revenue for the Adult Safe Hockey League, Canlan's flagship hockey
        program, increased by $0.5 million or 6.8% over Q1 2008.
    -   Food and beverage sales decreased by 5.2% or $0.2 million to $3.4
        million.
    -   Invested $0.2 million in capital expenditures relating to new
        equipment purchase and improvements to facilities.
    -   Net earnings before taxes were $3.0 million compared to $3.3 million
        for Q1 2008.
    -   Net earnings after taxes were $2.0 million or $0.15 per share,
        compared to $2.6 million or $0.19 per share for Q1 2008.
    -   Completed the integration of Ice Sports Vineland in Vineland, New
        Jersey into the Company's operations.

    "We are pleased with our solid financial results for the first quarter,"
said Joey St-Aubin, President and CEO of Canlan Ice Sports. "Against a
backdrop of negative economic conditions, we grew our revenue and reduced our
debt load on the strength of our programs and increased utilization of our
recreational ice facilities. Through our strong brand and high customer
loyalty as well as through the launch of new programs and revenue streams, we
are solidly positioned to sustain our performance growth over the past 10
years."

    Financial Results

    Canlan reported consolidated revenue of $19.4 million for the three-month
period ended March 31, 2009, up 3% from $18.9 million for Q1 2008. The growth
was principally attributable to an expanded facility portfolio following the
acquisition of Ice Sports Vineland, a two-pad facility in Vineland, New
Jersey.
    On a same store basis, revenue in Q1 2009 grew by $309,000 or 1.6% to
$19.2 million compared to $18.9 million for the first quarter of 2008. The
growth was due to higher registrations for Canlan's branded on-ice programs,
including the Adult Safe Hockey League.
    Canlan derives its revenue from the rental of its playing surfaces,
registrations for internal programming, food and beverage sales, sports stores
sales, tournament registrations, management and consulting fees and other
related fees.
    EBITA for Q1 2009 was $5.0 million, down 5.8% or $0.3 million from $5.3
million for the first quarter of 2008. The decrease was mainly attributable to
higher corporate general and administrative expenses relating to increased
labour costs stemming from new hires in strategic business areas. The new
positions are primarily intended to support sales and sponsorship activities.
    Net income before taxes for Q1 2009 was $3.0 million, down 6.7% or $0.2
million when compared to $3.3 million for the first quarter of 2008.
    Net income for the first quarter of 2009 was $2.0 million or $0.15 per
basic and fully diluted share after a future income tax expense of $1.1
million was recorded. In Q1 2008, net income was $2.6 million or $0.19 per
basic and fully diluted share after a future income tax expense of $0.7
million was recorded. All per share totals have been adjusted to reflect
Canlan's share consolidation effected December 2, 2008.
    As at March 31, 2009, Canlan held cash and cash equivalents of $4.2
million compared to $2.0 million as at March 31, 2008.

    Outlook

    "Although we have not seen any softening of demand for registrations
related to our programs or utilization of our recreational ice facilities, we
are prudently managing our costs, particularly as we enter our typically
slower seasonal periods," said Michael Gellard, Chief Financial Officer of
Canlan Ice Sports. "These efforts, coupled with our recent investments in
revenue-generating activities, provide a platform for long term success."
    Canlan will file its March 31, 2009 consolidated financial statements and
Management Discussion & Analysis with SEDAR on or before May 15, 2009.

    About Canlan

    Canlan Ice Sports Corp. is the largest private sector operator of
recreational ice facilities in North America with 65 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
63,000 registered players in the winter and summer seasons, and offers a
variety of other programs including youth leagues, hockey and figure skating
schools and tournaments.
    Canlan Ice Sports Corp. is listed on the Toronto Stock Exchange under the
symbol "ICE."

    Caution concerning forward-looking statements

    This document contains forward-looking statements, which may be
identified by words like "expects", "anticipates", "plans", "intends",
"indicates" or similar expressions. These statements are not a guarantee of
future performance and are inherently subject to risks and uncertainties. The
Company's actual results could differ materially from those currently
anticipated due to a number of factors set forth in reports and other
documents filed by the Company with Canadian securities regulatory authorities
from time to time.

    Selected First Quarter Financial Highlights

    -------------------------------------------------------------------------
    In thousands, except for per share
     information (unaudited)
                                                          Three months ended
                                                                March 31
                                                           2009         2008
    -------------------------------------------------------------------------
    Revenue:
      Ice rinks                                       $  19,445    $  18,886

    Expenses:
      Ice rinks                                          13,463       12,734
    -------------------------------------------------------------------------

    Earnings from operations                              5,982        6,152

    General and administration expenses                     959          821
    -------------------------------------------------------------------------

    Earnings before the undernoted                        5,023        5,331

    Other expenses:
      Amortization                                        1,102        1,030
      Interest                                              918        1,038
      Gain on held-for-trading financial
       liabilities                                          (15)           -
      Other                                                 (28)          (3)
    -------------------------------------------------------------------------
                                                          1,977        2,065

    Earnings before taxes                                 3,046        3,266

    Future income tax                                     1,064          670
    -------------------------------------------------------------------------

    Net earnings                                      $   1,982    $   2,596
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Basic and fully diluted earnings per
     common share                                     $    0.15    $    0.19

    Shares outstanding and diluted                       13,337       13,337
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    (1) Earnings before interest, taxes and amortization (EBITA) is often
        used as a measure of financial performance. However, EBITA is not a
        term that has specific meaning in accordance with generally accepted
        accounting principles, and may be calculated differently by other
        companies. Canlan reconciles EBITA to its net earnings.

For further information: Canlan Ice Sports Corp., Michael F. Gellard,
Senior Vice President & CFO, (604) 736-9152 ext. 108; The Equicom Group, Joe
Racanelli, (416) 815-0700 ext. 243, jracanelli@equicomgroup.com