Canlan Reports First Quarter 2013 Financial Results and the Continuation of its Dividend Policy

- Net earnings grow 9% year-over-year -

BURNABY, BC, May 10, 2013 /CNW/ - Canlan Ice Sports Corp. (TSX: ICE), industry-leading providers of recreational and multi-sport facilities across North America, today announced its financial results for the three-month period ended March 31, 2013.

Q1 2013 Key Financial Metrics

In thousands except share data Q1 2013 Q1 2012 Change
Total revenue $20,661 $21,148 -2%
EBITDA1 $4,665 $4,760 -2%
Net earnings before taxes $2,742 $2,855 -4%
Net earnings after taxes $2,030 $1,867 +9%
Net earnings per share (FD) $0.15 $0.14 +7%
  Mar. 31, 2013 Dec. 31, 2012  
Total Assets $100,768 $102,824 -2%
Cash and Cash equivalents $9,318 $12,900 -28%
Total Interest bearing debt $39,084 $39,018 -

"Overall our first quarter results were in line with our expectations, highlighted by improved profitability, despite some increased competition," said Joey St-Aubin, President and CEO of Canlan Ice Sports.  "Typically when new facilities are built in our markets, some customers will migrate to these facilities for price or for the excitement of being in a new facility. After having experienced this several times over the years, we are confident that our exceptional customer experience and continual reinvestment in our facilities position Canlan as the premier supplier of recreational services to our customers and is one of the main factors in our high customer loyalty."

Q1 2013 Operational and Financial Highlights

  • Revenue of $20.7 million, a decrease of 2.3% over Q1 2012
  • Operating expenses decreased $0.3 million or 2.3% versus Q1 2012
  • Corporate G&A expenses decreased by 3.4% compared to Q1 2012
  • EBITDA of $4.7 million for Q1 2013, down $0.1 million from Q1 2012
  • Net earnings after taxes were $2.0 million in Q1 2013, up 8.7% from Q1 2012
  • Total interest bearing debt decreased $2.6 million or 6.2% over the past 12 months
  • An extensive renovation project commenced at Les 4 Glaces in Quebec and is progressing as planned with one ice-pad and several dressing rooms fully refurbished

Dividend Policy

Canlan's Board of Directors has approved the continuation of the Company's quarterly dividend policy and declared eligible dividends totaling $0.02 per common share that will next be paid on July 17, 2013 to shareholders of record at the close of business June 28, 2013.  Canlan's Board of Directors reviews the Company's dividend policy on a quarterly basis.  Canlan's dividend is designated as an "eligible" dividend under the Income Tax Act (Canada) and any corresponding provincial legislation. Under this legislation, individuals resident in Canada may be entitled to enhanced dividend tax credits, which reduce income tax otherwise payable.

Review of Q1 2013 Financial Results

Canlan derives its revenue from the rental of its playing surfaces, registrations for internal programming, food and beverage sales, sports stores sales, tournament registrations, sponsorship, management and other related fees.

Canlan reported consolidated revenue of $20.7 million for the three-month period ended March 31, 2013, down 2.3% from $21.1 million for the corresponding period of 2012.  Same store revenue of $20.5 million decreased by $0.4 million or 2.0% compared to 2012.  The decrease was principally due to lower ASHL revenue as there were fewer teams playing in the Greater Toronto market than the prior year and a 50-team satellite league in Hamilton, Ontario did not run in 2013 due to a lack of available ice at a third-party arena. In addition, contract ice rental and ASHL revenue in our Montreal facility, Les 4 Glaces, declined due to competition from a new arena that recently began operations in the local market. Management is focused on retaining and regaining the business at Les 4 Glaces and has executed a number of initiatives to do so, including a comprehensive facility renovation project currently in progress.

Food & beverage revenue of $3.0 million declined by $0.1 million or 3.9% compared to the prior year.  On a same store basis, F&B declined 2.9% year-over-year.  The decrease was principally due to reduced third-party tournaments and ASHL traffic in two locations that impacted sales in the restaurants.

Direct operating expenses were $14.8 million, down 2.3% from $15.1 million for Q1 2012. On a same store basis, operating expenses were $14.5 million, an increase of $0.2 million or 1.1%. The increase was mainly attributable to general wage increments.

Corporate general and administrative expenses totaled $1.2 million, down 3.4% from Q1 2012.  This was principally due to reduced consulting fees that were incurred in the prior year for one-time projects.

EBITDA was $4.7 million for the first quarter of the year versus $4.8 million for Q1 2012.

Canlan generated net earnings before taxes of $2.7 million for Q1 2013, a decrease from net earnings before taxes of $2.9 million in Q1 2012. 

Net earnings for the first quarter of 2013 was $2.0 million or $0.15 per fully diluted share. In the first quarter of 2012, Canlan generated net earnings of $1.9 million, or $0.14 per fully diluted share.

At March 31, 2013, the Company held cash and cash equivalents of $9.3 million and interest bearing debt totaling $39.1 million. This compares to $12.9 million and $39.0 million, respectively, at December 31, 2012.

Outlook

"We continue to focus on the ramping up of our newer facilities such as Canlan Sportsplex, Romeoville and Fort Wayne, as we have significant opportunities for growth in those locations," said Mr. St-Aubin.  "We remain focused on providing additional value to further differentiate ourselves from the competition and we are actively seeking new markets and opportunities for our Sportsplex expansion."

Canlan's financial statements and Management's Discussion & Analysis for the period ended March 31, 2013 will be available via SEDAR on or before May 15, 2013 and through the Company's website, www.icesports.com.

About Canlan
Canlan Ice Sports Corp. is the North American leader in the development, operations and ownership of multi-purpose recreation and entertainment facilities. We are the largest private sector owner and operator of recreational ice sports facilities in North America and currently own and/or manage 19 facilities in Canada and the United States with 56 ice surfaces, in addition to indoor soccer fields, curling rinks, ball hockey courts and volleyball courts.  To learn more please visit www.icesports.com.

Canlan Ice Sports Corp. is listed on the Toronto Stock Exchange under the symbol "ICE."

Caution concerning forward-looking statements
Certain statements in this MD&A may constitute ''forward looking'' statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. When used in this MD&A, such statements may use such words as ''may'', ''will'', ''expect'', ''believe'', ''plan'' and other similar terminology. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this MD&A. These forward looking statements involve a number of risks and uncertainties. Some of the factors that could cause actual results to differ materially from those expressed in or underlying such forward looking statements are the effects of, as well as changes in: international, national and local business and economic conditions; political or economic instability in the Company's markets; competition; legislation and governmental regulation; and accounting policies and practices. The foregoing list of factors is not exhaustive.



1 Earnings before interest, taxes, depreciation and amortization (EBITDA) is often used as a measure of financial performance. However, EBITDA is a not a term that has specific meaning in accordance with IFRS, and may be calculated differently by other companies.



 

SOURCE: Canlan Ice Sports Corp.

For further information:

Canlan Ice Sports Corp.
Michael F. Gellard
Senior Vice President & CFO
604 736 9152

TMX Equicom
Philip Dale
416 815 0700 ext. 253
pdale@tmxequicom.com

Organization Profile

Canlan Ice Sports Corp.

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