Canlan reports record setting Q2 results



    BURNABY, BC, Aug. 12 /CNW/ - Canlan Ice Sports Corp. today reported
results for the three months and six months ended June 30, 2008

    
               Second Quarter Results (in thousands of dollars)

    -------------------------------------------------------------------------
                                    Three months ended      Six months ended
                                               June 30               June 30
                                       2008       2007       2008       2007
    -------------------------------------------------------------------------
    Revenue:
      Ice rinks                   $  13,877  $  13,096  $  32,765  $  31,492

    Expenses:
      Ice rinks                      12,263     11,776     24,997     24,229
    -------------------------------------------------------------------------
    Earnings from operations          1,614      1,320      7,768      7,263

    General and administration
     expenses                           876        936      1,698      1,834
    -------------------------------------------------------------------------
    Earnings before the undernoted      738        384      6,070      5,429

    Other expenses:
      Interest                          892      1,059      1,886      2,080
      Amortization                    1,075      1,090      2,150      2,162
      Other                             (38)        23        (41)        17
    -------------------------------------------------------------------------
                                      1,929      2,172      3,995      4,259

    Earnings (loss) before taxes     (1,191)    (1,788)     2,075      1,170

    Future income tax recovery
     (expense)                          223        362       (447)      (256)
    -------------------------------------------------------------------------

    Net earnings (loss)           $    (968) $  (1,426) $   1,628  $     914
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Basic earnings (loss) per
     common share                 $  (0.003) $  (0.005) $   0.006  $   0.003
    Fully diluted earnings
     (loss) per common share      $  (0.003) $  (0.005) $   0.006  $   0.003
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Second quarter results (three months ended June 30, 2008 compared with
    three months ended June 30, 2007):

    -  Total revenue of $13.9 million increased by $781,000 or 6.0% compared
       to 2007.
    -  Same store revenue increased by $1.0 million or 8.1% (one facility in
       Quebec was leased to third party as of January 1, 2008)
    -  The increase was principally due to revenue growth in the Adult Safe
       Hockey League's ("ASHL") summer season and increased sales from youth
       leagues and camps.
    -  Total direct operating expense of $12.3 million increased by $487,000
       or 4.1% compared to 2007.
    -  Same store operating expense increased by $868,000 or 7.6%
    -  This increase was mainly due to added costs required to service the
       higher customer demand for our leagues and programs, increased repairs
       and maintenance costs, and increased labour costs.
    -  Corporate general and administration costs of $876,000 decreased by
       $60,000 due to decreased labour costs.
    -  Overall, EBITA increased by $354,000 to $738,000
    -  Interest expense of $892,000 decreased from $1.1 million as a result
       of lower debt levels.
    -  After recording a future income tax recovery of $223,000, net loss for
       the quarter was $968,000 compared to $1.4 million a year ago

    Year-to-date results (six months ended June 30, 2008 compared with six
    months ended June 30, 2007):

    -  Total revenue of $32.8 million increased by $1.3 million or 4.0% from
       the prior year.
    -  On a same store basis, total revenue increased by $1.9 million or
       6.3%.
    -  Revenue from ice sales and programming were the main drivers for the
       positive results as ASHL revenue accounted for $866,000 of the
       year-over-year increase and revenue from youth leagues, in-house
       hockey tournaments, and other sports, such as soccer, increased by
       $422,000
    -  Total operating costs of $25.0 million increased by $768,000 or 3.2%.
    -  Same store operating costs increased by $1.5 million or 6.3%.
    -  The increase was principally due to added costs required to service
       the higher customer demand for our leagues and programs, increased
       repairs and maintenance costs, and rising labour costs.
    -  Corporate general and administration costs of $1.7 million decreased
       by $136,000 or 7.4% compared to 2007 due to reduced labour costs.
    -  Overall, EBITA of $6.1 million increased by $641,000 or 10.6%, and it
       represents a gross margin of 18.5% compared to 17.2% in 2007.
    -  Interest on ice rink debt decreased by $194,000 compared to 2007 due
       to decreased debt.
    -  After interest, amortization, and future income tax expense, net
       income was $1.6 million compared to $914,000 a year ago
    

    Grant Ballantyne, President and CEO said that impressive results for the
six months to June 30, 2008 have exceeded management's expectations and the
strong year over year growth is a result of the Company-wide commitment to
customer service. Our adult leagues are an integral part of our business, and
they continue to grow. All operating units will remain focused on the delivery
of excellent customer service and cost controls during the remainder of the
year to ensure the positive trend continues.
    In addition, Canlan was able to successfully refinance its long-term debt
on July 31, 2008 with favourable terms and ahead of the original maturity
date. This allows management to focus on other strategic initiatives for the
remainder of the year.

    Canlan Ice Sports Corp. is the largest private sector operator of
recreational ice facilities in North America with 63 playing surfaces at 21
facilities in Canada and the United States. Through the ASHL, Canlan operates
the largest adult recreational hockey league in North America with more than
55,000 players and offers a variety of other programs including youth leagues,
hockey and figure skating schools and tournaments.
    The Company will file its June 30, 2008 unaudited consolidated financial
statements and Management Discussion & Analysis with SEDAR on or before
August 14, 2008.
    Canlan Ice Sports Corp. is listed on the Toronto Stock Exchange under the
symbol "ISE".





For further information:

For further information: Michael Gellard, Senior Vice President, Finance
& CFO, Canlan Ice Sports Corp., (604) 736-9152 (ext. 108)

Organization Profile

Canlan Ice Sports Corp.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890