Canlan reports second quarter 2009 financial results



    BURNABY, BC, Aug. 13 /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 three and six-month periods ended June 30, 2009.

    
    Second Quarter Operational and Financial Highlights

    -   Consolidated revenue was $14.6 million, up 5.3% from $13.9 million
        for the second quarter of 2008.
    -   Sales from Canlan's Adult Safe Hockey League totaled $2.5 million for
        the spring season, up 14% from 2008.
    -   Same store revenue grew by $625,000 or 4.3%.
    -   Earnings before interest, taxes and amortization (EBITA)(1) was
        $430,000 or $0.03 per share compared to $738,000 or $0.06 per share
        for Q2 2008, on a post-consolidated basis.
    -   Net loss before taxes was $1.4 million, compared to a net loss of
        $1.2 million for Q2 2008.
    -   Net loss after taxes was $934,000 or $0.07 per share, basic and
        diluted, compared to a net loss after taxes of $968,000 or $0.07 per
        share, basic and diluted, for Q2 2008.
    

    "Despite some very difficult economic conditions, particularly in several
key markets, such as Oshawa, we generated solid financial results for the
second quarter, which seasonally is our softest," said Joey St-Aubin,
President and CEO of Canlan Ice Sports. "As measured by our revenue growth,
positive cash flow, and debt reduction, our strategy of increasing the
utilization of facilities through the delivery of high-quality programs is
positively impacting our performance."

    Financial Results

    Canlan reported consolidated revenue of $14.6 million for the three-month
period ended June 30, 2009, up 5.3% from $13.9 million for Q2 2008. On a
year-to-date basis, Canlan generated revenue of $34.1 million for 2009, up
3.9% from $32.8 million for 2008. The revenue growth was principally due to
increased registrations for the Company's on-ice programs, such as the Adult
Safe Hockey League as well as higher advertising and sponsorship revenue
related to Canlan's sponsorship sales. Despite improvement to Canlan's
year-to-date revenue performance, growth was adversely impacted by a decline
of food and beverage of $304,000 or 5% from 2008. On a year-to-date basis,
same store revenue grew $982,000 or 2.9% over 2008.
    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 the second quarter of 2009 was $430,000, down 41.7% from
$738,000 for Q2 2008. The decline was principally due to higher general and
administrative expenses relating to professional service fees for tax, audit
and other consulting activities as well as increased labour costs due to new
hires in strategic business areas, such as sales and marketing.
    Canlan recorded a net loss before taxes of $1.4 million for the second
quarter of 2009, up 13.5% from a net loss before taxes of $1.2 million for Q2
of 2008. On a year-to-date basis, Canlan's net earnings before taxes for 2009
was $1.7 million, down 18% from net earnings before taxes of $2.1 million for
2008.
    Canlan also reported a net loss of $934,000 or $0.07 per basic and fully
diluted share for the second quarter of 2009, an improvement of 3.6% when
compared to a net loss of $968,000 or $0.07 per basic and diluted share for Q2
2008. The improvement was as result of a future income tax recovery charge of
$418,000 being recorded in Q2 2009. On a year-to-date basis, net income was
$1.0 million or $0.08 per basic share for 2009. This compares to a net income
of $1.6 million or $0.12 for 2008. All per share totals have been adjusted to
reflect Canlan's share consolidation effected December 2, 2008.
    Cash and cash equivalents held at June 30, 2009 were $3.8 million,
compared to $2.0 million for June 30, 2008.

    Outlook

    "Consistent with recent economic indicators and forecasts, we expect to
see sequential improvements to our key financial metrics by the end of the
fourth quarter based on early registrations for the 2009-2010 hockey season,"
said Michael Gellard, Chief Financial Officer of Canlan Ice Sports. "In the
interim, we are carefully monitoring our performance, particularly with an eye
towards reducing our energy costs, gaining increased efficiencies from all of
our operations, as well leveraging our investments in sales and marketing
activities."
    Canlan will file its consolidated financial statements and Management
Discussion & Analysis for the period ending June 30, 2009 with SEDAR on or
before August 14, 2009.

    About Canlan

    Canlan Ice Sports Corp. is the largest private sector operator of
recreational ice facilities in North America with 62 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
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.

    
    --------------------
    (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.



    Selected Second Quarter Financial Highlights
    -------------------------------------------------------------------------
    In thousands, except for per share
     information (unaudited)
                                Three months ended          Six months ended
                                           June 30                   June 30
                                 2009         2008         2009         2008
    -------------------------------------------------------------------------
    Revenue:
      Ice rinks               $14,606      $13,877      $34,052      $32,765

    Expenses:
      Ice rinks                13,036       12,263       26,498       24,997
    -------------------------------------------------------------------------

    Earnings from operations    1,570        1,614        7,554        7,768

    General and
     administration expenses    1,140          876        2,100        1,698
    -------------------------------------------------------------------------

    Earnings before the
     undernoted                   430          738        5,454        6,070

    Other expenses:
      Amortization              1,105        1,004        2,207        2,034
      Interest                    890          963        1,809        2,002
      Gain on held-for-trading
       financial liabilities     (203)           -         (218)           -
      Other                       (10)         (38)         (38)         (41)
    -------------------------------------------------------------------------
                                1,782        1,929        3,760        3,995

    Earnings (loss) before
     taxes                     (1,352)      (1,191)       1,694        2,075

    Future income tax recovery
     (expense)                    418          223         (646)        (447)
    -------------------------------------------------------------------------

    Net earnings (loss)          (934)        (968)       1,048        1,628

    Deficit, beginning of
     period                   (18,231)     (21,444)     (20,213)     (24,040)
    -------------------------------------------------------------------------

    Deficit, end of period   $(19,165)    $(22,412)    $(19,165)    $(22,412)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Basic and fully diluted
     (loss) earnings per
     common share              $(0.07)      $(0.07)       $0.08        $0.12
    Weighted average common
     shares issued for
     basic and diluted
     earnings per share
     calculations          13,337,448   13,337,448   13,337,448   13,337,448
    -------------------------------------------------------------------------
    





For further information:

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

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