Canlan reports strong revenue growth for 2007



    BURNABY, BC, March 17 /CNW/ - Canlan Ice Sports Corp. today reported
results for the three months and year ended December 31, 2007

    
         Fourth Quarter and Annual Results (in thousands of dollars)
    -------------------------------------------------------------------------

                                Three months ended                Year ended
                                       December 31               December 31
                                 2007         2006         2007         2006
    -------------------------------------------------------------------------
    Revenue:
      Ice rinks               $18,739      $18,013      $62,539      $55,231
    Expenses:
      Ice rinks                13,367       12,596       48,856       43,107
    -------------------------------------------------------------------------

    Earnings from operations    5,372        5,417       13,683       12,124

    General and
     administration expenses      888          704        3,526        2,775
    -------------------------------------------------------------------------
    Earnings before the
     undernoted                 4,484        4,713       10,157        9,349

    Other expenses:
      Interest                  1,006        1,101        4,210        3,955
      Amortization              1,099        1,042        4,361        3,888
      Other                         3           (8)          20          341
    -------------------------------------------------------------------------
                                2,108        2,135        8,591        8,184
    -------------------------------------------------------------------------
    Earnings before income
     taxes                      2,376        2,578        1,566        1,165

    Income tax expense
     (recovery)                   899          261          760         (189)
    -------------------------------------------------------------------------

    Net earnings               $1,477       $2,317         $806       $1,354
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Basic earnings per
     share                   $  0.006     $  0.009     $  0.003     $  0.005
    Fully diluted earnings
     per share               $  0.006     $  0.009     $  0.003     $  0.005

    Basic and diluted
     weighted average
     number of shares
     outstanding          266,747,663  266,747,663  266,747,663  266,747,663
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Fourth quarter results (three months ended December 31, 2007 compared with
three months ended December 31, 2006):

    -   Revenue for the fourth quarter of $18.7 million increased by
        $0.7 million or 4% over the same quarter last year.
    -   This increase was primarily attributable to the substantial growth of
        the Adult Safe-Hockey League.
    -   Total direct operating expense of $13.4 million increased by
        $0.8 million or 6.1% compared to the prior year.
    -   Operating earnings before general & administration expenses was
        $5.4 million in the quarter, unchanged from 2006.
    -   EBITA for the fourth quarter of 2007 was $4.5 million compared to
        $4.7 million in 2006.
    -   EBITA decreased over the prior year as a result of additional general
        & administration expenses related to increased wages and the
        additional accrual related to the Company's SARs program.
    -   Interest of $1.0 million decreased by $100,000 due to lower debt
        levels during this period compared to 2006.
    -   Earnings before tax was $2.4 million compared to $2.6 million a year
        ago.
    -   After recording a future income tax expense of $899,000, net earnings
        for the quarter was $1.5 million compared to $2.3 million in 2006.

    Annual results (year ended December 31, 2007 compared with year ended
December 31, 2006):

    -   Total revenue from all sources was $62.5 million in 2007 compared to
        $55.2 million last year, an increase of $7.3 million or 13%.
    -   On a same store basis, revenue was $58.7 million in 2007, which
        represents a 6% increase over 2006.
    -   The increase in same store revenue was principally due to growth in
        the Company's adult and youth hockey leagues, soccer leagues,
        instructional programs and Canlan's in-house tournaments.
    -   Total ice rink operating costs were $48.9 million in 2007 compared to
        $43.1 million in 2006, an increase of 13.3%.
    -   On a same store basis operating costs of $45.7 million increased by
        $2.6 million or 6% over 2006.
    -   The increase in operating costs was primarily due to increased labour
        costs to meet market wage rates, additional costs required to meet
        added demand, increased repair and maintenance expenses, and slightly
        higher utility costs.
    -   Earnings from ice rink operations of $13.7 million increased by
        $1.6 million or 12.9% from 2006.
    -   Corporate general and administration (G&A) expenses of $3.5 million
        increased by $0.7 million, or 27.1% principally due to increased
        labour costs and accounting for stock-based compensation expense.
    -   EBITA of $10.2 million increased by $0.8 million or 8.6% from the
        prior.
    -   A significant portion of the year over year improvement can be
        attributed to the York acquisition which was effective on August 1,
        2006. Fiscal 2007 was the first full year of inclusion of Ice Sports
        York operating results, compared to only five months inclusion in
        2006. After eliminating the effect of Ice Sports York for the first 7
        months of 2007, EBITA grew $0.2 million to $9.5 million, a 1.8%
        improvement over last year.
    -   Interest on ice rink debt increased by $0.3 million compared to 2006
        due to increased debt incurred to purchase Ice Sports York.
    -   Earnings before tax was $1.6 million compared with $1.2 million in
        2006 and after accounting for future income tax expense of
        $0.76 million, net earnings was $0.8 million compared with
        $1.4 million in the prior year.
    

    Grant Ballantyne, President and CEO said that 2007's strong revenue
growth was due not only to the successful integration of Ice Sports York, but
also to organic growth existing facilities experienced in most regions. The
Adult Safe Hockey League (ASHL) continues to show strong results because the
Company puts a lot of effort into ensuring the players enjoy safe and
rewarding competition. In addition, the growth in registrations for youth
programs and leagues demonstrates that these products are appealing to kids at
all levels.
    The first full year of Ice Sports York resulted in significant
incremental growth to Canlan as the facility achieved its operating targets
and York's capital improvement program is also on track.
    For 2008, we must continue to aggressively market our programs and
tournaments, especially in the summer season. The summer ASHL registrations
already appear strong and we expect to meet or exceed budgeted numbers. In
addition to revenue growth, energy cost reduction will be at the forefront of
management's targets. The Company will also be busy refinancing its mortgage
debt as the current term matures in September 2008.
    Canlan Ice Sports Corp. is the largest private sector operator of
recreational ice facilities in North America with 64 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
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 December 31, 2007 audited consolidated
financial statements and Management Discussion & Analysis with SEDAR on or
before March 28, 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

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Canlan Ice Sports Corp.

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