Canlan reports third quarter results



    BURNABY, BC, Nov. 13 /CNW/ - Canlan Ice Sports Corp. today reported
results for the three months and nine months ended September 30, 2007

    
               Third Quarter Results (in thousands of dollars)
    -------------------------------------------------------------------------
                                Three months ended         Nine months ended
                                      September 30              September 30
                                 2007         2006         2007         2006
    -------------------------------------------------------------------------
    Revenue:
      Ice rinks             $  12,308    $  10,845    $  43,800    $  37,218
    Expenses:
      Ice rinks                11,259        9,953       35,489       30,511
    -------------------------------------------------------------------------

    Earnings from
     operations                 1,049          892        8,311        6,707

    General and
     administration
     expenses                     804          695        2,638        2,071
    -------------------------------------------------------------------------

    Earnings before
     the undernoted               245          197        5,673        4,636

    Other expenses:
      Interest on debt
       on ice rinks               933          903        2,798        2,349
      Other interest              191          224          406          505
      Loss on foreign
       exchange                     1            2           17          365
      Amortization              1,100          995        3,262        2,846
      Gain on sale of
       capital assets               -            -            -          (16)
    -------------------------------------------------------------------------
                                2,225        2,124        6,483        6,049
    Loss before taxes          (1,980)      (1,927)        (810)      (1,413)
    Income tax (expense)
     recovery:
      Current                       -           (2)           -           (2)
      Future                      395          646          139          452
    -------------------------------------------------------------------------
                                  395          644          139          450
    -------------------------------------------------------------------------

    Net loss                   (1,585)      (1,283)        (671)        (963)

    Deficit, beginning
     of period                (23,932)     (25,880)     (24,846)     (26,200)
    -------------------------------------------------------------------------

    Deficit, end of
     period                 $ (25,517)   $ (27,163)   $ (25,517)   $ (27,163)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Basic earnings (loss)
     per share              $   (0.01)   $   (0.01)   $    0.00    $    0.00
    Fully diluted earnings
     (loss) per share       $   (0.01)   $   (0.01)   $    0.00    $    0.00

    Basic and diluted
     weighted average
     number of shares
     outstanding
     (in thousands)           266,747      266,747      266,747      266,747
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Third quarter results (three months ended September 30, 2007 compared
    with three months ended September 30, 2006):

    -   Total revenue of $12.3 million increased by $1.5 million or 13.5%
        compared to 2006
    -   Same store revenue increased by $1.1 million or 11.3% principally due
        to growth in the Company s Adult Safe Hockey League ("ASHL"), ice
        programs and Canlan s youth leagues
    -   Total direct operating expense of $11.3 million increased by
        $1.3 million or 13.1% compared to the prior year.
    -   Same store operating expense was $10.9 million, which represents an
        increase of $919,000 or 9.2%
    -   Increase was principally due to added costs required to service the
        higher demand in Canlan s various programs, and to increased utility
        costs
    -   Corporate general and administration costs of $804,000 increased by
        $109,000 or 15.7% compared to 2006 principally due to higher labour
        costs resulting from added capacity required to service rink
        operations
    -   EBITA of $245,000 was $48,000 or 24% higer than the prior year;
        however, on a same store basis, EBITA increased by $133,000 or 68% as
        Ice Sports York (purchased in August 2006) had negative EBITA for the
        month of July 2007
    -   Interest on ice rink debt of $933,000 increased by $30,000 compared
        to 2006
    -   After recording a future income tax recovery of $395,000, net loss
        for the quarter was $1.6 million compared to $1.3 million a year ago.

    Year-to-date results (nine months ended September 30, 2007 compared with
    nine months ended September 30, 2006):

    -   Total revenues of $43.8 million increased by $6.6 million or 17.7%
        from the prior year
    -   Same store revenues of $39.9 million increased by $2.7 million or
        7.3%, principally due to growth in the Company s various hockey
        leagues, soccer leagues, instructional programs and Canlan's in-house
        tournaments
    -   Total operating expenses of $35.5 million increased by $5.0 million
        or 16.3% compared to 2006
    -   Same store operating expenses of $32.5 million increased by
        $2.0 million or 6.4% mainly due to added material and labour costs
        required to meet additional volume and higher hydro electric expense
    -   Corporate general and administration expense of $2.6 million
        increased by $567,000 or 27.4% compared to 2006 principally due to
        increased labour costs and accounting for stock-based compensation
        expense
    -   EBITA of $5.7 million increased by $1.0 million or 22.4% from the
        prior year while same store EBITA of $4.9 million increased by
        $250,000 or 5.4% from 2006
    -   Interest on ice rink debt increased by $350,000 compared to 2006 due
        to increased debt incurred to purchase Ice Sports York
    -   After interest, amortization, and tax expense, net loss was $671,000
        compared to $963,000 a year ago
    

    Grant Ballantyne, President and CEO said that results for the nine months
to September 30, 2007 met management s expectations and was pleased to see
improvements in almost every category of ice sales, a sign that the Company s
focus on good customer service is paying off. In addition, the 2007/08 ASHL
season, which got underway in September 2007, continued its growth year over
year and is expected to contribute strong earnings to fourth quarter results.

    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 53,000 players and offers a variety of other programs including
youth leagues, hockey and figure skating schools and tournaments.
    The Company will file its September 30, 2007 unaudited consolidated
financial statements and Management Discussion & Analysis with SEDAR on or
before November 14, 2007.
    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, (604) 736-9152

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Canlan Ice Sports Corp.

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