Canlan scores a profit in 2006



    BURNABY, BC, March 27 /CNW/ - Canlan Ice Sports Corp. today reported
results for the year ended December 31, 2006

    
                      Fourth Quarter and Annual Results
                      ---------------------------------
             (in thousands of dollars, except number of shares)
             --------------------------------------------------
    -------------------------------------------------------------------------
                    Three months ended December 31    Year ended December 31

                                 2006         2005         2006         2005
    -------------------------------------------------------------------------
    Revenue:
      Ice rinks               $18,013      $14,621      $55,231      $48,768

    Expenses:
      Ice rinks                12,596        9,932       43,107       37,607
    -------------------------------------------------------------------------

    Earnings from operations    5,417        4,689       12,124       11,161

    General and
     administration expenses      703          631        2,775        2,764
    -------------------------------------------------------------------------

    Earnings before
     undernoted                 4,714        4,058        9,349        8,397

    Other expenses (income):
      Interest                  1,101        1,002        3,955        3,477
      Amortization              1,041        1,002        3,888        3,687
      Other                        (8)           3          341          (14)
    -------------------------------------------------------------------------
                                2,134        2,007        8,184        7,150
    -------------------------------------------------------------------------

    Earnings from continuing
     operations before taxes    2,580        2,051        1,165        1,247

    Income tax expense
     (recovery)                   264          144         (189)           2
    -------------------------------------------------------------------------

    Net earnings from
     continuing operations      2,316        1,907        1,354        1,245

    Loss from discontinued
     operations                     -          205            -          205
    -------------------------------------------------------------------------

    Earnings for the period    $2,316       $1,702       $1,354       $1,040
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Basic and fully diluted
     earnings per common
     share                      $0.01        $0.00        $0.01        $0.00
    Weighted average
     common shares
     issued               266,747,663  266,747,663  266,747,663  266,747,663
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Fourth quarter results (three months ended December 31, 2006 compared
    with three months ended December 31, 2005):

    -   Gross revenue of $18.0 million grew by $3.4 million or 23.3%;
        including revenue from a six-pad rink facility in Toronto (Ice Sports
        York), that was purchased on August 1, 2006
    -   Same store revenue of $15.6 million increased by $1.1 million or
        7.5%;
    -   EBITA was $4.7 million compared to $4.1 million in 2005 with
        increased earnings derived mainly from Ice Sports York;
    -   On a same store basis, EBITA was unchanged from the prior year;
    -   Net earnings for the quarter was $2.3 million compared to
        $1.7 million in 2005.

    2006 year end results (year ended December 31, 2006 compared with year
    ended December 31, 2005):

    -   Total consolidated revenue from operations reached $55.2 million
        compared to $48.8 million in 2005, an increase of $6.5 million or
        13.3%;
    -   The addition of Ice Sports York contributed $3.3 million to the
        increase in gross revenue;
    -   Same store revenue of $52 million increased by $3.2 million or 6.5%
        principally due to growth in the Company's adult hockey leagues and
        youth programs;
    -   EBITA of $9.3 million increased by $950,000 or 11.3% from a year ago;
    -   On a same store basis, EBITA improved by $200,000 or 2.4%;
    -   The increase in same store EBITA was not commensurate with the growth
        in same store revenues as utility and repairs and maintenance
        expenses increased by more than expected;
    -   Many of the large repairs and maintenance cost items were related to
        building and refrigeration systems, that are not expected to be
        recurring in nature;
    -   Total interest expense increased by $467,000 principally due to the
        additional debt required to finance the purchase of Ice Sports York,
        which was financed with an $8 million bank loan and a $3.25 million
        preferred share issuance to an affiliate of the Company's controlling
        shareholder;
    -   Net earnings after taxes and discontinued operations increased to
        $2.3 million ($0.01 per share)compared to $1.7 million ($0.00) in
        2005;
    

    Grant Ballantyne, President and CEO, said the addition of Ice Sports York
and the new management contracts helped Canlan grow revenues to over
$55 million and EBITA grew to $9.3 million. The acquisition of Ice Sports York
was pivotal to Canlan. The Company's ability to finance the purchase
demonstrates the confidence that our corporate lenders and majority
shareholder have in the Company. With the full year contribution from York and
the addition of more management contracts we expect our revenue to exceed
$60 million in 2007.

    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 Adult Safe Hockey
League, Canlan operates the largest adult recreational hockey league in North
America with more than 45,000 players and offers a variety of other programs
including youth leagues, hockey and figure skating schools and tournaments.

    The Company will be filing its 2006 consolidated financial statements,
Management Discussion & Analysis and Annual Information Form with SEDAR on or
before March 30, 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, Canlan Ice Sports Corp., (604) 736-9152

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