ClubLink Enterprises Limited announces second quarter 2009 results and 25% increase in its quarterly eligible dividend



    MISSISSAUGA, ON, Aug. 7 /CNW/ -

    
    Financial Highlights

    -------------------------------------------------------------------------
    (in thousands of dollars              Three months        Six months
     except per share amounts)               ended               ended
                                       ------------------  ------------------
                                       June 30,  June 30,  June 30,  June 30,
                                          2009      2008      2009      2008
    -------------------------------------------------------------------------
    Revenue                             62,651    63,151    82,253    83,014
    -------------------------------------------------------------------------
    EBITDA(1)                           17,021    16,625    20,075    19,616
    -------------------------------------------------------------------------
    Net earnings (loss)                  1,951     2,429    (3,634)   (3,336)
    -------------------------------------------------------------------------
    Basic and diluted earnings (loss)
     per share                           $0.08     $0.10    ($0.16)   ($0.15)
    -------------------------------------------------------------------------
    Weighted average shares outstanding
     (000's)                                                22,892    22,853
    -------------------------------------------------------------------------
    (1) EBITDA is not a recognized performance measure under Canadian GAAP.
    EBITDA is defined as earnings before taxes, interest, depreciation,
    amortization, non-controlling interest and earnings from equity accounted
    investments. Management believes that in addition to net earnings, this
    measure is useful supplemental information to provide investors with an
    indication of income available prior to debt service, capital
    expenditures and income taxes. Investors should be cautioned, however,
    that this measure should not be construed as an alternative to net
    earnings determined in accordance with GAAP as an indicator of the
    Company's performance.
    

    Second Quarter 2009 Highlights

    EBITDA from the rail, tourism and port segment increased to US $7,389,000
in 2009 compared to US $7,062,000 for the second quarter of 2008 due to
additional port revenue from increased cruise ship passengers, a 5.8% increase
in the average ticket price and aggressive containment of costs. Also
impacting the quarter were two separate rail service interruptions - a rock
slide which halted the entire rail operation for 2 days in May and a washout
which halted rail operations between Bennett, British Columbia and Carcross,
Yukon for 6 weeks. It is estimated that these interruptions resulted in a loss
of US $780,000 in revenue and contributed to the decline in rail passengers.
    The majority of earnings from the rail, tourism and port operations are
generated in US dollars. For the quarter ended June 30, 2009, the impact of
the weakening Canadian dollar is estimated to have increased the reported
earnings by 5 cents per share as compared to the second quarter in 2008.
    EBITDA from the golf club and resort operations decreased 14.5% to
$8,765,000 for the second quarter of 2009 compared to $10,249,000 in 2008 due
to reduced discretionary spending impacting food and beverage, merchandise and
rooms revenue related to the recession.
    Consolidated EBITDA for the quarter ended June 30, 2009 was $17,021,000
compared with $16,625,000 for the quarter ended June 30, 2008 and was impacted
by the higher Canadian/U.S. exchange rate used to convert the rail, tourism
and port operations segment.
    Amortization and rent increased 7.6% to $6,546,000 for the quarter ended
June 30, 2009 from $6,081,000 in 2008 due to additional rent relating to The
Club at Bond Head lease completed by ClubLink in April 2009.
    Interest, net and other income totaled an expense of $6,384,000 for the
quarter ended June 30, 2009 compared to $6,245,000 for the same period in
2008.
    Equity income was nil in the second quarter of 2009 compared to $424,000
in 2008 due to the sale of these corporate investments late in 2008.
    Net earnings decreased 19.7% to $1,951,000 for the quarter ended June 30,
2009 compared to $2,429,000 in 2008 due to the decline in equity income of
$424,000.
    Earnings per share decreased to 8 cents per share for the quarter ended
June 30, 2009 from 10 cents in 2008.

    Eligible Dividend

    Today, ClubLink Enterprises Limited ("ClubLink Enterprises") announced an
eligible dividend of 7.5 cents per share to be paid on September 30, 2009 to
shareholders of record as at September 15, 2009.

    Normal Course Issuer Bid

    ClubLink Enterprises has been approved for a normal course issuer bid to
purchase up to 1,146,304 common shares which expires September 19, 2009. As at
August 5, 2009, ClubLink Enterprises has purchased 44,508 common shares for a
purchase price of $238,000 or $5.35 per common share including commissions.

    Business Combination

    On July 28, 2009 ClubLink Enterprises completed the previously announced
amalgamation of ClubLink Corporation and 2207610 Ontario Inc., a wholly-owned
subsidiary of the ClubLink Enterprises. The Amalgamation was approved by the
shareholders of ClubLink at the annual and special meeting held on June 30,
2009. The amalgamated entity will continue to carry on business under the name
"ClubLink Corporation".
    As described in the ClubLink Corporation Management Information Circular
dated May 29, 2009, in accordance with the terms of the amalgamation agreement
dated May 29, 2009 among ClubLink Corporation, 2207610 Ontario Inc. and
ClubLink Enterprises, shareholders of ClubLink Corporation, other than
ClubLink Enterprises, and its affiliates, received, for each common share of
ClubLink Corporation, 1.1 common shares of ClubLink Enterprises.
    As part of this business combination, there were 5,164,015 common shares
of ClubLink Enterprises issued. As at August 6, 2009 there are 28,055,038
common shares of ClubLink Enterprises outstanding. The ClubLink Enterprises
shares are trading on the TSX under the symbol "CLK".

    Management's discussion and analysis, financial statements and other
disclosure information relating to the Company is available through SEDAR and
at www.sedar.com and on the Company website at www.clublinkenterprises.ca.




For further information:

For further information: Mr. Robert Visentin, Chief Financial Officer,
15675 Dufferin Street, King City, Ontario, L7B 1K5, Tel: (905) 841-5360, Fax:
(905) 841-1134, Email: rvisentin@clublink.ca

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CLUBLINK ENTERPRISES LIMITED

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