Tri-White Corporation announces 2006 year end results and regular dividend of $0.06 per share



    TSX: TWH

    TORONTO, March 1 /CNW/ - Tri-White Corporation ("Tri-White" or the
"Company") (TSX: TWH) today announced its financial results for the quarter
and year ending December 31, 2006.

    
    During the year:

    -   EBITDA for 2006 was up $0.2 million over 2005;
    -   White Pass achieved increased passenger capture rates and operating
        margins; and
    -   Cash flow increased as a result of dividends received from equity
        investments in ClubLink and Renasant of $1.1 million and
        $22.2 million, respectively.


    Financial Highlights

    -------------------------------------------------------------------------
                                                           Year Ended
    -------------------------------------------------------------------------
    (in thousands of dollars except                 December 31, December 31,
     per share amounts)                                 2006         2005
    -------------------------------------------------------------------------
    Revenue                                              40,506       41,531
    -------------------------------------------------------------------------
    EBITDA                                               18,589       18,353
    -------------------------------------------------------------------------
    Interest and other income (expense)                    (195)       2,506
    -------------------------------------------------------------------------
    Equity earnings                                      11,403        1,530
    -------------------------------------------------------------------------
    Provision for income taxes                           (6,704)      (8,071)
    -------------------------------------------------------------------------
    Net earnings                                         18,071       12,192
    -------------------------------------------------------------------------
    Earnings per share - basic                            $0.78        $0.53
    -------------------------------------------------------------------------
    Weighted average shares outstanding                  22,933       22,900
    -------------------------------------------------------------------------
    

    Note: EBITDA is not a recognized performance measure under Canadian GAAP.
    EBITDA is defined as earnings before interest, taxes, depreciation,
    amortization 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.

    TODAY, THE COMPANY ANNOUNCED A REGULAR DIVIDEND OF $0.06 PER SHARE WILL
    BE PAID ON MARCH 30TH, 2007 TO SHAREHOLDERS OF RECORD AS AT MARCH 16TH,
    2007.

    Operating Highlights

    Virtually all of the Company's operating income originates from its major
operating division, White Pass & Yukon Route ("White Pass"). Additionally,
Tri-White has significant ownership in two public entities, ClubLink
Corporation ("ClubLink") and Renasant Financial Partners Limited ("Renasant"),
formerly Clearlink Capital Corporation, for which it records income on an
equity basis.
    The rail tourism and docking operations at White Pass and the golf
operations of the Company's equity accounted investment in ClubLink
Corporation ("ClubLink") are highly seasonal. The majority of the revenue and
earnings from these businesses occur during the third quarter of the year.
Accordingly, the earnings of the Company will fluctuate with those of the
underlying business units.
    EBITDA for the year ended December 31, 2006 was $18.6 million compared
with $18.4 million for the corresponding period in 2005. Operating margins
increased to 45.9%, though reported revenue and EBITDA were negatively
impacted by the relative strength of the Canadian dollar. Management continues
to develop programs to counter cost pressure in labour, fuel and insurance
components of the business. The results of White Pass are translated into
Canadian currency using average rates during the year. As a result, a change
in average exchange rates can impact the net earnings of the Company. In 2006,
the change in US dollar exchange rates is estimated to have reduced reported
EBITDA by $1.5 million.
    Commencing in May, White Pass generates significant amounts of revenue as
cruise ship arrivals ramp up quickly to support the west coast schedules.
Volume peaks during the third quarter as the majority of North Americans
commence their summer vacations.
    Cruise ship capacity in Alaska decreased this season, with total on-board
arrivals at Skagway slightly reduced from 2005 levels due to the one-time
repositioning of several vessels. Still, White Pass benefited from increased
capture rates and from its past investments in port infrastructure and
excursion capacity. For the 2006 season, which concluded on September 27th,
the rail excursion carried 431,249 passengers, a slight increase from 2005.
    Tri-White continues to hold its investment in ClubLink. ClubLink is
Canada's largest owner, operator and developer of high-quality Member Golf
Clubs, Daily Fee Golf Clubs and Golf Resorts, with 36 18-hole equivalent golf
courses open for play in 2006. For the year ended December 31, 2006, the
Company recorded equity income of $0.1 million (2005 - an equity loss of
$0.6 million). The income recognized is based on an average ownership of 31.5%
and 31.3% for the years ended 2006 and 2005 respectively. The Company received
dividends of $1.1 million in 2006 (2005 - $0.9 million). The dividend income
received is consistent with the Company's objective to enhance cash flow.
    The Company continues to maintain its investment in Renasant and accounts
for the equity earnings on a three-month trailing basis. As such, the equity
earnings recorded by Tri-White, for the year ended December 31, 2006, are
based on the results of Renasant for the twelve months ended September 30,
2006.
    On March 8, 2006, Renasant completed the sale of its active leasing
business and now maintains the bulk of its assets in cash and marketable
securities. The equity income recorded by Tri-White for the year ended
December 31, 2006 was $11.3 million (2005 -$2.2 million) and dividends of
$22.2 million were received for the year ended December 31, 2006 (December 31,
2005 - $1.2 million). The dividend has been reflected in the consolidated
statement of cash flow as a return of capital of $9.6 million in "investing
activities" and $13.2 million as a distribution in "operating activities".
During 2006, the Company purchased an additional 70,000 shares of Renasant at
a cost of $0.8 million, increasing the Company's ownership interest in
Renasant to 36.5%.
    During the year ended December 31, 2006, Renasant announced the
settlement of material litigation matters, which had existed when the Company
acquired the majority of its investment in Renasant. With resolution of these
matters, the Company has recognized the fair value increment previously
associated with this investment, resulting in a pre-tax gain of approximately
$10.4 million, which is included in income from equity accounted investments.
The Company has also recognized a future tax expense of $1.8 million relating
to this transaction.
    Long-term investments include 5.4 million shares of ClubLink carried at
$21.4 million, and 3.2 million shares of Renasant carried at $15.1 million.
The market value of these securities exceeds their carrying cost by
$32.5 million at December 31, 2006.

    Corporate Developments

    During spring 2006, an extension to Broadway Dock was completed
increasing the docking capacity in Skagway and creating facilities for
contemporaneous docking by four of the largest cruise industry vessels.
    On September 18th, 2006, the Company announced the renewal of its normal
course issuer bid providing the Company the authority to purchase, for
cancellation, up to 1,146,771 common shares over the following twelve-month
period. During the year ended December 31, 2006 the Company did not purchase
or cancel any shares.
    The Company continued with its regular quarterly dividend program and
paid a dividend of $0.06 per share, or $1.4 million, on December 29th.

    Financial statements are attached.

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

    Statements contained herein that are not based on historical or current
fact constitute "forward-looking statements". Such forward-looking statements
involve known and unknown risks, uncertainties and other factors that may
cause the actual results, events or developments to be materially different
from any future results, events or developments expressed or implied by such
forward-looking statements. Given these uncertainties, readers are cautioned
not to place undue reliance on such forward-looking statements. The Company
does not assume the obligation to update or revise any forward-looking
statements.


    
                            TRI-WHITE CORPORATION

                      CONSOLIDATED FINANCIAL STATEMENTS

                              December 31, 2006



                            Tri-White Corporation

                         CONSOLIDATED BALANCE SHEETS

    As at December 31,                                   2006         2005
    (in thousands of dollars)                              $            $
    -------------------------------------------------------------------------
    ASSETS
    Current
    Cash and cash equivalents                            21,853       20,469
    Amounts receivable                                      543          654
    Loans receivable                                     16,892        7,000
    Material and supplies                                 4,379        4,618
    Prepaids and other assets                               557          473
    Portfolio investments                                     3            3
    -------------------------------------------------------------------------
                                                         44,227       33,217
    Long-term investments                                36,554       48,262
    Capital assets                                       73,957       73,864
    -------------------------------------------------------------------------
    Total assets                                        154,738      155,343
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current
    Bank indebtedness                                    21,706       15,139
    Promissory notes                                          -       17,935
    Accounts payable and accrued liabilities              1,915        3,985
    Income and other taxes payable                        1,655          517
    -------------------------------------------------------------------------
                                                         25,276       37,576
    Future income tax liabilities                        17,055       17,471
    -------------------------------------------------------------------------
    Total liabilities                                    42,331       55,047
    -------------------------------------------------------------------------

    Shareholders' equity
    Share capital                                        61,278       61,216
    Cumulative translation adjustment                   (14,267)     (13,688)
    Contributed surplus                                     191          130
    Retained earnings                                    65,205       52,638
    -------------------------------------------------------------------------
    Total shareholders' equity                          112,407      100,296
    -------------------------------------------------------------------------
    Total liabilities and shareholders' equity          154,738      155,343
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



                            Tri-White Corporation

          CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS

    For the year ended December 31,
    (in thousands of dollars, except for                 2006         2005
     per share amounts)                                    $            $
    -------------------------------------------------------------------------

    REVENUE                                              40,506       41,531

    Cost of sales and operating expenses                 21,917       23,178
    -------------------------------------------------------------------------
    Earnings from operations before the undernoted       18,589       18,353

    Amortization                                          3,195        3,405
    -------------------------------------------------------------------------
    Earnings before other income (expense)
     and income taxes                                    15,394       14,948
    -------------------------------------------------------------------------

    OTHER INCOME (EXPENSE)
    Investment income                                     1,837        2,519
    Interest expense                                     (2,029)      (2,379)
    Net gain (loss) on sale of investments
     and assets                                              (3)       2,366
    Unrealized foreign exchange gain (loss)                 442          (49)
    Income from equity accounted investments             11,403        1,530
    Provision on long-term investment                    (2,269)           -
    Net gain on insurance claim                               -        1,328
    -------------------------------------------------------------------------
                                                          9,381        5,315
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Earnings before income taxes                         24,775       20,263
    -------------------------------------------------------------------------
    Provision for income taxes
      Current                                             6,920        6,755
      Future                                               (216)       1,316
    -------------------------------------------------------------------------
                                                          6,704        8,071
    -------------------------------------------------------------------------
    Net earnings for the year                            18,071       12,192

    Retained earnings, beginning of year                 52,638       45,946
    Dividends                                            (5,504)      (5,500)
    -------------------------------------------------------------------------
    Retained earnings, end of year                       65,205       52,638
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Earnings per share
    Basic                                                  0.79         0.53
    Diluted                                                0.78         0.53
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



                            Tri-White Corporation

                    CONSOLIDATED STATEMENTS OF CASH FLOWS

    For the year ended December 31,                      2006         2005
    (in thousands of dollars)                              $            $
    -------------------------------------------------------------------------

    OPERATING ACTIVITIES
    Net earnings for the year                            18,071       12,192
    Items not affecting cash
      Amortization                                        3,195        3,405
      Future income taxes                                  (216)       1,316
      Net (gain) loss on sale of investments
       and assets                                             3       (2,366)
      Net gain on insurance claim                             -       (1,328)
      Income from equity accounted investments          (11,403)      (1,530)
      Net unrealized foreign exchange (gain) loss          (442)          49
      Stock compensation expense                             61           62
      Provision on long-term investment                   2,269            -
    Distributions from equity accounted investments      13,800        2,097
    Net change in operating assets and liabilities         (662)       1,864
    -------------------------------------------------------------------------
                                                         24,676       15,761
    -------------------------------------------------------------------------

    FINANCING ACTIVITIES
    Repayment of promissory notes                       (17,935)           -
    Proceeds on issue of common shares                        -          198
    Dividends paid                                       (5,442)      (5,413)
    Net proceeds from bank indebtedness                   6,567        7,874
    -------------------------------------------------------------------------
                                                        (16,810)       2,659
    -------------------------------------------------------------------------

    INVESTING ACTIVITIES
    Proceeds on sale of capital assets and
     investments                                              4       21,522
    Proceeds on insurance claim                               -        1,830
    Purchase of capital assets                           (3,765)      (8,299)
    Purchase of investments                                (762)     (16,319)
    Return of capital from investments                   10,073            -
    Advances of loans receivable                        (23,149)      (9,510)
    Repayment of loans receivable                        11,257        9,510
    -------------------------------------------------------------------------
                                                         (6,342)      (1,266)
    -------------------------------------------------------------------------

    Net effect of currency translation
     on cash and cash equivalents                          (140)      (1,593)
    -------------------------------------------------------------------------

    Net increase in cash and cash equivalents
     during the year                                      1,384       15,561
    Cash and cash equivalents, beginning of year         20,469        4,908
    -------------------------------------------------------------------------
    Cash and cash equivalents, end of year               21,853       20,469
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Cash                                                 14,353       20,469
    Cash equivalents                                      7,500            -
    -------------------------------------------------------------------------
                                                         21,853       20,469
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    %SEDAR: 00009355E




For further information:

For further information: Mr. Donald Turple, Chief Financial Officer, 55
City Centre Drive, Suite 1000, Mississauga, Ontario, L5B 1M3, Phone: (905)
281-5948, Fax: (905) 281-5890, e-mail: dturple@morguard.com

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TRI-WHITE CORPORATION

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