Tri-White Corporation announces second quarter 2008 results and regular dividend of $0.06 per share



    TSX: TWH

    TORONTO, Aug. 13 /CNW/ -

    
    Financial Highlights

    -------------------------------------------------------------------------
                                     Three months ended     Six months ended
                                    --------------------   ------------------
    (in thousands of dollars         June 30,  June 30,    June 30,  June 30,
     except per share amounts)         2008      2007        2008      2007
    -------------------------------------------------------------------------
    Revenue                           63,151    44,314      83,014    44,424
    -------------------------------------------------------------------------
    EBITDA(1)                         16,625    18,089      19,616    15,390
    -------------------------------------------------------------------------
    Interest, net  and other expense   6,245     1,713      12,536     1,472
    -------------------------------------------------------------------------
    Equity income (loss)                 424    (1,256)        507    (2,356)
    -------------------------------------------------------------------------
    Non-controlling interest             143    (1,323)      1,259    (1,323)
    -------------------------------------------------------------------------
    Net earnings (loss)                2,429     4,894      (3,336)    1,433
    -------------------------------------------------------------------------
    Total assets                                           668,918   690,185
    -------------------------------------------------------------------------
    Shareholders' Equity                                   100,297   103,213
    -------------------------------------------------------------------------
    Basic and diluted earnings
     (loss) per share                  $0.10     $0.21      $(0.15)    $0.06
    -------------------------------------------------------------------------
    Weighted average shares
     outstanding (000)                                      22,853    22,875
    -------------------------------------------------------------------------

    (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.

    TODAY, THE COMPANY ANNOUNCED THE REGULAR DIVIDEND OF $0.06 PER SHARE TO
    BE PAID ON SEPTEMBER 30TH TO SHAREHOLDERS OF RECORD AS AT SEPTEMBER 15TH
    


    Second Quarter Operating Highlights

    The quarterly results have been impacted by the consolidation of ClubLink
Corporation ("ClubLink") effective June 1, 2007.  This has led to significant
increases in all statement of earnings line items from a year ago.
    Effective April 1, 2008, Tri-White acquired 50% of Global Source, LLC
("Global Source") for US$1,000,000. As part of the same transaction, Global
Source purchased 100% of the technology equipment trading business from
Renasant Financial Partners Ltd. ("Renasant"). There was no gain or loss by
Renasant on the sale of its technology equipment trading business. Tri-White
accounts for its investment in Global Source using the equity method. During
the quarter ended June 30, 2008, Tri-White recorded $260,000 in equity income
from Global Source.
    EBITDA from golf operations remained relatively unchanged for the quarter
ending June 30, 2008 at $10,251,000 as compared to $10,210,000 for 2007.
    EBITDA from rail, tourism and port operations decreased to US$7,066,000
in 2008 from US$7,575,000 for the second quarter of 2007 due to a decline in
the number of railroad passengers to 156,749 from 165,468 in 2007. The decline
in passengers has been attributed to economic factors.
    The majority of the earnings of rail, tourism and port operations are
generated in US dollars. For the quarter ended June 30, 2008, the impact of
the strengthening Canadian dollar from 2007 is estimated to have reduced the
reported income by approximately $0.02 per share as compared to 2007.
    Consolidated EBITDA for the quarter ended June 30, 2008 was $16,625,000
compared to $18,089,000 for the three month period ended June 30, 2007. This
decline is mainly due to the decline in rail, tourism and port earnings and
the impact of the strengthening Canadian dollar.
    Amortization and rent increased to $6,081,000 for the quarter ended June
30, 2008 from $2,625,000 in 2007 due to the consolidation of ClubLink's
results.
    Net interest and other expense totaled an expense of $6,245,000 for the
quarter ended June 30, 2008 compared to $1,713,000 for the same period in
2007. This change relates to the increase in interest expense from the
consolidation of ClubLink's results and funding of the acquisition of ClubLink
shares on June 1, 2007.
    Tri-White has approximately 37% ownership position in Renasant and
accounts for its investment in Renasant using the equity method on a
three-month trailing basis. The equity income recorded by Tri-White for the
quarter ended June 30, 2008 was $164,000 (2007 - equity loss of $282,000).
This was based on the operating results of Renasant for the three months ended
March 31, 2008.
    Net earnings decreased to $2,429,000 for the quarter ended June 30, 2008
compared to $4,894,000 in 2007 due to the higher amortization, rent and
interest expense from a full quarter of consolidating ClubLink's results.
    Net earnings for the six months ended June 30, 2008 declined to a loss of
$3,336,000 as compared to earnings of $1,433,000 in 2007 due to the higher
amortization, rent and interest expense from a full period of consolidating
ClubLink's results as compared to consolidating one month in 2007.

    Corporate Developments

    On July 9, 2008, Tri-White Corporation closed on a term loan financing
with Wells Fargo Bank in the amount of $35,000,000. The proceeds of this
financing was used to pay down related party loans.

    Financial statements are attached.

    Statements contained herein that are not based on historical or current
fact, including without limitation statements containing the words
"anticipates," "believes," "may," "continue," "estimate," "expects," and
"will" and words of similar import, 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. Such factors include,
among others, the following: general economic and business conditions, both
nationally and in the regions in which the Company operates; changes in
business strategy or development/acquisition plans; environmental exposures,
financing risk; existing governmental regulations and changes in, or the
failure to comply with, governmental regulations; liability and other claims
asserted against the Company; and other factors referenced in the Company's
filings with Canadian securities regulators. 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.

    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.tri-white.com.



    
                            TRI-WHITE CORPORATION
                         CONSOLIDATED BALANCE SHEETS
                                 (Unaudited)

                                                      June 30,   December 31,
    (in thousands of dollars)                            2008           2007
    -------------------------------------------------------------------------
    ASSETS
    Current
      Cash and cash equivalents                      $ 20,235       $  6,177
      Accounts receivable                              22,242          2,675
      Mortgages and loans receivable                      701            763
      Inventories and prepaid expenses                 14,362          5,386
      Other assets                                      3,230          3,230
    -------------------------------------------------------------------------
                                                       60,770         18,231
    Long-term investments                               7,788          6,267
    Mortgages and loans receivable                      6,543          6,306
    Capital assets                                    556,877        558,784
    Intangible assets                                  10,251         10,488
    Goodwill                                           26,689         26,689
    -------------------------------------------------------------------------
    Total assets                                     $668,918       $626,765
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current
      Bank indebtedness                              $ 34,885       $ 31,629
      Long-term debt                                   11,017         12,820
      Capital lease obligations                         4,404          4,269
      Notes payable                                    38,300         35,000
      Accounts payable and accrued liabilities         32,672         18,823
      Income taxes payable                                501          2,783
      Prepaid annual dues and deposits                 37,742          5,021
    -------------------------------------------------------------------------
                                                      159,521        110,345
    Long-term debt                                    280,266        284,127
    Capital lease obligations                          10,087          9,082
    Deferred membership fees                           58,684         57,025
    Future income tax liabilities                      12,188         11,991
    -------------------------------------------------------------------------
    Total liabilities                                 520,746        472,570
    -------------------------------------------------------------------------

    Non-controlling interest                           47,875         50,007
    -------------------------------------------------------------------------

    Shareholders' equity
      Share capital                                    61,578         60,775
      Contributed surplus                                 284            253
      Retained earnings                                61,159         67,249
      Accumulated other comprehensive loss            (22,724)       (24,089)
    -------------------------------------------------------------------------
    Total shareholders' equity                        100,297        104,188
    -------------------------------------------------------------------------
    Total liabilities and shareholders' equity       $668,918       $626,765
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



                            TRI-WHITE CORPORATION
       CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE EARNINGS
                                 (Unaudited)

                                          For the               For the
                                      3 Months Ended        6 Months Ended
    (thousands of dollars,          June 30,   June 30,   June 30,   June 30,
    except per share amounts)          2008       2007       2008       2007
    -------------------------------------------------------------------------

    REVENUE
      Operating revenue            $ 63,151   $ 44,314   $ 83,014   $ 44,424
    -------------------------------------------------------------------------

    EXPENSES
      Cost of sales and
       operating expenses            46,526     26,225     63,398     29,034
    -------------------------------------------------------------------------
    Earnings before other items,
     income taxes and
     non-controlling
     interest                        16,625     18,089     19,616     15,390
    -------------------------------------------------------------------------

    OTHER ITEMS
      Amortization of
       capital assets                 4,902      2,168      9,960      3,056
      Amortization of
       intangible assets                118         57        237         57
      Land lease rent                 1,061        400      2,100        400
      Investment and other income      (540)      (685)    (1,215)    (1,362)
      Interest expense                6,785      2,398     13,751      2,834
      Loss (income) on equity
       accounted investments           (424)     1,256       (507)     2,356
    -------------------------------------------------------------------------
                                     11,902      5,594     24,326      7,341
    -------------------------------------------------------------------------
    Earnings (loss) before
     income taxes and
     non-controlling interest         4,723     12,495     (4,710)     8,049
    -------------------------------------------------------------------------
    Provision for (recovery of)
     income taxes
      Current                         2,447      5,363        177      4,278
      Future                            (10)       915       (292)     1,015
    -------------------------------------------------------------------------
                                      2,437      6,278       (115)     5,293
    -------------------------------------------------------------------------
    Earnings (loss) before
     non-controlling interest         2,286      6,217     (4,595)     2,756
    Non-controlling interest            143     (1,323)     1,259     (1,323)
    -------------------------------------------------------------------------
    Net earnings (loss)               2,429      4,894     (3,336)     1,433
    Unrealized foreign currency
     translation gain (loss)           (354)    (5,611)     1,365     (6,040)
    -------------------------------------------------------------------------
    Total comprehensive
     income (loss)                 $  2,075   $   (717)  $ (1,971)  $ (4,607)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Earnings (loss) per share
    Basic and diluted              $   0.10   $   0.21   $  (0.15)  $   0.06
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



                            TRI-WHITE CORPORATION
                     CONSOLIDATED STATEMENTS OF CASH FLOW
                                 (Unaudited)

                                          For the               For the
                                      3 Months Ended        6 Months Ended
                                    June 30,   June 30,   June 30,   June 30,
    (in thousands of dollars)          2008       2007       2008       2007
    -------------------------------------------------------------------------

    OPERATING ACTIVITIES
      Net earnings (loss)
       for the period              $  2,429   $  4,894   $ (3,336)  $  1,433
      Items not affecting cash:
        Amortization of capital
         assets                       4,902      2,168      9,960      3,056
        Amortization of
         intangible assets              118         57        237         57
        Amortization of deferred
         financing costs                188         94        418         94
        Future income taxes
         (recovery)                     (10)       915       (292)     1,015
        Amortization of
         membership fees             (3,514)    (1,228)    (6,800)    (1,228)
        Loss (gain) on sale
         of assets                       36         (7)       105         (7)
        Loss (income) from equity
         accounted investments         (424)     1,256       (507)     2,356
        Non-controlling
         interest - ClubLink           (143)     1,323     (1,259)     1,323
        Net unrealized foreign
         exchange gain                    -       (123)         -       (121)
        Stock compensation expense       16         15         31         31
      Distributions from equity
       accounted investments              -        321          -        664
      Collection of membership
       fee installments               5,857      2,137      8,459      2,137
      Net change in operating
       assets and liabilities        (8,534)    (9,512)    17,920    (13,917)
    -------------------------------------------------------------------------
    Cash provided by (used in)
     operating activities               921      2,310     24,936     (3,107)
    -------------------------------------------------------------------------

    FINANCING ACTIVITIES
      Reduction of non-controlling
       interest                        (240)         -       (272)         -
      Proceeds on issue of
       subsidiary common shares           -         16          -         16
      Proceeds on issue of
       common shares                     63          -        781          -
      Shares purchased
       for cancellation                   -       (960)         -     (1,906)
      Dividends paid                 (1,367)    (1,352)    (2,732)    (2,712)
      Dividends paid -
       non-controlling interest        (300)         -       (601)         -
      Capital lease obligations       1,903      1,114      1,140      1,114
      Deferred financing costs          (50)       (95)       (50)       (95)
      Notes payable                   1,300      4,000      3,300      4,000
      Long-term debt                 (2,641)     8,671     (6,032)     8,671
      Bank indebtedness              (1,279)    13,686      3,256     14,117
    -------------------------------------------------------------------------
    Cash provided by (used in)
     financing activities            (2,611)    25,080     (1,210)    23,205
    -------------------------------------------------------------------------
    INVESTING ACTIVITIES
      Purchase of capital assets     (8,033)   (10,437)    (8,909)   (11,503)
      Investments                    (1,014)   (52,918)    (1,014)   (52,918)
      Proceeds from real
       estate sales                     103          -        572          -
      Return of capital                   -          -          -      9,480
      Cash acquired by increasing
       interest in ClubLink               -      1,603          -      1,603
      Loans receivable                   31     12,490       (175)    16,910
    -------------------------------------------------------------------------
    Cash used in investing
     activities                      (8,913)   (49,262)    (9,526)   (36,428)
    -------------------------------------------------------------------------

    Net effect of currency
     translation adjustment
     on cash and cash
     equivalents                        141       (722)      (142)      (796)
    -------------------------------------------------------------------------

    Net increase in cash and
     cash equivalents during
     the period                     (10,462)   (22,594)    14,058    (17,126)
    Cash and cash equivalents,
     beginning of period             30,697     27,321      6,177     21,853
    -------------------------------------------------------------------------
    Cash and cash equivalents,
     end of period                 $ 20,235   $  4,727   $ 20,235   $  4,727
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Represented by
      Cash                                               $  6,218   $  4,727
      Cash equivalents                                     14,017          -
    -------------------------------------------------------------------------
                                                         $ 20,235   $  4,727
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    





For further information:

For further information: Mr. Robert Wright, Chief Financial Officer, One
University Avenue, Suite 1400, Toronto, Ontario, M5J 2P1, Phone: (905)
281-5897, Fax:(905) 281-5890, bwright@morguard.com

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TRI-WHITE CORPORATION

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