- Net earnings grow 9% year-over-year -
BURNABY, BC, May 10, 2013 /CNW/ - Canlan Ice Sports Corp. (TSX: ICE), industry-leading providers of recreational and multi-sport facilities
across North America, today announced its financial results for the
three-month period ended March 31, 2013.
Q1 2013 Key Financial Metrics
In thousands except share data
Net earnings before taxes
Net earnings after taxes
Net earnings per share (FD)
Mar. 31, 2013
Dec. 31, 2012
Cash and Cash equivalents
Total Interest bearing debt
"Overall our first quarter results were in line with our expectations,
highlighted by improved profitability, despite some increased
competition," said Joey St-Aubin, President and CEO of Canlan Ice
Sports. "Typically when new facilities are built in our markets, some
customers will migrate to these facilities for price or for the
excitement of being in a new facility. After having experienced this
several times over the years, we are confident that our exceptional
customer experience and continual reinvestment in our facilities
position Canlan as the premier supplier of recreational services to our
customers and is one of the main factors in our high customer loyalty."
Q1 2013 Operational and Financial Highlights
Revenue of $20.7 million, a decrease of 2.3% over Q1 2012
Operating expenses decreased $0.3 million or 2.3% versus Q1 2012
Corporate G&A expenses decreased by 3.4% compared to Q1 2012
EBITDA of $4.7 million for Q1 2013, down $0.1 million from Q1 2012
Net earnings after taxes were $2.0 million in Q1 2013, up 8.7% from Q1
Total interest bearing debt decreased $2.6 million or 6.2% over the past
An extensive renovation project commenced at Les 4 Glaces in Quebec and
is progressing as planned with one ice-pad and several dressing rooms
Canlan's Board of Directors has approved the continuation of the
Company's quarterly dividend policy and declared eligible dividends
totaling $0.02 per common share that will next be paid on July 17, 2013
to shareholders of record at the close of business June 28, 2013.
Canlan's Board of Directors reviews the Company's dividend policy on a
quarterly basis. Canlan's dividend is designated as an "eligible"
dividend under the Income Tax Act (Canada) and any corresponding
provincial legislation. Under this legislation, individuals resident in
Canada may be entitled to enhanced dividend tax credits, which reduce
income tax otherwise payable.
Review of Q1 2013 Financial Results
Canlan derives its revenue from the rental of its playing surfaces,
registrations for internal programming, food and beverage sales, sports
stores sales, tournament registrations, sponsorship, management and
other related fees.
Canlan reported consolidated revenue of $20.7 million for the
three-month period ended March 31, 2013, down 2.3% from $21.1 million
for the corresponding period of 2012. Same store revenue of $20.5
million decreased by $0.4 million or 2.0% compared to 2012. The
decrease was principally due to lower ASHL revenue as there were fewer
teams playing in the Greater Toronto market than the prior year and a
50-team satellite league in Hamilton, Ontario did not run in 2013 due
to a lack of available ice at a third-party arena. In addition,
contract ice rental and ASHL revenue in our Montreal facility, Les 4
Glaces, declined due to competition from a new arena that recently
began operations in the local market. Management is focused on
retaining and regaining the business at Les 4 Glaces and has executed a
number of initiatives to do so, including a comprehensive facility
renovation project currently in progress.
Food & beverage revenue of $3.0 million declined by $0.1 million or 3.9%
compared to the prior year. On a same store basis, F&B declined 2.9%
year-over-year. The decrease was principally due to reduced
third-party tournaments and ASHL traffic in two locations that impacted
sales in the restaurants.
Direct operating expenses were $14.8 million, down 2.3% from $15.1
million for Q1 2012. On a same store basis, operating expenses were
$14.5 million, an increase of $0.2 million or 1.1%. The increase was
mainly attributable to general wage increments.
Corporate general and administrative expenses totaled $1.2 million, down
3.4% from Q1 2012. This was principally due to reduced consulting fees
that were incurred in the prior year for one-time projects.
EBITDA was $4.7 million for the first quarter of the year versus $4.8
million for Q1 2012.
Canlan generated net earnings before taxes of $2.7 million for Q1 2013,
a decrease from net earnings before taxes of $2.9 million in Q1 2012.
Net earnings for the first quarter of 2013 was $2.0 million or $0.15 per
fully diluted share. In the first quarter of 2012, Canlan generated net
earnings of $1.9 million, or $0.14 per fully diluted share.
At March 31, 2013, the Company held cash and cash equivalents of $9.3
million and interest bearing debt totaling $39.1 million. This compares
to $12.9 million and $39.0 million, respectively, at December 31, 2012.
"We continue to focus on the ramping up of our newer facilities such as
Canlan Sportsplex, Romeoville and Fort Wayne, as we have significant
opportunities for growth in those locations," said Mr. St-Aubin. "We
remain focused on providing additional value to further differentiate
ourselves from the competition and we are actively seeking new markets
and opportunities for our Sportsplex expansion."
Canlan's financial statements and Management's Discussion & Analysis for
the period ended March 31, 2013 will be available via SEDAR on or
before May 15, 2013 and through the Company's website, www.icesports.com.
Canlan Ice Sports Corp. is the North American leader in the development,
operations and ownership of multi-purpose recreation and entertainment
facilities. We are the largest private sector owner and operator of
recreational ice sports facilities in North America and currently own
and/or manage 19 facilities in Canada and the United States with 56 ice
surfaces, in addition to indoor soccer fields, curling rinks, ball
hockey courts and volleyball courts. To learn more please visit www.icesports.com.
Canlan Ice Sports Corp. is listed on the Toronto Stock Exchange under
the symbol "ICE."
Caution concerning forward-looking statements
Certain statements in this MD&A may constitute ''forward looking''
statements which involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or
achievements of the Company to be materially different from any future
results, performance or achievements expressed or implied by such
forward looking statements. When used in this MD&A, such statements may
use such words as ''may'', ''will'', ''expect'', ''believe'', ''plan''
and other similar terminology. These statements reflect management's
current expectations regarding future events and operating performance
and speak only as of the date of this MD&A. These forward looking
statements involve a number of risks and uncertainties. Some of the
factors that could cause actual results to differ materially from those
expressed in or underlying such forward looking statements are the
effects of, as well as changes in: international, national and local
business and economic conditions; political or economic instability in
the Company's markets; competition; legislation and governmental
regulation; and accounting policies and practices. The foregoing list
of factors is not exhaustive.
Earnings before interest, taxes, depreciation and amortization (EBITDA)
is often used as a measure of financial performance. However, EBITDA is
a not a term that has specific meaning in accordance with IFRS, and may
be calculated differently by other companies.
SOURCE: Canlan Ice Sports Corp.
For further information:
Canlan Ice Sports Corp.
Michael F. Gellard
Senior Vice President & CFO
604 736 9152
416 815 0700 ext. 253