Canlan Provides Update on US Operations
Feb 06, 2012, 07:00 ET
- Current US operations continue to be strong and many dynamic opportunities exist to expand into new strategic markets across the US -
BURNABY, BC, Feb. 6, 2012 /CNW/ - Canlan Ice Sports Corp., industry-leading providers of recreational sports and entertainment facilities across North America, today announced that due to unfavorable local conditions and the facility failing to meet its profit expectations, it has made a strategic decision not to renew the existing operating lease at the two-pad ice rink facility located in Vineland, New Jersey. Canlan has decided to cease operations, effective March 31, 2012. All programs, ice rentals, leagues, tournaments and other such commitments will be honored until that date.
"We entered the Vineland market three years ago with the goal of rebuilding the hockey and skating programs, while expanding the recreation offering in the marketplace," said Joey St-Aubin, President and CEO of Canlan Ice Sports. "Although over the past three years we have successfully introduced many new customers to the facility through many initiatives and programs, we were not able to grow the hockey program to what we consider a feasible level".
Michael Gellard, CFO of Canlan Ice Sports added, "With the current operating lease set to expire, we have reevaluated the current and future market conditions, as well as the potential for this facility to contribute to our profitability. We have therefore, decided to exit the Vineland market and redeploy our resources elsewhere as we have identified a number of exciting opportunities to continue our expansion into key strategic markets across the US."
Canlan is currently experiencing strong performance at its other US-based facilities. Operations are ramping up as expected at its recently acquired Romeoville, Illinois facility, located just outside of Chicago and both revenue and EBITDA have made substantial improvements on a year-over-year basis at Canlan's Ft. Wayne, Indiana facility. The Company remains committed to its US expansion strategy as it continues to identify opportunities that meet management's criteria to expand into additional strategic markets.
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 20 facilities in Canada and the United States with 62 surfaces including ice rinks and indoor soccer fields.
Canlan Ice Sports Corp. is listed on the Toronto Stock Exchange under the symbol "ICE."
Caution concerning forward-looking statements
This document contains forward-looking statements, which may be identified by words like "expects", "anticipates", "plans", "intends", "indicates" or similar expressions. These statements are not a guarantee of future performance and are inherently subject to risks and uncertainties. The Company's actual results could differ materially from those currently anticipated due to a number of factors set forth in reports and other documents filed by the Company with Canadian securities regulatory authorities from time to time.
For further information:
Canlan Ice Sports Corp.
Michael F. Gellard
Senior Vice President & CFO
604 736 9152
416 815 0700 ext. 253
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