- Record revenue driven by addition of new US facility -
BURNABY, BC, May 11, 2012 /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, 2012.
Q1 2012 Key Financial Metrics
|In thousands except share data||Q12012||Q12011||Change|
|Net earnings before taxes||$2,855||$2,704||+6%|
|Net earnings after taxes||$1,867||$1,832||+2%|
|Net earnings per share||$0.14||$0.14||No change|
|Mar. 31, 2012||Mar. 31, 2011|
|Cash and Cash equivalents||$11,723||$7,379||+59%|
|Total Interest bearing debt||$41,658||$45,211||-8%|
"The revenue realized in the first quarter of this year was the largest quarterly revenue ever realized in Canlan's history," said Joey St-Aubin, President and CEO of Canlan Ice Sports. "The revenue growth is a result of a combination of two things; our ability to capitalize on the demand for the kind of sports and entertainment products and services we offer in our markets and the initial contributions of our latest addition, Ice Sports Romeoville, to our portfolio of facilities."
Q1 2012 Operational and Financial Highlights
- Highest quarterly revenue generated in company history. Revenue of $21.1 million increased by 3.5% over Q1 2011
- EBITDA of $4.8 million for Q1 2012, up 1.7% from Q1 2011
- Net earnings of $1.9 million or $0.14 per share for Q1 2012, an increase of 1.9% compared to Q1 2011
- Cash balance at quarter end was $11.7 million compared to $7.4 million a year ago
- Reduced interest bearing debt by $3.9 million year-over-year
Canlan's Board of Directors has approved an increase to the Company's quarterly dividend from $0.015 to $0.02 per common share. The increased dividend will be effective on the next paid date which is July 17, 2012 to shareholders of record at the close of business June 29, 2012. 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 2012 Financial Results
Canlan reported consolidated revenue of $21.1 million for the three month period ended March 31, 2012, up 3.5% from $20.4 million for the corresponding period of 2011. The revenue growth was primarily due to an increase in ice related revenue such as contract ice/field rentals, adult hockey leagues, instructional programs and youth hockey leagues, which was mainly as a result of the addition of Ice Sports Romeoville and pricing increases.
Food and beverage revenue for Q1 2012 was $3.1 million, down $0.2 million or 5.0% from Q1 2011. The decrease is mainly attributed to the sale of Ice Sports Regina in September 2011.
Direct operating expenses were $15.1 million, up 3.9% from $14.6 million for Q1 2011. The year-over-year increase was attributable to an increase in wages amounting to $0.1 million and a one-time provision related to the lease contract of Ice Sports Vineland. Excluding this provision, operating costs increased $0.2 million or 1.7%.
Corporate general and administrative expenses totaled $1.3 million, up 6.8% from $1.2 million for Q1 2011 due mainly to annual wage increases and professional fees.
EBITDA was $4.8 million for the first quarter year versus $4.7 million for Q1 2011. The improvement in EBITDA was a result of a growth in revenue partially offset by an increase in expenses year-over-year. As a percentage of revenue excluding the onerous contract provision, EBITDA was 23.9% compared to 22.9% for the same period in the prior year.
Canlan generated a net gain before taxes of $2.9 million, up from $2.7 million in Q1 2011. Net earnings for the first quarter of 2012 were $1.9 million or $0.14 per share fully diluted. In the first quarter of 2011, Canlan generated net earnings of $1.8 million, or $0.14 per share.
At March 31, 2012, the Company held cash and cash equivalents of $11.7 million and interest bearing debt totaling $41.7 million. This compares to $7.4 million and $45.5 million, respectively, at March 31, 2011.
"The first quarter of 2012 was marked by improving revenue growth and relatively stable expenses, excluding the one-time contract loss provision," said Mr. Michael Gellard, Canlan's CFO. "We have grown our cash position while continuing to reduce our total interest bearing debt, putting the Company in a very strong and flexible financial position enabling us to increase our quarterly dividend. Our stronger balance sheet will allow us to pursue opportunities that meet our criteria and add significant value such as Romeoville."
"2012 has started off strong and we look forward to building on this early success during the course of the year," said Mr. St-Aubin. "We are excited about what's to come and look forward to updating investors on some new and interesting opportunities for Canlan in the coming quarters."
Canlan's financial statements and Management Discussion & Analysis for the period ended March 31, 2012 will be available via SEDAR on or before May 15, 2012 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 20 facilities in Canada and the United States with 62 ice surfaces, as well as indoor soccer fields, ball diamonds, curling rinks 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.
1 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.
For further information:
Canlan Ice Sports Corp.
Michael F. Gellard
Senior Vice President & CFO
604 736 9152
416 815 0700 ext. 253