Canlan reports second quarter results



    BURNABY, BC, Aug. 14 /CNW/ - Canlan Ice Sports Corp. today reported
results for the three months and six months ended June 30, 2007

    
               Second Quarter Results (in thousands of dollars)
    -------------------------------------------------------------------------
                        Three months ended June 30  Six months ended June 30
                                  2007        2006          2007        2006
    -------------------------------------------------------------------------
    Revenue:
      Ice rinks               $ 13,096    $ 11,319      $ 31,492    $ 26,374

    Expenses:
      Ice rinks                 11,776      10,225        24,229      20,558
    -------------------------------------------------------------------------

    Earnings from
     operations                  1,320       1,094         7,263       5,816

    General and
     administration
     expenses                      936         704         1,834       1,377
    -------------------------------------------------------------------------

    Earnings before
     the undernoted                384         390         5,429       4,439

    Other expenses:
      Interest on debt on
       ice rinks                   950         732         1,866       1,446
      Other interest               109         156           214         281
      Loss on foreign
       exchange                     23         363            17         363
      Amortization               1,090         925         2,162       1,852
      Gain on sale of
       capital assets                -         (16)            -         (16)
    -------------------------------------------------------------------------
                                 2,172       2,160         4,259       3,926
    Earnings (loss)
     before taxes               (1,788)     (1,770)        1,170         513


    Income tax (expense)
     recovery:
      Current                        -          53             -           -
      Future                       362         370          (256)       (193)
    -------------------------------------------------------------------------
                                   362         423          (256)       (193)
    -------------------------------------------------------------------------

    Net earnings (loss)       $ (1,426)   $ (1,347)     $    914    $    320
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Basic earnings (loss)
     per share                $  (0.01)   $  (0.01)     $   0.00    $   0.00
    Fully diluted earnings
     (loss) per share         $  (0.01)   $  (0.01)     $   0.00    $   0.00
    Basic and diluted
     weighted average number
     of shares outstanding
     (in thousands)            266,747     266,747       266,747     266,747
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Second quarter results (three months ended June 30, 2007 compared with
    three months ended June 30, 2006):

    -   Total revenue of $13.1 million increased by $1.8 million or 15.7%
        compared to 2006
    -   Same store revenue increased by 4.6% or $516,000 principally due to
        growth in the Company's Adult Safe Hockey League ("ASHL") and to
        increased registrations in Canlan's youth leagues
    -   Total direct operating expense of $11.8 million increased by
        $1.6 million or 15.2% compared to the prior year.
    -   Same store operating expense was $10.4 million, which represents an
        increase of $189,000 or 1.8%
    -   Increase was principally due to added costs required to service the
        higher demand in Canlan's adult hockey leagues
    -   Corporate general and administration costs of $936,000 increased by
        $232,000 or 33% compared to 2006 principally due to higher labour
        costs resulting from added capacity required to service rink
        operations and accounting for stock-based compensation costs
    -   EBITA of $384,000 is steady with the prior year; however, on a same
        store basis, EBITA increased by $95,000 or 24% as Ice Sports York
        (purchased in August 2006) had negative operating earnings of
        $101,000 during second quarter, as planned
    -   Interest on ice rink debt of $950,000 increased by $218,000 compared
        to 2006 due to the additional debt that resulted from the purchase of
        Ice Sports York
    -   After recording a future income tax recovery of $362,000, net loss
        for the quarter was $1.4 million compared to $1.3 million a year ago

    Year-to-date results (six months ended June 30, 2007 compared with
    six months ended June 30, 2006):

    -   Total revenues of $31.5 million increased by $5.1 million or 19.4%
        from the prior year
    -   Same store revenues of $27.9 million increased by $1.5 million or
        5.8%, principally due to growth in the Company's various hockey
        leagues, soccer leagues, instructional programs and Canlan's in-house
        tournaments
    -   Total operating expenses of $24.2 million increased by $3.7 million
        or 17.9% compared to 2006
    -   Same store operating expenses of $21.4 million increased by $856,000
        or 4.2% mainly due to added costs required to meet additional volume
        and higher hydro electric expense
    -   Corporate general and administration expense of $1.8 million
        increased by $457,000 or 33% compared to 2006 principally due to
        increased labour costs and accounting for stock-based compensation
        expense
    -   EBITA of $5.4 million increased by $990,000 or 22% from the prior
        year while same store EBITA of $4.7 million increased by $227,000 or
        5.1% from 2006
    -   Interest on ice rink debt increased by $353,000 compared to 2006 due
        to increased debt incurred to purchase Ice Sports York
    -   After interest, amortization, and tax expense, net income was
        $914,000 compared to $320,000 a year ago
    

    Grant Ballantyne, President and CEO said that results for the six months
to June 30, 2007 met management's expectations and was pleased to have Ice
Sports York performing on plan and contributing $700,000 in operating earnings
during the period. In addition, the continued revenue growth in adult and
youth leagues shows that demand for Canlan's leagues is not only strong during
the winter, but also through the summer season as well. Revenue for upcoming
quarters looks positive as evidenced by good camp registration results;
therefore, with careful attention paid to cost management, the Company should
reach it's annual targets.

    Canlan Ice Sports Corp. is the largest private sector operator of
recreational ice facilities in North America with 64 playing surfaces at 22
facilities in Canada and the United States. Through the ASHL, Canlan operates
the largest adult recreational hockey league in North America with more than
53,000 players and offers a variety of other programs including youth leagues,
hockey and figure skating schools and tournaments.
    The Company has also filed its June 30, 2007 unaudited consolidated
financial statements and Management Discussion & Analysis with SEDAR.
    Canlan Ice Sports Corp. is listed on the Toronto Stock Exchange under the
symbol "ISE".





For further information:

For further information: Michael Gellard, Senior Vice President, Finance
& CFO, (604) 736-9152

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Canlan Ice Sports Corp.

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