Tri-White Corporation announces second quarter 2007 results and regular dividend of $0.06 per share



    TSX: TWH

    TORONTO, Aug. 10 /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)        2007       2006       2007       2006
    -------------------------------------------------------------------------
    Revenue                          44,314     14,532     44,424     14,650
    -------------------------------------------------------------------------
    EBITDA(1)                        18,089      7,836     15,390      5,261
    -------------------------------------------------------------------------
    Interest and other
     income (expense)                (2,170)       103     (1,929)      (282)
    -------------------------------------------------------------------------
    Equity earnings (loss)           (1,256)     9,950     (2,356)     8,772
    -------------------------------------------------------------------------
    Provision for income taxes        6,278      4,644      5,293      3,913
    -------------------------------------------------------------------------
    Non-controlling interest         (1,323)         -     (1,323)         -
    -------------------------------------------------------------------------
    Net earnings                      4,894     12,473      1,433      8,264
    -------------------------------------------------------------------------
    Earnings per share                $0.21       0.54       0.06      $0.36
    -------------------------------------------------------------------------
    Weighted average shares
     outstanding                     22,827     22,933     22,875     22,932
    -------------------------------------------------------------------------

    (1) EBITDA is not a recognized performance measure under Canadian GAAP.
        EBITDA is defined as earnings before taxes, interest, depreciation,
        amortization 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, TRI-WHITE CORPORATION ANNOUNCED THE REGULAR DIVIDEND OF
       $0.06 PER SHARE TO BE PAID ON SEPTEMBER 28TH TO SHAREHOLDERS OF
                         RECORD AS AT SEPTEMBER 10TH
    

    Second Quarter Operating Highlights

    The tourist operations at White Pass & Yukon Route ("White Pass") and the
golf operations of ClubLink Corporation ("ClubLink") are highly seasonal. The
majority of the revenue and earnings from these businesses occur during the
third quarter of the year. Accordingly, the earnings of the Company will
fluctuate with those of the underlying business units.
    On June 1st, 2007, the Company acquired an additional 6,635,300 shares of
ClubLink Corporation ("ClubLink") (representing 39.0% of ClubLink's
outstanding common shares) to increase its ownership interest to 70.7%. The
purchase price of this additional interest, including transaction costs, was
$88,018 and was funded through issuance of a one year unsecured note of
$35,000 bearing interest at a rate of the greater of the Canadian prime
lending rate and 6%, with the balance of $52,918 in cash. The acquisition has
been accounted for under the purchase method of accounting. As part of the
accounting treatment, the Company allocated the purchase price on the
identifiable assets and liabilities acquired based on their estimated fair
values at the time of acquisition. The earnings of ClubLink have been
accounted for under the equity method to May 31st, 2007 and have been included
in the consolidated statement of income and cash flow from June 1st, 2007.
    The purchase price allocation is considered preliminary until the Company
has obtained the necessary information to complete its allocations. As a
result, the purchase price allocation may be adjusted later in 2007.
    The Company's operating income originates from White Pass and ClubLink.
White Pass is a wholly owned operating subsidiary. EBITDA from Alaska
operations increased from US$7.2 million in 2006 to US$7.4 million for the
second quarter of 2007. The results of the subsidiary, which is deemed
self-sustaining, are translated into Canadian currency using average rates
during the period. A change in average exchange rates can impact the net
earnings of the Company.
    White Pass' 2007 operating season commenced in May. Significant revenue
is generated as cruise ship arrivals begin and the tourist traffic on the west
coast accelerates.
    EBITDA (defined as revenue less cost of sales and operating expenses) for
the three months ended June 30, 2007 was $18,089 compared with $7,836 for the
three months ended June 30, 2006. The positive variance of $10,253 over the
same period last year is mainly due to the acquisition of ClubLink on June 1,
2007, and accordingly, Tri-White is consolidating the results of ClubLink for
the one month period from June 1st to June 30th in the current quarter.
    For the first two months of the quarter ended June 30, 2007 the Company
recorded an equity loss of $974 compared to income of $75 during the three
months ended June 30, 2006 on this ClubLink investment. This was based on a
weighted average ownership of 31.5% for the two months ended May 31, 2007 and
for the three months ended June 30, 2006, respectively. Commencing June 1st,
2007, the Company has reflected the earnings of ClubLink on a consolidated
basis. The Company received $321 in dividends during the three months ended
June 30, 2007 (June 30, 2006 - $268)
    The Company also accounts for its investment in Renasant Financial
Partners Ltd. ("Renasant") using the equity method. The Company's interest, as
at June 30, 2007, stands at 36.5%. The equity loss recorded by Tri-White for
the quarter ended June 30, 2007 was $(282), (2006 - equity income of $9,875).
This was based on the operating results of Renasant for the three months ended
March 31, 2007. The Company records its equity interest in Renasant on a
three-month trailing basis. No dividends were received in the quarter ended
June 30, 2007 (2006 - $309).
    Long-term investments include 3.2 million shares of Renasant carried at
$5,342. At June 30, 2007, the market value of these assets exceeds their
carrying cost by $1,091 (December 31, 2006 - below market value by $1,478).

    Corporate Developments

    Cruise ship arrivals in Skagway, Alaska are expected to increase slightly
this year, and with expanded service to Carcross this season, passenger counts
are expected to rise from 2006 levels. White Pass is focused on a series of
programs aimed at improving margins through cost control initiatives. Currency
fluctuations will continue to impact reported results.
    This quarter, ClubLink became a controlled subsidiary and the Chairman of
Tri-White has been appointed Chief Executive Officer. Tri-White intends to
build upon the success of the franchise and continue to provide best-in-class
service to the more than 15,000 members in the ClubLink system. As with all
investments, the primary objective of the Company is to build the underlying
value of the enterprise, and over the long term, deliver enhanced returns.
    The Company has been approved by the Toronto Stock Exchange to make a
normal course issuer bid to purchase up to 1,146,711 common shares. The
program expires September 19, 2007. During the three months ended June 30,
2007 the Company purchased 204,700 shares (June 30, 2006 - nil).
    The Company continued with its regular quarterly dividend program and
paid a dividend of $0.06 per share, or $1,365 on June 29th.

    Tri-White Corporation holds a diverse merchant-banking portfolio and is
publicly listed on the Toronto Stock Exchange. Tri-White controls
approximately 70% of the outstanding common shares of ClubLink Corporation,
Canada's leading owner, operator and developer of high quality member golf
clubs, with 40, 18-hole equivalent properties in Canada. As well, Tri-White is
the largest shareholder of Renasant Financial Partners Ltd., a financial
services provider and equipment trading organization, operating throughout
North America and Europe. In addition, Tri-White owns a 100% interest in the
historic White Pass & Yukon Route Railway, with strategic holdings in the port
operations and supporting excursions, based in Skagway, Alaska.

    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 and
at www.sedar.com and on the Company website at www.tri-white.com.



    
                            TRI-WHITE CORPORATION

                      CONSOLIDATED FINANCIAL STATEMENTS
                                  UNAUDITED

                                June 30, 2007



                            Tri-White Corporation

                         CONSOLIDATED BALANCE SHEETS


    As at                                              June 30,  December 31,
                                                          2007          2006
    (in thousands of dollars)                                $             $

    -------------------------------------------------------------------------

    ASSETS
    Current
    Cash and cash equivalents                            4,727        21,853
    Accounts receivable                                 22,642           543
    Mortgages and loans receivable                       3,470        16,892
    Inventories, materials and supplies                 12,250         4,379
    Prepaid expenses                                     6,043           560
    Other assets                                         3,230             -
    -------------------------------------------------------------------------
                                                        52,362        44,227
    Long-term investments                                5,342        36,554
    Mortgages and loans receivable                       7,428             -
    Other assets                                         3,766             -
    Intangible assets                                   10,726             -
    Goodwill                                             9,107             -
    Capital assets                                     601,454        73,957
    -------------------------------------------------------------------------
    Total assets                                       690,185       154,738
    -------------------------------------------------------------------------

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current
    Bank indebtedness                                   35,823        21,706
    Non-revolving long-term debt                        11,242             -
    Notes payable                                       35,000             -
    Loan payable                                         4,000             -
    Capital lease obligations                            5,069             -
    Accounts payable and accrued liabilities            31,016         1,915
    Development capital assets costs to complete         2,814             -
    Prepaid annual dues and deposits                    35,259             -
    Convertible debentures                              10,092             -
    Income and other taxes payable                       1,845         1,655
    -------------------------------------------------------------------------
                                                       172,160        25,276

    Revolving long-term debt                            45,080             -
    Non-revolving long-term debt                       241,842             -
    Future income taxes                                 17,260        17,055
    Capital lease obligations                            9,710             -
    Deferred membership fees                            52,410             -

    -------------------------------------------------------------------------
    Total liabilities                                  538,462        42,331
    -------------------------------------------------------------------------

    Non-controlling interest                            48,510             -
    -------------------------------------------------------------------------

    Shareholders' equity
    Share capital                                       60,753        61,278
    Contributed surplus                                    222           191
    Retained earnings                                   62,545        65,205
    Accumulated other comprehensive income             (20,307)      (14,267)
    -------------------------------------------------------------------------
    Total shareholders' equity                         103,213       112,407
    -------------------------------------------------------------------------
    Total liabilities and shareholders' equity         690,185       154,738
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



                            Tri-White Corporation

         CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME


                                    Three months ended      Six months ended
                                    June 30    June 30    June 30    June 30
    For the                            2007       2006       2007       2006

    (in thousands of dollars,
     except for per share amounts)        $          $          $          $
    -------------------------------------------------------------------------

    REVENUE
    Operating revenue                43,086     14,532     43,196     14,650
    Amortization of membership
     fees                             1,228          -      1,228          -
    -------------------------------------------------------------------------
                                     44,314     14,532     44,424     14,650
    -------------------------------------------------------------------------
    EXPENSES
    Operating expenses               26,225      6,696     29,034      9,389
    Amortization of capital assets    2,168        772      3,056      1,574

    -------------------------------------------------------------------------
    Earnings before other income
     (expense), income taxes and
     non-controlling interest        15,921      7,064     12,334      3,687
    -------------------------------------------------------------------------

    OTHER INCOME (EXPENSE)
    Investment income                   555        347      1,234        624
    Interest expense                 (2,455)      (427)    (2,891)    (1,033)
    Land lease rent                    (400)         -       (400)         -
    Net gain on sale of
     investments and capital
     assets                               7          -          7          -
    Unrealized foreign exchange
     gain                               123        183        121        127
    Income (loss) on equity
     accounted investments
     - ClubLink                        (974)        75     (2,096)    (1,652)
    Income (loss) on equity
     accounted investments
     - Renasant                        (282)     9,875       (260)    10,424
    -------------------------------------------------------------------------
                                     (3,426)    10,053     (4,285)     8,490

    -------------------------------------------------------------------------
    Earnings before income taxes
     and non-controlling interest    12,495     17,117      8,049     12,177
    -------------------------------------------------------------------------
    Provision for income taxes
      Current                         5,363      3,071      4,278      2,518
      Future                            915      1,573      1,015      1,395
    -------------------------------------------------------------------------
                                      6,278      4,644      5,293      3,913
    -------------------------------------------------------------------------
    Net earnings before non-
     controlling interest             6,217     12,473      2,756      8,264
    -------------------------------------------------------------------------
    Non-controlling interest         (1,323)         -     (1,323)         -

    -------------------------------------------------------------------------
    Net earnings for the period       4,894     12,473      1,433      8,264
    -------------------------------------------------------------------------
    Other comprehensive loss:
    Unrealized foreign currency
     translation loss                (5,611)    (2,935)    (6,040)    (3,170)
    -------------------------------------------------------------------------
    Total comprehensive earnings
     (loss)                            (717)     9,538     (4,607)     5,094
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Earnings per share
    Basic                              0.21       0.54       0.06       0.36
    Diluted                            0.21       0.54       0.06       0.36
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



                            Tri-White Corporation

               CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY


    For the                                               Six months ended
                                                       June 30,      June 30,
                                                          2007          2006
    (in thousands of dollars)                                $             $

    -------------------------------------------------------------------------

    Share Capital
    Balance, beginning of period                        61,278        61,216
    Issuance of common shares                               22            32
    Repurchase of common shares                           (547)            -
    -------------------------------------------------------------------------
    Balance, end of period                              60,753        61,248
    -------------------------------------------------------------------------

    Contributed surplus
    Balance, beginning of period                           191           130
    Stock compensation expense                              31            30
    -------------------------------------------------------------------------
    Balance, end of period                                 222           160
    -------------------------------------------------------------------------

    Retained earnings
    Balance, beginning of period                        65,205        52,638
    Net earnings for the period                          1,433         8,264
    Dividends                                           (2,734)       (2,752)
    Excess of purchase price of common shares
     over average carrying value                        (1,359)            -
    -------------------------------------------------------------------------
    Balance, end of period                              62,545        58,150
    -------------------------------------------------------------------------

    Accumulated other comprehensive income
    Balance, beginning of period                       (14,267)      (13,688)
    Unrealized foreign currency translation loss        (6,040)       (3,170)
    -------------------------------------------------------------------------
    Balance, end of period                             (20,307)      (16,858)
    -------------------------------------------------------------------------

    Shareholders' equity                               103,213       102,700
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



                            Tri-White Corporation

                    CONSOLIDATED STATEMENTS OF CASH FLOW


                                    Three months ended      Six months ended
                                    June 30    June 30    June 30    June 30
    For the                            2007       2006       2007       2006

    (in thousands of dollars)             $          $          $          $
    -------------------------------------------------------------------------

    OPERATING ACTIVITIES
    Net earnings for the period       4,894     12,473      1,433      8,264
    Items not affecting cash
      Amortization                    2,319        772      3,207      1,574
      Future income taxes               915      1,573      1,015      1,395
      Amortization of membership
       fees                          (1,228)         -     (1,228)         -
      Net gain on sale of assets
       and investments                   (7)         -         (7)         -
      (Income) loss of equity
       accounted investment
       - Renasant                       282     (9,875)       260    (10,424)
      (Income) loss of equity
       accounted investment
       - ClubLink                       974        (75)     2,096      1,652
      Non controlling interest
       - ClubLink                     1,323          -      1,323          -
      Net unrealized foreign
       exchange gain                   (123)      (183)      (121)      (127)
      Stock compensation expense         15         15         31         30
    Distributions from equity
     accounted investments              321        577        664      1,155
    Collection of membership fee
     installments                     2,137          -      2,137          -
    Net change in operating assets
     and liabilities                (11,271)       202    (15,676)    (5,136)
    -------------------------------------------------------------------------
    Cash provided by (used in)
     operating activities               551      5,479     (4,866)    (1,617)
    -------------------------------------------------------------------------

    FINANCING ACTIVITIES
    Promissory note                       -          -          -    (11,935)
    Proceeds on issue of
     subsidiary common shares            16          -         16          -
    Shares purchased for
     cancellation                      (960)         -     (1,906)         -
    Dividends paid                   (1,352)    (1,360)    (2,712)    (2,720)
    Capital lease obligations         1,114          -      1,114          -
    Deferred financing charges          (95)         -        (95)         -
    Long-term debt                    8,671          -      8,671          -
    Proceeds from loan payable        4,000          -      4,000          -
    Net proceeds from bank
     indebtedness                    13,686       (304)    14,117      6,201
    -------------------------------------------------------------------------
    Cash provided by (used in)
     financing activities            25,080     (1,664)    23,205     (8,454)
    -------------------------------------------------------------------------

    INVESTING ACTIVITIES
    Purchase of capital assets      (10,437)      (736)   (11,503)    (1,009)
    Investments                     (52,918)         -    (52,918)         -
    Return of capital                     -          -      9,480          -
    Cash acquired by increasing
     interest in ClubLink             1,603          -      1,603          -
     Advances of loan receivable       (439)         -     (5,204)         -
    Development capital asset
     costs to complete                1,759          -      1,759          -
    Repayment of loans receivable    12,929          -     22,114          -
    -------------------------------------------------------------------------
    Cash used in investing
     activities                     (47,503)      (736)   (34,669)    (1,009)
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Net effect of currency
     translation adjustment on
     cash and cash equivalents         (722)      (792)      (796)      (657)
    -------------------------------------------------------------------------

    Net increase (decrease) in
     cash and cash equivalents
     during the period              (22,594)     2,287    (17,126)   (11,737)
    Cash and cash equivalents,
     beginning of period             27,321      6,445     21,853     20,469
    -------------------------------------------------------------------------
    Cash and cash equivalents,
     end of period                    4,727      8,732      4,727      8,732
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Represented by
    Cash                              4,727      8,732      4,727      8,732
    Cash equivalents                      -          -          -          -
    -------------------------------------------------------------------------
                                      4,727      8,732      4,727      8,732
    -------------------------------------------------------------------------
    

    %SEDAR: 00009355E




For further information:

For further information: Mr. Donald Turple, Chief Financial Officer, One
University Avenue, Suite 1400 Toronto, Ontario, M5J 2P1, Phone: (416)
367-6877, Fax: (416) 367-6890, dturple@morguard.com

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TRI-WHITE CORPORATION

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