- Success of youth and adult hockey programs fuel revenue and
EBITA growth -
BURNABY, BC, March 25 /CNW/ - Canlan Ice Sports Corp., providers of the on-ice experience to youth and adults across North America, today announced its financial results for the fourth quarter and year ended December 31, 2008.
2008 Operational and Financial Highlights
- Completed a refinancing of $50 million long-term debt with HSBC
Bank Canada and Integrated Private Debt Corp.
- Consolidated revenue was $64.7 million, up 3.5% from $62.5 million
for 2007.
- EBITA(1) was $11.2 million or $0.84 per share compared to $10.2
million or $0.76 per share for 2007, an increase of 10%.
- Net earnings were $3.8 million or $0.29 per share, compared to
$0.8 million or $0.06 per share for 2007, on a post-consolidated
basis.
- Invested $2.2 million on capital improvements on the Company's
owned or leased facilities.
- Expanded U.S. operations through a lease-to-own arrangement with
New Jersey-based Vineland Ice Arena.
- Successfully implemented a succession plan, appointing Joey St-
Aubin as President and CEO and Grant Ballantyne as Chairman of the
Company's Board of Directors.
"Our 2008 results are consistent with our ten-year track record of delivering steady growth," said Joey St-Aubin, President and CEO of Canlan Ice Sports. "Backed by a focused strategy aimed at driving increased utilization of our facilities through our branded programs, we are well positioned for sustaining this trend in 2009."
Financial Results
Canlan reported consolidated revenue of $19.0 million for the fourth quarter ended December 31, 2008, up 1% from $18.7 million for 2007. For the 12-month period of 2008, Canlan's total revenue was $64.7 million, up 3.5% from $62.5 million for 2007. The growth was principally due to higher registrations for Canlan's branded on-ice programs, including the Adult Safe Hockey League, as well as an increase in playing surfaces following the expansion into Vineland, New Jersey.
On a same store basis, revenue for the fourth quarter was similar to 2007, and increased 5.5% for the 12-month period.
Canlan derives its revenue from the rental of its playing surfaces, registrations for internal programming, food and beverage sales, sports stores sales, tournament registrations, management and consulting fees and other related fees.
EBITA for the fourth quarter was $4.6 million, up 2.2% from $4.5 million for the same period in 2007 after general and administration expenses of $1.1 million were recorded. EBITA for 2008 was $11.2 million once general and administration expenses of $3.7 million were recorded. This represents an increase of 10% when compared to $10.2 million for 2007.
Net income before taxes for the fourth quarter was $1.6 million, a decrease of 33% when compared to net income before taxes of $2.4 million for the fourth quarter of 2007. The net income for the fourth quarter of 2008 included an unrealized loss of $0.9 million related to an interest rate swap.
Net income before taxes for the year was $2.1 million, up 31% when compared to $1.6 million for 2007.
Net income after taxes was $3.1 million for the fourth quarter or $0.24 per share compared to $1.5 million or $0.12 per share for the same period in 2007. Net income after taxes for 2008 was $3.8 million or $0.29 per share. This compares to a net income of $0.8 million or $0.06 per share. All per share totals have been adjusted to reflect Canlan's share consolidation effected December 2, 2008.
Outlook
"We are confident that with solid fundamentals in place, such as high customer retention and diversified revenue streams, Canlan will be able to weather the current economic storm," said Michael Gellard, Chief Financial Officer of Canlan Ice Sports. "Nonetheless, we have implemented a number of measures since the start of 2009 to carefully monitor our operational performance against the current unfavorable economic conditions."
Canlan will file its December 31, 2008 audited consolidated financial statements and Management Discussion & Analysis with SEDAR on or before March 31, 2009.
About Canlan
Canlan Ice Sports Corp. is the largest private sector operator of recreational ice facilities in North America with 65 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 63,000 registered players in the winter and summer seasons, and offers a variety of other programs including youth leagues, hockey and figure skating schools and tournaments.
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.
Selected Fourth Quarter and Year End Financial Highlights
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In thousands, except for per
share information.
Three months ended Year ended
December 31 December 30
2008 2007 2008 2007
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Revenue:
Ice rinks $18,983 $18,739 $64,669 $62,539
Expenses:
Ice rinks 13,360 13,367 49,768 48,856
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Earnings from operations 5,623 5,372 14,901 13,683
General and administration
expenses 1,066 888 3,665 3,526
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Earnings before the undernoted 4,557 4,484 11,236 10,157
Other expenses:
Interest 1,091 1,006 3,944 4,440
Amortization 923 1,102 4,210 4,151
Loss on financial instruments 933 - 933 -
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2,947 2,108 9,087 8,591
Earnings before taxes 1,610 2,376 2,149 1,566
Future income tax (recovery)
expense (1,538) 899 (1,678) 760
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Net earnings $3,148 $1,477 $3,827 $806
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Basic and fully diluted earnings
per common share $ 0.24 $ 0.12 $ 0.29 $ 0.06
EBITA per common share $ 0.34 $ 0.34 $ 0.84 $ 0.76
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(1) Earnings before interest, taxes and amortization (EBITA) is often
used as a measure of financial performance. However, EBITA is not
a term that has specific meaning in accordance with generally
accepted accounting principles, and may be calculated differently
by other companies. Canlan reconciles EBITA to its net earnings.
