BURNABY, British Columbia, Nov. 08, 2016 (GLOBE NEWSWIRE) -- Canlan Ice Sports Corp. (the “Corporation”) (TSX:ICE), home of the world’s largest adult recreation hockey league, today reported its financial results for the third quarter ended September 30, 2016.
Overview of Q3 2016:
- Q3 revenue of $16.8 million increased by $0.3 million or 1.9% compared to Q3 2015;
- Q3 loss before interest, tax, depreciation and amortization was $0.2 million compared to break even in Q3 2015;
- The Company entered into a long-term agreement on July 7, 2016 to operate a twin-pad ice rink facility in Calgary, Alberta; and
- Major projects related to energy management and renewal of refrigeration equipment are in progress and financial benefits are being realized.
Three and Nine Months Ended September 30, 2016 Results
| For the 3 months ended September 30 | For the 9 months ended September 30 | ||||||||||||
| (in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||
| Revenue | $ | 16,821 | $ | 16,509 | $ | 59,234 | $ | 56,560 | |||||
| Operating expense | 15,941 | 15,530 | 48,505 | 47,782 | |||||||||
| 880 | 979 | 10,729 | 8,778 | ||||||||||
| G&A expense | 1,109 | 918 | 3,858 | 3,286 | |||||||||
| EBITDA 1 | ($ | 229 | ) | $ | 61 | $ | 6,871 | $ | 5,492 | ||||
| EBITDA per share | ($ | 0.02 | ) | $ | - | $ | 0.52 | $ | 0.41 | ||||
| Depreciation | 1,752 | 1,767 | 5,217 | 5,179 | |||||||||
| Finance costs | 526 | 746 | 4,354 | 2,187 | |||||||||
| Loss (gain) on held for trading financial liabilities | (66 | ) | - | 797 | - | ||||||||
| Loss (gain) on foreign exchange | (3 | ) | 447 | (466 | ) | 986 | |||||||
| Loss (gain) on sale of assets | (16 | ) | 22 | (21 | ) | 19 | |||||||
| Income tax recovery | (1,307 | ) | (380 | ) | (2,067 | ) | (134 | ) | |||||
| Net loss | ($ | 1,115 | ) | ($ | 2,541 | ) | ($ | 943 | ) | ($ | 2,745 | ) | |
| Net loss per share | ($ | 0.08 | ) | ($ | 0.19 | ) | ($ | 0.07 | ) | ($ | 0.21 | ) | |
1 Earnings before interest, taxes, depreciation and amortization (EBITDA) is often used as a measure of financial performance. However, EBITDA is not a term that has specific meaning in accordance with IFRS, and may be calculated differently by other companies. Canlan reconciles EBITDA to its net earnings.
| Key Balance Sheet Figures (in thousands): | |||||||
| September 30, 2016 | December 31, 2015 | ||||||
| Assets | |||||||
| Property plant and equipment | $ | 101,774 | $ | 103,631 | |||
| Cash and cash equivalents | 10,211 | 10,065 | |||||
| Restricted cash | 1,300 | - | |||||
| Investment properties | 560 | 574 | |||||
| Other assets | 7,665 | 6,334 | |||||
| Total assets | $ | 121,510 | $ | 120,604 | |||
| Liabilities and Equity | |||||||
| Interest bearing debt | $ | 59,381 | $ | 55,762 | |||
| Deferred revenue | 11,541 | 12,519 | |||||
| Accounts payable and accrued liabilities | 7,742 | 7,938 | |||||
| Financial liability held for trading | 797 | - | |||||
| Other liabilities | 735 | 657 | |||||
| Total liabilities | 80,196 | 76,876 | |||||
| Share capital and contributed surplus | 63,652 | 63,652 | |||||
| Foreign currency translation reserve | 2,941 | 3,612 | |||||
| Deficit | (25,279 | ) | (23,536 | ) | |||
| Total shareholders’ equity | 41,314 | 43,728 | |||||
| Total liabilities and equity | $ | 121,510 | $ | 120,604 | |||
Third Quarter Results
(three months ended September 30, 2016 compared with three months ended September 30, 2015)
- Total revenue of $16.8 million increased by $0.3 million or 1.9% compared to the prior year;
- Growth in sales from ASHL, contract ice rentals, in-house tournaments and food & beverage were the primary sources of the year-over-year revenue increase;
- Loss before interest, tax, depreciation and amortization for the quarter was $0.2 million compared to a break-even level in 2015;
- After recording depreciation, finance costs, an unrealized gain on an interest rate swap contract, and income tax recovery, net loss for the period was $1.1 million compared to $2.5 million a year ago;
- Minimal foreign exchange gain/loss was recognized during the period compared to a foreign exchange loss of $0.4 million in 2015 related to period end translation of U.S. dollar denominated loans and monetary items; and
- On July 7, 2016, Canlan entered into an operating agreement with a municipality to operate a two-pad ice rink facility in Calgary, Alberta for a term of 25 years. Ownership of the facility will not transfer to Canlan; however, an income sharing arrangement with the municipality forms part of the agreement. The facility commenced operations in September 2016.
Nine Months Ended September 30, 2016 Results
(nine months ended September 30, 2016 compared with nine months ended September 30, 2015)
- Total revenue of $59.2 million increased by $2.7 million or 4.7% compared to the prior year;
- Growth in sales from hockey and soccer leagues, contract ice rentals, in-house tournaments, instructional programs and food & beverage were the primary sources of the year-over-year revenue increase; in particular, newer operations of US facilities experienced strong growth in league and programs registrations;
- EBITDA of $6.9 million increased by $1.4 million or 25.1% from 2015;
- After recording depreciation, finance costs, an unrealized valuation expense on an interest rate swap contract, income tax recovery and a foreign exchange gain, net loss for the period was $0.9 million compared to $2.7 million a year ago; and
- A foreign exchange gain of $0.5 million was recognized during the period compared to a foreign exchange loss of $1.0 million in 2015 related to period end translation of U.S. dollar denominated loans and monetary items.
“It’s nice to see the strong improvement of our operating results on a year-over-year basis,” said Canlan’s CEO, Joey St-Aubin. “Our facility teams on both sides of the border have worked hard to provide excellent customer service and increase utilization of sport surfaces while carefully managing costs.”
“In addition to EBITDA growth, overall cash flow has also strengthened as a result of the refinancing we completed in the Spring, which has enabled us to replenish our cash reserves and continue to reinvest in our facilities and renew our equipment necessary to reduce energy costs and operate more efficiently,” added Canlan’s CFO, Mike Gellard. “We will continue to focus on energy management into 2017.”
“This is always an exciting time of year as the new fall/winter season of the Adult-Safe Hockey League is in full swing and we achieved our team target as planned,” said Mr. St-Aubin. “At the same time, we are focused on ramping up the operations at the Great Plains Recreation Facility, the new state of the art ice sports complex in Calgary that we have been engaged to operate.”
Canlan’s financial statements and Management Discussion & Analysis for the period ended September 30, 2016 will be available via SEDAR on or before November 14, 2016 and through the Company’s website, www.icesports.com.
About Canlan
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 recreation facilities in North America and currently own, lease and/or manage 21 facilities in Canada and the United States with 57 ice surfaces, as well as five indoor soccer fields, and 21 sport, volleyball, and basketball courts. To learn more about Canlan 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 Corporation 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 Corporation’s markets; competition; legislation and governmental regulation; and accounting policies and practices. The foregoing list of factors is not exhaustive.