BURNABY, British Columbia, Aug. 12, 2014 (GLOBE NEWSWIRE) -- Canlan Ice Sports Corp. (the "Corporation") (TSX:ICE) today reported its financial results for the second quarter ended June 30, 2014.
Highlights of Q2 2014
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Total revenue of $16.5 million increased by 2.5% over 2013 and 3.1% on a same store basis;
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Q2 EBITDA was $0.2 million compared to a loss of $0.4 million in 2013;
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Net loss of $1.4 million was reduced by $0.3 million compared to prior year;
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As at the date of this release, the Company substantially completed a $1.7 million renovation of the indoor soccer field in Burnaby 8Rinks on time and on budget; and
- Long term debt of $14.4 million was refinanced into a $19.7 million debt package at reduced interest rates, decreased annual debt service payments and enabled the Company to replenish cash reserves.
Second Quarter and Six Months Ended June 30, 2014 Results
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For the 3 months ended June 30, 2014 |
For the 6 months ended June 30, 2014 |
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| (in thousands) | 2014 | 2013 | 2014 | 2013 |
| Revenue | $16,480 | $16,078 | $37,678 | $36,739 |
| Operating expense | 15,174 | 15,205 | 29,748 | 29,987 |
| 1,306 | 873 | 7,930 | 6,752 | |
| G&A expense | 1,084 | 1,235 | 2,265 | 2,449 |
| EBITDA1 | $222 | $(362) | $5,665 | $4,303 |
| EBITDA per share | $0.02 | $(0.03) | $0.43 | $0.32 |
| Net earnings (loss) | $(1,434) | $(1,765) | $1,024 | $265 |
| Net earnings (loss) per share | $(0.11) | $(0.13) | $0.08 | $0.02 |
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.
| Key Balance Sheet Figures (in thousands): | ||
| June 30, 2014 | December 31, 2013 | |
| Assets | ||
| Cash and cash equivalents | $12,046 | $10,080 |
| Property plant and equipment | 88,693 | 89,401 |
| Investment properties | 570 | 570 |
| Other assets | 5,418 | 5,510 |
| Total assets | $106,727 | $105,561 |
| Liabilities and Equity | ||
| Interest bearing debt | $45,293 | $41,233 |
| Accounts payable and accrued liabilities | 8,285 | 7,360 |
| Deferred revenue | 6,995 | 11,216 |
| Other liabilities | 708 | 796 |
| Total liabilities | 61,281 | 60,605 |
| Share capital and contributed surplus | 63,652 | 63,652 |
| Deficit | (18,206) | (18,696) |
| Total shareholders' equity | 45,446 | 44,956 |
| Total Liabilities and Equity | $106,727 | $105,561 |
Second Quarter Results
(three months ended June 30, 2014 compared with three months ended June 30, 2013)
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Revenue of $16.5 million increased by $0.4 million or 2.5% compared to the prior year. Same store revenue increased by $0.5 million or 3.1%;
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Incremental sales from Canlan's ice and field revenue, food and beverage revenue and tournament operations were the main drivers of the growth;
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Same store operating costs remained steady with 2013 while corporate G&A costs decreased due to reduced labour and travel costs; and
- Quarterly EBITDA was $0.2 million compared to a loss of $0.4 million in 2013.
"Focused marketing efforts enabled us to continue the momentum achieved from our Q1 activities into the second quarter and having all of our playing surfaces but one back on-line after prior year's renovations allowed us to reach expected performance levels," said Canlan's CEO, Joey St-Aubin.
"In addition to increased revenue, energy and corporate G&A cost management also helped us achieve improved results for the quarter. Our 12-month trailing EBITDA is now over $11.0 million," said Canlan's CFO, Mike Gellard.
Six Months Ended June 30, 2014 Results
(six months ended June 30, 2014 compared with six months ended June 30, 2013)
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Revenue of $37.7 million increased by $0.9 million or 2.6% compared to the prior year. Same store revenue increased by $1.2 million or 3.2%;
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Contract rentals, instructional ice programs and volleyball league activity were the main sources of revenue growth;
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Same store operating costs remained steady with 2013 while corporate G&A costs decreased due to reduced labour, travel, and general office costs;
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EBITDA of $5.7 million increased by $1.4 million or 31.7% from the prior year. EBITDA as a percentage of revenue was 15.0% compared to 11.7% in 2013; and
- After recording depreciation of $2.9 million, and income tax expense of $0.5 million, net earnings for the first half of 2014 was $1.0 million or $0.08 per share compared to $0.3 million or $0.02 per share in a year ago.
Dividend Policy
Canlan's Board of Directors has approved the continuation of the Company's quarterly dividend policy and declared eligible dividends totaling $0.02 per common share that will next be paid on October 15, 2014 to shareholders of record at the close of business September 30, 2014. 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.
Outlook
"Q2 utilization improved over the prior year and we anticipate this trend to continue into the second half of 2014 as registrations for the fall/winter adult hockey leagues are already starting to fill up in some markets. In addition, Canlan will be operating a new satellite adult recreation hockey league in Burlington, Ontario this winter. This new 40 to 50 team league will not only grow earnings, but will expand our Adult Safe Hockey League membership. Our Partnership Solutions group is also busy seeking new ventures to add to our current portfolio of facilities," said Mr. St-Aubin.
"The final phase of the structural renovation at Burnaby 8Rinks is now complete and we anticipate this property to soon be back to 100% capacity and generating improved results," said Mr. Gellard. "In addition, the refinancing package we recently finalized will provide the benefit of reduced debt service; therefore, having a positive effect on cash flow, and it has replenished our cash reserves that can be utilized for investment opportunities."
Canlan's financial statements and Management's Discussion & Analysis for the period ended June 30, 2014 will be available via SEDAR on or before August 14, 2014 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 ice rink and multi-purpose recreation facilities. We are the largest private sector owner and operator of recreational ice sports facilities in North America and currently own and/or manage 18 facilities in Canada and the United States with 55 ice surfaces, as well as indoor soccer fields, ball diamonds, curling rinks and volleyball 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 news release 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 news release, 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 news release. 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.