- And Completed Purchase of Canlan Sports Libertyville -
Burnaby, British Columbia--(Newsfile Corp. - May 12, 2023) - Canlan Ice Sports Corp. (TSX: ICE) (the "Corporation") today reported its financial results for the first quarter ended March 31, 2023.
Overview of Q1 2023
- Total operating revenue of $24.5 million increased by $5.5 million or 29.2% compared to a year ago;
- Total operating earnings was $7.4 million compared to $4.9 million in 2022; and
- Canlan exercised its option to purchase Canlan Libertyville Sportsplex, a recreation facility in Libertyville, Illinois that had been operated under a lease agreement. The purchase establishes the Company's long-term sportsplex operations in that market with indoor field/court facilities in both Lake Barrington and Libertyville, Illinois.
- At quarter end, cash-on-hand combined with unused credit lines totaled $42.1 million that is available for operating and capital expenditure requirements.
First Quarter Results
|For the 3 months ended March 31|
|Ice rink & recreational facilities revenue||$||24,477||$||18,948|
|Operating earnings 1||$||7,428||$||4,854|
|Operating earnings per share||$||0.56||$||0.36|
|Mark-to-market (gain) loss on held-for-trading financial liabilities||580||(315||)|
|Loss on foreign exchange||-||3|
|Gain on sale of assets||(10||)||-|
|Income tax expense||1,034||547|
|Net earnings per share||$||0.26||$||0.16|
|Key Balance Sheet Figures (in thousands):||March 31, 2023||December 31, 2022|
|Property plant and equipment||94,661||95,523|
|Liabilities and Equity|
|Accounts payable and accrued liabilities||10,694||9,693|
|Share capital and contributed surplus||63,652||63,652|
|Foreign currency translation reserve||3,621||3,662|
|Total shareholders' equity||49,655||46,651|
|Total liabilities and equity||$||119,017||$||121,713|
First Quarter Results
(three months ended March 31, 2023 compared with three months ended March 31, 2022)
Total operating revenue of $24.5 million increased by $5.5 million or 29.2% as the Company did not encounter any pandemic-related suspensions of business operations during the first quarter for the first time in four years;
With all facilities back to normal business capacity, operating expenses of $15.0 million increased by $2.5 million or 20.3%;
Total G&A expenses of $2.0 million increased by $0.4 million or 26.2% mainly due to increased labour costs to operate the Company's customer contact center and to begin research and development of new products and programs to help grow and diversify revenue streams; and
After recording depreciation expense of $1.9 million, finance costs of $1.0 million, and income tax expense of $1.0 million, net earnings for the period were $3.4 million or $0.26 earnings per share compared to $2.1 million or $0.16 per share in 2022.
Canlan's President & CEO, Joey St-Aubin, expressed satisfaction with the company's performance in the early months of 2023 stating "that revenues have surpassed their targets, and the food and beverage business has made an impressive recovery this quarter. Additionally, spring-break camp registrations have shown significant improvement from the previous year, indicating that the team's hard work in overcoming the obstacles of the past year is yielding positive results. With the start of the spring/summer leagues, tournaments, and programs, we aim to maintain and carry this momentum into the remainder of this year."
Canlan's CFO, Ivan Wu, also mentioned "that numerous summer capital and maintenance projects are scheduled to begin in the coming months. These will include the installation of equipment that focuses on energy conservation, as well as further investment in the roof remediation program. These projects will greatly improve building efficiencies and the overall customer experience."
Canlan's Board of Directors has approved the continuation of the Corporation's quarterly dividend policy. As such, the Board declares eligible dividends totaling $0.03 per common share that will next be paid on July 17, 2023 to shareholders of record at the close of business June 30, 2023. Canlan's Board of Directors reviews the Corporation'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.
Canlan's financial statements and Management's Discussion & Analysis for the quarter ended March 31, 2023 will be available via SEDAR on or before May 15, 2023 and through the Company's website, www.canlansports.com.
Canlan Ice Sports Corp. (operating as Canlan Sports) is the North American leader in the ownership, operations and programming of multi-purpose recreation and entertainment facilities. We currently own, lease and/or manage 17 facilities in Canada and the United States with 49 ice surfaces, as well as five indoor soccer fields, and 20 sport, volleyball, and basketball courts. To learn more about Canlan please visit www.canlansports.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 Corporation 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 Corporation's markets; competition; legislation and governmental regulation; and accounting policies and practices. The foregoing list of factors is not exhaustive.
For more information:
Canlan Ice Sports Corp.
604 736 9152
1 Operating earnings is defined as earnings after general and administrative expenses and before interest, depreciation, foreign currency exchange, gain on assets sold and income tax. However, operating earnings is not a term that has specific meaning in accordance with IFRS, and may be calculated differently by other companies. Canlan reconciles operating earnings to its net earnings.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/165816