Canlan Reports Record Q1 Results and Increases Quarterly Dividend

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Burnaby, British Columbia--(Newsfile Corp. - May 11, 2018) - Canlan Ice Sports Corp. (TSX: ICE) (the "Corporation") today reported its financial results for the first quarter ended March 31, 2018.

Highlights of Q1 2018

  • Record quarterly revenue of $25.6 million increased by $0.5 million or 1.9% compared to 2017;
  • Record EBITDA of $7.6 million increased by $1.0 million or 14.7%;
  • Utilities expenses were reduced by 12.8% having a significant positive impact on reducing operating expenses. Reduced electricity consumption was directly attributable to investments made to renew equipment and fixtures over the past three years, and innovative approaches to manage and optimize electricity usage in ice rink facilities; and
  • An increase to the Company's quarterly dividend from $0.02 per share to $0.025 per share beginning on July 17, 2018 was approved by the Board of Directors.

First Quarter Results


For the 3 months ended March 31
(in thousands)20182017
Revenue$25,624$25,147
Operating expense16,55917,132

9,0658,015
G&A expense1,4831,402
EBITDA17,5826,613
EBITDA per share$0.57$0.50
Depreciation, interest and taxes3,3723,336
Gain on foreign exchange(10)(1)
Net earnings $4,220$3,278
Net earnings per share$0.32$0.25

 

____________________
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):


March 31, 2018December 31, 2017
Assets

     Cash and cash equivalents$16,372$18,629
     Property plant and equipment98,01098,596
     Investment properties556550
     Other assets8,8877,945
Total assets$123,825$125,720
Liabilities and Equity

     Interest bearing debt$55,483$56,020
     Accounts payable and accrued liabilities9,96110,105
     Deferred revenue7,57713,209
     Other liabilities1,2731,188
Total liabilities74,29480,522
     Share capital and contributed surplus
63,65263,652
     Foreign currency translation reserve2,7452,365
     Deficit(16,866)(20,819)
Total shareholders' equity49,53145,198
Total liabilities and equity$123,825$125,720

 

First Quarter Results
(three months ended March 31, 2018 compared with three months ended March 31, 2017)

  • Total revenue of $25.6 million increased by $0.5 million or 1.9% compared to the prior year principally due to an increase in ice and field revenue and food and beverage revenue;
  • Total direct operating expense of $16.6 million decreased by $0.6 million or 3.3% compared to the prior year mainly due to the initiation of a cost optimization program started in January 2018 and significant reduction in utilities expense from ongoing energy management initiatives;
  • Quarterly EBITDA of $7.6 million increased by $1.0 million or 14.7% compared to 2017; and
  • After recording depreciation of $1.7 million and income tax expense of $1.3 million, net earnings for the quarter was $4.2 million or $0.32 per share compared to $3.3 million or $0.25 per share a year ago.

"First quarter revenue was on plan, and facility earnings were significantly ahead of prior year as our focus on reducing energy consumption continued to push utilities expense downwards. In addition, we embarked upon a plan to increase operating efficiencies at the start of 2018 that we anticipate will result in improved margins in the long term," said Canlan's CEO, Joey St-Aubin.

"We also ended Q1 on a strong note from a balance sheet perspective." added Canlan's CFO, Ivan Wu. "Increased cash generated from operations over the past 12 months helped to improve our liquidity and working capital position and enabled us to build cash reserves for future investment opportunities."

"Currently, our corporate and facility teams are working hard on filling spring/summer ice and field programs, continuing to increase efficiencies in all business areas, and enhancing our approach to market our brands and reach new customers," said Mr. St-Aubin.

Dividend Policy

Canlan's Board of Directors has approved the continuation of the Corporation's quarterly dividend policy and declared eligible dividends totaling $0.025 per common share that will next be paid on July 17, 2018 to shareholders of record at the close of business June 29, 2018. This is an increase from the previous quarterly dividend payment of $0.02 per share. 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.

Filings

Canlan's financial statements and Management's Discussion & Analysis for the period ended March 31, 2018 will be available via SEDAR on or before May 15, 2018 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 20 facilities in Canada and the United States with 57 ice surfaces, as well as five indoor soccer fields, and 15 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.

For more information:
Canlan Ice Sports Corp.
Ivan Wu
CFO
604 736 9152                           

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