Canlan Reports Record High Q2 Revenue and Continues Quarterly Dividend
Canlan Ice Sports Corp. (TSX: ICE) reported record-high Q2 revenue of $21.8 million, a 10.3% increase from last year. Despite this, operating earnings decreased to $1.6 million from $2.3 million in 2023 due to increased expenses related to roof remediation and maintenance projects. Food and beverage revenue rose by 12.3% driven by increased tournament business. For the six months ended June 30, 2024, total operating revenue was $48.0 million, up 8.5% year-over-year. The company reported net earnings of $3.1 million or $0.23 per share for this period. Canlan's Board of Directors approved the continuation of its quarterly dividend of $0.03 per common share, payable on October 16, 2024.
Canlan Ice Sports Corp. (TSX: ICE) ha riportato un fatturato record nel Q2 di $21.8 milioni, con un incremento del 10.3% rispetto all'anno precedente. Nonostante ciò, gli utili operativi sono diminuiti a $1.6 milioni rispetto ai $2.3 milioni del 2023 a causa dell'aumento delle spese legate alla bonifica del tetto e ai progetti di manutenzione. Le entrate da cibo e bevande sono cresciute del 12.3% grazie all'aumento delle attività legate ai tornei. Per i sei mesi terminati il 30 giugno 2024, il fatturato operativo totale è stato di $48.0 milioni, in crescita dell'8.5% anno su anno. L'azienda ha riportato utili netti di $3.1 milioni, ovvero $0.23 per azione per questo periodo. Il Consiglio di Amministrazione di Canlan ha approvato la continuazione del dividendo trimestrale di $0.03 per azione ordinaria, da corrispondere il 16 ottobre 2024.
Canlan Ice Sports Corp. (TSX: ICE) reportó un ingreso récord en el Q2 de $21.8 millones, un aumento del 10.3% en comparación con el año pasado. A pesar de esto, las ganancias operativas disminuyeron a $1.6 millones desde $2.3 millones en 2023 debido al aumento de los gastos relacionados con la remediación del techo y los proyectos de mantenimiento. Los ingresos por alimentos y bebidas aumentaron un 12.3% impulsados por el incremento en los negocios de torneos. Durante los seis meses que terminaron el 30 de junio de 2024, el ingreso operativo total fue de $48.0 millones, un aumento del 8.5% interanual. La compañía reportó ganancias netas de $3.1 millones o $0.23 por acción para este periodo. La Junta de Directores de Canlan aprobó la continuación de su dividendo trimestral de $0.03 por acción ordinaria, que se pagará el 16 de octubre de 2024.
Canlan Ice Sports Corp. (TSX: ICE)는 2분기 기록적인 수익이 2180만 달러에 달했으며, 이는 지난해 대비 10.3% 증가한 수치라고 보고했습니다. 그럼에도 불구하고, 운영 수익은 2023년 230만 달러에서 160만 달러로 감소했습니다. 이는 지붕 수리 및 유지보수 프로젝트와 관련된 비용 증가 때문입니다. 식음료 수익이 12.3% 증가했으며, 이는 토너먼트 비즈니스의 증가에 힘입은 것입니다. 2024년 6월 30일로 종료된 6개월 동안, 총 운영 수익은 4800만 달러로, 전년 대비 8.5% 증가했습니다. 회사는 이 기간 동안 순이익 310만 달러 또는 주당 0.23달러를 보고했습니다. Canlan의 이사회는 보통주당 분기 배당금 0.03달러의 지속을 승인했으며, 이는 2024년 10월 16일에 지급될 예정입니다.
Canlan Ice Sports Corp. (TSX: ICE) a annoncé un chiffre d'affaires record au T2 de 21,8 millions de dollars, soit une augmentation de 10,3 % par rapport à l'année précédente. Néanmoins, les bénéfices d'exploitation ont chuté à 1,6 million de dollars contre 2,3 millions de dollars en 2023 en raison de l'augmentation des dépenses liées à la réhabilitation du toit et aux projets de maintenance. Les revenus des aliments et des boissons ont augmenté de 12,3 %, soutenus par l'accroissement des activités de tournois. Pour les six mois se terminant le 30 juin 2024, le chiffre d'affaires total s'élevait à 48,0 millions de dollars, soit une hausse de 8,5 % par rapport à l'année précédente. La société a déclaré des bénéfices nets de 3,1 millions de dollars, soit 0,23 dollar par action pour cette période. Le conseil d'administration de Canlan a approuvé la poursuite de son dividende trimestriel de 0,03 dollar par action ordinaire, payable le 16 octobre 2024.
Canlan Ice Sports Corp. (TSX: ICE) berichtete von einem Rekordumsatz im Q2 von 21,8 Millionen Dollar, was einem Anstieg von 10,3% im Vergleich zum Vorjahr entspricht. Trotz dessen ging das Betriebsergebnis zurück auf 1,6 Millionen Dollar von 2,3 Millionen Dollar im Jahr 2023 aufgrund gestiegener Kosten für Dachsanierung und Wartungsprojekte. Die Erlöse aus Lebensmitteln und Getränken stiegen um 12,3%, getrieben durch höhere Turnieraktivitäten. Für die sechs Monate bis zum 30. Juni 2024 betrug der gesamte Betriebsumsatz 48,0 Millionen Dollar, das entspricht einem Anstieg von 8,5% im Jahresvergleich. Das Unternehmen berichtete von Nettoeinnahmen von 3,1 Millionen Dollar oder 0,23 Dollar pro Aktie für diesen Zeitraum. Der Vorstand von Canlan genehmigte die Fortsetzung der vierteljährlichen Dividende von 0,03 Dollar pro Stammaktie, die am 16. Oktober 2024 zahlbar ist.
- Record-high Q2 revenue of $21.8 million, up 10.3% year-over-year
- Food and beverage revenue increased by 12.3%
- Six-month operating revenue up 8.5% to $48.0 million
- Net earnings of $3.1 million for the six-month period
- Continuation of quarterly dividend of $0.03 per share
- Q2 operating earnings decreased to $1.6 million from $2.3 million in 2023
- Increased expenses due to roof remediation and maintenance projects
- G&A expenses increased by 30.6% in Q2
- Net loss of $1.2 million for Q2 compared to net earnings of $0.8 million in prior year
- Six-month net earnings per share decreased to $0.23 from $0.32 in 2023
Burnaby, British Columbia--(Newsfile Corp. - August 14, 2024) - Canlan Ice Sports Corp. (TSX: ICE) (the "Corporation") today reported its financial results for the second quarter ended June 30, 2024.
Overview of Q2 2024
Total operating revenue of
$21.8 million increased by$2.0 million or10.3% compared to a year ago and represents a record high for the second quarter;Total operating earnings was
$1.6 million compared to$2.3 million in 2023 as the Company incurred increased expenses related to its roof remediation program and other major maintenance projects to improve dressing rooms, rink floors and parking lots compared to 2023; andFood and beverage revenue was up
12.3% due to increased tournament business and additional promotional programs that drove increased traffic into the Company's restaurants.
Three Months and Six Months Ended June 30, 2024 Results
| For the 3 months ended June 30 | For the 6 months ended June 30 | | ||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||
| Ice rink & recreational facilities revenue | $ | 21,848 | $ | 19,811 | $ | 48,034 | $ | 44,288 | ||||||
| Operating expense | 17,556 | 15,505 | 33,892 | 30,523 | ||||||||||
| 4,292 | 4,306 | 14,142 | 13,765 | |||||||||||
| G&A expense | 2,684 | 2,055 | 4,904 | 4,086 | ||||||||||
| Operating earnings[1] | $ | 1,608 | $ | 2,251 | $ | 9,238 | $ | 9,679 | ||||||
| Operating earnings per share | $ | 0.12 | $ | 0.17 | $ | 0.69 | $ | 0.73 | ||||||
| Depreciation | 1,878 | 1,912 | 3,736 | 3,842 | ||||||||||
| Interest | 607 | 469 | 1,242 | 918 | ||||||||||
| Interest rate swap (gain) loss | 212 | (1,107 | ) | (302 | ) | (527 | ) | |||||||
| Foreign exchange (gain) loss | (2 | ) | 1 | (4 | ) | 1 | ||||||||
| Gain on sale of assets | - | - | - | (10 | ) | |||||||||
| Income tax expense | 91 | 174 | 1,506 | 1,208 | ||||||||||
| Net earnings (loss) | ( | ) | $ | 802 | $ | 3,060 | $ | 4,247 | ||||||
| Net earnings (loss) per share | ( | ) | $ | 0.06 | $ | 0.23 | $ | 0.32 | ||||||
| | ||||||||||||||
| Key Balance Sheet Figures (in thousands): | | |||||||||||||
| June 30, 2024 | December 31, 2023 | | ||||||||||||
| Assets | ||||||||||||||
| Cash and cash equivalents | $ | 16,446 | $ | 19,029 | ||||||||||
| Property plant and equipment | 92,780 | 93,328 | ||||||||||||
| Other assets | 9,563 | 9,642 | | |||||||||||
| Total assets | $ | 118,789 | $ | 121,999 | | |||||||||
| Liabilities and Equity | ||||||||||||||
| Debt | $ | 42,001 | $ | 42,948 | ||||||||||
| Lease liabilities | 5,866 | 6,327 | ||||||||||||
| Accounts payable and accrued liabilities | 11,958 | 11,742 | ||||||||||||
| Deferred revenue | 8,345 | 14,425 | ||||||||||||
| Other liabilities | 2,530 | 1,901 | | |||||||||||
| Total liabilities | 70,700 | 77,343 | | |||||||||||
| Share capital and contributed surplus | 63,652 | 63,652 | ||||||||||||
| Foreign currency translation reserve | 4,005 | 2,832 | ||||||||||||
| Deficit | (19,568 | ) | (21,828 | ) | ||||||||||
| Total shareholders' equity | 48,089 | 44,656 | | |||||||||||
| Total liabilities and equity | $ | 118,789 | $ | 121,999 | ||||||||||
Second Quarter Results
(three months ended June 30, 2024 compared with three months ended June 30, 2023)
Total operating revenue of
$21.8 million increased by$2.0 million or10.3% compared to 2023. Higher tournament registrations, third-party contract rentals, youth hockey league registrations and food and beverage sales were key drivers of the increase;Total operating expenses of
$17.6 million increased by$2.1 million or13.2% mainly due to costs incurred related to its roof remediation program and maintenance projects to improve dressing rooms, rink floors and parking lots compared to 2023;Earnings before G&A expenses, excluding roof remediation costs, were
$4.9 million compared to$4.5 million in 2023;Total G&A expenses of
$2.7 million increased by$0.6 million or30.6% mainly due to increased wages and accounting accruals related to a long-term incentive compensation plan that began mid-2023;After G&A, operating earnings were
$1.6 million compared to$2.3 million in 2023; andAfter recording depreciation expense of
$1.9 million , net finance costs of$0.8 million , and income tax expense of$0.1 million , net loss for the quarter was$1.2 million or$0.09 per share compared to net earnings of$0.8 million or$0.06 per share in the prior year.
Six Months Ended June 30, 2024 Results
(six months ended June 30, 2024 compared with six months ended June 30, 2023)
Total operating revenue of
$48.0 million increased by$3.7 million or8.5% principally due to higher third-party contract ice rentals, tournament registrations and food and beverage revenue. Demand for Canlan-operated youth hockey tournaments remained strong in the BC and Ontario regions;Total operating expenses of
$33.9 million increased by$3.4 million or11.0% mainly due to increased labour and other expenses to service higher customer volumes, increased maintenance expense as we were able to commence major maintenance projects earlier than we did in the prior year, including roof remediation projects;Earnings before G&A expenses, excluding roof remediation costs, were
$15.1 million compared to$14.0 million in 2023;Total G&A expenses of
$4.9 million increased by$0.8 million or20.0% . Incremental costs relate to labour and software implemented at the central office to strengthen operations support to sports complexes, provide enhanced KPI reporting, develop new products/programs to diversify the Company's revenue streams, and the Company recorded compensation expense of$0.3 million during the first six months of 2024 (no expense required during the same period of 2023) related to a new long-term incentive compensation plan that commenced in fiscal 2023;Operating earnings before interest, depreciation and taxes was
$9.2 million compared to$9.7 million in 2023; andAfter recording depreciation expense of
$3.7 million , net finance costs of$0.9 million , and income tax expense of$1.5 million , net earnings were$3.1 million or$0.23 per share compared to$4.2 million or$0.32 per share in the prior year.
"During the first half of 2024, we saw remarkable growth in surface utilization rates across nearly all regions, driven by a surge in contract surface rentals and a booming interest in youth hockey leagues and tournaments," said Canlan's President & CEO, Joey St-Aubin. "It's incredibly rewarding to witness the continued, year-on-year growth of Canlan's tournament division post-pandemic, significantly boosting our food and beverage revenues. Our teams are now energized and committed to delivering top-tier programs for our summer campers and completing our new sports simulator projects at Scotia Barn and Canlan Sports York. These innovative projects are set to further amplify our offerings by seamlessly blending virtual and physical sports activities, elevating the Canlan experience to new heights."
Dividend Policy
Canlan's Board of Directors has approved the continuation of the Corporation's quarterly dividend policy. As such, the Board declares eligible dividends totaling
Filings
Canlan's financial statements and Management's Discussion & Analysis for the quarter ended June 30, 2024 will be available via SEDAR+ on or before August 14, 2024 and through the Company's website, www.canlansports.com.
About Canlan
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 16 facilities in Canada and the United States with 48 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
This News Release may contain information that constitutes "forward-looking" information within the meaning of applicable securities laws. Often, but not always, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "budgets", "scheduled", "estimates", "forecasts", "predicts", "projects", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information in this press release includes, but is not limited to, anticipated benefits of capital expenditures (including energy efficiencies and enhanced customer experiences) and expectations of business growth. Forward-looking information is based on the reasonable assumptions, estimates, analyses, beliefs and opinions of management made in light of its experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable at the date that such information is disclosed. Forward-looking information is subject to various known and unknown risks and uncertainties, many of which are beyond the ability of Canlan to control or predict, that may cause Canlan's actual results, performance or achievements to be materially different from those expressed or implied thereby. Material risk factors that could cause actual results to differ materially from the forward-looking information provided herein include those factors identified in Canlan's public disclosure file available at www.sedarplus.ca and, in particular, the risk factors set out under the heading "Risk Factors" in the Company's MD&A available for review on the Company's profile at www.sedarplus.ca. Such forward-looking information represents management's best judgment based on information currently available. Accordingly, readers are advised not to place undue reliance on forward-looking information. The forward-looking information herein is made as of the date of this press release only, and the Company does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable securities law.
For more information:
Canlan Ice Sports Corp.
Ivan Wu
CFO
604 736 9240
________________________
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/219832
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