Canlan Reports Record High Q3 Revenue and Continues Quarterly Dividend
Canlan Ice Sports reported record Q3 2024 operating revenue of $20.0 million, up 15.7% year-over-year. The company reduced its operating loss to $0.7 million from $3.3 million in 2023. Key growth drivers included increased summer hockey leagues, surface rentals, and tournament activities. The company completed major facility upgrades, including new golf/sports simulators and soccer pitches. A quarterly dividend of $0.03 per share was declared, payable January 15, 2025. For the nine-month period, total revenue reached $68.0 million, a 10.5% increase, with net earnings of $0.4 million.
Canlan Ice Sports ha riportato un fatturato operativo record per il terzo trimestre del 2024 di 20,0 milioni di dollari, con un aumento del 15,7% rispetto all'anno precedente. L'azienda ha ridotto la sua perdita operativa a 0,7 milioni di dollari, rispetto ai 3,3 milioni del 2023. I principali fattori di crescita hanno incluso l'aumento delle leghe estive di hockey, il noleggio delle superfici e le attività dei tornei. L'azienda ha completato importanti aggiornamenti delle strutture, inclusi nuovi simulatori di golf/sport e campi da calcio. È stato dichiarato un dividendo trimestrale di 0,03 dollari per azione, pagabile il 15 gennaio 2025. Per il periodo di nove mesi, il fatturato totale ha raggiunto 68,0 milioni di dollari, con un aumento del 10,5%, con un utile netto di 0,4 milioni di dollari.
Canlan Ice Sports reportó ingresos operativos récord para el tercer trimestre de 2024 de 20,0 millones de dólares, lo que representa un aumento del 15,7% en comparación con el año anterior. La compañía redujo su pérdida operativa a 0,7 millones de dólares desde 3,3 millones en 2023. Los principales impulsores de crecimiento incluyeron el aumento de ligas de hockey en verano, el alquiler de superficies y actividades de torneos. La empresa completó importantes mejoras en sus instalaciones, incluyendo nuevos simuladores de golf/deportes y campos de fútbol. Se declaró un dividendo trimestral de 0,03 dólares por acción, pagadero el 15 de enero de 2025. Para el período de nueve meses, los ingresos totales alcanzaron 68,0 millones de dólares, un aumento del 10,5%, con ganancias netas de 0,4 millones de dólares.
캐넌 아이스 스포츠는 2024년 3분기 운영 수익이 2천만 달러로 연간 15.7% 증가했다고 보고했습니다. 이 회사는 2023년 3.3백만 달러에서 0.7백만 달러로 운영 손실을 줄였습니다. 주요 성장 요인은 여름 하키 리그, 시설 대여 및 토너먼트 활동의 증가로 포함되었습니다. 이 회사는 새로운 골프/스포츠 시뮬레이터 및 축구 필드를 포함한 주요 시설 업그레이드를 완료했습니다. 주당 0.03달러의 분기 배당금이 선언되었으며, 2025년 1월 15일에 지급될 예정입니다. 9개월 기간 동안 총 수익은 6천8백만 달러에 도달했으며, 이는 10.5% 증가한 수치로, 순이익은 0.4백만 달러입니다.
Canlan Ice Sports a rapporté un chiffre d'affaires opérationnel record pour le troisième trimestre 2024 de 20,0 millions de dollars, en hausse de 15,7% par rapport à l'année précédente. L'entreprise a réduit sa perte opérationnelle à 0,7 million de dollars contre 3,3 millions en 2023. Les principaux moteurs de croissance comprenaient l'augmentation des ligues de hockey d'été, des locations de surfaces et des activités de tournois. L'entreprise a terminé d'importantes améliorations de ses installations, y compris de nouveaux simulateurs de golf/de sports et des terrains de football. Un dividende trimestriel de 0,03 dollar par action a été déclaré, payable le 15 janvier 2025. Pour la période de neuf mois, le chiffre d'affaires total a atteint 68,0 millions de dollars, soit une augmentation de 10,5%, avec un bénéfice net de 0,4 million de dollars.
Canlan Ice Sports berichtete im dritten Quartal 2024 über einen Rekordbetriebserlös von 20,0 Millionen Dollar, was einem Anstieg von 15,7% im Jahresvergleich entspricht. Das Unternehmen verringerte seinen Betriebsverlust auf 0,7 Millionen Dollar von 3,3 Millionen Dollar im Jahr 2023. Zu den Hauptwachstumstreibern gehörten steigende Sommer-Eishockeyligen, Flächenmieten und Turnieraktivitäten. Das Unternehmen hat umfangreiche Modernisierungen der Einrichtungen abgeschlossen, darunter neue Golf-/Sport-Simulatoren und Fußballplätze. Eine wurde erklärt, zahlbar am 15. Januar 2025. Für den Neunmonatszeitraum erreichte der Gesamtumsatz 68,0 Millionen Dollar, was einem Anstieg von 10,5% entspricht, mit einem Nettogewinn von 0,4 Millionen Dollar.
- Record Q3 revenue of $20.0 million, up 15.7% YoY
- Operating loss reduced by $2.6 million to $0.7 million
- Nine-month revenue increased 10.5% to $68.0 million
- Food and beverage revenue up 11.6%
- Operating expenses decreased by 2.4% in Q3
- Q3 net loss of $2.6 million ($0.20 per share)
- G&A expenses increased 27.5% to $2.8 million
- Interest rate swap contract valuation loss of $1.1 million
- Total liabilities increased from $77.3M to $79.6M
Burnaby, British Columbia--(Newsfile Corp. - November 13, 2024) - Canlan Ice Sports Corp. (TSX: ICE) (the "Company" or "Corporation") today reported its financial results for the third quarter ended September 30, 2024.
Overview of Q3 2024
- Total operating revenue of
$20.0 million (a record high for Q3) increased by$2.7 million or15.7% compared to a year ago;
- Operating loss was
$0.7 million compared to a loss of$3.3 million in 2023;
- The Company continued to invest in capital projects to enhance customer experience and to expand the Company's activity offerings. These projects were completed or close to completion during the quarter and include the construction of new golf/sports simulators at the Scotia Barn and Canlan Sports York facilities, the renovation of the Canlan Sports York sports bar, and the addition of new soccer pitches at Canlan Sports Libertyville; and
- The Company also continued its quarterly dividend policy with the declaration of eligible dividends of
$0.03 per common share that will next be paid on January 15, 2025 to shareholders of record at the close of business December 31, 2024.
Three Months and Nine Months Ended September 30, 2024 Results
| For the 3 months ended September 30 | For the 9 months ended September 30 | | ||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||
| Ice rink & recreational facilities revenue | $ | 19,958 | $ | 17,246 | $ | 67,992 | $ | 61,534 | ||||||
| Operating expense | 17,887 | 18,330 | 51,779 | 48,853 | ||||||||||
| 2,071 | (1,084 | ) | 16,213 | 12,681 | ||||||||||
| G&A expense | 2,801 | 2,197 | 7,705 | 6,283 | ||||||||||
| Operating earnings (loss)1 | ( | ) | ( | ) | $ | 8,508 | $ | 6,398 | ||||||
| Operating earnings (loss) per share | ( | ) | ( | ) | $ | 0.64 | $ | 0.48 | ||||||
| Depreciation | 1,858 | 1,908 | 5,594 | 5,750 | ||||||||||
| Interest | 510 | 612 | 1,752 | 1,530 | ||||||||||
| Interest rate swap (gain) loss | 1,075 | (700 | ) | 773 | (1,227 | ) | ||||||||
| Foreign exchange (gain) loss | 1 | (6 | ) | (3 | ) | (5 | ) | |||||||
| Gain on sale of assets | (9 | ) | - | (9 | ) | (10 | ) | |||||||
| Income tax recovery | (1,545 | ) | (1,243 | ) | (39 | ) | (35 | ) | ||||||
| Net earnings (loss) | ( | ) | ( | ) | $ | 440 | $ | 395 | ||||||
| Net earnings (loss) per share | ( | ) | ( | ) | $ | 0.03 | $ | 0.03 | ||||||
| Key Balance Sheet Figures (in thousands): | ||||||||||||||||||||
| September 30, 2024 | December 31, 2023 | |||||||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 17,800 | $ | 19,029 | ||||||||||||||||
| Property plant and equipment | 94,870 | 93,328 | ||||||||||||||||||
| Other assets | 11,549 | 9,642 | ||||||||||||||||||
| Total assets | $ | 124,219 | $ | 121,999 | ||||||||||||||||
| Liabilities and Equity | ||||||||||||||||||||
| Debt | $ | 41,503 | $ | 42,948 | ||||||||||||||||
| Lease liabilities | 7,650 | 6,327 | ||||||||||||||||||
| Accounts payable and accrued liabilities | 13,135 | 11,742 | ||||||||||||||||||
| Deferred revenue | 13,894 | 14,425 | ||||||||||||||||||
| Other liabilities | 3,452 | 1,901 | ||||||||||||||||||
| Total liabilities | 79,634 | 77,343 | ||||||||||||||||||
| Share capital and contributed surplus | 63,652 | 63,652 | ||||||||||||||||||
| Foreign currency translation reserve | 3,521 | 2,832 | ||||||||||||||||||
| Deficit | (22,588 | ) | (21,828 | ) | ||||||||||||||||
| Total shareholders' equity | 44,585 | 44,656 | ||||||||||||||||||
| Total liabilities and equity | $ | 124,219 | $ | 121,999 | ||||||||||||||||
"Summer revenue from our leagues, tournaments, surface rentals, and food and beverage exceeded expectations, thanks to the dedicated efforts of our team members across all facilities. Through timely, targeted marketing and exceptional customer service, we saw strong engagement," said Canlan's President & CEO, Joey St-Aubin. "I'm particularly encouraged by the significant growth in teams playing in our Adult Safe Hockey League (ASHL) this fall/winter season. Additionally, our customers are thrilled about the completion or near-completion of three major projects planned in 2024:
- The new Game Deck Interactive Sports (golf and sports simulators) at Canlan Sports - Scotia Barn and Canlan Sports - York;
- A substantial renovation at Canlan Sports - Libertyville, doubling our indoor turf capacity from two to four turf surfaces; and
- A complete refresh of our restaurant and sports bar at Canlan Sports - York.
These projects are strategically designed to broaden our activity offerings, and enhance the customer experience across our sports complexes."
Third Quarter Results
(three months ended September 30, 2024 compared with three months ended September 30, 2023)
Total operating revenue of
$20.0 million increased by$2.7 million or15.7% compared to 2023. Pricing and volume growth in summer hockey leagues, third-party surface rentals, and tournament activity were key drivers of the increase. This in turn, elevated restaurant and concession traffic, which resulted in increased food and beverage revenue by11.6% ;Total operating expenses (which include the Company's roof remediation program costs) of
$17.9 million decreased by$0.4 million or2.4% mainly due to a reduction in repair and maintenance costs due to timing of projects. Maintenance costs incurred during the quarter mainly related to the Company's roof remediation program and projects to improve dressing rooms, playing surfaces and parking lots;Operating earnings before G&A expenses, excluding roof remediation costs, were
$4.4 million compared to$2.1 million in 2023;Total G&A expenses of
$2.8 million increased by$0.6 million or27.5% mainly due to increased provisions related to the Company's long-term incentive compensation plan (LTIP) and retirement compensation for a member of the senior management team;After G&A, operating loss was
$0.7 million compared to$3.3 million in 2023; andAfter recording depreciation expense of
$1.9 million , finance costs of$0.5 million , interest rate swap contract valuation loss of$1.1 million , and income tax recovery of$1.5 million , net loss for the quarter was$2.6 million or$0.20 per share compared to a loss of$3.9 million or$0.29 per share in the prior year.
Nine Months Ended September 30, 2024 Results
(nine months ended September 30, 2024 compared with nine months ended September 30, 2023)
Total operating revenue of
$68.0 million increased by$6.5 million or10.5% principally due to increased adult hockey league registrations, higher third-party surface rentals, growth in tournament registrations and food and beverage revenue;Total operating expenses of
$51.8 million increased by$2.9 million or6.0% mainly due to increased labour and other expenses to service higher customer volumes, increased utilities, and property tax expenses;Earnings before G&A expenses, excluding roof remediation costs, were
$19.4 million compared to$16.2 million in 2023;Total G&A expenses of
$7.7 million increased by$1.4 million or22.6% mainly due to increased accounting accruals related to retirement compensation for a me mber of the senior management team, and the Company's LTIP;Operating earnings before interest, depreciation and taxes was
$8.5 million compared to$6.4 million in 2023; andAfter recording depreciation expense of
$5.6 million , net finance costs of$1.8 million , mark-to-market loss of$0.8 million from a change in the value of interest rate swap contracts, and income tax recovery of$39,000 , net earnings were$0.4 million or$0.03 per share, consistent with the prior year.
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 September 30, 2024 will be available via SEDAR+ on or before November 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 information
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/229722
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