Tri-White Corporation Legacy Documents > 2009 Press Releases
Tri-White Corporation announces 2008 year end results
MARCH 11, 2009
Tri-White Corporation (TSX: TWH)
Mississauga, Ontario
Financial Highlights
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Three months ended Year ended
(in thousands of ---------------------------------------------------
dollars except per December December December December
share amounts) 31, 2008 31, 2007 31, 2008 31, 2007
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Revenue 31,930 27,364 210,299 168,780
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EBITDA(1) 6,213 1,505 67,058 57,319
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Net earnings (loss) (5,083) (5,276) 6,125 8,869
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Basic earnings (loss)
per share ($0.22) ($0.23) $0.27 $0.39
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Weighted average
shares outstanding 22,887 22,784
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(1) EBITDA is not a recognized performance measure under Canadian GAAP.
EBITDA is defined as earnings before taxes, interest, depreciation,
amortization, non-controlling interest and earnings from equity accounted
investments. Management believes that in addition to net earnings, this
measure is useful supplemental information to provide investors with an
indication of income available prior to debt service, capital
expenditures and income taxes. Investors should be cautioned, however,
that this measure should not be construed as an alternative to net
earnings determined in accordance with GAAP as an indicator of the
Company.
>>
2008 Operating Highlights
Acquisition of control and consolidation of ClubLink Corporation ("ClubLink") effective June 1, 2007 has resulted in significant increases in revenue (24.6%) and operating expenses (28.5%). ClubLink was equity accounted until May 31, 2007 and fully consolidated since June 1, 2007. ClubLink's championship rounds of golf decreased 2.9% to 988,000 in 2008 from 1,018,000 in 2007 due in part to wet weather conditions in Ontario and Quebec. The average number of championship rounds per 18-hole golf course decreased to 25,013 from 25,772 in 2007.
White Pass & Yukon Route ("White Pass") train passengers decreased 5.1% to 437,660 in 2008 from 461,388 in 2007 due to a decline in the number of cruise ship passengers resulting from economic factors which have impacted the Alaskan tourism industry. The capture rate of cruise ship passengers declined slightly to 47.36% in 2008 from 47.43% in 2007.
The full year consolidation of ClubLink results, compared to 7 months in
2007, consolidated EBITDA for the year ended December 31, 2008 increased 17.0%
to $67.1 million compared to $57.3 million for the prior year; amortization
and land lease rent increased to $25.0 million for the year ended December 31,
2008 from $15.9 million in 2007; and net income decreased to $6.1 million from
$8.9 million in 2007. Net income was also affected by a higher effective tax
rate resulting from certain 2008 tax losses not recognized in the income tax
provision calculation.
EBITDA from rail, tourism and port operations increased to US $18.6 million in 2008 from US $16.7 million in 2007. The 2008 results were impacted by lower revenue from the decline in passengers but more than offset by cost savings. Operating expenses were reduced due to a one-time cost of US $1.6 million recorded in 2007 relating to the settlement of, and a multi-year extension to, the train operating union agreements. Further cost savings were realized in 2008 by a shortened operating season of the railroad.
The majority of earnings from the rail, tourism and port operations are generated in US dollars. For the year ended December 31, 2008, the changing Canadian dollar exchange rate is estimated to have a minimal impact on these earnings as the average exchange rate was 1.0678 in 2008 compared to 1.0736 in 2007.
Interest, net and other expense increased 54.8% to $25.5 million in 2008 compared to $16.5 million in 2007. This change relates primarily to the full consolidation of ClubLink for 2008 compared to 7 months in 2007, and interest expense for a full year relating to debt incurred upon the acquisition of the control block of ClubLink shares on June 1, 2007.
The equity earnings recorded by Tri-White on its Renasant Financial Partners Ltd. ("Renasant") and Global Source, LCC ("Global Source") investments in 2008 were $0.2 million (2007 - equity loss of $0.1 million). On November 6, 2008 Tri-White's investment in Renasant was sold for proceeds of $5.5 million and a gain of $0.2 million. Effective April 1, 2008, Tri-White acquired 50% of Global Source for US $1,000,000. As part of the same transaction, Global Source purchased 100% of the technology equipment trading business from Renasant. On December 31, 2008, Tri-White's investment in Global Source was sold for a gain of nil.
Corporate Developments
The Company continued with its regular quarterly dividend program and paid an eligible dividend of $0.06 per share on December 31, 2008.
FOR FURTHER INFORMATION PLEASE CONTACT:
K. Rai Sahi, Chief Executive Officer,
Tel:
(905) 281-3800,
Fax: (905) 281-5890,
e-mail: rsahi@morguard.com