For Immediate Release |
August 7, 2009 |
ClubLink Enterprises Limited announces second quarter 2009 results and 25% increase in its quarterly eligible dividend.
Financial Highlights
| (in thousands of dollars except per share amounts) | Three months ended June 30, 2009 | Three months ended June 30, 2008 | Six months ended June 30, 2009 | Six months ended June 30, 2008 |
|---|---|---|---|---|
| Revenue | 62,651 | 63,151 | 82,253 | 83,014 |
| EBITDA1 | 17,021 | 16,625 | 20,075 | 19,616 |
| Net earnings (loss) | 1,951 | 2,429 | (3,634) | (3,336) |
| Basic and diluted earnings (loss) per share |
$0.08 | $0.10 | ($0.16) | ($0.15) |
| Weighted average shares outstanding (000’s) | 22,892 | 22,853 |
(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’s performance.
Second Quarter 2009 Highlights
EBITDA from the rail, tourism and port segment increased to US $7,389,000 in 2009 compared to US $7,062,000 for the second quarter of 2008 due to additional port revenue from increased cruise ship passengers, a 5.8% increase in the average ticket price and aggressive containment of costs. Also impacting the quarter were two separate rail service interruptions – a rock slide which halted the entire rail operation for 2 days in May and a washout which halted rail operations between Bennett, British Columbia and Carcross, Yukon for 6 weeks. It is estimated that these interruptions resulted in a loss of US $780,000 in revenue and contributed to the decline in rail passengers.
The majority of earnings from the rail, tourism and port operations are generated in US dollars. For the quarter ended June 30, 2009, the impact of the weakening Canadian dollar is estimated to have increased the reported earnings by 5 cents per share as compared to the second quarter in 2008. EBITDA from the golf club and resort operations decreased 14.5% to $8,765,000 for the second quarter of 2009 compared to $10,249,000 in 2008 due to reduced discretionary spending impacting food and beverage, merchandise and rooms revenue related to the recession.
Consolidated EBITDA for the quarter ended June 30, 2009 was $17,021,000 compared with $16,625,000 for the quarter ended June 30, 2008 and was impacted by the higher Canadian/U.S. exchange rate used to convert the rail, tourism and port operations segment.
Amortization and rent increased 7.6% to $6,546,000 for the quarter ended June 30, 2009 from $6,081,000 in 2008 due to additional rent relating to The Club at Bond Head lease completed by ClubLink in April 2009.
Interest, net and other income totaled an expense of $6,384,000 for the quarter ended June 30, 2009 compared to $6,245,000 for the same period in 2008.
Equity income was nil in the second quarter of 2009 compared to $424,000 in 2008 due to the sale of these corporate investments late in 2008.
Net earnings decreased 19.7% to $1,951,000 for the quarter ended June 30, 2009 compared to $2,429,000 in 2008 due to the decline in equity income of $424,000.
Earnings per share decreased to 8 cents per share for the quarter ended June 30, 2009 from 10 cents in 2008.
Eligible Dividend
Today, ClubLink Enterprises Limited (“ClubLink Enterprises”) announced an eligible dividend of 7.5 cents per share to be paid on September 30, 2009 to shareholders of record as at September 15, 2009.
Normal Course Issuer Bid
ClubLink Enterprises has been approved for a normal course issuer bid to purchase up to 1,146,304 common shares which expires September 19, 2009. As at August 5, 2009, ClubLink Enterprises has purchased 44,508 common shares for a purchase price of $238,000 or $5.35 per common share including commissions.
Business Combination
On July 28, 2009 ClubLink Enterprises completed the previously announced amalgamation of ClubLink Corporation and 2207610 Ontario Inc., a wholly-owned subsidiary of the ClubLink Enterprises. The Amalgamation was approved by the shareholders of ClubLink at the annual and special meeting held on June 30, 2009. The amalgamated entity will continue to carry on business under the name “ClubLink Corporation”.
As described in the ClubLink Corporation Management Information Circular dated May 29, 2009, in accordance with the terms of the amalgamation agreement dated May 29, 2009 among ClubLink Corporation, 2207610 Ontario Inc. and ClubLink Enterprises, shareholders of ClubLink Corporation, other than ClubLink Enterprises, and its affiliates, received, for each common share of ClubLink Corporation, 1.1 common shares of ClubLink Enterprises.
As part of this business combination, there were 5,164,015 common shares of ClubLink Enterprises issued. As at August 6, 2009 there are 28,055,038 common shares of ClubLink Enterprises outstanding. The ClubLink Enterprises shares are trading on the TSX under the symbol “CLK”.
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For further information, please contact:
Mr. Robert Visentin,
Chief Financial Officer
15675 Dufferin Street,
King City, Ontario L7B 1K5
Tel: 905-841-5360 Fax: 905-841-1134
Email: rvisentin@clublink.ca
ClubLink Corporation is Canada's largest owner and operator of member golf clubs. ClubLink Enterprises Limited (formerly Tri-White Corporation) has a proven record of building and delivering value through its corporate investment operations. In addition to owning all of the shares in ClubLink, the Company also owns a 100% interest in the historic White Pass & Yukon Route Railway, including strategic holdings in the port operations and supporting excursions, based in Skagway, Alaska.