Canlan Solidifies Its Growth Footing with Strong 2022 Operations Performance, Renewed Lending Facilities and U.S. Expansion

March 24, 2023 6:00 AM EDT | Source: Canlan Ice Sports Corp.

Burnaby, British Columbia--(Newsfile Corp. - March 24, 2023) - Canlan Ice Sports Corp. (TSX: ICE) (the "Corporation") today reported its financial results for the year ended December 31, 2022.

Overview of Year Ended December 31, 2022

  • Total operating revenue of $73.7 million increased by $33.3 million compared to a year ago;

  • Same-facility ice, field and court revenue reached approximately 93% of FY2019 pre-pandemic levels (Q4 2022 reached 100% of Q4 2019);

  • Operating earnings of $10.6 million increased by $4.8 million compared to a year ago;

  • The Company completed another significant phase of its roof remediation program ($2.3 million expense) after pausing the projects temporarily during the pandemic;

  • Net earnings for the year was $4.7 million compared to a net loss of $1.1 million in 2021;

  • The Company refinanced its bank credit facilities with a package that reduces cash requirements on annual debt service by approximately 37% and fixes interest rates until 2027 at 5.50% or lower on 87% of its debt to reduce interest rate risk. As at the date of this release, $25.5 million of credit lines are available for operating and capital requirements;

  • Cash consideration of $4.5 million was received in September 2022 to surrender the Company's lessee position of a sports complex lease prior to the maturity date of the lease agreement;

  • By end of 2022, 60% of the Company's ice re-surfacers have been transitioned to electrified models, which helps to reduce carbon emissions and improve facilities' air quality. The electrification program, along with investments in new roofs and enhanced building automation systems, are green initiatives that will be continued in the coming years;

  • The Company reviewed its dividend policy in November 2022 and resumed a quarterly dividend distribution of $0.03 a share; and

  • Subsequent to year end the Company exercised its option to purchase Canlan Sports Libertyville in Libertyville, Illinois, further affirming the Company's long-term commitment to its U.S. expansion strategy.

"Fiscal 2022 was an outstanding bounce-back year for Canlan. After responding to health orders that closed Ontario operations for the month of January 2022, our teams had to manage the impact of labour supply shortages that were prevalent throughout the service sector. In addition, we also had to continuously revise schedules, product offerings, and menus to adapt to changing customer needs and supply chain issues from our vendors. At the end of the year, we achieved over $73.0 million in revenue, which represented a year-over-year increase of 82%. But more importantly, Q4 same-facility sales reached 100% of 2019 (pre-pandemic). To me, this is the static test of recovery from COVID-19 disruptions, and in 2022, our team certainly met this challenge," said Canlan's CEO, Joey St-Aubin. "Not only did we get back to normal and busy operations for our sports complexes, we got started on a number of key strategic initiatives, created sustainable cost efficiencies and these new initiatives are aimed at significantly enhancing the customer experience in the coming years."

Fourth Quarter and Annual Results

For the 3 months ended
December 31

For the year ended
December 31
(in thousands)



Ice rink & recreational facilities revenue$22,143
Other income - government subsidy



Operating expenses







G&A expense



Operating earnings 1$4,700
Operating earnings per share$0.35






Mark-to-market gain on held for trading financial liabilities
Loss (gain) on foreign exchange


Gain on sale of assets
Gain on early lease termination


Income tax expense (recovery)

Net earnings (loss) $2,492

Net earnings (loss) per share$0.19



Key Balance Sheet Figures (in thousands):
Years ended December 31



Property plant and equipment
Other assets
Total assets$121,713
Liabilities and Equity
Lease liabilities
Accounts payable and accrued liabilities
Deferred revenue
Other liabilities
Total liabilities
Share capital and contributed surplus
Foreign currency translation reserve
Total shareholders' equity
Total liabilities and equity$121,713


2022 Year End Results
(year ended December 31, 2022 compared with year ended December 31, 2021)

  • Total operating revenue of $73.7 million increased by $33.3 million compared to 2021 as facilities resumed full operations and COVID-19 health restrictions were lifted;

  • Facility operating expenses of $55.7 million increased by $20.4 million or 57.6% compared to 2021 due to a resumption to full operations and the completion of significant roof and maintenance projects, some of which were deferred from the previous two years;

  • After G&A expense of $7.4 million, operating earnings were $10.6 million compared to $5.8 million in 2021. Excluding $6.5 million of government subsidies in the prior year, 2021 had an operating loss of $0.7 million;

  • A gain on early lease termination of $4.5 million was recognized as the Company surrendered its lessee position of a sports-complex-lease prior to the maturity date of the lease and extension-option of the lease agreement in September 2022; and

  • Net earnings after this gain, depreciation, interest expense, income tax, and other miscellaneous income, were $4.7 million or $0.35 per share compared to a net loss of $1.1 million or $0.08 per share in the prior year.

Fourth Quarter Results
(three months ended December 31, 2022 compared with three months ended December 31, 2021)

  • Total operating revenue of $22.1 million increased by $3.0 million or 15.9% compared to 2021 as operations returned to 100% capacity in 2022. 98% of business from ASHL and contract users have returned during the fall/winter season;

  • Operating expenses $15.1 million increased by $2.1 million or 16.5% from the prior year which was consistent with the increase in revenue;

  • After G&A expenses of $2.3 million, operating earnings of $4.7 million increased by $0.2 million or 5.6% for the quarter compared to 2021. Operating margin was 21.2% of revenues in 2022 compared with 23.3% in 2021 and 18.8% in 2019; and

  • After depreciation, borrowing costs, and income tax recovery of $2.2 million (2021 - $1.9 million), net earnings for the quarter were $2.5 million or $0.19 a share compared to $2.6 million or $0.19 a share a year ago.

"In addition to the achievements already mentioned, we ended the year with $10.6 million of operating earnings, which exceeded our original targets, and our positive liquidity position put us in good shape to resume quarterly dividends, as approved by our Board of Directors," added the company's CFO, Ivan Wu. "On February 28, 2023, we also exercised our option to purchase the non-ice sportsplex facility called Canlan Sports Libertyville in Libertyville, Illinois. This facility was already being leased by Canlan from the Village of Libertyville under a two-year lease agreement since July 2021. We look forward to being able to provide Libertyville and the surrounding communities with a class-leading sportsplex in which to play and lead active lifestyles for the long term."

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 $0.03 per common share that will next be paid on April 14, 2023 to shareholders of record at the close of business March 31, 2023. 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.


Canlan's financial statements and Management's Discussion & Analysis for the year ended December 31, 2022 will be available via SEDAR on or before March 31, 2023 and through the Company's website,

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 amongst the largest private sector owners and operators of recreation facilities in North America and currently own, lease and/or manage 17 facilities in Canada and the United States with 49 ice surfaces, as well as five indoor soccer fields, and 20 sport, volleyball, and basketball courts. To learn more about Canlan please visit

Canlan Ice Sports Corp. is listed on the Toronto Stock Exchange under the symbol "ICE."

Caution concerning forward-looking statements

Certain statements in this News Release 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 News Release, 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 News Release. 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
604 736 9152

1 Operating earnings (loss) is defined as earnings (loss) after general and administrative expenses and before interest, depreciation, foreign currency exchange, gain (loss) 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