Canlan Reports Q3 Results

Burnaby, British Columbia--(Newsfile Corp. - November 10, 2017) - Canlan Ice Sports Corp. (TSX: ICE) (the "Corporation") , home of the world's largest adult recreation hockey league, today reported its financial results for the third quarter ended September 30, 2017.

Overview of Q3 2017:

• Q3 revenue of $17.4 million increased by $0.5 million or 3.3 % compared to Q3 2016;

• Q3 EBITDA was positive $0.2 million compared to a loss of $0.2 million in the prior year; and

• Despite rising electricity surcharges in Ontario and the addition of the Calgary ice facility in August 2016, overall energy costs were reduced by 2.4% as a result of ongoing energy management initiatives.

Three and Nine Months Ended September 30, 2017 Results

¹ Earnings before interest, taxes, depreciation and amortization (EBITDA) is often used as a measure of financial performance. However, EBITDA is not a term that has specific meaning in accordance with IFRS, and may be calculated differently by other companies. Canlan reconciles EBITDA to its net earnings.

Third Quarter Results
(three months ended September 30, 2017 compared with three months ended September 30, 2016)

• Total revenue of $17.4 million increased by $0.5 million or 3.3% compared to 2016;

• Growth in instructional and public programs in the Ontario region, pricing of adult and youth hockey leagues, and incremental revenue from operating the Great Plains Recreation Facility for a full quarter in 2017 were the primary sources of the year-over-year revenue increase;

• EBITDA was positive $0.2 million compared to a loss of $0.2 million in the prior year; and

• After recording depreciation, finance costs, valuation gains on an interest rate swap contract, and an income tax recovery, net loss for the period was $1.2 million compared to $1.1 million a year ago.

Nine Months Ended September 30, 2017 Results
(nine months ended September 30, 2017 compared with nine months ended September 30, 2016)

• Total revenue of $61.1 million increased by $1.9 million or 3.2% compared to the prior year. Same store revenue of $59.8 million increased by $0.7 million or 1.1%;

• Sport surface contract rentals, instructional programs, adult hockey leagues, and in-house tournaments were the main sources of ice and field revenue growth;

• EBITDA of $7.3 million increased by $0.4 million or 6.1% compared to prior year;

• After recording depreciation, finance costs, an unrealized valuation gain on an interest rate swap contract, and income tax expense, net income for the period was $1.1 million ($0.08 per share) compared to net loss of $0.9 million (-$0.07 per share) a year ago mainly due to a $2.3 million fee on settlement of debt was incurred in Q2 2016; and

• A nominal foreign exchange loss was recognized during the period compared to a foreign exchange gain of $0.5 million in 2016 mainly related to U.S. dollar denominated debt borrowed by the Canadian parent company and fully repaid in 2016.

"Overall, Q3 revenue from facility operations grew by approximately 3.5%, which resulted from strong camp registrations in some regions and incremental revenue from the Calgary facility that opened in Q3 of 2016," said Canlan's CEO, Joey St-Aubin. "Our Sportsplex facilities in Ontario and Illinois are also demonstrating encouraging growth trends in the summer season."

"At the end of Q3, Canlan's balance sheet remains strong and cash reserves continue to improve," added Canlan's CFO, Mike Gellard. "Prior year's renewed debt arrangements and our ability to generate cash from operations have contributed to this improvement and at September 30, 2017, our cash balance was $14.1 million compared to $11.5 million a year ago. We are in the final stages of our 2017 capital expenditure program, including new refrigeration equipment in Etobicoke and York. In addition, we have advanced the installation of a plate and frame chiller in our North Vancouver facility from 2018 to the fourth quarter of 2017."

"Our fall/winter Adult-Safe Hockey League and Adult Indoor Soccer League seasons are well underway now with exciting promotions in our sports bars," said Mr. St-Aubin. "At the same time, we are continuing with important projects to update and upgrade plant and equipment to maintain our positive trend in reducing energy consumption."

Canlan's financial statements and Management Discussion & Analysis for the period ended September 30, 2017 will be available via SEDAR on or before November 14, 2017 and through the Company's website, www.icesports.com.

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 the largest private sector owner and operator of recreation facilities in North America and currently own, lease and/or manage 20 facilities in Canada and the United States with 57 ice surfaces, as well as five indoor soccer fields, and 15 sport, volleyball, and basketball courts. To learn more about Canlan please visit www.icesports.com.

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

Caution concerning forward-looking statements

Certain statements in this MD&A 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 MD&A, 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 MD&A. 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.
Michael F. Gellard
Senior Vice President & CFO
604 736 9152