Canlan Reports Q2 Results and Continues Quarterly Dividend

Burnaby, British Columbia--(Newsfile Corp. - August 10, 2018) - Canlan Ice Sports Corp. (TSX: ICE) (the "Corporation") today reported its financial results for the second quarter ended June 30, 2018.


  • Record Q2 revenue of $18.9 million, increased by $0.3 million or 1.8% compared to 2017;

  • EBITDA of $0.4 million remained steady with 2017;

  • The Company's quarterly dividend rate was increased to $0.025 per share from $0.02 per share; and

  • On August 9, 2018, the Company completed the arrangement of a $20.0 million credit facility to replace an existing $5.0 million capital expenditure loan, of which, $2.1 million had been drawn to date. This new facility is made available for acquisitions and sustaining capital expenditures.

Three Months and Six Months Ended June 30, 2018 Results

For the 3 months ended
June 30
For the 6 months ended
June 30
(in thousands)2018201720182017
Operating expense17,11916,86933,67834,001

G&A expense1,3751,2992,8582,701
EBITDA per share$0.03$0.03$0.60$0.53
Gain on held for trading financial liabilities(8)(414)(133)(400)
Loss (gain) on foreign exchange(35)11(45)10
Income tax expense (recovery)(458)(443)802561
Net earnings (loss) ($1,277)($990)$2,943$2,288
Net earnings (loss) per share($0.10)($0.07)$0.22$0.17


Key Balance Sheet Figures (in thousands):

June 30, 2018December 31, 2017

  Cash and cash equivalents$15,198$18,629
  Property plant and equipment97,68598,596
  Investment properties561550
  Other assets8,1857,945
Total assets$121,629$125,720
Liabilities and Equity

  Interest bearing debt$54,589$56,020
  Accounts payable and accrued liabilities9,77410,105
  Deferred revenue7,78113,209
  Other liabilities1,3061,188
Total liabilities73,45080,522
  Share capital and contributed surplus Foreign currency translation reserve63,6523,00363,6522,365
Total shareholders' equity48,17945,198
Total liabilities and equity$121,629$125,720


Second Quarter Results
(three months ended
June 30, 2018, compared with three months ended June 30, 2017)

  • Total revenue of $18.9 million increased by $0.3 million, or 1.8%, compared to 2017. Sales growth in Canlan's tournament, restaurant and Adult Safe Hockey Network divisions were partially offset by a decline in registrations in the spring/summer adult and youth hockey leagues;

  • Total direct operating costs of $17.1 million increased by $0.2 million, or 1.5%, compared to prior year. Maintenance expenses were higher than 2017, but the increase was partially offset by lower utilities and labor expenses that resulted from management's focus on improving operating efficiencies;

  • Quarterly EBITDA of $0.4 million remained steady with 2017; and

  • After recording $1.7 million of depreciation, interest, valuation gain on derivatives, foreign exchange differences and income tax recovery, net loss for the period was $1.3 million compared to $1.0 million a year ago.

Six Months Ended June 30, 2018 Results
(six months ended June 30, 201
8, compared with six months ended June 30, 2017)

  • Total revenue of $44.6 million increased by $0.8 million, or 1.8%, compared to the prior year;

  • The Company's tournament division achieved strong growth in registrations in many of its events and restaurant sales benefited from the increased tournament traffic. Food and beverage sales also increased from a new menu introduction at two locations that will be rolled out to other restaurants in the coming months. These increases, however, were offset by participation reductions in our spring/summer adult and youth hockey leagues in certain markets;

  • Total direct operating expense of $33.7 million decreased by $0.3 million, or 1.0%, from a year ago;

  • During the first half of 2017, the Company recorded a one-time facility lease expense of $0.2 million related to a retroactive lease rate increase; however, total operating expenses still decreased due to lower utilities expenses that resulted from the Company's energy management initiatives and overall efficiencies achieved in labour structure and marketing costs;

  • Quarterly EBITDA of $8.0 million increased by $1.0 million, or 13.7%, compared to the prior year; and

  • After recording $5.1 million of depreciation, interest, valuation gain on derivatives, foreign exchange differences and income tax expense, net earnings for the period was $2.9 million compared to $2.3 million a year ago.

"Financial results for the first half of 2018 were on target. While revenue growth has not been as prominent as we had planned, operating earnings have increased by more than 13% due to the successful implementation of cost reduction measures and continued energy savings," said Canlan's CEO, Joey St-Aubin. "The ASHL North American Championship was well attended and currently, our summer camps and tournaments are experiencing strong growth in most markets. Much credit goes to our team members across all our facilities that have executed our sales and cost mitigation plans to date, with focus and professionalism. We look forward to the second half of the year as we head into the fall/winter hockey and soccer seasons."

"We have also completed and/or commenced some important infrastructure projects that were planned for 2018, such as the development of a new parking lot, refurbishment of building envelopes at several facilities, continued LED lighting retrofits and renewal of refrigeration equipment," added Canlan's CFO, Ivan Wu. "These projects will help maintain and upgrade our facilities to the high standards necessary to serve our customers."

Dividend Policy

Canlan's Board of Directors has approved the continuation of the Corporation's quarterly dividend policy and declared eligible dividends totaling $0.025 per common share that will be paid on October 16, 2018, to shareholders of record at the close of business September 28, 2018. 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 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 period ended June 30, 2018 will be available via SEDAR on or before August 14, 2018, 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 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

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 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.