Burnaby, British Columbia--(Newsfile Corp. - March 21, 2025) - Canlan Ice Sports Corp. (TSX: ICE) (the "Corporation", "Canlan" or "Canlan Sports") today reported its financial results for the year ended December 31, 2024.
Overview of Year Ended December 31, 2024
Total operating revenue of $94.0 million increased by $7.9 million or 9.2% compared to a year ago;
Food and beverage revenue increased by $1.2 million or 9.8% compared to 2023;
Total operating earnings of $13.7 million increased by $4.3 million or 45.4% compared to 2023;
Net earnings were $2.8 million or $0.21 per share compared to $0.4 million or $0.03 per share in 2023; and
Approximately $3.4 million of capital projects were completed to enhance customer experience and to expand the Company's activity offerings. These included the construction of new golf/sports simulators at the Scotia Barn and Canlan Sports York facilities, the renovation of the Canlan Sports York sports bar, and the addition of new turf fields at Canlan Sports Libertyville.
"Our 2024 revenue growth was exceptional, reflecting the strength of our strategic initiatives and our relentless pursuit of operational excellence," said Canlan Sports' President and CEO, Joey St-Aubin. "We're particularly excited by the continued momentum in our food and beverage operations, which has surpassed our expectations and contributed to robust earnings and margin improvements. Beyond financial performance, we are investing boldly in the future-enhancing customer experiences through exciting capital projects like our banquet facilities with state-of-the-art golf & multi-sport simulator bays, a completely revitalized sports bar at Canlan Sports York, and two new indoor fields at Canlan Sports Libertyville to meet growing demand. These innovations are not only enhancing our facilities but also positioning Canlan for sustained growth, resiliency, and long-term value creation."
"Beyond our growth initiatives, we made significant progress in strengthening our infrastructure for future success," added the Company's CFO, Ivan Wu. "Our roof remediation program and critical life-cycle equipment replacements are anticipated to create energy efficiencies and improve ice and air quality across our sports complexes-key factors that elevate the customer experience. We are also investing in cutting-edge IT solutions and innovative technology platforms to drive process efficiencies, strengthen IT security, and enhance the user experience. Reflecting on 2024, it's clear we've substantially increased the value of our existing assets, generated strong cash flow from operations, and preserved a healthy balance sheet. This disciplined approach to growth positions Canlan for long-term stability and consistent shareholder returns."
Fourth Quarter and Annual Results
For the 3 months ended December 31
For the year ended December 31
(in thousands)
2024
2023
2024
2023
Ice rink & recreational facilities revenue
$
26,043
$
24,617
$
94,035
$
86,151
Operating expenses
17,612
17,918
69,391
66,771
8,431
6,699
24,644
19,380
G&A expense
3,249
3,680
10,954
9,963
Operating earnings 1
$
5,182
$
3,019
$
13,690
$
9,417
Operating earnings per share
$
0.39
$
0.23
$
1.03
$
0.71
Depreciation
1,964
1,763
7,558
7,513
Interest
672
665
2,424
2,195
Interest rate swap (gain) loss
(61)
1,682
712
455
Foreign exchange gain
(31)
-
(34)
(5)
Gain on sale of assets
-
(5)
(9)
(15)
Income tax expense (recovery)
278
(1,126)
239
(1,161)
Net earnings
$
2,360
$
40
$
2,800
$
435
Net earnings per share
$
0.18
$
0.00
$
0.21
$
0.03
Key Balance Sheet Figures (in thousands): Years ended December 31
2024
2023
Assets
Cash and cash equivalents
$21,677
$19,029
Property plant and equipment
97,679
93,328
Other assets
11,146
9,642
Total assets
$130,502
$121,999
Liabilities and Equity
Debt
$40,995
$42,948
Lease liabilities
7,478
6,327
Accounts payable and accrued liabilities
15,249
11,742
Deferred revenue
14,455
14,425
Other liabilities
3,507
1,901
Total liabilities
81,684
77,343
Share capital and contributed surplus
63,652
63,652
Foreign currency translation reserve
5,794
2,832
Deficit
(20,628)
(21,828)
Total shareholders' equity
48,818
44,656
Total liabilities and equity
$130,502
$121,999
2024 Year End Results
(year ended December 31, 2024 compared with year ended December 31, 2023)
Total operating revenue of $94.0 million increased by $7.9 million or 9.2% compared to 2023. Price and volume growth in third-party surface rentals, tournament registrations, ASHL and food and beverage sales were the key drivers for the increase in revenue;
Facility operating expenses of $69.4 million increased by $2.6 million or 3.9% compared to 2023 due to increased utilities expense, property taxes, labour and other variable expenses to service increased business volumes. Roof remediation expenses of $4.5 million decreased by $0.8 million compared to the prior year;
Earnings from facility operations of $24.6 million before G&A expenses increased by $5.3 million or 27.2% compared to 2023;
After G&A expense of $11.0 million, operating earnings were $13.7 million compared to $9.4 million in 2023; and
Net earnings after depreciation, interest expense, loss on interest rate swap, and income tax, were $2.8 million or $0.21 per share compared to $0.4 million or $0.03 per share in the prior year.
Fourth Quarter Results
(three months ended December 31, 2024 compared with three months ended December 31, 2023)
Total operating revenue of $26.0 million increased by $1.4 million or 5.8% compared to 2023 mainly due to increased revenue from third-party field contracts, ASHL and F&B operations;
Facility operating expenses of $17.6 million decreased by $0.3 million or 1.7% from the prior year mainly due to lower repair and maintenance expenses compared to 2023;
After G&A expenses of $3.2 million, operating earnings of $5.2 million increased by $2.2 million or 71.6% for the quarter compared to 2023; and
Net earnings for the quarter after depreciation, borrowing costs, gain on interest rate swap and income tax expense were $2.4 million ($0.18 per share) compared to $40,000 (< $0.01 per share) a year ago.
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 15, 2025 to shareholders of record at the close of business March 31, 2025. 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.
Filings
Canlan's financial statements and Management's Discussion & Analysis for the year ended December 31, 2024 will be available via SEDAR on or before March 31, 2025 and through the Company's website, www.canlansports.com.
About Canlan
Canlan Sports is the North American leader in the 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 15 facilities in Canada and the United States with 47 ice surfaces, as well as 10 indoor soccer fields, and 18 hard court surfaces. To learn more about Canlan please visit www.canlansports.com.
Canlan Ice Sports Corp. is listed on the Toronto Stock Exchange under the symbol "ICE."
Caution concerning forward-looking statements
This News Release may contain information that constitutes "forward-looking" information within the meaning of applicable securities laws. Often, but not always, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "budgets", "scheduled", "estimates", "forecasts", "predicts", "projects", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information in this press release includes, but is not limited to, anticipated benefits of capital expenditures (including energy efficiencies and enhanced customer experiences) and expectations of business growth. Forward-looking information is based on the reasonable assumptions, estimates, analyses, beliefs and opinions of management made in light of its experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable at the date that such information is disclosed. Forward-looking information is subject to various known and unknown risks and uncertainties, many of which are beyond the ability of Canlan to control or predict, that may cause Canlan's actual results, performance or achievements to be materially different from those expressed or implied thereby. Material risk factors that could cause actual results to differ materially from the forward-looking information provided herein include those factors identified in Canlan's public disclosure file available atwww.sedarplus.ca and, in particular, the risk factors set out under the heading "Risk Factors" in the Company's MD&A available for review on the Company's profile atwww.sedarplus.ca. Such forward-looking information represents management's best judgment based on information currently available. Accordingly, readers are advised not to place undue reliance on forward-looking information. The forward-looking information herein is made as of the date of this press release only, and the Company does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable securities law.
For more information: Canlan Ice Sports Corp. Ivan Wu CFO 604 736 9152
1 Operating earnings is defined as earnings after general and administrative expenses and before interest, depreciation, foreign currency exchange, gain 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.
