ICE Canlan Ice Sports Corp

Canlan Ice Sports Corp. (the “Corporation”) (TSX:ICE) today reported its financial results for the first quarter ended March 31, 2016.

Highlights of Q1 2016

• Record quarterly revenue of $24.2 million increased by $1.7 million or 7.3% compared to 2015;
• Record quarterly EBITDA of $6.6 million increased by $1.2 million or 22.6% compared to 2015; and
• Net earnings of $4.0 million increased by $2.3 million compared to 2015. Earnings per share of $0.30, compared to $0.13 in 2015.

First Quarter Results

	For the 3 months ended March 31
(in thousands)		2016			2015
Revenue	$	24,231		$	22,575
Operating expense		16,331			15,901
		7,900			6,674
G&A expense		1,256			1,255
EBITDA[1]	$	6,644		$	5,419
EBITDA per share	$	0.50		$	0.41
Depreciation, interest and taxes		3,138			3,057
Loss (gain) on foreign exchange		(458	)		650
Other		(5	)		(3	)
Net earnings	$	3,969		$	1,715
Net earnings per share	$	0.30		$	0.13

Key Balance Sheet Figures (in thousands):
	March 31, 2016			December 31, 2015
Assets
Cash and cash equivalents	$	8,586		$	10,065
Property plant and equipment		101,122			103,631
Investment properties		558			574
Other assets		6,766			6,334
Total assets	$	117,032		$	120,604
Liabilities and Equity
Interest bearing debt	$	54,013		$	55,762
Accounts payable and accrued liabilities		8,481			7,938
Deferred revenue		7,257			12,519
Other liabilities		683			657
Total liabilities		70,434			76,876
Share capital and contributed surplus		63,652			63,652
Foreign currency translation reserve		2,780			3,612
Deficit		(19,834	)		(23,536	)
Total shareholders’ equity		46,598			43,728
Total liabilities and equity	$	117,032		$	120,604

First Quarter Results (three months ended March 31, 2016 compared with three months ended March 31, 2015)

• Total revenue of $24.2 million increased by $1.7 million or 7.3% compared to the prior year;
• Growth in sales from adult, youth hockey and soccer leagues, contract ice rentals, and instructional programs were the primary sources of the year-over-year revenue increase;
• Quarterly EBITDA of $6.6 million increased by $1.2 million or 22.6% from 2015;
• After recording depreciation, interest expense, income tax and a foreign exchange gain, net earnings for the period was $4.0 million compared to $1.7 million a year ago; and
• A foreign exchange gain of $0.5 million was recognized during the period compared to a foreign exchange loss of $0.6 million in 2015 related to U.S. dollar denominated loans.

“The positive Q1 results were achieved through a combination of significant sales efforts to maximize surface utilization, strong growth in all three of our owned U.S. facilities in Illinois and Indiana, and prudent controls over energy consumption,” said Canlan’s CEO, Joey St-Aubin. “During the quarter, we also concentrated on a number of initiatives to continue improving certain areas of existing operations and to expand our business with new opportunities.”

“It is encouraging to see that we’re off to a great start in 2016 with record revenue and EBITDA. Canlan’s trailing 12-month revenue to March 31, 2016 was $81.1 million and our 12-month trailing EBITDA was $12.6 million,” added Canlan’s CFO, Mike Gellard. “In addition, during the first three months of the year, we also commenced our capital expenditure program for 2016 with important projects to renew restaurant and ice resurfacing equipment.”

Dividend Policy

Canlan’s Board of Directors has approved the continuation of the Corporation’s quarterly dividend policy and declared eligible dividends totaling $0.02 per common share that will next be paid on July 15, 2016 to shareholders of record at the close of business June 30, 2016. 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.

“Currently, spring and summer leagues, programs, and tournaments are ramping up,” said Mr. St-Aubin. “We will continue to focus on driving top line revenue not only for ice and field sales but also for our restaurant and retail operations.”

Canlan’s financial statements and Management Discussion & Analysis for the period ended March 31, 2016 will be available via SEDAR on or before May 15, 2016 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 21 facilities in Canada and the United States with 57 ice surfaces, as well as five indoor soccer fields, and 21 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.

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.

For more information:
Canlan Ice Sports Corp.                                             
Michael F. Gellard                                                      
Senior Vice President & CFO                                     
604 736 9152