CANADREAM CORPORATION
TSX VENTURE : CDN
TSX VENTURE : CDN.DB.A

CANADREAM CORPORATION

September 11, 2009 09:39 ET

CanaDream Corporation Reports First Quarter Earnings of $1.9 Million or 11.8 Cents Per Share

CALGARY, ALBERTA--(Marketwire - Sept. 11, 2009) - CanaDream Corporation (TSX VENTURE:CDN) (TSX VENTURE:CDN.DB.A) announced today financial results for the three months ended July 31, 2009, as follows:

Income before income tax of $2.8 million for the three months is 7% lower than last year. Revenues for the three months of $10.2 million is 6% lower than last year, cash flow from operations of $7.8 million (47 cents per share) is in-line with last year.

The Company encourages interested parties to access CanaDream Corporation's Management Discussion and Analysis (MD&A) on the SEDAR website, www.sedar.com, for a more detailed discussion of these results.

Summarized results for the three months ended July 31, 2009 are as follows:



July 31, 2009 July 31, 2008 %Change
----------------------------------------------


Revenue $ 10,224,000 $ 10,869,000 (6%)

Revenue less direct expenses $ 5,060,000 $ 5,626,000 (10%)

Income before income tax $ 2,826,000 $ 3,050,000 (7%)

Net and comprehensive income $ 1,945,000 $ 2,108,000 (8%)

Cash provided by operating
activities $ 7,793,000 $ 7,942,000 (2%)

Basic earnings per share 11.8 cents 12.7 cents (7%)

Fully diluted earnings per
share 11.8 cents 12.5 cents (6%)

Common Shares outstanding 16,472,042 16,547,042

Weighted average number of
common shares outstanding 16,533,669 16,838,372


Income before income taxes of $2.8 million decreased $224,000 or 7% from the prior year first quarter. On a fully diluted basis earning per share decreased 0.70 cents or 6%.

Decreased revenues of $645,000 is due in part from a 16% decrease in fleet and available rental nights resulting in an 11% decrease in booked rental nights.

Direct expenses for the three months decreased by $78,000 or 2% compared to last year's $5.2 million. As the decrease in revenues exceeded the decrease in direct expenses the gross margin decreased $566,000 or 10%.

Investment in rental fleet was $26.8 million at July 31, 2009, a decrease $1.9 million from July 31, 2008 and an increase of $2.0 million from April 30, 2009 year-end levels. The investment in fleet inventory available for sale was $1.3 million at July 31, 2009 a decrease of $3.6 million from July 31, 2008 and $1.4 million from April 30, 2009 year-end levels.

Fleet capital asset and other financing decreased $6.0 million or 21% to $23.3 million from the prior years first quarter of $29.4 million.

The Company's short-term liquidity position (cash and cash equivalents plus accounts receivable and short term deposits, minus accounts payable and accrued liabilities) stands at $3.9 million compared to $4.0 million at July 31, 2008.

It should be noted that the Company's core business, rental of recreational vehicles, is seasonal in nature with the majority of its revenue being earned during the May to October period, its first and second quarters. The majority of the company's direct expenses are incurred in that same period. The Company markets rental units and fleet inventory available for sale on a continuous basis throughout the year, however sales of such units are generally strongest in the spring and early summer. As a result of ongoing interest, amortization and adjustments and selling, general and administrative expenses, the last two quarters of the fiscal year normally produce operating losses. Losses incurred in the last two quarters may exceed profits earned in the first two quarters of the fiscal year.

The financial data included in this release has been prepared in accordance with Canadian generally accepted accounting principles (GAAP).

The Company encourages interested parties to access CanaDream Corporation's MD&A on the SEDAR website, www.sedar.com, for a more detailed discussion of these results.

CanaDream is a Canadian tourism company that is utilizing its proprietary business-to-business web-enabled system, www.canadasbest.com, and its business-to-consumer on-line internet reservation system, www.canadream.com, to operate and expand its network of RV rental locations in Canada. CanaDream maintains six Company-operated locations in Calgary, Vancouver, Whitehorse, Toronto, Montreal, and Halifax. The Company is also leveraging its proprietary technology to build a franchised network of associate dealers that are fully interconnected to CanaDream's e-commerce systems. CanaDream currently has one associate dealer franchisee in Kelowna, British Columbia.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • CanaDream Corporation
    Mr. Brian Gronberg
    President & CEO
    Toll Free: 1-800-461-7638
    BRIAN@canadream.com