CANADREAM CORPORATION
TSX VENTURE : CDN

CANADREAM CORPORATION

July 17, 2009 09:00 ET

CanaDream Corporation Reports Year End Earnings of $812,000 or 4.9 Cents Per Share

CALGARY, ALBERTA--(Marketwire - July 17, 2009) - CanaDream Corporation (TSX VENTURE:CDN) today announced financial results for the year ended April 30, 2009, as follows:

Revenues for the year of $23.5 million is 6% higher than last year, cash flow from operations of $7.9 million (46 cents per share) is 36% higher than last year, net income and comprehensive income of $812,000 is $820,000 higher than 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 year ended April 30, 2009 are as follows:

April 30, 2009 April 30, 2008 %Change
-------------- --------------- --------

Revenue $ 23,525,000 $ 22,300,000 6%

Revenue less direct expenses $ 10,586,000 $ 8,890,000 19%

Income before income tax $ 1,080,000 $ 21,000 5,000%

Net and comprehensive income $ 812,000 ($ 8,000) 10,000%

Cash flow from operations $ 7,869,000 $ 5,806,000 36%

Basic earnings per share 4.92 cents (0.05) cents 9,000%

Fully diluted earnings
per share 4.69 cents (0.05) cents 9,000%

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

Weighted average number of
common shares outstanding 16,505,239 16,560,892


Increased revenues of $1.2 million for the year resulted from increased rental nights, rental dollar per night, fleet utilization, and fleet sales.

Investment in rental fleet at April 30, 2009 increased $9.1 million or 58% from the prior year. This increase is the result of the following: the April 30, 2008 balance of rental fleet was down $2.4 million from April 30, 2007 (opening balance); purchases increased $8.6 million from the prior year; increase in amortization of rental fleet of $697,000. Additionally, in the prior year $3.1 million of fleet was transferred from rental fleet to fleet inventory available for sale and in fiscal 2009 a transfer was not made. Although purchases increased $8.6 million the total number of units in active rental fleet decreased 2% - the overall net book value of fleet increased due to the increased number of new units purchased in the current year. Management has focused on increasing the utilization of the rental fleet (a 2% increase in utilization for the year) to increase revenues and decrease the expenditures associated with a larger fleet.

Total fleet, capital asset and other financing at April 30, 2009 increased $5.7 million or 35% from the prior year. This increase is the result of the following: the April 30, 2008 balance of fleet, capital assets and other financing was down $4.3 million from April 30, 2007 combined with increased proceeds on fleet financing of $9.5 million. In addition, there was an increase of $2.6 million in scheduled repayments and the addition of $1.8 million of mortgage financing in May of 2008.

The Company's short-term liquidity position at April 30, 2009 decreased $1.4 million or 376% from the prior year. This decrease is the result of an increase in cash flow from operation of $2.1 million off-set by an increase in repayment of fleet financing - scheduled payments of $2.7 million and the re-payment of $1.46 million of debentures that matured February 27, 2009. The repayment of fleet financing - scheduled payments increased 55% over the prior year due to the increase in purchases of new fleet of $8.6 million from the prior year. Management is continuously evaluating alternatives to meet the Company's on going cash flow requirements.

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), except for the term cash flow from operations per share. Cash flow per share is a measure that provides shareholders and potential investors with additional information regarding the Company's liquidity and its ability to generate funds to finance its operations.

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 TSX Venture Exchange nor its Regulation Services Provider (as the 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: 800-461-7638
    BRIAN@canadream.com