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

CANADREAM CORPORATION

December 08, 2006 09:00 ET

CanaDream Corporation Reports First Half Earnings of $2.68 Million or 15.9 Cents/Share

CALGARY, ALBERTA--(CCNMatthews - Dec. 8, 2006) - Mr. Brian Gronberg, President and CEO of CanaDream Corporation (TSX VENTURE:CDN) (TSX VENUTRE:CDN.DB) is pleased to report the Company's financial results for the six months ended October 31, 2006, the first half of its Fiscal 2007.

Revenues of $13.3 million were $451,000 or 3.5% higher than last year's $12.8 million, while earnings increased 6.2% to $2.85 million compared to $2.68 million last year. Increased revenues resulted from higher utilization of the fleet which generated larger numbers of rental nights, while pricing was somewhat lower than last year. Direct expenses of $4.44 million were $17,000 (0.04%) higher than last year, resulting in Gross Margins (Revenue less Direct Expenses) of $9.0 million, an increase of $434,000 (5.2%) over last year. Interest and amortization expenses were higher as a result of higher levels of fleet investment and related fleet debt, while Selling, General and Administrative expenses decreased by 4.74% to $1.72 million. Earnings per Share increased by 6.8% to 17.2 cents per share while Cash Flow from Operations was $6.22 million, 7.1% higher than last year's $5.8 million.



Highlights
Oct 31, 2006 Oct 31, 2005
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Revenue $13,256,721 $12,805,870
Revenue Less Direct Expenses $ 8,816,163 $ 8,382,114
Earnings Before Tax $ 4,253,594 $ 4,133,338
Net Earnings $ 2,848,794 $ 2,681,838
Cash Flow from Operations $ 6,221,021 $ 5,806,260
Earnings per Share - Basic 17.18 cents 16.09 cents
- Fully Diluted 16.82 cents 15.91 cents
Cash Flow Per Share 36.7 cents 34.5 cents

Common Shares outstanding at End of
Quarter 16,556,042 16,607,042

Weighted Average Number of Common Shares
Outstanding 16,584,846 16,669,075


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 general and administrative expenses, the last two quarters of the fiscal year normally produce operating losses. Losses incurred in the last two quarters of the fiscal year may exceed profits earned in the first two quarters.

We encourage interested parties to access copies of the Company's MD&A on the SEDAR website at www.sedar.com

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 now has three associate dealer franchisees in Edmonton Alberta, and Kelowna and Victoria, British Columbia.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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