September 14, 2012 09:00 ET

CanaDream Corporation Reports Net and Comprehensive Income of $2.4 Million

CALGARY, ALBERTA--(Marketwire - Sept. 14, 2012) - CanaDream Corporation (TSX VENTURE:CDN) today announced financial results for the period ended July 31, 2012, as follows:

Revenues for the three months ended July 31, 2012 were $10.7 million, net and comprehensive income $2.4 million, and cash flow from operating activities $9.3 million.

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

Summarized results for the three months ended July 31, 2012 are as follows:

Three months ended July 31,
2012 2011 Change
Revenue $ 10,685,000 $ 10,808,000 (1 %)
Income before foreign currency forward contracts (gains)/losses, finance, and income tax expenses $ 3,610,000 $ 3,665,000 (2 %)
Income before income taxes $ 3,294,000 $ 3,616,000 (9 %)
Net and comprehensive income $ 2,428,000 $ 2,693,000 (10 %)
Cash provided by operating activities $ 9,294,000 $ 10,350,000 (10 %)
Basic earnings per share 12.4 cents 13.6 cents (9 %)
Fully diluted earnings per share 12.3 cents 13.5 cents (9 %)
Weighted average shares outstanding 19,621,331 19,752,657 (1 %)
Weighted average diluted shares outstanding 19,815,449 20,007,427 (1 %)

For the three months ending July 31, 2012, CanaDream recorded net and comprehensive income of $2.4 million, a 10% decrease from the prior period. On a fully diluted basis, earnings per share decreased 1.2 cents, or 9%.

Total revenue decreased $123,000, or 1% (rental revenue increased 6%, revenue from the sale of rental fleet and fleet inventory available for sale decreased 23%). Operating expenses decreased 1% from the prior period. As a result, operating profit of $3.6 million decreased $54,000, or 1%.

At July 31, 2012, investment in rental fleet was $32.1 million, an increase of $8.8 million from April 30, 2012, primarily due to fleet purchases in the first quarter of $10.0 million. Fleet and other financing increased $7.2 million to $30.7 million from April 30, 2012.

The Company's core business, promoting the opportunity to experience Canada at your own pace through the recreational vehicle experience, is seasonal in nature with the majority of its revenue being earned during the May to October period, the first and second quarters of its fiscal year. The majority of the company's cost of services expenses before employee compensation, benefits and depreciation are incurred in that same period. The Company markets for sale previously guest experienced recreational vehicles and fleet inventory available for sale on a continuous basis throughout the year; however, sales of such units are generally strongest from January to early summer. As a result of ongoing depreciation, interest and other operating 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 International Financial Reporting Standards, 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.

CanaDream Corporation promotes Canada and the opportunity to "experience Canada at your own pace" in recreational vehicles and sells its guest experienced recreational vehicle fleet on a wholesale and retail basis. The Company is utilizing its proprietary business-to-business web-enabled system, <>, and its business-to-consumer on-line internet reservation system, <>, 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. CanaDream now offers a global RV solution by partnering with Apollo Motorhome Holidays in Australia, New Zealand and the USA. The Company is also leveraging its proprietary technology to build a collective membership network of associate dealers that are fully interconnected to CanaDream's e-commerce systems. CanaDream currently has one associate dealer franchisee in Edmonton, Alberta.

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: 800-461-7368