CanaDream Corporation Reports Net and Comprehensive Income of $2.6 million

CALGARY, ALBERTA--(Marketwire - March 22, 2013) - CanaDream Corporation (TSX VENTURE:CDN) today announced financial results for the period ended January 31, 2013, as follows:

Revenue for the nine months ended January 31, 2013 was $23.4 million, net and comprehensive income $2.6 million, and cash flow from operating activities $10.6 million.

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 nine months ended January 31, 2013 are as follows:

		Nine months ended January 31,
		2013		2012	Change
Revenue	$	23,444,000	$	22,833,000	0	%
Income before foreign currency forward contracts (gains)/losses, finance and income tax expenses	$	4,469,000	$	5,289,000	(16	%)
Income before income taxes	$	3,495,000	$	4,555,000	(23	%)
Net and comprehensive income	$	2,577,000	$	3,463,000	(26	%)
Cash provided by operating activities	$	10,556,000	$	11,709,000	(10	%)
Cash flow from operations per share fully-diluted		53.5 cents		58.6 cents	(9	%)
Basic earnings per share		13.2 cents		17.6 cents	(25	%)
Fully diluted earnings per share		13.1 cents		17.3 cents	(24	%)
Weighted average shares outstanding		19,548,474		19,732,271	(1	%)
Weighted average diluted shares outstanding		19,718,071		19,696,380	0	%

For the nine months ending January 31, 2013, CanaDream Corporation recorded net and comprehensive income of $2.6 million, a 26% decrease from the prior period. Cash flow earned from operating activities was $10.6 million, a 10% decrease.

Total revenue increased $611,000 (rental revenue increased 2% and revenue from the sale of rental fleet and fleet inventory available for sale increased 4%). Operating expenses increased 8% from the prior period. Finance interest decreased $58,000, or 6%.

At January 31, 2013, investment in rental fleet was $25.6 million, a $2.2 million increase from the prior year end, due to fleet purchases less unit sales and rental fleet transferred to fleet inventory available for sale and depreciation. As a result of increase rental fleet investment, fleet financing increased $1.6 million to $23.4 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 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, (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. 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.