December 16, 2008 15:40 ET

CanaDream Corporation Reports Second Quarter Earnings of $4.0 Million or 24 Cents Per Share

CALGARY, ALBERTA--(Marketwire - Dec. 16, 2008) - CanaDream Corporation (TSX VENTURE:CDN) (TSX VENTURE:CDN.DB.A) today announced financial results for the six months ended October 31, 2008, as follows:

Revenues for the six months of $19.7 million is 9% higher than last year, cash flow from operations of $7.7 million (46 cents per share) is 23% higher than last year, net income and comprehensive income of $4.0 million is 27% higher than last year.

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 six months ended October 31, 2008 are as follows:

October 31, 2008 October 31, 2007 %Change
------------------ ----------------- ---------

Revenue $ 19,749,000 $ 18,099,000 9%

Revenue less direct expenses $ 10,884,000 $ 9,430,000 15%

Income before income tax $ 5,836,000 $ 4,803,000 22%

Net and comprehensive income $ 4,009,000 $ 3,166,000 27%

Cash flow from operations $ 7,673,000 $ 6,711,000 14%

Basic earnings per share 24.3 cents 19.2 cents 27%

Fully diluted earnings
per share 24.0 cents 18.9 cents 27%

Common Shares outstanding 16,472,042 16,621,042

Weighted average number of
common shares outstanding 16,475,303 16,529,694

Increased revenues of $1.65 million for the six months resulted from increased rental nights, utilization, and fleet sales.

Direct expenses for the three months increased by $197,000 or 2% compared to last year's $8.7 million. As the increase in revenue exceeded the increase in direct expenses this resulted in an increased gross margin for the six months of $1.5 million. Direct expenses as a percentage of revenues decreased to 45% compared with the prior year second quarter of 48%.

Investment in rental fleet was $27.7 million at October 31, 2008, an increase of $5.9 from October 31, 2007 and an increase of $12.0 million from April 30, 2008 year-end levels. The investment in fleet inventory available for sale was $3.9 million at October 31, 2008 an increase of $188,000 from October 31, 2007.

Fleet capital asset and other financing increased $4.8 million or 22% to $26.3 million from the prior years second quarter of $21.5 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 $2.0 million compared to $4.1 million at October 31, 2007. The convertible debenture matures on February 27, 2008 and the principal amount of $1.46 will be re-paid at that time. The Company is continuously evaluating alternatives to meet it'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,, 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,, 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. 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.

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

Contact Information

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