December 08, 2011 10:37 ET

CanaDream Corporation Reports Second Quarter Operating Profit of $3.9 Million

CALGARY, ALBERTA--(Marketwire - Dec. 8, 2011) - CanaDream Corporation (TSX VENTURE:CDN) today announced financial results for the six months ending October 31, 2011, as follows:

Revenues for the six months ending October 31, 2011 are $20.9 million, 6% higher than the prior period; cash flow from operations of $11.0 million (55 cents per share) is 7% higher than the prior period.

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, 2011 are as follows:

Six months ending October 31 ,
2011 2010 Change
Revenue $ 20,930,000 $ 19,711,000 6 %
Operating profit $ 7,482,000 $ 7,287,000 3 %
Income before income tax $ 7,077,000 $ 6,497,000 9 %
Net and comprehensive income $ 5,215,000 $ 4,749,000 10 %
Cash provided by operating activity $ 10,997,000 $ 10,307,000 7 %
Operating profit per share 37.5 cents 36.9 cents 2 %
Basic earnings per share 26.4 cents 24.0 cents 10 %
Fully diluted earnings per share 26.1 cents 23.7 cents 10 %
Weighted average shares outstanding 19,739,597 19,752,657 0 %
Weighted average diluted shares outstanding 19,951,225 20,051,768 (1 %)

For the six months ending October 31, 2011, CanaDream recorded operating profit of $7.5 million. Net and comprehensive income was $5.2 million, a $466,000, or 10%, increase from the prior period of $4.7 million. On a fully diluted basis, earnings per share increased 2.5 cents, or 11%.

Total revenue increased $1.2 million, or 6%. Fleet sales revenue increased $943,000, or 26%; rental revenue increased $277,000, or 2%, over the prior period. Operating expenses increased $1.0 million, or 8%. As a result, operating profit of $7.5 million increased $196,000, or 3%.

At October 31, 2011, investment in rental fleet was $32.3 million, an increase of $7.5 million from April 30, 2011, primarily due to fleet purchases in the first quarter of $10.8 million. The investment in fleet inventory available for sale was $3.0 million at October 31, 2011, a decrease of $2.0 million from April 30, 2011 year-end levels due to unit sales. Fleet and other financing increased $3.9 million, or 16%, to $28.2 million from April 30, 2011.

The Company's core business, promoting tourism in Canada 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 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 International Financial Reporting Standard 34 Interim Financial Reporting (IAS 34) and IFRS 1 as issued by the International Accounting Standards Board (IASB), except for the term cash flow for 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 two associate dealer franchisees in Kelowna, British Columbia and 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