ClubLink Corporation
TSX : LNK

ClubLink Corporation

May 06, 2009 16:45 ET

ClubLink Announces First Quarter 2009 Results

KING CITY, ONTARIO--(Marketwire - May 6, 2009) - ClubLink Corporation (TSX:LNK) -

For the three months ended March 29, 2009, ClubLink's operating revenue decreased 2.6% to $16,057,000 from $16,487,000 in 2008, and net operating income increased 11.8% to $2,701,000 from $2,417,000 in 2008. Net membership fee income increased 6.7% to $3,251,000 from $3,046,000 in 2008. Net loss decreased to $3,204,000 from $3,735,000 in 2008. Loss per share for the three months ended March 29, 2009 decreased to $0.19 from $0.22 in 2008. Cash deficiency from operations per share was 3 cents compared to nil in 2008.

 

For the 3 Months Ended

 March 29, March 30,
Financial Highlights2009 2008
    
Operations   
    
Operating revenue ($000)16,057 16,487
Net operating income ($000) (1)2,701 2,417
Operating margin (%) (1)16.8% 14.7%
    
Net membership fee income ($000) (1)3,251 3,046
    
Earnings before interest, taxes, amortization and other items ($000) (1)5,952 5,463
    
Net loss ($000)(3,204) (3,735)
    
Cash flow from operations ($000) (1)(418) 31
    
Membership Data   
    
Sales and transfer fees ($000)1,487 2,608
Sales (Members)110 165
Resignations and terminations ($000)1,733 1,106
Resignations and terminations (Members)379 238
Cash collected, net of origination costs ($000)1,752 2,362
Deferred membership fees, net at period end ($000)57,813 56,341
Golf members at period end16,378 16,146
    
Per Common Share Data ($)   
    
Basic and diluted loss(0.19) (0.22)
Basic and diluted cash flow from operations (1)(0.03) -
Eligible cash dividends0.06 0.06
Net book value at period end(1)9.70 9.68
    
Common Share Data (000)   
    
Shares outstanding at period end16,669 17,012
Weighted average shares outstanding16,705 17,015
    


First Quarter 2009 Operating Highlights

Operating revenue decreased 2.6% to $16,057,000 from $16,487,000 in the first quarter of 2008. This is primarily due to decreases in food and beverage and room revenue during the quarter due to recessionary pressures on demand.

Operating expenses and cost of goods sold decreased 3.9% to $11,168,000 from $11,627,000 in 2009 due to variable cost savings incurred from the decline in revenue during the quarter.

Sales and marketing costs decreased 25.5% to $356,000 from $478,000 in 2008. These costs were 2.2% of operating revenue compared to 2.9% in 2008. This decrease is due to less sales and marketing initiatives during the first quarter of 2009.

General and administrative expenses and provincial capital taxes decreased 6.8% to $1,832,000 from $1,965,000 in 2008 primarily due to cost containment measures. These costs were 11.4% of operating revenue compared to 11.9% in 2008.

Net operating income increased 11.8% to $2,701,000 from $2,417,000 in 2008 due to the cost reductions described above.

Total Golf Members increased 1.4% to 16,378 on March 29, 2009 from 16,146 on March 30, 2008. New membership sales during the first quarter of 2009 decreased to $1,014,000 (110 members) from $1,900,000 (165 members) during the first quarter in 2008. Transfer and upgrade fees during the first quarter of 2009 decreased to $473,000 from $708,000 in 2008. Resignations and terminations increased to $1,733,000 (379 members or 2.3% of golf members at December 31, 2008) from $1,106,000 (238 members or 1.5% of golf members at December 31, 2007) in 2008. Membership fee instalments received in cash decreased 24.1% to $1,974,000 from $2,602,000 in 2008.

Net membership fee income increased 6.7% to $3,251,000 in 2009 from $3,046,000 in 2008 due to a 5.7% increase in amortization of membership fees from the 232 net members that have joined since March 30, 2008.          
Earnings before interest, amortization, taxes and other increased 9.0% to $5,952,000 from $5,463,000 in 2008.

Interest, net has decreased 5.2% to $4,879,000 from $5,147,000 in 2008. This results from a 3.9% decrease in total debt since March 30, 2008.                       

Net operating income from Golf Club operations increased 1.7% to $5,813,000 from $5,717,000 in 2008.

Net operating loss from Resort operations increased 3.5% to $800,000 from $773,000 in 2008.

Net loss decreased 14.2% to $3,204,000 from $3,735,000 primarily due to cost containment measures taken in 2009.

Loss per share decreased to 19 cents from 22 cents per share in 2008.

Corporate Development

On April 7, 2009, ClubLink announced that it had entered into a long-term, 21 golf-season lease for The Club at Bond Head. The Club at Bond Head, just west of Highway 400, north of Toronto, consists of two superb 18-hole courses designed by the renowned architectural firm of Hurdzan Fry. The Club at Bond Head will operate as a Premium Daily Fee facility.

Eligible Dividend

The Board of Directors has declared an eligible dividend of 6 cents per common share payable June 15, 2009 to shareholders of record on May 29, 2009.

Normal Course Issuer Bid

On March 5, 2009, ClubLink announced a normal course issuer bid which expires on March 6, 2010 to purchase up to 834,700 common shares of ClubLink Corporation. As at May 6, 2009 ClubLink has purchased 147,000 common shares for a total purchase price of $921,000 or $6.27 per share including commissions.

Additional Information

Additional information concerning ClubLink is available on the SEDAR website (www.sedar.com) and the investor relations section of ClubLink's website (www.clublink.ca).

ClubLink is Canada's largest owner and operator of member golf clubs.

(1) Net operating income, operating margin, net membership fee income, earnings before interest, taxes, amortization and other, cash flow (deficiency) from operations, cash flow (deficiency) from operations per share and net book value per share are not recognized measures under Canadian generally accepted accounting principles (GAAP). Management believes that these measures are useful supplemental information. Investors should be cautioned, however, that these measures should not be construed as an alternative to net income (loss) determined in accordance with GAAP as an indicator of the Company's performance or to cash flows from operating, investing and financing activities, as a measure of liquidity and cash flows. The Company's method of calculating these measures is consistent from year to year, but may be different than those used by other companies.

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