ClubLink Enterprises Limited
TSX : CLK

ClubLink Enterprises Limited

August 09, 2013 15:04 ET

ClubLink Enterprises Limited Announces Second Quarter 2013 Results and Eligible Dividend

KING CITY, ONTARIO--(Marketwired - Aug. 9, 2013) - (TSX:CLK) -

Consolidated Financial Highlights

Three months ended Six months ended
(in thousands of dollars except per June 30, June 30, June 30, June 30,
share amounts) 2013 2012 2013 2012
Operating revenue 59,669 61,848 81,718 85,022
Net operating income(1) 14,096 14,884 17,672 18,706
Net membership fee income(1) 3,387 3,145 6,948 6,828
Earnings before other items and income taxes(1) 17,483 18,029 24,620 25,534
Net earnings (loss) 3,094 3,162 (11 ) 767
Basic and diluted earnings per share 0.12 0.12 - 0.03
Cash flow from operations(1) 9,426 9,716 8,295 9,087
Basic and diluted cash flow from operations per share(1) 0.36 0.37 0.32 0.34
Weighted average shares outstanding (000's) 26,082 26,373 26,081 26,671

Operating Data

Three months ended Six months ended
June 30, June 30, June 30, June 30,
2013 2012 2013 2012
ClubLink One Membership More Golf
Championship rounds - Canada 337,000 392,000 337,000 399,000
18-hole equivalent championship golf courses - Canada 41.5 41.5 41.5 41.5
Championship rounds - U.S. 81,000 79,000 208,000 203,000
18-hole equivalent championship golf courses - U.S. 11.0 12.0 11.0 12.0
White Pass and Yukon Route
Rail passengers 142,000 137,000 142,000 137,000
Port passengers from cruise ships 301,000 271,000 301,000 271,000
Cruise ship dockings 147 129 147 129

Second Quarter 2013 Consolidated Operating Highlights

Consolidated operating revenue decreased 3.5% to $59,669,000 for the three month period ending June 30, 2013 from $61,848,000 in 2012, primarily due to a decrease of $2,850,000 in Canadian golf club operations revenue resulting from 723 less Canadian golf members from June 30, 2012.

Consolidated operating expenses decreased 3.0% to $45,573,000 for the three month period ending June 30, 2013 from $46,964,000 in 2012, primarily due to cost containment measures in the Canadian golf operations.

Net operating income for the Canadian golf club operations segment decreased 17.3% to $7,165,000 for the three month period ending June 30, 2013 from $8,669,000 in 2012 due to the decline in operating revenue from less Canadian members.

Net operating loss for US golf club operations segment improved to $110,000 for the three month period ending June 30, 2013 from $399,000 in 2012 primarily due to improved efficiencies in operations.

Net operating income for the rail, tourism and port operations increased 5.6% to $7,693,000 for the three month period ending June 30, 2013 from $7,285,000 in 2012 due to a 3.6% increase in rail passengers.

Net membership fee income increased 7.7% to $3,387,000 for the three month period ending June 30, 2013 from $3,145,000 in 2012 primarily due to 417 new Canadian members added during the quarter.

Earnings before other items and income taxes decreased 3.0% to $17,483,000 for the three month period ending June 30, 2013 from $18,029,000 in 2012.

Interest, net decreased 3.0% to $5,136,000 for the three month period ending June 30, 2013 from $5,295,000 in 2012 primarily due to a lower cost of borrowing in 2012 (5.84% compared to 6.05%).

Other expense, net decreased to $189,000 for the three month period ending June 30, 2013 from $643,000 for 2012 primarily due to an incremental $353,000 earned from prior year property tax refunds compared to 2012.

Net earnings decreased 2.2% to $3,094,000 for the three month period ending June 30, 2013 from $3,162,000 in 2012.

Eligible Dividend

Today, ClubLink Enterprises Limited ("ClubLink") announced an eligible dividend of 7.5 cents per share to be paid on September 13, 2013 to shareholders of record as at August 30, 2013.

Normal Course Issuer Bid

The Company has been approved by the Toronto Stock Exchange for a normal course issuer bid to purchase up to 1,317,000 of its common shares which will expire on September 19, 2013. As at August 9, 2013, the Company has not made any purchases under this bid. As at August 9, 2013, ClubLink has 26,082,172 common shares outstanding.

Corporate Profile

ClubLink is engaged in golf club operations under the trade-mark, "ClubLink One Membership More Golf®" ClubLink is Canada's largest owner and operator of golf clubs with 52.5 18-hole equivalent championship and six 18-hole equivalent academy courses at 43 locations, primarily in Ontario, Quebec and Florida.

ClubLink is also engaged in rail, tourism and port operations based in Skagway, Alaska, which operates under the trade name "White Pass & Yukon Route." The railway stretches approximately 177 kilometres (110 miles) from Skagway, Alaska, through British Columbia to Whitehorse, Yukon. In addition, ClubLink operates three docks primarily for cruise ships.

(1) Net operating income, net membership fee income, earnings before other items and income taxes, cash flow (deficiency) from operations and basic and diluted cash flow (deficiency) from operations per share are not recognized performance measures under International Financial Reporting Standards ("IFRS"). Earnings before other items and income taxes is defined as earnings before taxes, interest, depreciation, amortization, and other items. Management believes that in addition to net earnings, these measures are useful supplemental information to provide investors with an indication of the Company's performance. Investors should be cautioned, however, that these measures should not be construed as an alternative to net earnings determined in accordance with IFRS as an indicator of the Company's performance. ClubLink's method of calculating these measures is consistent from year to year, but may be different than those used by other companies (See "Management's Discussion and Analysis of Financial Condition and Results of Operations").

Management's discussion and analysis, financial statements and other disclosure information relating to the Company is available through SEDAR and at www.sedar.com and on the Company website at www.clublinkenterprises.ca .

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