ClubLink Enterprises Limited Announces First Quarter 2010 Results and Eligible Quarterly Dividend

KING CITY, ONTARIO -- (Marketwire) -- 05/05/10 -- ClubLink Enterprises Limited (TSX: CLK)


Consolidated Financial Highlights

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(in thousands of dollars except per               Three months ended
share amounts)                          -----------------------------------
March 31, 2010    March 31, 2009
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Operating revenue                                  16,168            16,184
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Net operating income (loss)1                        1,061              (142)
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Net membership fee income1                          3,509             3,251
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EBITDA1                                             4,570             3,109
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Net loss                                           (4,232)           (5,585)
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Basic and diluted loss per share                    (0.15)            (0.24)
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Weighted average shares outstanding
(000's)                                           28,057            22,896
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First Quarter 2010 Consolidated Operating Highlights

Consolidated operating revenue decreased slightly to $16,168,000 for the three month period ending March 31, 2010 from $16,184,000 in 2009.

Consolidated cost of sales and operating expenses decreased 7.5% to $15,107,000 for the three month period ending March 31, 2010 from $16,326,000 in 2009 primarily due to cost control measures undertaken by the entire organization and a lower rate of exchange per US dollar (1.0409 compared to 1.2451 in 2009) for the rail, tourism and port operations. Cost savings from the business combination and privatization of ClubLink Corporation on July 28, 2009 have also contributed to this reduction.

Net operating income increased to $1,061,000 for the three month period ending March 31, 2010 from a loss of $142,000 in 2009 due to the decrease in cost of sales and operating expenses.

Net membership fee income increased to $3,509,000 for the three month period ending March 31, 2010 from $3,251,000 in 2009 due to the additional membership fees from the net increase of 391 golf members who have joined since March 31, 2009.

Consolidated EBITDA increased 47.0% to $4,570,000 for the three month period ending March 31, 2010 from $3,109,000 in 2009 due to the decrease in cost of sales and operating expenses.

Land lease rent increased 26.7% to $1,319,000 for the three month ending March 31, 2010 from $1,041,000 in 2009 due to the incremental rent from the 21 golf-season lease of The Club at Bond Head entered into on April 7, 2009.

Interest, net decreased 6.5% to $5,216,000 for the three month period ending March 31, 2010 from $5,577,000 in 2009 due to a 6.0% decline in debt levels from March 31, 2009.

The effective income tax recovery rate for the three month period ending March 31, 2010 was 38.3% as compared to 27.8% in 2009 resulting in a higher income tax recovery for the period.

The non-controlling interest for the three month period ending March 31, 2010 was nil, compared to a recovery of $895,000 in 2009. This is due to the privatization of ClubLink Corporation on July 28, 2009.

Net loss decreased to $4,232,000 for the three month period ending March 31, 2010 from $5,585,000 in 2009 due primarily to the savings in cost of sales and operating expenses and the positive change from the higher income tax recovery.

Weighted average shares for the three month period ending March 31, 2010 increased to 28,057,491 for the first quarter ending March 31, 2010 compared to 22,896,289 in the first quarter of 2009 due to the 5,164,015 common shares issued by the Company on July 28, 2009 as part of the business combination and privatization of ClubLink Corporation.

Eligible Dividend

Today, ClubLink Enterprises Limited ("ClubLink") announced an eligible dividend of 7.5 cents per share to be paid on June 30, 2010 to shareholders of record as at June 15, 2010.

Normal Course Issuer Bid

On September 16, 2009, ClubLink announced a normal course issuer bid which expires on September 19, 2010 to purchase up to 1,402,752 of its common shares. As at May 5, 2010, ClubLink has purchased 3,100 common shares for a total purchase price of $20,600 or $6.65 per share including commissions.

Corporate Profile

ClubLink is engaged in golf club and resort operations under the trade mark "ClubLink One Membership More Golf". ClubLink is Canada's largest owner and operator of golf clubs with 41 1/2 18-hole championship and eight nine-hole academy courses at 33 locations, primarily in Ontario and Quebec.

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 kilometers (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 and EBITDA are not recognized performance measures under Canadian GAAP. EBITDA is defined as earnings before taxes, interest, depreciation, amortization, non-controlling interest and earnings from equity accounted investments. 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 Canadian GAAP 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 .

Contacts:
ClubLink Enterprises Limited
Mr. Robert Visentin
Chief Financial Officer
905-841-5360
905-841-1134 (FAX)
rvisentin@clublink.ca

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