DGAP-News: Canlan Ice Sports Corp. / Key word(s): Miscellaneous
Burnaby, British Columbia--(Newsfile Corp. - March 24, 2020) - Canlan Ice Sports Corp. (TSX: ICE) (the "Corporation") today reported its financial results for the fourth quarter and year ended December 31, 2019. The Corporation also provided an update on the temporary closure of recreation facilities to help slow the spread of Coronavirus COVID-19.
Overview of 2019
Fourth Quarter and Annual Results
1Earnings before interest, taxes, depreciation and amortization (EBITDA) is often used as a measure of financial performance. However, EBITDA is not a term that has specific meaning in accordance with IFRS, and may be calculated differently by other companies. Canlan reconciles EBITDA to its net earnings.
Fourth Quarter Results
2019 Year End Results
"While 2018 was a year of labour optimization, 2019 was a year of asset optimization," said Canlan's CEO, Joey St-Aubin. "We transitioned ownership of our ice rink facility in Fort Wayne, Indiana back to a local investor group and we prepared our facility in Brossard, Quebec for sale. Several parcels of surplus land in our portfolio were also converted to cash during the year. In addition to divestitures, we purchased Ice Sports West Dundee and the team has successfully integrated this 3-pad ice-rink facility into the Canlan portfolio. Completing these projects, along with the continued execution of our comprehensive roof refurbishment plan and the implementation of a new customer relations management system certainly kept us all very busy during the year."
"The many transitions during the year resulted in a slight decrease to EBITDA; however, our major maintenance projects were on budget and our roof remediation program remains on track," added Canlan's CFO, Ivan Wu. "The addition of Ice Sports West Dundee is also anticipated to enhance our market position in the Chicagoland area. In addition, sale transactions related to our facility in Quebec and a parcel of excess land in Ontario are expected to close in 2020 and will increase our cash reserves."
"As we recently reported, Canlan has voluntarily suspended operations and closed all facilities to the public as a preventative measure against the spread of COVID-19, effective close of business Friday, March 13, 2020," said Mr. St-Aubin. "The ongoing health and safety of our communities remains our most important consideration at this time. Our current focus is to provide appropriate support for our staff and our customers and plan for a smooth return to full operations when it is safe to reopen our facilities. We thank all of our stakeholders for their patience during this period."
Notwithstanding our satisfaction with the Company's financial performance for the year ended December 31, 2019, steps recently implemented by management to preserve cash balances, combined with the austerity being asked of our employees, our customers, our suppliers and our financial partners in addition to the support granted by various levels of Government for the payment of taxes, Canlan's Board has suspended payment of dividends. Mr. St. Aubin said, "we thank all our business constituents for their patience and understanding and in this context, we can see no way to rationalize the continuation of dividends given the hardship that our various communities are enduring." Canlan's Board of Directors reviews the Corporation's dividend policy on a quarterly basis and will continue to monitor this situation and respond accordingly as we receive more clarity on what our future holds.
Canlan's financial statements and Management's Discussion & Analysis for the year ended December 31, 2019 will be available via SEDAR on or before March 30, 2020.
Canlan Ice Sports Corp. is the North American leader in the development, operations and ownership of multi-purpose recreation and entertainment facilities. We are the largest private sector owner and operator of recreation facilities in North America and currently own, lease and/or manage 20 facilities in Canada and the United States with 53 ice surfaces, as well as five indoor soccer fields, and 15 sport, volleyball, and basketball courts. To learn more about Canlan please visit www.icesports.com.
Canlan Ice Sports Corp. is listed on the Toronto Stock Exchange under the symbol "ICE."
Caution concerning forward-looking statements
Certain statements in this News Release may constitute ''forward looking'' statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. When used in this News Release, such statements may use such words as ''may'', ''will'', ''expect'', ''believe'', ''plan'' and other similar terminology. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this News Release. These forward-looking statements involve a number of risks and uncertainties. Some of the factors that could cause actual results to differ materially from those expressed in or underlying such forward-looking statements are the effects of, as well as changes in: international, national and local business and economic conditions; political or economic instability in the Corporation's markets; competition; legislation and governmental regulation; and accounting policies and practices. The foregoing list of factors is not exhaustive.
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News Source: Newsfile
|Company:||Canlan Ice Sports Corp.|
|EQS News ID:||1006079|
|End of News||DGAP News Service|