News and Events

October 13, 2011

CanaDream Corporation Reports Record First Quarter Operating Profit of $3,560,486

CanaDream Corporation today announced financial results for the three months ending July 31, 2011, as follows:

Revenues for the first quarter of $10.8 million are 12% higher than the prior period; cash flow from operations of $10.0 million (50 cents per share) is 9% 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, www.sedar.com, for a more detailed discussion of these results.

Summarized results for the first quarter ended July 31, 2011 are as follows:

 

July 31, 2011 

July 31, 2010

%Change 

 

CDN$

CDN$

 

Revenue

10,808,000

9,646,000

12%

Operating Profit

3,560,000

3,523,000

1%

Income before income tax

3,512,000

3,110,000

13%

Net and comprehensive income

2,589,000

2,139,000

21%

Cash flow from operations

10,012,000

9,207,000

9% 

Cash flow from operations per share
(fully diluted)

50.3 cents

45.7 cents

10%

Basic earnings per share

13.1 cents

10.8 cents

21% 

Fully diluted earnings per share

13.0 cents

10.6 cents

23%

Common Shares outstanding

19,752,657

19,752,657

0%

Weighted Average Number of
Common Shares Outstanding

19,915,114

20,148,735

(1%)

For the three months ending July 31, 2011, CanaDream recorded operating profit of $3.6 million.  Net and comprehensive income increased $450,000, or 21%, from the prior period to $2.6 million.  On a fully diluted bases, earnings per share increased 2.4 cents, or 23%.

Revenues increased $1.2 million, or 12%.  Fleet sales revenue increased $1.2 million; rental revenue was in line with the prior period.  Operating expenses increased $1.1 million, or 18%.  As a result, operating profit of $3.6 million increased $38,000, or 1%. 

At July 31, 2011, investment in rental fleet was $33.8 million, an increase of $9.0 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 $3.9 million at July 31, 2011, a decrease of $1.1 million from April 30, 2011 year-end levels due to unit sales.  Fleet and other financing increased $6.6 million, or 27%, to $30.9 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 from 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 it’s used recreational vehicle fleet on a wholesale and retail basis. The Company is utilizing its proprietary business-to-business web-enabled system, <www.canadasbest.com>, and its business-to-consumer on-line Internet reservation system, <www.canadream.com>, 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.  

For further information, please contact: 

Mr. Brian Gronberg, President & CEO, CanaDream Corporation

Toll Free:  800-461-7368

E-mail:                  BRIAN@canadream.com



CanaDream