News and Events

September 11, 2009

CanaDream Corporation Reports First Quarter Earnings of $1.9 million or 11.8 cents per share

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, 2009 are as follows:

 

July 31, 2009 

July 31, 2008

%Change 

 

CDN$

CDN$

 

Revenue

10,224,000

10,869,000

(6%)

Revenue Less Direct Expenses

5,060,000

5,626,000

(10%)

Income before income tax

2,826,000

3,050,000

(7%) 

Net and comprehensive income

1,945,000

2,108,000

(8%) 

Cash provided by operating activities

7,793,000

7,942,000

(2%) 

Basic Earnings per share

11.8 cents

12.7 cents

(7%) 

Fully Diluted Earnings (Loss) per share

11.8 cents

12.5 cents

(6%) 

Common Shares outstanding at
April 30

16,472,042

16,547,042

 

Weighted Average Number of
Common Shares Outstanding

16,533,669

16,838,372

 


Income before income taxes of $2.8 million decreased $224,000 or 7% from the prior year first quarter. On a fully diluted basis earning per share decreased 0.70 cents or 6%.

Decreased revenues of $645,000 is due in part from a 16% decrease in fleet and available rental nights resulting in an 11% decrease in booked rental nights.
 
Direct expenses for the three months decreased by $78,000 or 2% compared to last year’s $5.2 million. As the decrease in revenues exceeded the decrease in direct expenses the gross margin decreased $566,000 or 10%.

Investment in rental fleet was $26.8 million at July 31, 2009, a decrease $1.9 million from July 31, 2008 and an increase of $2.0 million from April 30, 2009 year-end levels. The investment in fleet inventory available for sale was $1.3 million at July 31, 2009 a decrease of $3.6 million from July 31, 2008 and $1.4 million from April 30, 2009 year-end levels.

Fleet capital asset and other financing decreased $6.0 million or 21% to $23.3 million from the prior years first quarter of $29.4 million. 

The Company’s short-term liquidity position (cash and cash equivalents plus accounts receivable and short term deposits, minus accounts payable and accrued liabilities) stands at $3.9 million compared to $4.0 million at July 31, 2008.
     
It should be noted that the Company’s core business, rental of recreational vehicles, is seasonal in nature with the majority of its revenue being earned during the May to October period, its first and second quarters. 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 Canadian generally accepted accounting principles (GAAP).

The Company encourages interested parties to access CanaDream Corporation’s MD&A on the SEDAR website, www.sedar.com, for a more detailed discussion of these results.

CanaDream is a Canadian tourism company that 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.  The Company is also leveraging its proprietary technology to build a franchised network of associate dealers that are fully interconnected to CanaDream’s e-commerce systems.  CanaDream currently has one associate dealer franchisee in Kelowna, British Columbia.

For further information please contact:
Brian Gronberg, President and CEO, CanaDream Corporation
Phone: 800-461-7368
Email: brian@canadream.com 
Website:www.canadream.com

 



CanaDream