News and Events

August 22, 2008

CanaDream Corporation Reports Results for the year ended April 30, 2008

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.

 

April 30, 2008

April 30, 2007

% Change

 

$

$

 

 Revenue

  14,543,793 

  13,654,600 

 7%

 Revenue less direct expenses

 8,704,974 

 8,530,820 

 2%

 Income/(loss) before income tax 

 21,181 

(94,944)

122%

 Net and comprehensive income 

 ( 8,109)

 16,421

149%

 Cash flow from operations 

 5,805,941 

 5,745,195 

 1%

 Basic earnings per share 

 (.05) cents 

 .10 cents 

 (50%) 

 Fully diluted earnings per share 

 (.05) cents 

 .10 cents 

 (50%)

 Common Shares outstanding 

 16,547,042 

 16,511,042 

 

 Weighted average number of
 common shares outstanding

  16,560,892 

 16,561,387

 

 

Increased revenues for the year resulted from increased utilization and pricing, while revenues for the quarter were not considerably different from last year.

Direct expenses for the year increased by $715,000 or 14% compared to last year’s $5.1 million. This resulted in an increased gross margin (revenues less direct expenses) for the year of $174,000. Direct expenses as a percentage of gross margin increased to 40% compared to 38% in the prior year.

Amortization of rental fleet for the year decreased 16% to $2.5 million from $2.9 million last year. Adjustments to fleet inventory available for sale increased by $366,000 for the year from the prior years $214,000. Interest and placement fees on fleet financing decreased $45,000 or 3% from the prior years $1.5 million. Selling, general and administrative expenses increased to $3.57 million from $3.39 million last year.

Investment in rental fleet was $15.7 million at April 30, 2008, a decrease of $2.4 million from April 30, 2007 year-end levels. The investment in fleet inventory available for sale was $5.7 million at April 30, 2008, an increase of $320,000 from April 30, 2007 year-end levels.

Fleet capital asset and other financing decreased $4.3 million or 21% to $16.3 million from the prior years $20.6 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 a negative $380,000 compared to positive $1.1 million at April 30, 2007.

The Company’s future income tax liability increased $1,000 from the April 30, 2007 balance of $315,000. The Company does not expect to pay income taxes (other than capital taxes) for the foreseeable future.

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), except for the term cash flow from operations. Cash flow from operations as presented does not have any standardized meaning under Canadian GAAP and therefore, it may not be comparable with the calculation of similar measures for other entities. Cash flow from operations has been presented for information purposes only, and should not be considered an alternative to, or more meaningful than, cash flow from operating activities, as determined in accordance with 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 two associate dealer franchisees in Kelowna and Victoria, British Columbia.

For further information, please contact:

Mr. Brian Gronberg, President & CEO, CanaDream Corporation

Toll Free: 800-461-7638

August 22, 2008

E-mail: brian@canadream.com

 



CanaDream