July 26, 2006
CanaDream Corporation Reports Financial Results for Fiscal 2006
CanaDream Corporation today announced financial results for the year ended April 30, 2006.
Revenues were $13.14 million, up 17.9% from last year. Cash flow from Operations was $3.16 million (0.19 cents per share), up 32.8% from last year and Net Loss was $241,000 (0.015 cents per share), compared to Net Earnings of $5,000, $0.003 per share last year. up 35.7% from last year.
For the three months ended April 30, 2006, Revenues of $227,000 were unchanged from last year, however the Net Loss and Cash Used in Operations were both greater than last year, primarily as a result of the carrying costs associated with the higher levels of fleet investment.
The Company encourages interested parties to access CanaDream Corporations MD&A on the SEDAR website, www.sedar.com for a more detailed discussion of these results.
Summarized results for the year ended April 30, 2006 are as follows:
|
2006 | 2005 | %Change |
|
|
CDN$ | CDN$ |
|
| Revenue | 13,138,924 | 11,145,830 | 17.9% |
| Revenue Less Direct Expenses | 7,910,014 | 6,686,018 | 18.3% |
| Earnings (Loss) Before Tax | (364,299) | 51,466 | |
| Net Earnings(Loss) | (241,299) | 5,466 | |
| Basic Earnings (Loss) per share | (1.5) cents | 0.03 cents | |
| Fully Diluted Earnings (Loss) per share | (1.4) cents | 0.03 cents | |
|
Common Shares outstanding at April 30 |
16,606,042 | 16,695,542 | (0.5)% |
|
Weighted Average Number of Common Shares Outstanding |
16,949,569 | 16,838,983 | 0.6% |
The increased Revenues for the year resulted primarily from greater numbers of rental units, higher utilization and slightly higher average nightly revenue.
Gross Margins (Revenue less Direct Expenses) increased by 0.36% (to 60.20% from 59.99%) as a result of an increase in Direct Expenses (17.25%) that was slightly less than the 17.88% increase in Revenues. Other Revenue decreased to $239,000 from last year’s $376,000 primarily as a result of last year’s sale of $1.7 million of fleet inventory to an Associate Dealer in February 2005 that resulted in a gain of approximately $250,000. Amortization of Rental Fleet increased 48.8% to $2.64 million ($1.78 million last year) while Adjustments to Fleet Inventory Available for Sale totalled $433,000 compared to $335,000 last year, a 29.2% increase. Amortization of Capital and Other Assets increased by $16,000 (2.6%) to $633,000. Interest on Fleet Debt increased 42.9% to $1.14 million ($800,000 last year), while interest on non-fleet debt decreased by $3,000 to $305,000. Selling, General & Administrative Expenses increased to $3.31 million from $3.13 million last year, a 5.8% increase.
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. All references to cash flow from operations in this release are based on cash flow before changes in non-cash working capital.
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 now has three associate dealer franchisees in Edmonton Alberta, and Kelowna and Victoria, 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
