December 08, 2006
CanaDream Corporation Reports First Half Earnings of $2.68 Million or 15.9 Cents per Share
Mr. Brian Gronberg, President and CEO of CanaDream Corporation is pleased to report the Company’s financial results for the six months ended October 31, 2006, the first half of its Fiscal 2007.
Revenues of $13.3 million were $451,000 or 3.5% higher than last year’s $12.8 million, while earnings increased by 6.2% to $2.85 million compared to $2.68 million last year. Increased revenues resulted from higher utilization of the fleet which generated larger numbers of rental nights, while pricing was somewhat lower than last year.
Direct expenses of $4.44 million were $17,000 (0.04%) higher last year, resulting in Gross Margins (Revenue less Direct Expenses) of $9.0 million, an increase of $434,000 (5.2%) over last year. Interest and depreciation expenses were higher as a result of higher levels of fleet investment and related fleet debt, while Selling, General and Administrative expenses decreased by 4.74% to $1.72 million.
Earnings per Share increased by 6.8% to 17.2 cents per share while Cash Flow from Operations was $6.22 million, 7.1% lower than last year’s $5.8 million.
Highlights
Oct 31, 2006 Oct 31, 2005 CDN$ CDN$ Revenue $13,256,721 $12,805,870 Revenue Less Direct Expenses $8,816,163 $8,382,114 Earnings Before Tax $4,253,594 $4,133,338 Net Earnings $2,848,794 $2,681,838 Cash Flow from Operations $6,221,021 $5,806,260 Basic Earnings per share 17.18 cents 16.09 cents Fully Diluted Earnings per share 16.82 cents 15.91 cents Cash Flow per share 36.7 cents 34.5 cents Common Shares outstanding at
April 3016,556,042 16,607,042 Weighted Average Number of
Common Shares Outstanding16,584,846 16,669,075
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.
We encourage interested parties to access copies of the Company’s First Quarter MD&A on the SEDAR website at www.sedar.com
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
