December 18, 2007
CanaDream Corporation Reports First Quarter Earnings of $3.2 million or 19.2 cents per share
CanaDream Corporation today announced financial results for the six months ended October 31, 2007.
Revenues of $14.23 million were 7.35% higher than last year, Cash Flow from Operations was $6.70 million ($0.39 per share), up 5.8% from last year and Comprehensive Income was $3.17 million up 11.1% from last year ($0.192 per share), compared to Comprehensive Income of $2.85 million, ($0.172 per share) last year.
The Company encourages interested parties to access CanaDream Corporation’s MD&A on the SEDAR website, www.sedar.com, for a more detailed discussion of these results.
Summarised results for the six months ended October 31 2007 are as follows:
October 31, 2007 October 31, 2006 % Change CDN$ CDN$ Revenue 14,231,174 13,256,721 7.35% Revenue Less Direct Expenses 9,379,726 8,816,163 6.39% Income Before Tax 4,803,068 4,253,593 12.9% Comprehensive Income 3,165,887 2,848,793 11.1% Cash Flow from Operations 6,696,307 6,327,473 5.83% Basic Earnings per Share 19.15 cents 19.15 cents Fully Diluted Earnings per Share 18.85 cents 16.82 cents Common Shares outstanding at July 31 16,621,042 16,556,042 Weighted Average number of Common Shares outstanding 16,529,694 16,584,846
Investment in rental fleet was $21.78 million at October 31, 2007, a decrease of $788,000 from October 2006 and an increase of $3.66 million from April 30, 2007 year-end levels. The investment in fleet inventory available for sale was $3.75 million at October 31, 2007, a decrease of $2.52 million from October, 2006 and a decrease of $1.65 million from April 30, 2007 year-end levels.
Term debt outstanding on the Company’s inventories of rental fleet and fleet inventory available for sale was $21.48 million at October 31, 2007, a decrease of $1.78 million from October 2006 and an increase of $830,000 compared to April 30, 2007 year-end.
The Company’s short-term liquidity position (cash and cash equivalents plus accounts receivable, minus accounts payable and accrued liabilities) stands at $4.12 million compared to $1.56 million October 2006.
The Company’s Future Income Tax liability increased to $1.93 million at October 31, 2007, compared to $1.86 million in October 2006 and 315,000 at April 30, 2007. As previously noted, 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.
CanaDream is a Canadian tourism company that is utilizing its proprietary business–to–business webenabled 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 has two associate dealer franchisees in 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
