March 31, 2005
CanaDream Corporation Reports Three Quarter Earnings of $903,000 or 5.4 Cents/Share
CanaDream Corporation today announced financial results for the nine months ended January 31, 2005.
Revenues for the nine months were $10.92 million, down 10.2% from last year, Cash Flow from Operations was $3.44 million ($0.21 per share), down 17.9% from last year and Net Earnings were $903,000 ($0.05 per share), down 46.6% from last year. For the three months ended January 31, 2005 (Q3), Revenues of $96,000 were comparable to last year, Cash Flow from Operations was down by 18.2% and Net Loss increased by 6.7%, as a result of a 19% increase in Other Expenses.
Summarized results for the third quarter, the three months ended January 31, 2005, are as follows:
|
Jan 31, 2005 | Jan 31, 2004 | %Change |
|
|
CDN$ | CDN$ | CDN$ |
| Revenue | 96,511 | 96,524 | – |
| Revenue Less Direct Expenses | (107,475) | (18,279) | (487.9%) |
| Cash Flow from Operations | (1,078,898) | (912,902) | (18.2%) |
| Loss Before Tax | (1,745,222) | (1,320,969) | (6.7%) |
| Net Loss | (1,142,472) | (875,469) | (3.2%) |
| Basic Loss per Share | (6.86) cents | (5.16) cents | (32.9%) |
| Fully Diluted L.P.S. | (6.84) cents | (5.08) cents | (34.6%) |
| Cash Flow per Share | |||
|
Common Shares outstanding at End of Quarter |
16,658,042 | 17,018,542 |
|
|
Weighted Average Number of Common Shares Outstanding |
16,791,500 | 16,928,433 |
|
The reduction in revenues for the nine months resulted primarily from the Company’s decision to reduce its fleet of leased trucks that transport the Company’s campers and fifth wheels, due to unusually high lease costs attributable to the stronger CDN$.
Direct Expenses for the quarter increased by 89,000 (78%) to $204,000 from last year’s $115,000, while direct expenses for the nine months decreased by $794,000 (15.8%) to $4.22 million compared to last year’s $5.02 million, a greater percentage decrease than the percentage decrease in revenues. This resulted in an increase in gross margins (Revenue less Direct Expenses) for the nine months to 61.3% from the previous year’s 58.7%. Major contributors to this improvement were a favorable experience in the Company’s self-insured accident loss pool and lower operating lease expenses.
Amortization of Rental Fleet for the quarter increased 4.7% to $390,000 and 7.7% to $1.39 million for the nine months. Amortization of Rental Units Held for Sale increased by $118,000 to $119,000 for the quarter and to $261,000 from $124,000 for the nine month period. Interest on Fleet Debt reduced 7% to $186,000 for the three month period ($201,000 last year) compared to a 17% decrease ($623,000 versus $750,000) for the nine month period. Combined General & Administrative and Sales & Marketing Expenses increased to $717,000 from $684,000 for the quarter and to $2.39 million from $$2.19 million for the nine months, while Interest on non-fleet debt increased to $78,000 from last year’s $1,200 as a result of the issuance of $3,184,000 of 10% Convertible Debentures in late February 2004.
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. Most of the fleet sales occur between November and May. As a result of ongoing interest, amortization and general and administrative expenses, the last two quarters of the fiscal year normally produce operating losses.
The Company encourages interested parties to access CanaDream Corporation’s MD&A for the nine months ended January 31, 2005 on the SEDAR website, www.sedar.com.
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 seven Company operated locations in Calgary, Vancouver, Kelowna, 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 Edmonton Alberta, and Victoria, British Columbia.
For further information, please contact:
Mr Brian Gronberg, President & CEO, CanaDream Corporation
Toll Free: 800-461-7638
E-mail: brian@canadream.com
www.canadream.com
