March 29, 2007
CanaDream Corporation ReportsThree Quarter Earnings of $1.1 Million or 6.84 Cents/Share
Canadream Corporation today announced financial results for the nine months ended January 31, 2007.
Revenues for the nine months were $13.3 million, up 3.4% from last year. Cash Flow from Operations was $5.05 million (29.81 cents per share), up 13.2% from last year and Net Earnings were $1.13 million (6.84 cents per share), down 5.66% from last year.
For the three months ended January 31, 2007 (Q3), Revenues of $88,000 were comparable to last year, and Negative Cash Flow from Operations increased by 14.7% and the Net Loss for the period increased by 16.2%.
Summarized results for the nine months ended January 31, 2007, are as follows:
Jan 31, 2007 Jan 31, 2006 %Change CDN$ CDN$ Revenue 13,345,520 12,912,244 Revenue Less Direct Expenses 8,441,383 8,083,251 Cash Flow from Operations 5,051,072 4,461,237 Earnings Before Tax 1,711,892 1,857,774 Net Earnings 1,133,842 1,206,024 Basic Earnings per share 6.84 cents 7.25 cents Fully Diluted Earnings per share 6.7 cents 7.14 cents Common Shares outstanding at
April 3016,965,202 16,672,042 Weighted Average Number of
Common Shares Outstanding16,573,093 16,644,826 Summarized results for the third quarter, the three months ended Janaury 31, 2007, are as follows:
Jan31, 2007 Jan 31, 2006 %Change CDN$ CDN$ Revenue 106,374 Revenue Less Direct Expenses (374,780) (298,863) Cash Flow from Operations (1,276,400) (1,112,749) Loss Before Tax (2,541,701) (2,275,563) Net Loss ($1,714,951) (1,472,813) Basic Loss per share (10.36) cents (8.90) cents Fully Diluted Earnings per share (10.11) cents (8.70) cents Weighted Average Number of
Common Shares Outstanding16,549,585 16,582,374 Increased revenues for the nine months resulted from higher levels of rental fleet, coupled
with better utilization and pricing, while revenues for the quarter were not considerably
different from last year.
Direct Expenses for the quarter increased by $58,000 (14.4%) to $464,000 from last
year’s $405,000, while direct expenses for the nine months increased by $75,000 (1.56%)
to $4.90 million compared to last year’s $4.83 million. This resulted in a decrease in
gross margins (Revenue less Direct Expenses) for the nine months to 6.43% from the
previous year of 6.38%.
Amortization of Rental Fleet in the quarter increased 0.67% to $657,000 and 15.76% to
$2.31 million for the nine months. Amortization of Rental Units Held for Sale decreased
by $31,000 to $59,000 for the quarter and decreased to $160,000 from $284,000 for the
nine month period. Interest on Fleet Debt increased 26.3% to $355,000 for the three
month period ($281,000 last year) compared to a 34.3% increase ($1.16 million, versus
$864,000) for the nine month period. Selling, General & Administrative Expenses
increased to $802,000 from $707,000 for the quarter and to $2.52 million from $2.51
million for the nine months. Interest on non-fleet debt was not substantially different
from last year’s 3 and 9 month amounts. As noted below, the increased Fleet
Amortization and Fleet Interest expenses are a direct result of the increased ex-rental fleet
and related debt in fiscal 2007 compared to fiscal 2006.
Investment in Rental Fleet was $21.2 million at January 31, 2007, a decrease of $396,000
(1.83%) over last January and an increase of $625,000 (3.03%) over year-end levels,
while the investment in Rental Units Held for Sale (Ex-Rental units) was $6.0 million at
January 31, 2007, an increase of $2.45 million (69.3%) from last January and an increase
of $2.9 million (92.3%) from year-end.
Term Debt outstanding on the Company’s inventories of Rental Fleet and Rental Units
Held for Sale increased to $22.1 million, some $1.4 million more than last January and
$2.1 million more than the $20.0 million at year-end.
The Company’s short-term liquidity position (Cash and cash equivalents plus accounts
receivable, minus accounts payable and accrued liabilities) stood at a negative $264,000
compared to a positive $875,000 last January. Subsequent to January 31, 2007 the
Company has entered into two refinancing arrangements with related parties with regards
to ninety-two 2003 model year units with proceeds of financing of $2.53 million. The
existing debt payout on these re-financed units totaled $860,000. Fifty units have an
eleven month principal repayment schedule and forty-two units are on a twenty-four
month principal re-payment schedule.
It should be noted that the Company’s core business, rental of recreational vehicles, is
seasonal in nature. Accordingly, the majority of its rental revenues and direct expenses
occur during the May to October period, the first and second quarters of its fiscal year.
The majority of the company’s direct expenses are incurred in that same period. The
Company markets rental units and units held 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 general and administrative
expenses, the last two quarters of the fiscal year normally produce operating losses.
Losses incurred in the last two quarters of the year may exceed profits earned in the first
two quarters.
The Company encourages interested parties to access CanaDream Corporation’s MD&A
for the nine months ended January 31, 2007 on the SEDAR website, www.sedar.com.
The Company is pleased to announce the appointment of KariAnn Burmaster to the
position of Chief Financial Officer effective March 21, 2007.
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
