Consolidated Financial Highlights (unaudited)
(in thousands of dollars except per share amounts) | Three months ended | |||
2023 | 2022 | |||
Net loss | (8,051 | ) | (1,093 | ) |
Basic and diluted loss per share | (0.33 | ) | (0.04 | ) |
Operating Data
Three months ended | ||
2023 | 2022 | |
Canadian Full Privilege Golf Members | 15,034 | 15,302 |
Championship rounds – | - | - |
18-hole equivalent championship golf courses – | 35.5 | 37.5 |
18-hole equivalent managed championship golf courses – | 2.0 | 2.0 |
Championship rounds – | 135,000 | 112,000 |
18-hole equivalent championship golf courses – | 8.0 | 8.0 |
The following is an analysis of net loss:
For the three months ended | ||||||||
(thousands of Canadian dollars) | ||||||||
Operating revenue | $ | 26,510 | $ | 37,932 | ||||
Direct operating expenses (1) | 21,139 | 32,954 | ||||||
Net operating income (1) | 5,371 | 4,978 | ||||||
Amortization of membership fees | 976 | 939 | ||||||
Depreciation and amortization | (3,462 | ) | (4,424 | ) | ||||
Interest, net and investment income | 2,080 | 276 | ||||||
Unrealized loss on investment in marketable securities | (13,558 | ) | (2,819 | ) | ||||
Other items | (190 | ) | 249 | |||||
Income taxes | 732 | (292 | ) | |||||
Net loss | $ | (8,051 | ) | $ | (1,093 | ) | ||
At
The following is a breakdown of net operating income (loss) by segment:
For the three months ended | ||||||||
(thousands of Canadian dollars) | ||||||||
Net operating income (loss) by segment | ||||||||
Canadian golf club operations | $ | 2,852 | $ | 3,908 | ||||
US golf club operations | ||||||||
(2023 - US | 3,237 | 3,084 | ||||||
Corporate operations and other | (718 | ) | (2,014 | ) | ||||
Net operating income (1) | $ | 5,371 | $ | 4,978 | ||||
Operating revenue is calculated as follows:
For the three months ended | ||||||
(thousands of Canadian dollars) | ||||||
Annual dues | $ | 16,910 | $ | 16,802 | ||
Golf | 6,521 | 5,838 | ||||
Corporate events | 26 | 24 | ||||
Food and beverage | 1,428 | 943 | ||||
Merchandise | 1,392 | 1,220 | ||||
Real estate sales | - | 12,774 | ||||
Rooms and other | 233 | 331 | ||||
$ | 26,510 | $ | 37,932 | |||
Direct operating expenses are calculated as follows:
For the three months ended | ||||||
(thousands of Canadian dollars) | ||||||
Operating cost of sales | $ | 1,545 | $ | 1,328 | ||
Real estate cost of sales | - | 14,024 | ||||
9,560 | 8,676 | |||||
Utilities | 1,737 | 1,674 | ||||
Selling, general and administrative expenses | 1,485 | 1,424 | ||||
Property taxes | 1,851 | 1,640 | ||||
Repairs and maintenance | 1,075 | 878 | ||||
Insurance | 1,331 | 1,070 | ||||
Turf operating expenses | 307 | 250 | ||||
Fuel and oil | 138 | 114 | ||||
Other operating expenses | 2,110 | 1,876 | ||||
Direct Operating Expenses (1) | $ | 21,139 | $ | 32,954 | ||
(1) Please see Non-IFRS Measures on following page
First Quarter 2023 Consolidated Operating Highlights
Operating revenue decreased 30.1% to
Direct operating expenses decreased 35.9% to
Net operating income for the Canadian golf club operations segment decreased to
Interest, net and investment income increased to income of
Other items consist of the following income (loss) items:
For the three months ended | |||||||
(thousands of Canadian dollars) | |||||||
Foreign exchange gain (loss) | $ | 78 | $ | (83 | ) | ||
Unrealized loss on investment in marketable securities | (13,558 | ) | (2,819 | ) | |||
Equity income (loss) from investments in joint ventures | (480 | ) | 197 | ||||
Other | 212 | 135 | |||||
Other items | $ | (13,748 | ) | $ | (2,570 | ) | |
At
The exchange rate used for translating US denominated assets has changed from 1.3544 at
Net loss in the amount of
Non-IFRS Measures
TWC uses non-IFRS measures as a benchmark measurement of our own operating results and as a benchmark relative to our competitors. We consider these non-IFRS measures to be a meaningful supplement to net earnings. We also believe these non-IFRS measures are commonly used by securities analysts, investors and other interested parties to evaluate our financial performance. These measures, which included direct operating expenses and net operating income do not have standardized meaning under IFRS. While these non-IFRS measures have been disclosed herein to permit a more complete comparative analysis of the Company’s operating performance and debt servicing ability relative to other companies, readers are cautioned that these non-IFRS measures as reported by TWC may not be comparable in all instances to non-IFRS measures as reported by other companies.
The glossary of financial terms is as follows:
Direct operating expenses = expenses that are directly attributable to company’s business units and are used by management in the assessment of their performance. These exclude expenses which are attributable to major corporate decisions such as impairment.
Net operating income = operating revenue – direct operating expenses
Net operating income is an important metric used by management in evaluating the Company’s operating performance as it represents the revenue and expense items that can be directly attributable to the specific business unit’s ongoing operations. It is not a measure of financial performance under IFRS and should not be considered as an alternative to measures of performance under IFRS. The most directly comparable measure specified under IFRS is net earnings.
Eligible Dividend
Today,
Corporate Profile
TWC is engaged in golf club operations under the trademark, “ClubLink One Membership More Golf.” TWC is Canada’s largest owner, operator and manager of golf clubs with 45.5 18-hole equivalent championship and 2 18-hole equivalent academy courses (including two managed properties) at 35 locations in
For further information please contact:
Chief Financial Officer
Tel: 905-841-5372 Fax: 905-841-8488
atamlin@clublink.ca
Management’s discussion and analysis, financial statements and other disclosure information relating to the Company is available through SEDAR and at www.sedar.com and on the Company website at www.twcenterprises.ca
Source:
2023 GlobeNewswire, Inc., source