Consolidated Financial Highlights
(unaudited)
|
(in thousands of dollars except per share
amounts) |
Three months ended |
Six months ended |
|
June 30, 2022 |
June 30, 2021 |
June 30, 2022 |
June 30, 2021 |
|
Net earnings |
3,594 |
4,472 |
2,501 |
4,927 |
|
Basic and diluted earnings per share |
0.15 |
0.18 |
0.10 |
0.20 |
Operating Data
|
|
Three months ended |
Six months ended |
|
|
June 30, 2022 |
June 30, 2021 |
June 30, 2022 |
June 30, 2021 |
|
Canadian Full Privilege Golf Members |
|
|
15,583 |
15,097 |
|
Championship rounds – Canada |
444,000 |
362,000 |
444,000 |
362,000 |
|
18-hole equivalent championship golf courses – Canada |
|
|
37.5 |
39.5 |
|
18-hole equivalent managed championship golf courses – Canada |
|
|
2.0 |
2.0 |
|
Championship rounds – U.S. |
55,000 |
63,000 |
167,000 |
156,000 |
|
18-hole equivalent championship golf courses – U.S. |
|
|
8.0 |
8.0 |
The following is an analysis of net
earnings:
| |
For the three months
ended |
|
(thousands of Canadian dollars) |
June 30, 2022 |
June 30, 2021 |
|
Operating revenue |
$ |
52,736 |
|
$ |
34,059 |
|
|
Direct operating expenses (1) |
|
39,569 |
|
|
25,023 |
|
| Net
operating income (1) |
|
13,167 |
|
|
9,036 |
|
| Amortization
of membership fees |
|
1,081 |
|
|
1,037 |
|
| Depreciation
and amortization |
|
(4,458 |
) |
|
(4,788 |
) |
| Interest,
net and investment income |
|
422 |
|
|
(384 |
) |
| Other
items |
|
(3,582 |
) |
|
(303 |
) |
|
Income taxes |
|
(3,036 |
) |
|
(126 |
) |
|
Net earnings |
$ |
3,594 |
|
$ |
4,472 |
|
| |
For the six months
ended |
|
(thousands of Canadian dollars) |
June 30, 2022 |
June 30, 2021 |
|
Operating revenue |
$ |
90,668 |
|
$ |
48,168 |
|
|
Direct operating expenses (1) |
|
72,523 |
|
|
41,389 |
|
| Net
operating income (1) |
|
18,145 |
|
|
6,779 |
|
| Amortization
of membership fees |
|
2,020 |
|
|
1,995 |
|
| Depreciation
and amortization |
|
(8,882 |
) |
|
(9,543 |
) |
| Interest,
net and investment income |
|
698 |
|
|
(820 |
) |
| Other
items |
|
(6,152 |
) |
|
5,337 |
|
|
Income taxes |
|
(3,328 |
) |
|
1,179 |
|
|
Net earnings |
$ |
2,501 |
|
$ |
4,927 |
|
The following is a breakdown of net operating
income (loss) by segment:
| |
For the three months
ended |
|
(thousands of Canadian dollars) |
June 30, 2022 |
June 30, 2021 |
| Net
operating income (loss) by segment |
|
|
|
Canadian golf club operations |
$ |
12,675 |
|
$ |
9,065 |
|
|
US golf club operations (2022 - US $421,000; 2021 - US
$585,000) |
|
529 |
|
|
723 |
|
|
Corporate and other |
|
(37 |
) |
|
(752 |
) |
|
Net operating income (1) |
$ |
13,167 |
|
$ |
9,036 |
|
| |
For the six months
ended |
|
(thousands of Canadian dollars) |
June 30, 2022 |
June 30, 2021 |
| Net operating
income (loss) by segment |
|
|
|
Canadian golf club operations |
$ |
16,583 |
|
$ |
6,178 |
|
|
US golf club operations (2022 - US $2,857,000; 2021 - US
$1,716,000) |
|
3,613 |
|
|
2,156 |
|
|
Corporate and other |
|
(2,051 |
) |
|
(1,555 |
) |
|
Net operating income (1) |
$ |
18,145 |
|
$ |
6,779 |
|
Operating revenue is calculated as follows:
| |
For the three months
ended |
|
(thousands of Canadian dollars) |
June 30, 2022 |
June 30, 2021 |
|
|
Annual dues |
$ |
17,286 |
|
$ |
13,992 |
|
|
Golf |
|
13,842 |
|
|
12,299 |
|
|
Corporate events |
|
2,573 |
|
|
426 |
|
| Food
and beverage |
|
10,382 |
|
|
3,577 |
|
|
Merchandise |
|
4,301 |
|
|
2,945 |
|
| Real
estate |
|
3,037 |
|
|
- |
|
|
Rooms and other |
|
1,315 |
|
|
820 |
|
|
Operating Revenue |
$ |
52,736 |
|
$ |
34,059 |
|
| |
For the six months
ended |
|
(thousands of Canadian dollars) |
|
June 30, 2022 |
|
|
June 30, 2021 |
|
|
Annual dues |
$ |
34,088 |
|
$ |
21,934 |
|
|
Golf |
|
19,680 |
|
|
16,489 |
|
|
Corporate events |
|
2,597 |
|
|
497 |
|
| Food
and beverage |
|
11,325 |
|
|
4,150 |
|
|
Merchandise |
|
5,521 |
|
|
4,008 |
|
| Real
estate |
|
15,811 |
|
|
- |
|
|
Rooms and other |
|
1,646 |
|
|
1,090 |
|
|
Operating revenue |
$ |
90,668 |
|
$ |
48,168 |
|
Direct operating expenses are calculated as
follows:
| |
For the three months
ended |
|
(thousands of Canadian dollars) |
June 30, 2022 |
June 30, 2021 |
|
Operating cost of sales |
$ |
5,974 |
|
$ |
3,350 |
|
| Real estate
cost of sales |
|
2,370 |
|
|
- |
|
| Labour and
employee benefits |
|
18,822 |
|
|
11,568 |
|
|
Utilities |
|
1,966 |
|
|
1,716 |
|
| Selling,
general and administrative expenses |
|
1,460 |
|
|
1,312 |
|
| Property
taxes |
|
695 |
|
|
724 |
|
| Repairs and
maintenance |
|
1,556 |
|
|
1,253 |
|
|
Insurance |
|
903 |
|
|
802 |
|
| Turf
operating expenses |
|
2,108 |
|
|
1,883 |
|
| Fuel and
oil |
|
621 |
|
|
335 |
|
|
Other operating expenses |
|
3,094 |
|
|
2,080 |
|
|
Direct Operating Expenses (1) |
$ |
39,569 |
|
$ |
25,023 |
|
| |
For the six months
ended |
|
(thousands of Canadian dollars) |
June 30, 2022 |
June 30, 2021 |
|
Operating cost of sales |
$ |
7,302 |
|
$ |
4,303 |
|
| Real estate
cost of sales |
|
16,394 |
|
|
- |
|
| Labour and
employee benefits |
|
27,498 |
|
|
19,392 |
|
|
Utilities |
|
3,640 |
|
|
3,171 |
|
| Selling,
general and administrative expenses |
|
2,884 |
|
|
2,402 |
|
| Property
taxes |
|
2,335 |
|
|
2,652 |
|
| Repairs and
maintenance |
|
1,781 |
|
|
1,602 |
|
|
Insurance |
|
2,626 |
|
|
1,974 |
|
| Turf
operating expenses |
|
2,358 |
|
|
1,980 |
|
| Fuel and
oil |
|
735 |
|
|
418 |
|
|
Other operating expenses |
|
4,970 |
|
|
3,495 |
|
|
Direct Operating Expenses (1) |
$ |
72,523 |
|
$ |
41,389 |
|
(1) Please see Non-IFRS Measures
Second Quarter
2022 Consolidated Operating
Highlights
As required by IFRS, ClubLink recognizes its
annual dues revenue on a straight-line basis throughout the year
based on when its properties are allowed to open and services are
provided. As a result of COVID-19 lockdowns in 2021, annual dues
revenue was not recognized during certain periods. There were 56
days in the second quarter of 2021 that ClubLink was allowed to
operate in Ontario. There have been no COVID-19 lockdowns to date
in 2022. Canadian annual dues revenue increased 24.7% to
$15,649,000 for the three month period ended June 30, 2022 from
$12,547,000 in 2021 due to this policy and the increase in members.
This deferral in 2021 was recognized into revenue throughout the
remainder of the year on a straight-line basis.
Operating revenue increased 54.8% to $52,736,000
for the three month period ended June 30, 2022 from $34,059,000 in
2021 due to closures in 2021 as a result of COVID-19 lockdowns and
less COVID-19 operating restrictions in 2022, allowing the Company
to operate on a more normal pace.
Direct operating expenses increased 58.1% to
$39,569,000 for the three month period ended June 30, 2022 from
$25,023,000 in 2021 due to the fact that certain activities were
reduced in 2021 due to lockdowns and restrictions. High inflation
is also impacting most expense categories.
Net operating income for the Canadian golf club
operations segment increased to $12,675,000 for the three month
period ended June 30, 2022 from $9,065,000 in 2021 due to the
change in annual dues revenue described above.
Net operating income for the US golf club
operations decreased to US$421,000 for the three month period ended
June 30, 2022 from US$585,000 in 2021 due to decreased rounds.
Interest, net and investment income increased to
income of $422,000 for the three month period ended June 30, 2022
from an expense of $384,000 in 2021 due to a decrease in borrowings
and an increase in distributions from the Company’s investment in
Automotive Properties REIT.
Other items consist of the following income
(loss) items:
| |
For the
three months ended |
|
|
June 30, 2022 |
June 30, 2021 |
|
Unrealized foreign exchange gain (loss) |
$ |
481 |
|
$ |
(432 |
) |
| Unrealized
gain (loss) on investment in marketable securities |
|
(8,366 |
) |
|
6,808 |
|
| Gain on real
estate fund investments |
|
4,370 |
|
|
- |
|
| Insurance
proceeds |
|
- |
|
|
2,603 |
|
| Equity
income (loss) from investments in joint ventures |
|
(62 |
) |
|
404 |
|
| Glen Abbey
redevelopment charge |
|
- |
|
|
(9,500 |
) |
|
Other |
|
(5 |
) |
|
(186 |
) |
|
Other items |
$ |
(3,582 |
) |
$ |
(303 |
) |
The exchange rate used for translating US
denominated assets has changed from 1.2496 at March 31, 2022 to
1.2886 at June 30, 2022. This has resulted in a foreign exchange
gain of $481,000 for the three month period ended June 30, 2022 on
the translation of the Company’s US denominated financial
instruments.
Net earnings decreased to $3,594,000 for the
three month period ended June 30, 2022 from $4,472,000 in 2021 due
to an unrealized loss on the Company’s investment in Automotive
Properties REIT. Basic and diluted earnings per share decreased to
15 cents per share in 2022, compared to basic and diluted earnings
per share of 18 cents in 2021.
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, TWC Enterprises Limited announced an
eligible cash dividend of 5 cents per common share to be paid on
September 15, 2022 to shareholders of record as at August 31, 2022.
This is an increase from 2 cents per common share.
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 47.5 18-hole
equivalent championship and 2.5 18-hole equivalent academy courses
(including two managed properties) at 36 locations in Ontario,
Quebec and Florida.
For further information please contact:
Andrew Tamlin Chief Financial Officer 15675
Dufferin Street King City, Ontario L7B 1K5 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
TWC Enterprises (TSX:TWC)
過去 株価チャート
から 12 2024 まで 1 2025
TWC Enterprises (TSX:TWC)
過去 株価チャート
から 1 2024 まで 1 2025
