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Published on April 25, 2024 • 5 minutes reading
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KING CITY, Ontario, April 25, 2024 (GLOBE NEWSWIRE) —
Consolidated financial indicators (unaudited)
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| (in thousands of dollars, except per share amounts) |
Three months came to an end | |||
| March 31, 2024 |
March 31, 2023 |
|||
| Annual deficit | (701) | (8,051) | ||
| Basic and diluted loss per share | (0.03) | (0.33) | ||
Operating data
| Three months came to an end | ||
| March 31, 2024 |
March 31, 2023 |
|
| Canadian Full Privilege Golf Members | 14,960 | 15,034 |
| Championship Rounds – Canada | – | – |
| 18-Hole Equivalent Championship Golf Courses – Canada | 35.5 | 35.5 |
| 18-hole equivalent managed championship golf courses – Canada | 3.5 | 2.0 |
| Championship Rounds – USA | 90,000 | 111,000 |
| 18-hole equivalent championship golf courses – USA | 6.5 | 8.0 |
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The following is an analysis of net loss:
| For the three months expired | |||||||
| (Thousands of Canadian dollars) | March 31, 2024 | March 31, 2023 | |||||
| Operating income | $ | 65,346 | $ | 26,510 | |||
| Direct operating costs(1) | 60,889 | 21,139 | |||||
| Net operating income(1) | 4,457 | 5,371 | |||||
| Depreciation of membership fees | 959 | 976 | |||||
| Depreciation and amortization | (3,515 | ) | (3,462 | ) | |||
| Interest, net and capital income | 2,785 | 2,080 | |||||
| Other things | (4,601 | ) | (13,748 | ) | |||
| Income tax | (786 | ) | 732 | ||||
| Annual deficit | $ | (701 | ) | $ | (8,051 | ) | |
Below is a breakdown of net operating income (loss) by segment:
| For the three months expired | ||||||||
| (Thousands of Canadian dollars) | March 31, 2024 | March 31, 2023 | ||||||
| Net operating income (loss) by segment | ||||||||
| Operating Canadian golf clubs | $ | 3,554 | $ | 2,852 | ||||
| Operation of US golf clubs | ||||||||
| (2024 – $2,163,000; 2023 – $2,395,000) | 2,916 | 3,237 | ||||||
| business operations and others | (2.013 | ) | (718 | ) | ||||
| Net operating income(1) | $ | 4,457 | $ | 5,371 | ||||
Operating income is calculated as follows:
| For the three months expired | |||||
| (Thousands of Canadian dollars) | March 31, 2024 | March 31, 2023 | |||
| Annual contributions | $ | 17,507 | $ | 16,910 | |
| golf | 6,002 | 6,521 | |||
| Corporate events | 18 | 26 | |||
| Food and Drinks | 1,267 | 1,428 | |||
| Fan shop | 1,755 | 1,392 | |||
| Real estate sales | 38,509 | – | |||
| Rooms and others | 288 | 233 | |||
| $ | 65,346 | $ | 26,510 | ||
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The direct operating costs are calculated as follows:
| For the three months expired | |||||
| (Thousands of Canadian dollars) | March 31, 2024 | March 31, 2023 | |||
| Operating costs of sales | $ | 1,847 | $ | 1,545 | |
| Selling costs of a property | 39,722 | – | |||
| Labor and Employee Benefits | 9,708 | 9,560 | |||
| Utilities | 1,700 | 1,737 | |||
| Selling and general administrative expenses | 1,476 | 1,485 | |||
| Property taxes | 1,883 | 1,851 | |||
| Repairs and maintenance | 1,154 | 1,075 | |||
| Insurance | 1,000 | 1,331 | |||
| Lawn maintenance costs | 313 | 307 | |||
| Fuel and oil | 100 | 138 | |||
| Other operating expenses | 1,986 | 2,110 | |||
| Direct operating costs(1) | $ | 60,889 | $ | 21,139 | |
(1) See “Non-IFRS Measures” on the following page
Consolidated operating peak of the first quarter of 2024S
Operating revenue increased 146.5% to $65,346,000 for the three months ended March 31, 2024 from $26,510,000 in 2023, driven by revenue from 21 Highland Gate home sales (2023 – nil ).
Direct operating expenses increased 188.0% to $60,890,000 for the three months ended March 31, 2024 from $21,139,000 in 2023, reflecting cost of sales from 21 home sales in Highland Gate (2023 – nil). as well as higher cost of goods sold from the sale of seasonal merchandise.
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Canadian golf club operating segment net operating income increased to $3,554,000 for the three months ended March 31, 2024 from $2,852,000 in 2023 due to higher annual premiums and the timing of certain expenses.
Interest, net and capital income increased to income of $2,785,000 for the three months ended March 31, 2024 from $2,080,000 in 2023 due to a decrease in borrowings.
The other items include the following income (loss) items:
| For the three months expired | |||||||
| (Thousands of Canadian dollars) | March 31, 2024 | March 31, 2023 | |||||
| Exchange rate gain (loss) | $ | (167 | ) | $ | 78 | ||
| Unrealized loss on investments in marketable securities | (4,551 | ) | (13,558 | ) | |||
| Demolition of the Woodlands Clubhouse | (308 | ) | – | ||||
| Loss of equity from investments in joint ventures | – | (480 | ) | ||||
| Other | 425 | 212 | |||||
| Other things | $ | (4,601 | ) | $ | (13,748 | ) | |
As of March 31, 2024, the Company recorded unrealized losses of $4,551,000 on its investment in marketable securities (March 31, 2023 – $13,558,000). This loss is due to the fair value adjustments of the Company’s investment in Automotive Properties REIT.
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The exchange rate used to convert amounts denominated in U.S. dollars has changed from 1.3226 on December 31, 2023 to 1.3550 on March 31, 2024. This resulted in a foreign exchange loss of $167,000 for the three months ended March 31, 2024 when translating the Company’s U.S. dollar-denominated financial instruments.
Net loss of $701,000 for the three months ended March 31, 2024 changed from $8,051,000 in 2023 due to the large unrealized loss on the Company’s investment in Automotive Properties REIT in 2023. The Basic and diluted loss per share decreased to $0.03 per share in 2024, compared to basic and diluted loss per share of $0.33 in 2023.
Non-IFRS measures
TWC uses non-IFRS measures as a benchmark measure of our own operating results and as a benchmark relative to our competitors. We view these non-IFRS metrics as a useful addition to net income. We also believe that 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 a standardized meaning under IFRS. Although these non-IFRS measures have been disclosed herein to provide a more comprehensive comparative analysis of the Company’s operating performance and debt service ability compared to other companies, readers are cautioned that these non-IFRS measures reported by TWC may not be comparable overall are cases regarding non-IFRS metrics as reported by other companies.
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The glossary of financial terms is as follows:
Direct operating costs = Expenses that are directly attributable to the company’s business areas and are used by management to assess their performance. Excluded from this are expenses that are attributable to important company decisions such as impairments.
Net operating income = Operating income – direct operating expenses
Net operating income is an important measure that management uses in evaluating the company’s operating performance because it represents the income and expense items that can be directly attributed to the ongoing operations of the respective business unit. It is not a measure of financial performance under IFRS and should not be considered as an alternative to performance measures under IFRS. The most directly comparable measure under IFRS is net profit.
Eligible dividend
TWC Enterprises Limited today declared a qualifying cash dividend of 7.5 cents per common share, payable on June 17, 2024, to shareholders of record as of May 31, 2024.
Company profile
TWC engages in golf club operations under the brand “ClubLink One Membership More Golf.” TWC is Canada’s largest owner, operator and manager of golf clubs, with 45.5 18-hole championship courses and two 18-hole academy courses (including three managed courses) at 35 locations in Ontario, Quebec and Florida.
For further information please contact:
Andrew Tamlin
CFO
15675 Dufferin St
King City, Ontario L7B 1K5
Phone: 905-841-5372 Fax: 905-841-8488
[email protected]
Management’s discussions and analyses, financial reports and other disclosure information relating to the Company are available on SEDAR and at www.sedar.com and on the company’s website at www.twcenterprises.ca
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