Consolidated Financial Highlights
(unaudited)
|
(in thousands of dollars except per
shareamounts) |
Three months ended |
|
March 31,2024 |
March 31,2023 |
|
Net loss |
(701) |
(8,051) |
|
Basic and diluted loss per share |
(0.03) |
(0.33) |
Operating Data
|
|
Three months ended |
|
|
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 – U.S. |
90,000 |
111,000 |
|
18-hole equivalent championship golf courses – U.S. |
6.5 |
8.0 |
The following is an analysis of net loss:
| |
|
For the three months
ended |
|
(thousands of Canadian dollars) |
|
March 31,
2024 |
March 31, 2023 |
|
Operating revenue |
|
$ |
65,346 |
|
$ |
26,510 |
|
| Direct
operating expenses(1) |
|
|
60,889 |
|
|
21,139 |
|
| Net
operating income(1) |
|
|
4,457 |
|
|
5,371 |
|
| Amortization
of membership fees |
|
|
959 |
|
|
976 |
|
| Depreciation
and amortization |
|
|
(3,515 |
) |
|
(3,462 |
) |
| Interest,
net and investment income |
|
|
2,785 |
|
|
2,080 |
|
| Other
items |
|
|
(4,601 |
) |
|
(13,748 |
) |
|
Income taxes |
|
|
(786 |
) |
|
732 |
|
|
|
|
|
|
|
Net loss |
|
$ |
(701 |
) |
$ |
(8,051 |
) |
The following is a breakdown of net operating
income (loss) by segment:
| |
|
|
For the three months
ended |
|
(thousands of Canadian dollars) |
|
|
March 31,
2024 |
March 31, 2023 |
|
|
|
|
|
|
| Net
operating income (loss) by segment |
|
|
|
|
|
Canadian golf club operations |
|
|
$ |
3,554 |
|
$ |
2,852 |
|
|
US golf club operations |
|
|
|
|
|
(2024 - US $2,163,000; 2023 - US $2,395,000) |
|
|
|
2,916 |
|
|
3,237 |
|
|
Corporate operations and other |
|
|
|
(2,013 |
) |
|
(718 |
) |
| |
|
|
|
|
|
Net operating income(1) |
|
|
$ |
4,457 |
|
$ |
5,371 |
|
Operating revenue is calculated as follows:
| |
|
For the three months
ended |
|
(thousands of Canadian dollars) |
|
March 31, 2024 |
March 31, 2023 |
|
|
|
|
|
|
Annual dues |
|
$ |
17,507 |
$ |
16,910 |
| Golf |
|
|
6,002 |
|
6,521 |
| Corporate
events |
|
|
18 |
|
26 |
| Food and
beverage |
|
|
1,267 |
|
1,428 |
|
Merchandise |
|
|
1,755 |
|
1,392 |
| Real estate
sales |
|
|
38,509 |
|
- |
| Rooms and
other |
|
|
288 |
|
233 |
|
|
|
|
|
|
|
|
$ |
65,346 |
$ |
26,510 |
Direct operating expenses are calculated as
follows:
| |
|
For the three months
ended |
|
(thousands of Canadian dollars) |
|
March 31,
2024 |
March 31, 2023 |
|
|
|
|
|
|
Operating cost of sales |
|
$ |
1,847 |
$ |
1,545 |
| Real estate
cost of sales |
|
|
39,722 |
|
- |
| Labour and
employee benefits |
|
|
9,708 |
|
9,560 |
|
Utilities |
|
|
1,700 |
|
1,737 |
|
Selling, general and administrative expenses |
|
1,476 |
|
1,485 |
| Property
taxes |
|
|
1,883 |
|
1,851 |
| Repairs and
maintenance |
|
|
1,154 |
|
1,075 |
|
Insurance |
|
|
1,000 |
|
1,331 |
| Turf
operating expenses |
|
|
313 |
|
307 |
| Fuel and
oil |
|
|
100 |
|
138 |
|
Other operating expenses |
|
|
1,986 |
|
2,110 |
| |
|
|
|
|
Direct Operating Expenses(1) |
|
$ |
60,889 |
$ |
21,139 |
(1) Please see Non-IFRS Measures on following
page
First Quarter 2024 Consolidated Operating
Highlights
Operating revenue increased 146.5% to
$65,346,000 for the three month period ended March 31, 2024 from
$26,510,000 in 2023 due to the revenue from 21 Highland Gate home
sales (2023 - nil).
Direct operating expenses increased 188.0% to
$60,890,000 for the three month period ended March 31, 2024 from
$21,139,000 in 2023 due to the cost of sales from 21 Highland Gate
home sales (2023 - nil), as well as higher merchandise cost of
sales from off season merchandise sales.
Net operating income for the Canadian golf club
operations segment increased to $3,554,000 for the three month
period ended March 31, 2024 from $2,852,000 in 2023 due to higher
annual dues revenue and the timing of certain expenses.
Interest, net and investment income increased to
income of $2,785,000 for the three month period ended March 31,
2024 from $2,080,000 in 2023 due to a decrease in borrowings.
Other items consist of the following income
(loss) items:
| |
|
For the three months
ended |
|
(thousands of Canadian dollars) |
|
March 31,
2024 |
March 31, 2023 |
|
|
|
|
|
|
Foreign exchange gain (loss) |
|
$ |
(167 |
) |
$ |
78 |
|
| Unrealized
loss on investment in marketable securities |
|
|
(4,551 |
) |
|
(13,558 |
) |
| Demolition
of Woodlands clubhouse |
|
|
(308 |
) |
|
- |
|
| Equity loss
from investments in joint ventures |
|
|
- |
|
|
(480 |
) |
| Other |
|
|
425 |
|
|
212 |
|
|
|
|
|
|
| Other
items |
|
$ |
(4,601 |
) |
$ |
(13,748 |
) |
|
|
|
|
|
At 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
attributable to the fair market value adjustments of the Company's
investment in Automotive Properties REIT.
The exchange rate used for translating US
denominated amounts has changed from 1.3226 at December 31, 2023 to
1.3550 at March 31, 2024. This has resulted in a foreign exchange
loss of $167,000 for the three month period ended March 31, 2024 on
the translation of the Company’s US denominated financial
instruments.
Net loss in the amount of $701,000 for the three
month period 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 recorded in 2023. 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 cents in 2023.
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 7.5 cents per common share to be paid on
June 17, 2024 to shareholders of record as at May 31, 2024.
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 three managed properties) at 35 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)
Gráfica de Acción Histórica
De Oct 2024 a Nov 2024
TWC Enterprises (TSX:TWC)
Gráfica de Acción Histórica
De Nov 2023 a Nov 2024
