TWC Enterprises Limited Announces Second Quarter 2024 Results and Eligible Dividend
02 Agosto 2024 - 3:15PM
Consolidated Financial Highlights
(unaudited)
(in thousands of dollars except per share
amounts) |
Three months ended |
Six months ended |
June 30,2024 |
June 30,2023 |
June 30,2024 |
June 30,2023 |
Net earnings |
3,159 |
8,114 |
2,458 |
63 |
Basic and diluted earnings per share |
0.13 |
0.33 |
0.10 |
- |
Operating Data
|
Three months ended |
Six months ended |
|
June 30, 2024 |
June 30, 2023 |
June 30, 2024 |
June 30, 2023 |
Canadian Full Privilege Golf Members |
|
|
15,063 |
15,156 |
Championship rounds – Canada |
399,000 |
391,000 |
399,000 |
391,000 |
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. |
46,000 |
55,000 |
136,000 |
169,000 |
18-hole equivalent championship golf courses – U.S. |
|
|
6.5 |
8.0 |
The following is an analysis of net
earnings:
|
|
For the three months
ended |
(thousands of Canadian dollars) |
|
June 30, 2024 |
June 30, 2023 |
Operating revenue |
|
$ |
62,183 |
|
$ |
64,653 |
|
Direct operating expenses (1) |
|
|
53,049 |
|
|
53,834 |
|
Net
operating income (1) |
|
|
9,134 |
|
|
10,819 |
|
Amortization
of membership fees |
|
|
1,126 |
|
|
1,137 |
|
Depreciation
and amortization |
|
|
(3,681 |
) |
|
(3,492 |
) |
Interest,
net and investment income |
|
|
2,813 |
|
|
2,201 |
|
Other
items |
|
|
(3,902 |
) |
|
176 |
|
Income taxes |
|
|
(2,331 |
) |
|
(2,727 |
) |
|
|
|
|
|
|
|
|
Net earnings |
|
$ |
3,159 |
|
$ |
8,114 |
|
|
|
|
|
|
|
For the six months
ended |
(thousands of Canadian dollars) |
|
June 30, 2024 |
June 30, 2023 |
Operating revenue |
|
$ |
127,529 |
|
$ |
91,163 |
|
Direct operating expenses (1) |
|
|
113,938 |
|
|
74,973 |
|
Net
operating income (1) |
|
|
13,591 |
|
|
16,190 |
|
Amortization
of membership fees |
|
|
2,085 |
|
|
2,113 |
|
Depreciation
and amortization |
|
|
(7,196 |
) |
|
(6,954 |
) |
Interest,
net and investment income |
|
|
5,598 |
|
|
4,281 |
|
Other
items |
|
|
(8,503 |
) |
|
(13,572 |
) |
Income taxes |
|
|
(3,117 |
) |
|
(1,995 |
) |
|
|
|
|
|
|
|
|
Net earnings |
|
$ |
2,458 |
|
$ |
63 |
|
|
|
|
|
The following is a breakdown of net operating income (loss) by
segment:
|
|
For the three months
ended |
(thousands of Canadian dollars) |
|
June 30, 2024 |
June 30, 2023 |
Net
operating income (loss) by segment |
|
|
|
Canadian golf club operations |
|
$ |
10,361 |
|
$ |
10,289 |
|
US golf club operations |
|
|
|
(2024 - US $467,000; 2023 - US $744,000) |
|
|
636 |
|
|
1,001 |
|
Corporate and other |
|
|
(1,863 |
) |
|
(471 |
) |
|
|
|
|
|
|
|
|
Net operating income (1) |
|
$ |
9,134 |
|
$ |
10,819 |
|
|
|
|
|
|
|
For the six months
ended |
(thousands of Canadian dollars) |
|
June 30, 2024 |
June 30, 2023 |
Net
operating income (loss) by segment |
|
|
|
Canadian golf club operations |
|
$ |
13,915 |
|
$ |
13,141 |
|
US golf club operations |
|
|
|
(2024 - US $2,630,000; 2023 - US $3,139,000) |
|
|
3,552 |
|
|
4,238 |
|
Corporate and other |
|
|
(3,876 |
) |
|
(1,189 |
) |
|
|
|
|
|
|
|
|
Net operating income (1) |
|
$ |
13,591 |
|
$ |
16,190 |
|
|
|
|
|
Operating revenue is calculated as follows:
|
|
For the three months
ended |
(thousands of Canadian dollars) |
|
June 30, 2024 |
June 30, 2023 |
Annual dues |
|
$ |
18,246 |
$ |
17,766 |
Golf |
|
|
13,407 |
|
13,252 |
Corporate
events |
|
|
2,770 |
|
2,591 |
Food and
beverage |
|
|
9,798 |
|
10,011 |
Merchandise |
|
|
4,581 |
|
4,528 |
Real
estate |
|
|
12,381 |
|
15,530 |
Rooms and other |
|
|
1,000 |
|
975 |
|
|
|
|
|
|
Operating
revenue |
|
$ |
62,183 |
$ |
64,653 |
|
|
|
|
|
|
For the six months
ended |
(thousands of Canadian dollars) |
|
June 30, 2024 |
June 30, 2023 |
Annual dues |
|
$ |
35,753 |
$ |
34,676 |
Golf |
|
|
19,409 |
|
19,773 |
Corporate
events |
|
|
2,788 |
|
2,617 |
Food and
beverage |
|
|
11,065 |
|
11,439 |
Merchandise |
|
|
6,336 |
|
5,920 |
Real
estate |
|
|
50,890 |
|
15,530 |
Rooms and other |
|
|
1,288 |
|
1,208 |
|
|
|
|
|
|
Operating
revenue |
|
$ |
127,529 |
$ |
91,163 |
|
|
|
|
Direct operating expenses are calculated as follows:
|
|
For the three months
ended |
(thousands of Canadian dollars) |
|
June 30, 2024 |
June 30, 2023 |
Operating cost of sales |
|
$ |
6,284 |
$ |
6,235 |
Real estate
cost of sales |
|
|
13,488 |
|
15,277 |
Labour and
employee benefits |
|
|
20,661 |
|
19,818 |
Utilities |
|
|
1,884 |
|
1,841 |
Selling, general and administrative expenses |
|
1,367 |
|
1,327 |
Property
taxes |
|
|
665 |
|
685 |
Repairs and
maintenance |
|
|
1,114 |
|
1,124 |
Insurance |
|
|
1,789 |
|
1,502 |
Turf
operating expenses |
|
|
2,215 |
|
2,057 |
Fuel and
oil |
|
|
484 |
|
401 |
Other operating expenses |
|
|
3,098 |
|
3,567 |
|
|
|
|
|
|
Direct Operating Expenses (1) |
|
$ |
53,049 |
$ |
53,834 |
|
|
|
|
|
|
For the six months
ended |
(thousands of Canadian dollars) |
|
June 30, 2024 |
June 30, 2023 |
Operating cost of sales |
|
$ |
8,131 |
$ |
7,780 |
Real estate
cost of sales |
|
|
53,210 |
|
15,277 |
Labour and
employee benefits |
|
|
30,369 |
|
29,378 |
Utilities |
|
|
3,584 |
|
3,578 |
Selling, general and administrative expenses |
|
2,843 |
|
2,812 |
Property
taxes |
|
|
2,548 |
|
2,536 |
Repairs and
maintenance |
|
|
2,268 |
|
2,199 |
Insurance |
|
|
2,789 |
|
2,833 |
Turf
operating expenses |
|
|
2,528 |
|
2,364 |
Fuel and
oil |
|
|
584 |
|
539 |
Other operating expenses |
|
|
5,084 |
|
5,677 |
|
|
|
|
|
|
Direct Operating Expenses (1) |
|
$ |
113,938 |
$ |
74,973 |
|
|
|
|
(1) Please see Non-IFRS Measures
Second Quarter 2024 Consolidated Operating
Highlights
Operating revenue decreased 3.8% to $62,183,000
for the three month period ended June 30, 2024 from
$64,653,000 in 2023 due to the decline in real estate revenue from
seven Highland Gate home sales compared to eight in 2023.
Direct operating expenses decreased 1.5% to
$53,049,000 for the three month period ended June 30, 2024
from $53,834,000 in 2023 due to the decline in real estate cost of
sales from less home sales in 2024.
Net operating income for the Canadian golf club
operations segment increased to $10,361,000 for the three month
period ended June 30, 2024 from $10,289,000 in 2023.
Interest, net and investment income increased to
income of $2,813,000 for the three month period ended June 30,
2024 from $2,201,000 in 2023 due to higher cash balances and the
income earned on these balances.
Other items consist of the following income
(loss) items:
|
|
For the
three months ended |
|
|
June 30, 2024 |
June 30, 2023 |
Foreign exchange gain (loss) |
|
$ |
(22 |
) |
$ |
453 |
|
Unrealized
loss on investment in marketable securities |
|
|
(5,119 |
) |
|
(474 |
) |
Insurance |
|
|
621 |
|
|
- |
|
Equity
income from investments in joint ventures |
|
|
- |
|
|
260 |
|
Other |
|
|
618 |
|
|
(63 |
) |
|
|
|
|
Other
items |
|
$ |
(3,902 |
) |
$ |
176 |
|
|
|
|
|
At June 30, 2024, the Company recorded
unrealized losses of $5,119,000 on its investment in marketable
securities (June 30, 2023 - $474,000). This loss is
attributable to the fair market value adjustments of the Company's
investment in Automotive Properties REIT.
Net earnings in the amount of $3,159,000 for the
three month period ended June 30, 2024 changed from $8,114,000
in 2023 due to the unrealized loss in the amount of $5,119,000 on
the Company’s investment in Automotive Properties REIT recorded in
2024. Basic and diluted earnings per share decreased to $0.13 per
share in 2024, compared to basic and diluted earnings 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
September 16, 2024 to shareholders of record as at August 30,
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 TamlinChief Financial Officer15675
Dufferin StreetKing City, Ontario L7B 1K5Tel: 905-841-5372 Fax:
905-841-8488atamlin@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)
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