ClubLink Announces Second Quarter 2002 Results.

Business/Sports Editors

KING CITY, Ontario--(BUSINESS WIRE)--Aug. 6, 2002

ClubLink Corporation (TSX:LNK) announces its results for the second quarter ended June 30, 2002. Operating revenue (excluding membership fee revenue) increased to $32,279,000 from $31,202,000 in 2001. Earnings per share for the period ended June 30, 2002 decreased to 7 cents from 19 cents in 2001 This was due in large part to the previously announced change in accounting policy for membership fees. Earnings per share calculated in accordance with the previous accounting policy is 19 cents for the 3 months ended June 30, 2002 and 2 cents for the 6 months ended June 30, 2002.

(000's except per share amounts
 and weighted average shares)

                    For the 3 months ended  For the 6 months ended
                     June 30,      July 1,    June 30,     July 1,
                        2002         2001        2002         2001

Operating
 revenue             $ 32,279     $ 31,202    $ 40,340    $ 37,095
Net operating
 income (1)             6,643        7,078       4,803       3,858
Net membership
 fee income (1)           958        4,937       1,593       7,235
EBITDA (1)              7,601       12,015       6,396      11,093
Net income
 (loss) (2)             1,269        4,499     (2,811)       1,675
Cash flow from
 operations             7,552        6,793       7,395       5,204

Earnings (loss)
 per share               0.07         0.19      (0.17)        0.01
Cash flow from
 operations per
 share                   0.40         0.34        0.39        0.26

Weighted
 average common
 shares
 outstanding                                19,065,032  20,148,791
Common shares
 outstanding (at
 period end)                                18,923,601  19,961,128

Net book value
 per share (at
 period end)                                   $ 10.43     $ 10.40


(1) Net operating income, net membership fee income and EBITDA are not
    recognized measures under Canadian generally accepted accounting
    principles (GAAP). Management believes that in addition to net
    income (loss), these measures are useful supplemental information
    as they provide investors with an indication of income available
    prior to debt service, capital expenditures and income taxes.
    Investors should be cautioned, however, that these measures should
    not be construed as an alternative to net income (loss) determined
    in accordance with GAAP as an indicator of the Company's
    performance or to cash flows from operating, investing and
    financing activities, as a measure of liquidity and cash flows.
    The Company's method of calculating these measures may differ from
    other companies and, accordingly, these measures may not be
    comparable to measures used by other companies.

(2) ClubLink adopted a new accounting policy, effective January 1,
    2002, for recognizing Membership fee revenue and costs of
    origination. The new accounting policy requires that Membership
    fee revenue and costs of origination be deferred and amortized on
    a straight line basis over the estimated remaining weighted
    average membership life of existing Members.

In releasing the results, ClubLink President and CEO Bruce Simmonds, stated, "Notwithstanding that poor weather during the second quarter put downward pressure on discretionary spending, annual dues from our increased Membership highlights the stability of our operating cash flow. Membership sales continue to be robust through the end of July, reflecting the strong market appeal of ClubLink's expanding portfolio of Member Clubs."

Operational Developments

On July 8, 2002 ClubLink announced that Le D"me Golf Club in Gatineau (formerly Hull), Quebec will be converted into a Silver Member Club to be named Club de golf Hautes Plaines, is scheduled to open for the 2003 golf season. The golf club will undergo a $1.5 million renovation that will include upgrading the golf shop, enhancing the clubhouse, the addition of some new tee complexes, and improvements to cart paths and drainage. The introductory membership fee is $3,250.

On July 8, 2002 ClubLink announced that Georgetown Golf Club in the northwest Greater Toronto Area will be converted into a Silver Member Club to be named Eagle Ridge Golf Club, is scheduled to open for the 2003 golf season. The golf club will undergo a $5.5 million renovation that will feature a new clubhouse for the 2005 season, a new irrigation system, major renovations to three holes and some tee complexes, the addition of a new practice putting green, and improvements to the parking lot. The introductory membership fee is $8,250.

Second Quarter 2002 Operating Highlights

The positive impact on Golf Club operations from the addition of Grandview and Le Maitre Golf Clubs which commenced operations on July 2, 2001 and Lake Chesdin Golf Club which commenced operations on January 1, 2002, has been offset in part by the closure of Bolton at the end of the 2001 golf season to facilitate its conversion to Caledon Woods a Silver Member Club, extensive renovations at Station Creek Golf Club, which is a 36-hole Silver Member Club and the sale of 80% of our one-half interest in Quatre Domaines, a 36-hole Daily Fee Club, effective January 1, 2002. Our remaining 10% interest in Quatre Domaines is being treated as a long-term portfolio investment.

Consolidated operating revenue increased 3.5% to $32,279,000 from $31,202,000 in 2001. This increase is primarily due to an increase of 27.4% in the annual dues applicable to the second quarter of 2002 received from the 2,694 new Golf Members that have joined since July 1, 2001 which was offset by a 1.6% decline in the other categories of operating revenue.

Consolidated operating costs increased 7.7% to $17,555,000 from $16,294,000 in 2001.

Sales and marketing costs declined 4.6% to $967,000 from $1,014,000 in 2001. These costs were 3.0% of operating revenue compared to 3.2% in 2001.

Gross general and administrative expenses increased 4.9% to $2,466,000 from $2,351,000. These costs increased to 7.6% of operating revenue compared to 7.5% in 2001. Capitalized general and administrative expenses increased 20.7% to $262,000 from $217,000 in 2001. Net general and administrative expenses increased 3.3% to $2,204,000 from $2,134,000.

Net operating income decreased 6.1% to $6,643,000 from $7,078,000.

The number of new Golf Members, net of resignations and terminations, joining ClubLink increased 135% to 567 from 241 in 2001. Total Golf Members at June 30, 2002 is 8,369. Membership sales increased 25.9% to $9,096,000 from $7,227,000 in 2001. Resignations and terminations declined 85.6% to $28,000 from $195,000 in 2001. Instalments received in cash declined 4.5% to $5,023,000 from $5,262,000.

Net membership fee income declined to $958,000 from $4,937,000 due to the change, effective January 1, 2002, in ClubLink's revenue recognition policy for membership fees and costs of origination.

Income before interest, taxes, amortization and other decreased to $7,601,000 from $12,015,000 in 2001, primarily due to the change in revenue recognition policy for membership fees and costs of origination.

Net income of $1,269,000 or 7 cents per share, compares to net income of $4,499,000 or 19 cents per share in 2001. Cash flow from operations was $7,552,000 or 40 cents per share, compared to $6,793,000 or 34 cents per share in 2001.

ClubLink had $9,722,000 in cash and $29,667,000 of undrawn credit facilities available at June 30, 2002.

Dividend

ClubLink's initial semi-annual dividend of 5 cents per share was paid on May 15, 2002 to shareholders of record on April 30, 2002. Normal Course Issuer Bids

On October 2, 2001, ClubLink announced a normal course issuer bid, expiring on October 4, 2002, to purchase up to 988,000 common shares of ClubLink. As of July 31, 2002, ClubLink has repurchased for cancellation 938,657 common shares for an aggregate purchase price of $5,428,000 or $5.78 per share, excluding commissions. As of July 31, 2002, ClubLink has 18,832,101 common shares outstanding.

On August 20, 2001, ClubLink announced a normal course issuer bid, expiring on August 21, 2002, to purchase up to $8,204,000 principal amount of its outstanding 6% convertible unsecured subordinated debentures. As of July 31, 2002, ClubLink has repurchased for cancellation $4,894,000 principal amount of the debentures for an aggregate purchase price of $3,674,000 or $75.08 per $100 principal amount of debenture, excluding commissions. As of July 31, 2002, the outstanding balance of the 6% debentures is $78,424,000.

On April 30, 2002, ClubLink purchased for cancellation the remaining $8,700,000 principal amount of its outstanding 6 1/2% convertible unsecured subordinated debentures. The purchase price was $87.50 per $100 principal amount of debentures. The difference between the face amount of debentures and the price at which they were acquired was $1,087,500. This amount, after deducting closing costs and income taxes, was recognized as a gain on redemption of debentures during the second quarter.

Management will be available to discuss the quarter-end results by conference call today, August 6, 2002 at 4:30 p.m. EDT. The conference call can be accessed by dialing toll free 1-888-799-1348. The call will also be webcast and may be accessed via ClubLink's website at www.clublink.ca.

ClubLink's Second Quarter 2002 Report can be found on ClubLink's website located under Financial Reports in the Investor Relations section located at www.clublink.ca.

ClubLink is Canada's largest owner, operator and developer of high-quality Member Golf Clubs, Daily Fee Golf Clubs and Resorts that feature golf as their key amenity.