ClubLink Announces Third Quarter 2005 Results.

KING CITY, Ontario -- For the three months ended October 2, 2005, ClubLink's (TSX:LNK) operating revenue increased 1.5% to $56,488,000 from $55,629,000 in 2004, and net operating income decreased 2.6% to $18,815,000 from $19,325,000 in 2004. Net membership fee income increased 76.4% to $2,515,000 from $1,426,000 in 2004. Earnings increased 11.6% to $7,184,000 from $6,435,000 in 2004. Earnings per share for the three months ended October 2, 2005 increased to $0.42 cents from $0.37 cents in 2004. Cash flow from operations per share was $1.02 compared to $0.88 in 2004.

For the 3 Months Ended  For the 9 Months Ended
                       October    September     October   September
Financial Highlights   2, 2005  26, 2004 (1)    2, 2005  26, 2004 (1)

Operations
Operating revenue
 ($000)                 56,488       55,629     108,079      100,903
Net operating income
 ($000) (2)             18,815       19,325      27,268       26,957
Operating margin (%)
 (2)                     33.3%        34.7%       25.2%        26.7%

Net membership fee
 income ($000) (2)       2,515        1,426       5,723        4,671

Earnings before
 interest, taxes,
 amortization and
 other items ($000)
 (2)                    21,330       20,751      32,991       31,628

Net income ($000)        7,184        6,435       2,022        2,101

Cash flow from
 operations ($000) (2)  17,484       15,321      24,022       21,889

Membership Data
Sales and transfer
 fees ($000)            19,180        4,662      30,089       16,791
Sales (Members)          1,668          329       2,346        1,117
Resignations and
 terminations ($000)     1,360          249       3,048        1,512
Resignations and
 terminations
 (Members)                 239           35         498          197
Cash collected, net
 of origination costs
 ($000)                  7,631        5,514      14,450       12,423
Deferred membership
 fees, net at period
 end ($000)                                      39,391       29,750
Golf members at
 period end                                      13,737       11,884

Per Common Share Data ($)
Basic and diluted
 earnings                 0.42         0.37        0.12         0.12
Basic and diluted
 cash flow from
 operations (2)           1.02         0.88        1.40         1.25
Cash dividends            0.04        0.035        0.12        0.105
Net book value at
 period end (2)                                   10.40        10.69

Common Share Data (000)
Shares outstanding
 at period end                                   17,093       17,183
Weighted average
 shares outstanding                              17,136       17,473

Third Quarter 2005 Operating Highlights

Championship golf rounds decreased 0.6% to 446,386 from 448,912 in the third quarter of 2004. The number of rounds per 18-hole golf course declined to 13,129 from 13,400 in 2004.

Operating revenue increased 1.5% to $56,488,000 from $55,629,000 in the third quarter of 2004. This increase is primarily the result of a 6.8% increase in annual dues revenue from the 1,853 additional members that have joined since September 26, 2004.

Operating expenses and costs of goods sold increased 5.1% to $34,611,000 from $32,934,000 in 2004. This is primarily due to new clubhouses at Eagle Ridge and Highland Gate Golf Clubs and the new 9 championship golf holes at Emerald Hills Golf Club, all of which opened in the second quarter of 2005. In addition, the hot and humid  weather conditions experienced during the third quarter coupled with substantial increases in the fuel costs of operating the turf equipment caused turf expenses to increase by 26.5% over 2004.

Sales and marketing costs decreased 38.3% to $794,000 from $1,286,000 in 2004 due to cost savings from a reduction in sales and marketing programs. These costs were 1.4% of operating revenue compared to 2.3% in 2004.

General and administrative expenses and provincial capital taxes increased 8.8% to $2,268,000 from $2,084,000 in 2004 and were 4.0% of operating revenue in 2005 compared to 3.7% in 2004.

Net operating income decreased 2.6% to $18,815,000 from $19,325,000 in 2004.

Total Golf Members increased 15.6% to 13,737 on October 2, 2005 from 11,884 on September 26, 2004. New membership sales during the third quarter of 2005 increased to $15,198,000 (1,668 members) from $3,961,000 (329 members) during the third quarter of 2004. This increase is due to the successful membership launches of The Board of Trade Country Club and Wyndance Golf Club. The average price of a new membership was $9,112 during the third quarter of 2005 compared to $12,040 during the third quarter in 2004. Transfer fees during the third quarter of 2005 increased to $3,982,000 from $701,000 in 2004. Resignations and terminations increased to $1,360,000 (239 members) from $249,000 (35 members) in 2004. This increase is due to terminations resulting from non-payment of annual dues and membership fee instalments which is normally processed in the fourth quarter. Membership fee instalments received in cash increased to $8,380,000 from $6,181,000 in 2004.

Direct costs of originating membership fees increased 12.3% to $749,000 from $667,000 in 2004 primarily due to increased advertising associated with the Board of Trade and Wyndance Golf Club membership campaigns. These costs were 4.9% of membership sales compared to 16.8% in 2004.

Net membership fee income increased to $2,515,000 from $1,426,000 in 2004 primarily due to the increase in members.

Earnings before interest, amortization, taxes and other increased 2.8% to $21,330,000 from $20,751,000 in 2004.

Net income increased to $7,184,000 from $6,435,000 in 2004.

Earnings per share increased to 42 cents from 37 cents in 2004.

Cash flow from operations per share increased to $1.02 from 88 cents in 2004.

Cash dividends per share increased to four cents from three and one-half cents in 2004.

Dividend

The Board of Directors has declared a dividend of 4 cents per common share payable December 15, 2005 to shareholders of record on November 30, 2005.

Normal Course Issuer Bids

On January 25, 2005, ClubLink announced a normal course issuer bid, expiring on January 26, 2006 to purchase up to 858,700 common shares of ClubLink. As of November 8, 2005, ClubLink has repurchased for cancellation 151,582common shares for an aggregate purchase price of $1,402,000 or $9.25 per share, excluding commissions. The number of common shares issued and outstanding as of November 8, 2005 is 17,074,207.

On October 6, 2005, ClubLink announced a normal course issuer bid, expiring on October 10, 2006 to purchase up to $7,138,000 principal amount of its outstanding 6% convertible unsecured subordinated debentures. As of November 8, 2005, ClubLink has repurchased for cancellation $5,000 principal amount of its debentures for an aggregate purchase price of $5,000, excluding commissions. ClubLink has $75,179,000 principal amount of its debentures outstanding as of November 8, 2005.

ClubLink is Canada's largest owner, operator and developer of golf clubs.

(1) Certain comparative amounts have been restated from those previously presented to conform to the presentation of the 2005 consolidated financial statements.

(2) Net operating income, operating margin, net membership fee income, earnings before interest, taxes, amortization and other items, cash flow from operations, cash flow from operations per share and net book value per share are not recognized measures under Canadian generally accepted accounting principles (GAAP). Management believes these measures are useful supplemental information. 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. ClubLink's method of calculating these measures is consistent from year to year, but may be different than those used by other companies.

ClubLink Corporation (TSX:LNK)