ClubLink Announces Year End Results and 25% Dividend Increase.KING CITY, Ontario King City is an affluent, unincorporated village in King Township, Ontario, Canada, located just north of Toronto. It is the largest community in King Township, with 2686 dwellings and a population of 7814. -- ClubLink Corporation (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :LNK LNK Love and Kisses LNK Lincoln, NE, USA - Municipal Airport (Airport Code) LNK Laisvas Nepriklausomas Kanalas (Lithuanian TV) LNK Linkcentre (website) ) announced operating results for the fourth quarter and year ended December 31, 2005. For the year ended December 31, 2005, operating revenue operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. increased 5.4% to $128,434,000 from $121,860,000 in 2004, and net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased 2.7% to $29,368,000 from $28,603,000 in 2004. Net membership fee income increased 30.1% to $8,069,000 from $6,201,000. Net loss decreased to $1,701,000 from $2,288,000 in 2004. Loss per share for the year ended December 31, 2005 decreased to 10 cents from 13 cents in 2004. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses per share was $1.41 compared to $1.21 in 2004.
For the For the
Quarter Ended Year Ended
December December December December
Financial Highlights 31, 2005 31, 2004 31, 2005 31, 2004
Operations
Operating revenue ($000) 20,355 20,957 128,434 121,860
Net operating income ($000) (1) 2,100 1,646 29,368 28,603
Operating margin (%) (1) 10.3 7.9 22.9 23.5
Net membership fee income
($000) (1) 2,346 1,530 8,069 6,201
EBITDA ($000) (1) 4,446 3,176 37,437 34,804
Net loss ($000) (3,723) (4,389) (1,701) (2,288)
Cash flow (deficiency) from
operations ($000) (1) 97 (797) 24,119 21,092
Membership Data
Sales and transfer fees ($000) 2,499 2,996 32,588 19,787
Sales (Golf Members) 171 179 2,517 1,296
Resignations and terminations
($000) 667 1,097 3,715 2,609
Resignations and terminations
(Golf Members) 133 174 631 371
Cash collected, net of
origination costs ($000) 2,393 2,444 16,843 14,867
Deferred membership fees, net
(at end of period) ($000) 39,438 30,664
Golf members (at end of period) 14,100 11,889
Per Common Share Data ($)
Basic and diluted loss per share (0.22) (0.25) (0.10) (0.13)
Cash flow (deficiency) from
operations per share (1) 0.01 (0.04) 1.41 1.21
Dividends per share 0.04 0.035 0.16 0.14
Net book value per share
(at end of period) (1) 10.14 10.40
Common Share Data
Common shares outstanding
(at end of period) 17,040 17,176
Weighted average common shares
outstanding 17,120 17,396
2005 Operating Highlights Operating revenue increased 5.4% to $128.4 million from $121.9 million in 2004, primarily due to a 7.2% increase in annual dues revenue attributable largely to the increase in members. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold increased 8.1% to $88.4 million in 2005 from $81.7 million in 2004. This is primarily due to new clubhouses at Eagle Ridge Eagle Ridge can have the following meanings: Places
Sales and marketing expenses decreased 31.5% to $2.3 million in 2005 from $3.4 million in 2004 due to a reduction in sales and marketing programs. These costs were 1.8% of operating revenue in 2005 and 2.8% in 2004. General and administrative expenses and provincial capital Noun 1. provincial capital - the capital city of a province capital - a seat of government city, metropolis, urban center - a large and densely populated urban area; may include several independent administrative districts; "Ancient Troy was a great city" taxes increased 3.1% to $8.4 million in 2005 from $8.2 million in 2004. These costs were 6.5% of operating revenue in 2005 compared to 6.7% in 2004. Net operating income increased 2.7% to $29.4 million in 2005 from $28.6 million in 2004. The operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: decreased to 22.9% in 2005 from 23.5% in 2004. Total Golf Members increased 18.6% to 14,100 on December 31, 2005 from 11,889 on December 31, 2004. Membership sales increased to $25.9 million (2,517 members) from $16.3 million (1,296 members) in 2004. The average price of a new membership was $10,282 compared to $12,580 in 2004 due to the special introductory pricing offered to existing Country Club members of $5,000. Transfer fees generated by existing members increased to $6.7 million from $3.5 million in 2004 primarily due to successful membership campaigns for the Country Club and Wyndance Golf Clubs which resulted in transfers and upgrades from existing members. Resignations and terminations increased to $3.7 million (631 members) from $2.6 million (371 members) in 2004. Resignations increased to 5.3% of total members at the beginning of 2005 from 3.4% of total members at the beginning of 2004. Membership fee installments received in cash increased to $18.9 million from $16.5 million. Net membership fee income increased 30.1% to $8.1 million in 2005 from $6.2 million in 2004 due to the addition of 2,211 members since December 31, 2004. Earnings before interest, taxes, amortization and other increased 7.6% to $37.4 million from $34.8 million in 2004. Dividend The Board of Directors has declared a dividend of 5 cents per common share payable April 17, 2006 to shareholders of record on March 31, 2006. Normal Course Issuer Bids On January 27, 2006, ClubLink announced a normal course issuer bid, expiring on January 30, 2007 to purchase up to 851,700 common shares of ClubLink. As of February 28, 2006, ClubLink has not repurchased any common shares for cancellation under this bid. The number of common shares issued and outstanding is 17,035,807. 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 6% convertible unsecured subordinated debentures subordinated debenture An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before . As of February 28, 2006, ClubLink has purchased for cancellation $92,000 principal amount of its debentures for an aggregate purchase price of $91,080 excluding commissions. The principal amount of convertible debentures Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. outstanding is $75,092,000. 6% Convertible Debenture Redemption On February 7, 2006, ClubLink Corporation announced that it will redeem $65,000,000 of outstanding 6% convertible unsecured subordinated debentures due May 15, 2008 on March 14, 2006 at par plus accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. of $19.56 per $1,000 principal amount. ClubLink is Canada's largest owner, operator and developer of golf clubs. (1) Net operating income, operating margin, net membership fee income, earnings before interest, taxes, amortization and other, cash flow (deficiency) from operations, cash flow (deficiency) from operations per share and net book value per share are not recognized measures under Canadian generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ). Management believes that 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. The Company'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) |
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