ClubLink Corporation Announces First Quarter 2001 Results; -Conference Call on May 17, 2001, 10 a.m. EDT-.Business Editors KING CITY, Ontario--(BUSINESS WIRE)--May 15, 2001 ClubLink Corporation (ClubLink) announced today its results for the quarter ended April 1, 2001. Revenue of $8,409,000 increased 1% from $8,291,000 in the first quarter of 2000. Net loss of $2,824,000 or 18 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , compares to a net loss of $1,110,000 or 9 cents per share for the first quarter of 2000. Cash deficiency A shortage or insufficiency. The amount by which federal Income Tax due exceeds the amount reported by the taxpayer on his or her return; also, the amount owed by a taxpayer who has not filed a return. from operations for 2001 was $1,589,000 or 8 cents per share, compared to $167,000 or 1 cent per share in 2000. On a same club basis, ClubLink realized a 9% increase in revenue and a 46% increase in club contribution from its Member Clubs. On its Daily Fee clubs, revenue declined 45% as a result of the unusually early March opening of our clubs in 2000, while club contribution declined 19%. Both Member and Daily Fee clubs benefited from a significant reduction in same club labour of 11% and 18% respectively, partially offset by increased costs of utilities and other expenses. Bruce S Bruce, Scottish royal family descended from an 11th-century Norman duke, Robert de Brus. He aided William I in his conquest of England (1066) and was given lands in England. . Simmonds Simmonds is a surname, and may refer to
Mr. Simmonds further stated; "ClubLink is experiencing strong comparative bookings year to date through April 29, 2001, in each of its key operating segments. Membership sales are up 15%, golf event bookings up 5%, rooms bookings up 13% and non-golf functions up 10%."
For the Quarter Ended
(000's except per share amounts April 1, April 2,
and weighted average shares) 2001 2000
Revenue $ 8,409 $ 8,291
EBITDA (922) (757)
Net loss (2,824) (1,110)
Cash flow from operations (1,589) (167)
Loss per share ($ 0.18) ($0.09)
Cash deficiency per share (0.08) (0.01)
Weighted average shares outstanding 20,243,026 21,813,708
ClubLink's net book value per common share Book Value Per Common Share A measure used by owners of common shares in a firm to determine the level of safety associated with each individual share after all debts are paid accordingly. Formula: was $10.16 at April 1, 2001, with 20,159,238 common shares outstanding. ClubLink finished the quarter in a strong financial position, with working capital of $25 million, excluding prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. annual dues and deposits, plus unutilized
lines of credit exceeding $24 million.
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. in the first quarter of 2001 consists primarily of annual dues, non-golf functions at our clubhouses and resort revenue. During the first quarter of 2000, ClubLink had 9 of 13 Daily Fee golf courses open for play. In 2001, the first Daily Fee golf course opened for play on April 7, 2001. During the first quarter of 2000 ClubLink had 5.5 of 17.5 Member Golf Courses open for play. In 2001, the first Member golf course opened for play on April 12, 2001. 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. in the first quarter of 2001 include a full quarter of costs at Rocky Crest and King's Riding Golf Clubs, which opened for play on May 31, 2000, and Greenhills
Total membership sales for the first quarter of 2001, increased 8.9% to $2,219,000 from $2,038,000 last year. The number of active golf members increased 29% to 5,015 from 3,915 at March 31, 2000.
For the Quarter Ended
April 1, 2001 April 2, 2000
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Active Golf Active Golf
(Thousands of Dollars) Members Amount Members Amount
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Balance, beginning of quarter 4,944 $24,820 3,887 $20,157
Sales 133 2,219 96 2,038
Resignations (27) (178) (40) (241)
Category transfers (35) - (28) -
Cash received - (2,282) - (2,627)
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Balance, end of quarter 5,015 24,579 3,915 19,327
Less: current portion 7,975 7,434
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$16,604 $11,893
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Marketing and membership sales costs decreased 11.4% to $749,000 from $845,000 in 2000. These costs declined as a percentage of revenue to 8.9% from 10.2%. Gross general and administrative expenses decreased 18.9% to $1,866,000 from $2,301,000 and capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. general and administrative expenses declined 47.2% to $254,000 from $481,000. Amortization of capital assets capital assets n. equipment, property, and funds owned by a business. (See: capital, capital account) increased 25.9% to $2,317,000 from $1,840,000 from the same period in 2000 principally due to a full year of amortization for Rocky Crest, King's Riding, and Greenhills Golf Clubs. Gross interest expense increased 7.4% to $2,929,000 from $2,726,000 as a result of higher floating rates on a quarter over quarter basis. Interest capitalized to development projects has declined 8.3% to $1,060,000 from $1,156,000 last year. Interest income declined 78.6% to $361,000 from $1,690,000. This decline results primarily from the repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. Cdn$32,500,000 GolfSouth loans in the first quarter of 2000 as shown below.
For the Quarter Ended
April 1, April 2,
(Thousands of Dollars) 2001 2000
------------------------------------------------------------
GolfSouth Holdings LLC and
related entities $- $1,250
Loans receivable and other 125 108
Membership fees 122 131
Member accounts 80 70
Excess funds 34 131
------------------------------------------------------------
$361 $1,690
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Other income has resulted in a negative variance on a
year-over-year comparison as shown below.
For the Quarter Ended
April 1, April 2,
(Thousands of Dollars) 2001 2000
------------------------------------------------------------
Gain on sale of marketable securities $- $39
Amortization of US organizational costs - (129)
Gain on foreign exchange - 505
Gain on sale of capital assets - 375
------------------------------------------------------------
$- $790
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Corporate Initiatives On May 7, 2001, ClubLink closed the sale of the Glen Abbey abbey, monastic house, especially among Benedictines and Cistercians, consisting of not less than 12 monks or nuns ruled by an abbot or abbess. Many abbeys were originally self-supporting. In the Benedictine expansion after the 8th cent. Conference Centre site for consideration of $7,500,000. ClubLink received $7,000,000 in cash and the remaining $500,000 will be received as the remaining contract obligations are fulfilled ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. . The majority of these obligations will be fulfilled during 2001. The Delta Glen Abbey Conference Centre will commence construction in September September: see month. 2001 and is projected to be open in May 2003. 2001 revenue and 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. will include The Mark O'Meara Mark Francis O'Meara (born January 13, 1957) is a professional golfer who was a prolific tournament winner on the PGA Tour and around the world from the mid 1980s to the late 1990s. In 2007 he entered his first season on the Champions Tour. Course at Grandview Grandview, city (1990 pop. 24,967), Jackson co., W Mo., S of Kansas City; inc. 1912. Hardware, chemicals, transportation equipment, apparel, steel, processed foods, and machinery are manufactured in the city. in Muskoka, Ontario Ontario, city, United States Ontario, city (1990 pop. 133,179), San Bernardino co., S Calif., near Los Angeles, in a region of vineyards; inc. 1891. , Le Maitre at Mont Tremblant, Quebec Quebec, city, Canada Quebec, Fr. Québec, city (1991 pop. 167,517), provincial capital, S Que., Canada, at the confluence of the St. Lawrence and St. Charles rivers. , and a second 18-hole golf course at Les Quatres Domaines in Montreal Montreal (mŏn'trēôl`), Fr. Montréal (môNrāäl`), city (1991 pop. 1,017,666), S Que., Canada, on Montreal island, surrounded by St. Lawrence River and Rivière des Prairies. , Quebec, all of which are expected to open for play May 31, 2001. On September 29, 2000, ClubLink announced a normal course issuer bid to purchase up to 1,040,541 common shares of ClubLink, commencing October October: see month. 5, 2000. As of May 14, 2001, ClubLink has repurchased for cancellation cancellation (See: cancel) CANCELLATION. Its general acceptation, is the act of crossing a writing; it is used sometimes to signify the manual operation of tearing or destroying the instrument itself. Hyde v. Hyde, 1 Eq. Cas. Abr. 409; Rob. 758,900 shares for an aggregate purchase price of $4,592,000 excluding commissions or $6.05 per share. Since ClubLink's February February: see month. 27, 2001 press release, ClubLink has repurchased for cancellation 168,200 shares for an aggregate purchase price of $893,000 excluding commissions or $5.31 per share. As of May 14, 2001, ClubLink has 20,051,938 common shares outstanding. On August 3, 2000, ClubLink announced a normal course issuer bid to purchase up to $8,445,000 principal amount of its outstanding 6% convertible unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. 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 commencing August 8, 2000. As of May 14, 2001, ClubLink has repurchased for cancellation $2,484,000 principal amount for an aggregate purchase price of $1,620,000 excluding commissions or $65.20 per $100 principal amount of debenture debenture (dəbĕn`chər), document acknowledging indebtedness. In Great Britain a debenture is practically the same as a bond, and debenture stock is similar to preferred stock. . Since ClubLink's February 27, 2001 press release, ClubLink has repurchased for cancellation $601,000 principal amount for an aggregate purchase price of $377,000 excluding commission or $62.70 per $100 principal amount of debenture. As of May 14, 2001, the outstanding balance of 6% debentures is $83,577,000. Attached to this press release are the Consolidated Balance Sheets consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. , Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: Statements of Income and Consolidated Statements of Cash Flows. There will be a conference call on Thursday Thursday: see week. , May 17 at 10 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT to discuss the first quarter 2001 results. Mr. Bruce Simmonds, President and CEO and Mr. Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. Visentin, Chief Financial Officer will be available to answer questions. To participate in the call, please call 888-774-1632. If you are unable to participate in the call or wish to review it, a recording will be available until June June: see month. 18 at midnight. To listen to the recorded call, please call 416-626-4100. You will be asked for a code; the number is 1-888-2371. A transcript A generic term for any kind of copy, particularly an official or certified representation of the record of what took place in a court during a trial or other legal proceeding. A transcript of record of the call will be available on May 18. For a copy, please e-mail nbormann@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 a·men·i·ty n. pl. a·men·i·ties 1. The quality of being pleasant or attractive; agreeableness. 2. Something that contributes to physical or material comfort. 3. .
Mr. Robert Visentin Mr. Bruce Simmonds
Chief Financial Officer President & CEO
rvisentin@clublink.ca bsimmonds@clublink.ca
(905)-841-5360 905-841-3730
ClubLink Corporation
15675 Dufferin Street
King City, Ontario, L7B 1K5
Telephone: (905) 841-3730
Facsimile: (905) 841-1134
Web Site: www.clublink.ca
CONSOLIDATED STATEMENTS OF CASH FLOWS (thousands of dollars -
except per share information) (unaudited)
FOR THE QUARTER ENDED
APRIL 1, APRIL 2,
2001 2000
OPERATING ACTIVITIES
Net loss $ (2,824) $ (1,110)
Add (less) items not involving cash:
Amortization of capital assets 2,317 1,840
Amortization of deferred charges 172 278
Gain on sale of capital assets - (375)
Amortization of US organizational costs - 129
Future income taxes (470) (171)
Amortization of deferred debenture interest 52 46
Debenture interest - equity portion (836) (804)
Cash flow from operations (1,589) (167)
-------- --------
Accounts receivable 170 3,237
Inventories and prepaid expenses (1,237) (1,147)
Accounts payable and accrued liabilities (5,140) (2,900)
Prepaid annual dues and deposits 13,526 9,574
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES 5,730 8,597
-------- --------
INVESTING ACTIVITIES
Capital assets (9,062) (17,379)
Loans receivable 83 32,858
Long-term investments - (4,154)
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES (8,979) 11,325
-------- --------
FINANCING ACTIVITIES
Bank indebtedness 1,099 -
Long-term debt financings 415 2,837
Long-term debt repayments (890) (612)
Capital lease obligations, net 616 1,320
Other long-term liabilities (81) (51)
Convertible debentures (39) 146
Common share issues - 797
Common share repurchases (1,129) (1,757)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES (9) 2,680
-------- --------
NET (DECREASE) INCREASE IN CASH DURING
THE QUARTER (3,258) 22,602
CASH, BEGINNING OF QUARTER 5,465 15,081
-------- --------
CASH, END OF QUARTER $ 2,207 $ 37,683
======== ========
CASH DEFICIENCY PER SHARE $ (0.08) $ (0.01)
======== ========
CONSOLIDATED BALANCE SHEETS
(thousands of dollars)
(unaudited)
APRIL 1, DECEMBER 31,
ASSETS 2001 2000
Current assets
Cash $ 2,207 $ 5,465
Accounts receivable 2,172 2,342
Inventories and prepaid expenses 4,142 2,905
Membership fees receivable 7,975 8,178
Loans receivable 1,446 1,527
Capital assets held for sale 34,173 33,066
--------- -----------
52,115 53,483
Membership fees receivable 16,604 16,642
Loans receivable 15,538 15,540
Long-term investments 11,231 11,231
Capital assets 394,324 388,686
Deferred charges 3,820 4,050
--------- -----------
$ 493,632 $ 489,632
========= ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Bank indebtedness $ 1,099 $ -
Accounts payable and accrued
liabilities 5,284 10,424
Long-term debt 7,923 7,710
Capital lease obligations 4,836 4,932
Deferred membership fees 7,975 8,178
Prepaid annual dues and deposits 17,892 4,366
--------- -----------
45,009 35,610
Long-term debt 111,524 112,212
Capital lease obligations 13,157 12,445
Other long-term liabilities 2,650 2,731
Deferred membership fees 16,604 16,642
Convertible debentures 2,016 1,977
Future income taxes 5,338 5,808
--------- -----------
196,298 187,425
--------- -----------
Shareholders' equity
Convertible debentures 92,497 92,575
Share capital 188,402 189,537
Retained earnings 16,435 20,095
--------- -----------
297,334 302,207
--------- -----------
$ 493,632 $ 489,632
========= ===========
Common shares outstanding 20,159,238 20,364,263
========= ===========
Net book value per share $ 10.16 $ 10.29
========= ===========
CONSOLIDATED STATEMENTS OF LOSS
(thousands of dollars - except per share information)
(unaudited)
FOR THE QUARTER ENDED
APRIL 1, APRIL 2,
2001 2000
REVENUE
Operating $ 6,127 $ 5,664
Membership fees 2,282 2,627
--------- -----------
8,409 8,291
--------- -----------
EXPENSES
Cost of goods sold 327 255
Operating 6,349 5,892
Marketing and membership sales 749 845
General and administrative 1,630 1,820
Provincial capital taxes 276 236
--------- -----------
9,331 9,048
--------- -----------
LOSS BEFORE AMORTIZATION,
INTEREST, OTHER AND TAXES (922) (757)
--------- -----------
AMORTIZATION OF CAPITAL ASSETS 2,317 1,840
AMORTIZATION OF DEFERRED CHARGES 172 278
INTEREST EXPENSE 1,869 1,570
INTEREST INCOME (361) (1,690)
OTHER INCOME - (790)
--------- -----------
3,997 1,208
--------- -----------
LOSS BEFORE INCOME TAXES (4,919) (1,965)
--------- -----------
INCOME TAX RECOVERY
Current (1,625) (684)
Future (470) (171)
--------- -----------
(2,095) (855)
--------- -----------
NET LOSS (2,824) (1,110)
CONVERTIBLE DEBENTURE INTEREST,
NET OF TAX OF $607,000 (2000 - $656,000) (836) (804)
--------- -----------
LOSS AVAILABLE TO COMMON SHAREHOLDERS (3,660) (1,914)
RETAINED EARNINGS, BEGINNING OF YEAR 20,095 16,331
--------- -----------
RETAINED EARNINGS, END OF QUARTER $ 16,435 $ 14,417
========= ===========
Weighted average common shares
outstanding 20,243,026 21,813,708
========= ===========
Basic loss per share $ (0.18) $ (0.09)
========= ===========
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