TWC:CC - TWC Enterprises Limited Announces First Quarter 2023 Results and Eligible Dividend

April, 27 2023 05:40 PM Twc Enterprises Limited

KING CITY, Ontario, April 27, 2023 (GLOBE NEWSWIRE) --

Consolidated Financial Highlights (unaudited)

(in thousands of dollars except per share amounts)
Three months ended
March 31, 2023
March 31, 2022
Net loss
(8,051
)
(1,093
)
Basic and diluted loss per share
(0.33
)
(0.04
)

Operating Data

Three months ended

March 31,
2023

March 31,
2022

Canadian Full Privilege Golf Members

15,034

15,302

Championship rounds – Canada

18-hole equivalent championship golf courses – Canada

35.5

37.5

18-hole equivalent managed championship golf courses – Canada

2.0

2.0

Championship rounds – U.S.

135,000

112,000

18-hole equivalent championship golf courses – U.S.

8.0

8.0

The following is an analysis of net loss:



For the three months ended

(thousands of Canadian dollars)

March 31, 2023
March 31, 2022






Operating revenue

$
26,510

$
37,932


Direct operating expenses ⁽¹⁾


21,139


32,954







Net operating income ⁽¹⁾


5,371


4,978







Amortization of membership fees


976


939







Depreciation and amortization


(3,462
)

(4,424
)






Interest, net and investment income


2,080


276







Unrealized loss on investment in marketable securities

(13,558
)

(2,819
)






Other items


(190
)

249







Income taxes


732


(292
)






Net loss

$
(8,051
)
$
(1,093
)

At March 31, 2023, the Company recorded unrealized losses of $13,558,000 on its investment in marketable securities (March 31, 2022 - $2,819,000). This loss is attributable to the fair market value adjustments of the Company's investment in Automotive Properties REIT.

The following is a breakdown of net operating income (loss) by segment:



For the three months ended

(thousands of Canadian dollars)

March 31, 2023
March 31, 2022






Net operating income (loss) by segment




Canadian golf club operations

$
2,852

$
3,908


US golf club operations




(2023 - US $2,940,000; 2022 - US $2,436,000)


3,237


3,084


Corporate operations and other


(718
)

(2,014
)











Net operating income ⁽¹⁾

$
5,371

$
4,978

Operating revenue is calculated as follows:



For the three months ended

(thousands of Canadian dollars)

March 31, 2023
March 31, 2022






Annual dues

$
16,910
$
16,802

Golf


6,521

5,838

Corporate events


26

24

Food and beverage


1,428

943

Merchandise


1,392

1,220

Real estate sales


-

12,774

Rooms and other


233

331








$
26,510
$
37,932

Direct operating expenses are calculated as follows:

For the three months ended

(thousands of Canadian dollars)

March 31, 2023

March 31, 2022

Operating cost of sales

1,545

1,328

Real estate cost of sales

14,024

Labour and employee benefits

9,560

8,676

Utilities

1,737

1,674

Selling, general and administrative expenses

1,485

1,424

Property taxes

1,851

1,640

Repairs and maintenance

1,075

878

Insurance

1,331

1,070

Turf operating expenses

307

250

Fuel and oil

138

114

Other operating expenses

2,110

1,876

Direct Operating Expenses ⁽¹⁾

21,139

32,954

⁽¹⁾ Please see Non-IFRS Measures on following page

First Quarter 2023 Consolidated Operating Highlight s

Operating revenue decreased 30.1% to $26,510,000 for the three month period ended March 31, 2023 from $37,932,000 in 2022 due to the revenue from the eight Highland Gate home sales in 2022.

Direct operating expenses decreased 35.9% to $21,139,000 for the three month period ended March 31, 2023 from $32,954,000 in 2022 due to the cost of sales from the eight Highland Gate home sales in 2022.

Net operating income for the Canadian golf club operations segment decreased to $2,852,000 for the three month period ended March 31, 2023 from $3,908,000 in 2022 due to increased operating expenses from both inflation and timing of expenditure.

Interest, net and investment income increased to income of $2,080,000 for the three month period ended March 31, 2023 from $276,000 in 2022 due to a decrease in borrowings and an increase in distributions from the Company’s investment in Automotive Properties REIT.

Other items consist of the following income (loss) items:



For the three months ended
(thousands of Canadian dollars)

March 31, 2023
March 31, 2022




Foreign exchange gain (loss)

$
78

$
(83
)
Unrealized loss on investment in marketable securities

(13,558
)

(2,819
)
Equity income (loss) from investments in joint ventures

(480
)

197

Other


212


135





Other items

$
(13,748
)
$
(2,570
)

The exchange rate used for translating US denominated assets has changed from 1.3544 at December 31, 2022 to 1.3533 at March 31, 2023. This has resulted in a foreign exchange gain of $78,000 for the three month period ended March 31, 2023 on the translation of the Company’s US denominated financial instruments.

Net loss in the amount of $8,051,000 for the three month period ended March 31, 2023 changed from $1,093,000 in 2022 due to an unrealized loss on the Company’s investment in Automotive Properties REIT. Basic and diluted loss per share decreased to $0.33 cents per share in 2023, compared to basic and diluted loss per share of $0.04 cents in 2022.

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 5 cents per common share to be paid on June 15, 2023 to shareholders of record as at May 31, 2023.

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 two managed properties) at 35 locations in Ontario, Quebec and Florida.

For further information please contact:

Andrew Tamlin
Chief Financial Officer
15675 Dufferin Street
King City, Ontario L7B 1K5
Tel: 905-841-5372 Fax: 905-841-8488
atamlin@clublink.ca

Management’s discussion and analysis, financial statements and other disclosure information relating to the Company is available through SEDAR and at www.sed ar.com and on the Company website at www.twcenterprises.ca

Company Name:	Twc Enterprises Limited
Stock Symbol:	TWC:CC
Market:	TSXC
Website:	twcenterprises.ca

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