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Canlan Reports Q2 Results Amid Restart of Operations

By: Newsfile

Burnaby, British Columbia--(Newsfile Corp. - August 13, 2021) - Canlan Ice Sports Corp. (TSX: ICE) (the "Corporation") today reported its financial results for the second quarter ended June 30, 2021.

Overview - Quarter Ended June 30, 2021

  • Generated revenue of $3.6 million compared to $0.8 million in 2020 as health restrictions were lifted in U.S. facilities for the quarter and began easing in western Canada in May. Ontario and Manitoba facilities remained virtually closed during Q2;

  • Loss before interest, depreciation and tax was reduced to $1.4 million compared to a loss of $4.9 million last year; and

  • On April 30, 2021, the Company entered into an agreement with the Village of Libertyville (a Chicagoland suburb) to lease and operate a non-ice 169,000 sq. ft. sports complex that contains two boarded turf fields, nine sport courts, a fitness center, rock-climbing, concession, and an outdoor baseball diamond (called Canlan Sports Libertyville). The lease agreement commenced on July 1, 2021.

Three Months and Six Months Ended June 30, 2021 Results

For the 3 months ended June 30
  For the 6 months ended June 30 
 (in thousands)



Ice rink & recreational facilities revenue$3,610
Other income - government subsidy



Operating expense


G&A expense
EBITDA per share
Mark-to-market gain (loss) on held for trading financial liabilities


Gain (loss) on foreign exchange

Gain on sale of assets



Income tax recovery



Net loss
Net loss per share


Key Balance Sheet Figures (in thousands):


June 30, 2021

December 31, 2020 

     Cash and cash equivalents$4,589
     Property plant and equipment

     Assets held-for-sale


     Other assets

Total assets$114,682
Liabilities and Equity

     Interest bearing debt$60,318
     Accounts payable and accrued liabilities

     Deferred revenue

     Other liabilities

Total liabilities

     Share capital and contributed surplus  63,652
     Foreign currency translation reserve

Total shareholders' equity

Total liabilities and equity$114,682


Second Quarter Results

(three months ended June 30, 2021 compared with three months ended June 30, 2020)

  • Operating restrictions related to the pandemic continued to impact the business; however facility operations in B.C. and Saskatchewan were opened for surface rentals, and limited instructional programs during the quarter;

  • Manitoba and Ontario facilities remained virtually closed until the latter half of June while the Company's three Illinois facilities operated at normal surface capacity;

  • While this level of operations still represents only about 15% to 20% of normal business activity, it was a significant increase compared to 2020 as total revenue for the quarter was $3.6 million compared to $0.8 million a year ago;

  • The Company continued to qualify for the Canada Emergency Wage (CEWS) and Canada Emergency Rent (CERS) subsidies. Income from subsidies totaled $2.3 million compared to $1.4 million in 2020;

  • Total operating costs of $5.9 million increased by $0.1 million or 2.1% compared to prior year. While labour and utilities expenses increased due to incremental business activity, savings were achieved in repair and maintenance and customer-service-related expenses as costs related to establishing health and safety protocols were completed last year;

  • General and administration (G&A) expenses of $1.3 million remained consistent with 2020;

  • Operating loss from operations was $1.4 million for the quarter ended June 30, 2021 compared to a loss of $4.9 million a year ago; and

  • After recording $1.3 million related to depreciation, finance costs, income tax recoveries and other miscellaneous items, net loss for the period was $2.6 million compared to $5.8 million in 2020.

Six Months Ended June 30, 2021 Results

(six months ended June 30, 2021 compared with six months ended June 30, 2020)

  • Total revenue of $8.7 million decreased by $13.0 million or 60.0% compared to 2020. In 2020, the Company experienced normal course facility operations during most of Q1, a seasonally strong quarter for the Company. Facility closures did not occur until the second half of March 2020 due to the pandemic;

  • In 2021, health restrictions significantly hampered operations for most of Q1 and continued to keep Manitoba and Ontario facilities closed for most of Q2. However, U.S. operations fully resumed in Q2 while western Canada reopened for limited operations midway through the second quarter;

  • Applications for CEWS and CERS amounted to $4.7 million for the period;

  • Total operating costs of $12.4 million decreased by $8.2 million or 39.7% compared to 2020;

  • G&A costs of $2.7 million remained consistent with prior year;

  • Operating loss before interest, depreciation and taxes was $1.7 million compared to a loss of $0.1 million in 2020; and

  • After recording $3.0 million related to depreciation, finance costs, income tax recoveries, and miscellaneous items, net loss of $4.7 million or $0.36 a share, which was consistent with prior year.

Managing the Effects of COVID-19 Pandemic

The Company continues to manage the repercussions from the COVID-19 pandemic that has significantly reduced business activity in the Company's recreation facilities since March 2020. Measures taken to preserve liquidity and maintain the Company's resilience during this period include:

  • reduction of labour and other operating costs;
  • application for government subsidies;
  • establishing processed to quickly adapt to changing health and safety regulations to enable facilities to operate whenever possible; and
  • collaboration with the Company's senior lenders to enable the Company to access additional credit facilities if required.

The extent of the impact of the pandemic will vary depending on the duration of health restrictions, and the general economic activity in Canada and the United States and the pace of recovery following the pandemic cannot be accurately predicted at this time.

"Seeing our facilities in the U.S. and western Canada begin to operate again during Q2 was very satisfying. And in recent weeks, we've also re-opened Manitoba and Ontario facilities to service our communities in a meaningful way. We hope this can be sustained as the health situation continues to improve in all regions," said Canlan's CEO, Joey St-Aubin. "The exciting programs and leagues that the team has put together in such a tight timeline with differing regulations in every jurisdiction was complex. This would not have been possible without the collective efforts of all team members coast to coast. We look forward to seeing everyone playing again in all our facilities and experiencing some of the new collaborations we recently announced such as LiveBarn and theScore."

"The restart of facility operations has sparked new energy in all our team members, enabled us to meet the resurging demand for recreation for all ages, and financially, it has helped stabilize cashflows and enabled us to focus more on how to re-engage with our users and enhance customer experience," added Canlan's CFO, Ivan Wu.

Dividend Policy

Given steps implemented by management to preserve cash balances, combined with the austerity being asked of our employees, our customers, our suppliers and our financial partners, Canlan's Board of Directors suspended the payment of dividends on March 24, 2020 and will continue to do so until further notice. Canlan's Board of Directors reviews the Corporation's dividend policy on a quarterly basis and will continue to monitor this situation and respond accordingly as we work towards plans for the resumption of business operations.


Canlan's financial statements and Management's Discussion & Analysis for the period ended June 30, 2021 will be available via SEDAR on or before August 13, 2021 and through the Company's website,

About Canlan

Canlan Ice Sports Corp. is the North American leader in the development, operations and ownership of multi-purpose recreation and entertainment facilities. We are the largest private sector owner and operator of recreation facilities in North America and currently own, lease and/or manage 19 facilities in Canada and the United States with 49 ice surfaces, as well as seven indoor soccer fields, and 24 sport, volleyball, and basketball courts. To learn more about Canlan please visit

Canlan Ice Sports Corp. is listed on the Toronto Stock Exchange under the symbol "ICE."

Caution concerning forward-looking statements

Certain statements in this News Release may constitute ''forward looking'' statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. When used in this News Release, such statements may use such words as ''may'', ''will'', ''expect'', ''believe'', ''plan'' and other similar terminology. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this News Release. These forward looking statements involve a number of risks and uncertainties. Some of the factors that could cause actual results to differ materially from those expressed in or underlying such forward looking statements are the effects of, as well as changes in: international, national and local business and economic conditions; political or economic instability in the Corporation's markets; competition; legislation and governmental regulation; and accounting policies and practices. The foregoing list of factors is not exhaustive.

For more information:
Canlan Ice Sports Corp.
Ivan Wu
604 736 9152

Earnings before interest, taxes, depreciation and amortization (EBITDA) is often used as a measure of financial performance. However, EBITDA is not a term that has specific meaning in accordance with IFRS and may be calculated differently by other companies. EBITDA with negative dollar amounts represents loss before interest, taxes, depreciation and amortization.

To view the source version of this press release, please visit

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