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Canlan Reports Stronger Earnings for Q1 2022

By: Newsfile

Burnaby, British Columbia--(Newsfile Corp. - May 13, 2022) - Canlan Ice Sports Corp. (TSX: ICE) (the "Corporation") today reported its financial results for the first quarter ended March 31, 2022.

Overview of Q1 2022

  • While Ontario operations were interrupted in January as a result of COVID-19 public health orders, business activity quickly resumed on January 30th and since then, all facilities have been in full operation;

  • Operating revenue was $18.9 million compared to $5.1 million a year ago;

  • Operating earnings was $4.9 million compared to an operating loss of $0.4 million in 2021;

  • Net earnings was $2.1 million compared to a net loss of $2.1 million a year ago;

  • At quarter-end, cash-on-hand totaled $11.7 million with an additional $10.0 million available by way of the revolving credit facility; a much stronger liquidity position when compared to Q1 2021;

  • On April 8, 2022, the Company agreed to early-terminate a lease of a sports complex for consideration of $4.5 million. The Company will continue to operate this facility until August 31, 2022; and

  • On May 4, 2022, the Company completed a one-year extension of the term of debt facilities that originally were set to mature on May 25, 2023 with substantially the same provisions as those currently in place.

First Quarter Results

For the 3 months ended March 31 
(in thousands)

Ice rink & recreational facilities revenue$18,948
Other income - government subsidy

Operating expenses



G&A expense

Operating earnings 1$4,854

Operating earnings per share$0.36



Mark-to-market gain on held-for-trading financial liabilities
Loss (gain) on foreign exchange

Gain on sale of assets

Income tax expense (recovery)

Net earnings (loss) $2,117

Net earnings (loss) per share$0.16


Key Balance Sheet Figures (in thousands):
March 31, 2022

December 31, 2021 

Property plant and equipment


Other assets

Total assets$114,166
Liabilities and Equity

Lease liabilities

Accounts payable and accrued liabilities

Deferred revenue

Other liabilities

Total liabilities

Share capital and contributed surplus



Foreign currency translation reserve 1,351
Total shareholders' equity

Total liabilities and equity$114,166


First Quarter Results
(three months ended March 31, 2022 compared with three months ended March 31, 2021)

  • Despite having to suspend Ontario operations in January, total Q1 operating revenue reached $18.9 million compared to $5.1 million a year ago;

  • Operating at about 50% to 60% of normal capacity, total revenue from restaurants and sports stores were $2.0 million compared to virtually no sales in 2021;

  • Total operating expenses of $12.5 million increased by $6.0 million due to resumption of operations in Q1 2022;

  • G&A expenses of $1.6 million increased by $0.2 million or 16.6% mainly due to the centralization of our sales and customer service team members; and

  • After recording depreciation expense of $2.0 million, finance costs of $0.5 million, a gain on an interest rate swap contract of $0.3 million, and income tax expense of $0.5 million, net earnings for the period was $2.1 million or $0.16 earnings per share compared to a net loss of $2.1 million or $0.16 loss per shares.

Update on Current Operations

In January 2022, COVID-19 health restrictions in various provinces again resulted in reduced and/or suspended business activities for a brief period of approximately three weeks. Subsequent to the lifting of these restrictions, operations have resumed without interruption and as at the date of this release, the Company has returned to full capacity at all of its sports complexes.

"Despite fiscal 2022 beginning with a minor set-back in having to suspend Ontario operations in January, our team still managed to achieve our overall targets for the quarter by staying nimble with operations and effectively managing costs as required," said Joey St-Aubin, Canlan's CEO. "So far, rental bookings and registrations for most of our leagues and tournaments have reached or are near expectations and our sales team continues to work hard at increasing surface utilization. Coming off the COVID-19 Omicron wave, it has been hard work to complete our fall/winter seasons and get registrations back on track but our team has done an outstanding job so far as evidenced in our Q1 financial results."

"In addition, we have begun some major maintenance projects that were deferred from the past 24 months to ensure that our facilities remain at the high standards that our customers expect," added Canlan's CFO, Ivan Wu. "Projects to improve and/or renew our dressing rooms, turf-fields, and ice-surfacing equipment are anticipated to have positive impacts for our customers on and off the playing surfaces."

Dividend Policy

Given measures implemented by management to preserve cash balances, combined with the austerity that was asked of our employees, directors, 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 the resumption of full business operations.


Canlan's financial statements and Management's Discussion & Analysis for the quarter ended March 31, 2022 will be available via SEDAR on or before May 15, 2022 and through the Company's website,

About Canlan

Canlan Ice Sports Corp. (operating as Canlan Sports) is the North American leader in the ownership, operations and programming of multi-purpose recreation and entertainment facilities. We currently own, lease and/or manage 18 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

1 Operating earnings (loss) is defined as earnings (loss) after general and administrative expenses and before interest, depreciation, foreign currency exchange, gain (loss) on assets sold and income tax. However, operating earnings is not a term that has specific meaning in accordance with IFRS, and may be calculated differently by other companies. Canlan reconciles operating earnings to its net earnings.

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

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