Canlan Reports 2020 Results & Continues Limited Operations

March 25, 2021 6:02 AM EDT

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Burnaby, British Columbia--(Newsfile Corp. - March 25, 2021) - Canlan Ice Sports Corp. (TSX: ICE) (the "Corporation") today reported its financial results for the year ended December 31, 2020.

Overview of Year Ended December 31, 2020

  • Cash on-hand at December 31, 2020 was $7.5 million with additional access to working capital credit lines of $10.0 million;

  • As a result of the COVID-19 pandemic that forced total facility closures from March to June 2020, and continues to limit the Company's operations, revenue for the year was $39.3 million compared to $88.3 million a year ago and EBITDA was $0.9 million compared to $13.2 million;

  • Since facilities resumed partial operations during the week of June 15, 2020, the Company has implemented a comprehensive exposure control plan to help prevent COVID-19 outbreaks from occurring within our facilities;

  • The sale of a parcel of surplus land was closed during the year and a note receivable related to the sale of an ice rink facility that closed in 2019 was collected. These transactions resulted in cash inflows of $4.9 million; and

  • The Company has worked with its senior lenders to make available operating credit facilities and debt covenant adjustments with the objective of establishing a reasonable financial runway to help mitigate the effects of the COVID-19 pandemic.

Managing the Effects of COVID-19 Pandemic

The outbreak of Coronavirus (COVID-19) resulted in a temporary closure of the Company's recreation facilities as at the end of business day March 13, 2020. Since that date, the Company has been managing the business impact of facility closures and restrictions and changes to business operations in a new environment. During the week of June 15, 2020, the Company resumed facility operations on a limited capacity. Since then, activity levels have fluctuated from being closed to approximately 50% of normal business levels depending on the status of public health orders. Currently, of the Company's portfolio of 18 recreation facilities, 13 are operating under a series of restrictions, four continue to be closed in accordance with Ontario public health orders and one property is inactive and listed for sale. In addition, all owned food and beverage and sports store operations remain closed.

Measures taken to preserve liquidity continue to be in place and include revised operating procedures and capital plans to preserve cash, application of government subsidies to offset operating expenses, and collaboration with banks to enhance liquidity and manage debt covenants as appropriate.

Fourth Quarter and Annual Results

For the 3 months ended
December 31
For the year ended
December 31
(in thousands)2020201920202019
Ice rink & recreational facilities revenue$8,244$23,957$39,259$88,341
Other income - government subsidy2,746-6,371-
Operating expense 8,87617,74139,42069,247

G&A expense1,3161,7125,2745,846
EBITDA per share$0.06$0.34$0.07$0.99
Mark-to-market loss (gain) on held for trading financial liabilities(37)(195)1,133485
Loss (gain) on foreign exchange1814(45)44
Gain on sale of assets(53)(13)(2,297)(1,614)
Income tax expense (recovery)(211)1,276(1,890)1,344
Net earnings (loss) ($1,551)$790($6,363)$2,448
Net earnings (loss) per share($0.12)$0.06($0.48)$0.18
Key Balance Sheet Figures (in thousands):

December 31, 2020December 31, 2019
Cash and cash equivalents$7,480$16,528
Property plant and equipment98,771105,209
Assets held-for-sale6,0536,406
Other assets8,83010,528
Note receivable-2,492
Total assets$121,484$141,163
Liabilities and Equity
Interest bearing debt$63,101$65,574
Accounts payable and accrued liabilities7,68311,578
Deferred revenue6,15912,199
Other liabilities2,8333,428
Total liabilities79,77692,779
Share capital and contributed surplus
Foreign currency translation reserve
Total shareholders' equity41,70848,384
Total liabilities and equity$121,484$141,163

Fourth Quarter Results

(three months ended December 31, 2020 compared with three months ended December 31, 2019)

  • Operating revenue was $8.2 million compared to $24.0 million in 2019 as business activities were significantly restricted by varying levels of public health orders;

  • In addition, subsidies from the Canadian government's Emergency Wage and Rent Subsidy programs totaled $2.7 million for the quarter;

  • Food and beverage and proshop operations were closed;

  • Operating expenses of $8.9 million decreased by 50% from $17.7 million in 2019 as operating activities were limited in Q4. The Company continued to focus on cost management by reducing labour costs where possible while still maintaining rigid exposure control procedures, reducing energy consumption, and eliminating virtually all discretionary operating costs;

  • G&A expenses of $1.3 million decreased by $0.4 million or 23.1% mainly due to reduced labour through temporary staff layoffs and elimination of travel; and

  • After G&A expenses, EBITDA was $0.8 million for the quarter compared to $4.5 million a year ago.

2020 Year End Results

(year ended December 31, 2020 compared with year ended December 31, 2019)

  • Total revenue of $39.3 million (excluding government wage and rent assistance subsidies) decreased by 55.6% due to curtailed operations resulting from the pandemic;

  • In addition, approved government wage and rental subsidies of $6.4 million offset labour expense, property tax and facility lease expense during the year;

  • Gross operating costs of $39.4 million decreased by 43.1% from 2019;

  • G&A expenses of $5.3 million decreased by $0.6 million or 9.8% principally due to decreased labour and travel costs; however, this decrease was partially offset by incremental expenses incurred to implement company-wide exposure control protocols and mitigating risks related to the pandemic;

  • EBITDA for the year was $0.9 million compared to $13.2 million a year ago;

  • Depreciation and finance expense totaled $11.5 million compared to $11.0 million; and

  • After recording a $2.3 million gain on sale of surplus land and used equipment, a $1.1 million accounting charge related to a fair value adjustment on an interest rate derivative instrument, and income tax recoveries of $1.9 million, net loss for the year was $6.4 million or $0.48 per share compared to net earnings of $2.4 million or $0.18 per share.

"Fiscal 2020 tested our resilience, creativity and ability to come together as a team, and I can proudly say that the Canlan crew performed with top marks on all counts. Whether it was a staff member that was assigned tasks, or one that had to be sidelined temporarily, everyone responded to the pandemic with professionalism, diligence, and a sense of urgency. Nothing more could have been asked from them so first and foremost, a big thank you goes out to the Canlan team," said Joey St-Aubin, Canlan's CEO. "Much of what we accomplished in 2020 could not have been possible without the cooperation of all our guests and your continued patronage so to all of you, we want to express our appreciation. We are committed to continue forward, adapt to changing guidelines, and to service our communities as best as we can in 2021 until the pandemic is put behind us. In the coming months, we look forward to an increase of activity, resumption of league play, and the ability to start more creative product offerings that will pave the way for re-engaging participation of all players."

"Canlan's ability to continue operations in this challenging landscape has also been made possible through the tremendous support of our senior lenders and advisors," added Canlan's CFO, Ivan Wu. "We are truly thankful to them for working with us to implement practical solutions that help us navigate through unprecedented times."

Dividend Policy

Given measures implemented by management to preserve cash balances, combined with the austerity being 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 year ended December 31, 2020 will be available via SEDAR on or before March 31, 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 18 facilities in Canada and the United States with 49 ice surfaces, as well as five indoor soccer fields, and 15 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] 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. Canlan reconciles EBITDA to its net earnings.

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

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