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CanaDream Reports Improved Financial Results

July 22, 2011 by   - () Leave a Comment

CanaDream Corp., the Calgary, Alberta-based RV rental firm, today (July 22) announced improved financial results for the year ending April 30, 2011.

Revenues for the year of $25 million is 12% higher than last year, cash flow from operations of $7.2 million (36 cents per share) is 43% higher than last year, operating income of $901,000 is 98% higher than last year, according to a news release.

For the year ended April 30, 2011, CanaDream recorded operating income of $901,000, an increase of $447,000 from the prior year end; the operating income per share increased 2.13 cents, or 88%. Income before income taxes of $518,000 increased $5,000, or 1%, from the prior year; on a fully diluted basis, earning per share decreased 0.08 cents, or 5%.

Revenues increased $2.7 million, or 12%. Rental revenue increased $2.1 million due to increased rental nights combined with a $605,000 increase in fleet sales revenue. The increase in revenues combined with the $657,000 increase in direct expenses resulted in the gross margin increase of $2 million, or 22%.

Investment in rental fleet was $24.8 million at April 30, 2011, an increase of $6.9 million from April 30, 2010. The investment in fleet inventory available for sale was $5.0 million at April 30, 2011, a decrease of $215,000 from April 30, 2010 year-end levels. Fleet, capital asset and other financing increased $6.3 million, or 35%, to $24.3 million from April 30, 2010.

The company’s short-term liquidity position (cash and cash equivalents plus accounts receivable and short-term deposits, minus accounts payable and accrued liabilities) at April 30, 2011 was $821,000 compared to $760,000 at April 30, 2010.

The company’s core business, promoting tourism in Canada through the recreational vehicle experience, is seasonal in nature with the majority of its revenue being earned during the May to October period, the first and second quarters of its fiscal year. The majority of the company’s direct expenses are incurred in that same period.

The company markets rental units and fleet inventory available for sale on a continuous basis throughout the year, however sales of such units are generally strongest in the spring and early summer. As a result of ongoing interest, amortization and adjustments and selling, general and administrative expenses, the last two quarters of the fiscal year normally produce operating losses. Losses incurred in the last two quarters may exceed profits earned in the first two quarters of the fiscal year.

The company encourages interested parties to access CanaDream Corporation’s Management Discussion and Analysis (MD&A) on the SEDAR website, www.sedar.com, for a more detailed discussion of these results.

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