TSX: TWC
The unprecedented COVID-19 global event has demonstrated our strength and resilience as an organization. By activating our Crisis Management Team and allocating appropriate resources, we have coordinated efforts across our Clubs and taken definitive action to ensure the health and well-being of everyone around us,” said
Consolidated Financial Highlights (unaudited)
(in thousands of dollars except per share amounts) | Three months ended | |||
2020 | 2019 | |||
Net loss | (32,420 | ) | (3,986 | ) |
Basic and diluted loss per share | (1.22 | ) | (0.15 | ) |
Operating Data
Three months ended | ||||
2020 | 2019 | |||
Canadian Full Privilege Golf Members | 13,656 | 14,350 | ||
Championship rounds – | - | 1,000 | ||
18-hole equivalent championship golf courses – | 40.5 | 41.5 | ||
18-hole equivalent managed championship golf courses – | 1.0 | 1.0 | ||
Championship rounds – | 112,000 | 136,000 | ||
18-hole equivalent championship golf courses – | 11.0 | 11.0 |
The following is a breakdown of net operating income (loss) by segment:
For the three months ended | ||||||
(thousands of Canadian dollars) | ||||||
Net operating income (loss) by segment | ||||||
Canadian golf club operations | $ | 1,157 | $ | 1,998 | ||
US golf club operations | ||||||
(2020 - US | 1,234 | 2,435 | ||||
Corporate operations | (771 | ) | (856 | ) | ||
Net operating income (1) | $ | 1,620 | $ | 3,577 |
The following is an analysis of net loss:
For the three months ended | ||||||
(thousands of Canadian dollars) | ||||||
Operating revenue | $ | 20,070 | $ | 23,034 | ||
Direct operating expenses (1) | 18,450 | 19,457 | ||||
Net operating income (1) | 1,620 | 3,577 | ||||
Amortization of membership fees | 1,004 | 1,247 | ||||
Depreciation and amortization | (4,953 | ) | (5,099 | ) | ||
Interest, net and investment income | (590 | ) | (1,374 | ) | ||
Other items | (34,498 | ) | (4,265 | ) | ||
Income taxes | 4,997 | 1,928 | ||||
Net loss | $ | (32,420 | ) | $ | (3,986 | ) |
(1) Please see Non-IFRS Measures
First Quarter 2020 Consolidated Operating Highlights
The outbreak of the novel strain of coronavirus, specifically identified as “COVID-19”, has resulted in governments worldwide enacting emergency measures to contain the spread of the virus which may lead to prolonged voluntary or mandatory building closures, business closures, government restrictions on travel and gatherings, quarantines, self-isolation and physical distancing. As a result, the Company closed all golf clubs in order to adhere to these restrictions and ensure the health and wellbeing of members and staff alike. This has and will continue to impact revenue streams such as corporate events, banquets, meetings, resort and greens fee revenue. The Company will continue to adhere to guidance provided by governments and regulatory authorities. As required by IFRS,
Consolidated operating revenue decreased 12.9% to
Direct operating expenses decreased 5.2% to
Net operating income for the Canadian golf club operations segment decreased to
Amortization of membership fees decreased 19.5% to
Interest, net and investment income decreased 57.1% to
Other items consist of the following income (loss) items:
(thousands of Canadian dollars) | ||||||
Foreign exchange gain (loss) | $ | 7,731 | $ | (4,407 | ) | |
Unrealized loss on investment in Automotive Properties REIT | (25,871 | ) | - | |||
Loss on sale of common shares in Carnival plc | (16,240 | ) | - | |||
Equity loss | (193 | ) | - | |||
Other | 75 | 142 | ||||
Other items | $ | (34,498 | ) | $ | (4,265 | ) |
The exchange rate used for translating US denominated assets has changed from 1.2988 at
For the three month period ended
On
Net loss is
Operating Update - COVID-19 Pandemic
During
The Company recognizes the impact COVID-19 has on its properties along with its operations. All of our properties were closed on
In March,
With the guidance of public health authorities, and at the direction of various levels of government,
- temporarily eliminating services deemed to be risky;
- intensified cleaning, focusing staff efforts on cleaning high-touch point areas at all our properties using approved cleaning products;
- management offices are staffed but doors are locked;
- non critical maintenance work has been deferred;
- added additional hand sanitizers to help customers and employees maintain recommended practices for hand washing; and
- posted health and safety best practice reminders to increase awareness of the most current guidelines.
The company is actively monitoring the ongoing developments with regards to COVID-19 and are committed in ensuring a healthy and safe environment, adjusting our service model as necessary.
2020 Golf Season
It is also expected that there will be restrictions on food and beverage services for at least a portion of 2020, this will result in anticipated declines in this revenue stream.
In order to mitigate the impact of these expected revenue shortfalls,
As of this report, all of the Company’s Canadian golf courses are closed due to governmental orders. These expire in early May.
In response to COVID-19,
- Restrictions on customers and members coming onto the property beyond what is needed for their tee time
- Physical distancing measures
- Temporary suspension of certain privileges such as dining
- Ball washers, bunker rakes have been removed
- Increasing frequency and depth of cleaning procedures
The Company is prepared to open its golf courses immediately when the governmental orders are lifted.
Eligible Dividend
Today,
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.
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 52.5 18-hole equivalent championship and 3.5 18-hole equivalent academy courses (including one managed property) at 40 locations in
For further information please contact:
Chief Financial Officer
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.sedar.com and on the Company website at www.twcenterprises.ca.
Source:2020 GlobeNewswire, Inc., source