TWC Enterprises Limited’s second quarter 2021 known

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TWC Enterprises Limited's second quarter 2021 known

KING CITY, Ontario, August 05, 2021 (GLOBE NEWSWIRE) – TWC Enterprises Limited (TSX: TWC)

Consolidated financial ratios (unaudited)

(in thousands of dollars excluding amounts per share) Three months ended Six months ended
June 30th
2021
June 30th
2020
June 30th
2021
June 30th
2020
Net profit (loss) 4,472 2,605 4,927 (29.815 )
Basic and diluted earnings (loss) per share 0.18 0.10 0.20 (1.13 )

Operating data

Three months ended Six months ended
June 30th
2021
June 30th
2020
June 30th
2021
June 30th
2020
ClubLink
Canadian Golf Members with full privilege 15.097 13,978
Championship Rounds – Canada 362,000 302,000 362,000 302,000
18-hole equivalent championship golf courses – Canada 39.5 39.5
18 Hole Equivalent Managed Championship Golf Courses – Canada 2.0 1.0
Championship Rounds – USA 63,000 36,000 156,000 148,000
Championship 18 Hole Equivalent Golf Courses – USA 8.0 8.0

In the following, the net operating income (loss) is broken down into segments:

For the three months over
(Thousands of Canadian dollars) June 30, 2021 June 30, 2020
Net operating income (loss) by segments
Operation of a Canadian golf club $ 9,065 $ 1,790
US golf club operations
(2,021 to 585,000 US dollars; 2020 – US-loss 375,000 US dollars) 723 (526 )
Corporate operation (752 ) (731 )
Operating profit (1) $ 9,036 $ 533
For the six months over
(Thousands of Canadian dollars) June 30, 2021 June 30, 2020
Net operating income (loss) by segments
Operation of a Canadian golf club $ 6.178 $ 2,947
US golf club operations
(543,000 US dollars – – 2,020 2,021 1,716,000 US dollars) 2.156 708
Corporate operation (1.555 ) (1.502 )
Operating profit (1) $ 6,779 $ 2.153

Below is an analysis of the net profit (loss):

For the three months over
(Thousands of Canadian dollars) June 30, 2021 June 30, 2020
Operating income $ 34,059 $ 21,696
Direct operating costs (1) 25,023 21,163
Operating profit (1) 9,036 533
Amortization of membership fees 1,037 1,241
Depreciation (4.788 ) (4.890 )
Interest, net and investment income (384 ) (1.212 )
Other things (303 ) 6,635
Income tax (126 ) 298
Net earnings $ 4,472 $ 2,605

(1) See Non-IFRS measures

For the six months over
(Thousands of Canadian dollars) June 30, 2021 June 30, 2020
Operating income $ 48.168 $ 41,766
Direct operating costs (1) 41,389 39,613
Operating profit (1) 6,779 2.153
Amortization of membership fees 1.995 2,245
Depreciation (9.543 ) (9.843 )
Interest, net and investment income (820 ) (1.802 )
Other things 5,337 (27.863 )
Income tax 1,179 5,295
Net profit (loss) $ 4,927 $ (29.815 )

(1) See Non-IFRS measures

Second Consolidated operational highlights in the first quarter of 2021

The income is made up as follows:

For the three months over
(Thousands of Canadian dollars) June 30, 2021 June 30, 2020
Annual fee $ 13,992 $ 9,505
golf 12,299 8,827
Corporate events 426 228
Food and beverages 3,577 1,949
Fan shop 2,945 1,138
Rooms and miscellaneous 820 49
$ 34,059 $ 21,696

Under IFRS, ClubLink records its annual fee income on a straight-line basis, based on when its properties are allowed to open and services are rendered. Due to the COVID-19 lockdowns in 2020 and 2021, no annual fee income was recorded in certain periods. In the second quarter ClubLink allowed an average of 56 days (2020-44 days) to work in Ontario. Canadian annual fees increased 55.6% to $ 12,547,000 for the three months ended June 30, 2021 from $ 8,063,000 in 2020 as a result of this policy. This accrual will be recognized in revenue on a straight-line basis for the remainder of the year.

Operating income increased 57.0% for the three month ended June 30, 2021 due to higher annual fee and operability income (as described above), as well as the fact that the economy, and therefore the company’s business, was more open in the years 2021 compared for the second quarter of 2020.

Direct operating costs increased 18.2% for the three months ended June 30, 2021 to $ 25,023,000 from $ 21,163,000 in 2020 as Canadian golf clubs were open for additional days in 2021. This increase is directly related to increases in all categories of business income.

The Canadian Golf Club business segment’s net operating income increased for the three month ended December 30.

Interest, net, and investment income decreased 68.3% from $ 1,212,000 in 2020 to $ 384,000 at a cost of $ 384,000 for the three-month period ended June 30, 2021.

Other items consist of the following income (loss) items:

For the three months over
June 30, 2021 June 30, 2020
Glen Abbey Development Fee $ (9,500 ) $
Unrealized currency loss (432 ) (3.444 )
Unrealized gain on investment in marketable securities 6,808 10.308
Insurance revenue 2,603 0
Investment income (losses) from investments in joint ventures 404 (324 )
Others (186 ) 95
Other things $ (303 ) $ 6,635

Glen Abbey’s development costs represent the offsetting of development costs that were previously capitalized as part of the restructuring process, which has since been withdrawn.

The exchange rate used to convert US assets has changed from 1.2575 as of March 31, 2021 to 1.2394 as of June 30, 2021. This resulted in a currency conversion loss of $ 432,000 for the three month period ended June 30, 2021 on the Company’s U.S.-denominated financial instruments.

The majority of insurance revenues represent funds raised to settle the insurance claim in connection with the fire at the Le MaƮtre clubhouse.

Net income is $ 4,472,000 for the three month period ended June 30, 2021 down from $ 2,605,000 in 2020 due to the increase in sales, including annual fees. Basic and diluted earnings per share rose to 18 cents per share in 2021, compared to 10 cents in 2020.

Non-IFRS measures

TWC uses non-IFRS metrics as a benchmark for our own operating results and as a benchmark against our competitors. We consider these non-IFRS measures to be a useful addition to net income. We also believe these non-IFRS measures are widely used by securities analysts, investors, and other interested parties to assess our financial performance. These key figures, which include the direct operating expenses and the net operating result, have no standardized meaning under IFRS. Although these non-IFRS measures are disclosed herein to allow for a more complete comparative analysis of the company’s operating performance and debt servicing ability compared to other companies, readers are cautioned that these non-IFRS measures are as reported by the TWC , may not be comparable in all instances on non-IFRS measures as reported by other companies.

The glossary of financial terms is as follows:

Direct operating costs = Expenses that are directly attributable to the company’s business units and used by management to assess their performance. This does not include expenses that are attributable to key corporate decisions such impairment.

Net operating income = Operating income – direct operating expenses

Net operating income is an important metric used by management in evaluating the company’s operating performance as it represents the items of income and expense that can be directly attributed to the day-to-day operations of each business unit. It is not a measure of financial performance under IFRS and should not be considered as an alternative to power measurements under IFRS. The most directly comparable measure under IFRS is net profit.

Eligible dividend

TWC Enterprises Limited today announced an eligible cash dividend of 2 cents per common share, which will be distributed to shareholders of record on August 31, 2021 on September 15, 2021.

Company profile

TWC operates golf clubs under the brand name “ClubLink One Membership More Golf”. TWC is Canada’s largest golf club owner, operator and manager with 49.5 18-hole championship equivalent courses and 3.5 18-hole academy equivalent courses (including managed property) in 37 locations in Ontario, Quebec and Florida.

For more information please contact:

Andrew Tamlin
CFO
15675 Dufferinstrasse
King City, Ontario L7B 1K5
Tel: 905-841-5372 Fax: 905-841-8488
atamlin@clublink.ca

Management discussions and analysis, financial statements and other disclosure information relating to the company are available through SEDAR and at www.sedar.com and on the company’s website at www.twcenterprises.ca. accessible

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