BURNABY, British Columbia, Aug.  11, 2016  (GLOBE NEWSWIRE) -- Canlan Ice Sports Corp. (the “Corporation”) (TSX:ICE) today reported its financial results for the second quarter ended June 30, 2016.

Highlights of Q2 2016:

Q2 revenue of $­­18.2 million increased by $0.7 million or 4.0 % compared to 2015;Q2 EBITDA was $0.5 million compared to a break-even level in 2015;The Company refinanced all of its Canadian long–term debt at favourable terms to reduce borrowing cost and increase cash flow. HSBC Bank Canada provided Canlan with a $48.5 million refinancing loan to consolidate its Canadian loan facilities;The Company entered into a long-term agreement to operate a new state-of-the-art ice rink facility in Calgary, Alberta; andMajor projects related to energy management and renewal of refrigeration equipment are in progress as planned.

Three Months and Six Months Ended June 30, 2016 Results

For the 3 months ended 
June 30For the 6 months ended 
June 30 (in thousands) 2016  2015  2016  2015  Revenue$18,182 $17,476 $42,413 $40,051  Operating expense 16,233  16,351  32,564  32,252  1,949  1,125  9,849  7,799  G&A expense 1,493  1,113  2,749  2,368  EBITDA1$456 $12 $7,100 $5,431  EBITDA per share$0.03 $ - $0.53 $0.41  Depreciation 1,729  1,733  3,465  3,412  Finance costs 3,093  709  3,823  1,438  Loss on held for trading financial liabilities 863  -  863  -  Loss (gain) on foreign exchange (5) (111) (463) 539  Income tax expense (recovery) (1,427) (400) (760) 246  Net earnings (loss)($3,797)($1,919)$172 ($204) Net earnings (loss) per share($0.28)($0.14)$0.01 ($0.02)

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.

Key Balance Sheet Figures (in thousands):June 30, 2016December 31, 2015 Assets  Cash and cash equivalents$9,485 $10,065  Property plant and equipment 100,963  103,631  Investment properties 557  574  Other assets 7,246  6,334  Total assets$118,251 $120,604  Liabilities and Equity  Interest bearing debt$58,618 $55,762  Accounts payable and accrued liabilities 8,385  7,938  Deferred revenue 7,125  12,519  Financial liability held for trading 863  -  Other liabilities 756  657  Total liabilities 75,747  76,876  Share capital and contributed surplus  63,652  63,652  Foreign currency translation reserve 2,750  3,612  Deficit (23,898) (23,536) Total shareholders’ equity 42,504  43,728  Total liabilities and equity$118,251 $120,604

Second Quarter Results (three months ended June 30, 2016 compared with three months ended June 30, 2015)

Total revenue of $18.2 million increased by $0.7 million or 4.0% compared to the prior year;Growth in sales from adult and youth hockey leagues, and contract ice rentals were the primary sources of the year-over-year revenue increase;Quarterly EBITDA reached $0.5 million compared to break even in 2015;After recording depreciation, finance costs, an unrealized valuation expense on an interest rate swap contract, and income tax recovery, net loss for the period was $3.8 million compared to $1.9 million a year ago;Included in finance cost was a $2.3 million early debt repayment fee;Minimal foreign exchange gain/loss was recognized during the period compared to a foreign exchange gain of $0.1 million in 2015 related to period end translation of U.S. dollar denominated loans and monetary items; andOn July 7, 2016, Canlan entered into a lease and operating agreement with a municipality to operate a two-pad ice rink facility in Calgary, Alberta for a term of 25 years and a nominal lease payment.   Ownership of the facility will not transfer to Canlan; however, an income sharing arrangement with the municipality forms part of the agreement.

Six Months Ended June 30, 2016 Results 
(six months ended June 30, 2016 compared with six months ended June 30, 2015)

Total revenue of $42.4 million increased by $2.4 million or 5.9% compared to the prior year;Growth in sales from adult, youth hockey and soccer leagues, contract ice rentals, and instructional programs were the primary sources of the year-over-year revenue increase;Quarterly EBITDA of $7.1 million increased by $1.7 million or 30.7% from 2015;After recording depreciation, finance costs, an unrealized valuation expense on an interest rate swap contract, income tax recovery and a foreign exchange gain, net earnings for the period was $0.2 million compared to a net loss of $0.2 million a year ago; andA foreign exchange gain of $0.5 million was recognized during the period compared to a foreign exchange loss of $0.5 million in 2015 related to period end translation of U.S. dollar denominated loans and monetary items.

“Overall, Q2 operations were on target and positive results in our two sportsplex facilities, U.S. ice rinks, and our tournament division resulted in strong year-over-year earnings growth,” said Canlan’s CEO, Joey St-Aubin.  “In addition, I am very pleased that we concluded our operating agreement with the City of Calgary enabling us to serve the Calgary community and once again establish a presence in the province of Alberta.  We’d like to thank the City of Calgary for providing this opportunity to Canlan Ice Sports.”

“In addition to the solid revenue growth achieved, we were also able to complete a refinancing transaction during the quarter with HSBC,” added Canlan’s CFO, Mike Gellard.  “The transaction will reduce borrowing cost and increase cash flow through reduced debt service requirements and in turn, provide the company with added working capital for operating and capital expenditures.”

Dividend Policy

Canlan’s Board of Directors has approved the continuation of the Corporation’s quarterly dividend policy and declared eligible dividends totaling $0.02 per common share that will next be paid on October 14, 2016 to shareholders of record at the close of business September 30, 2016.  Canlan's Board of Directors reviews the Corporation’s dividend policy on a quarterly basis.  Canlan's dividend is designated as an “eligible” dividend under the Income Tax Act (Canada) and any corresponding provincial legislation. Under this legislation, individuals resident in Canada may be entitled to enhanced dividend tax credits, which reduce income tax otherwise payable.

“Currently, youth summer camps and tournaments are in full swing, which is always an exciting time for all our facilities,” said Mr. St-Aubin. “At the same time, we will focus on the start-up of the new ice rink facility in Calgary that we have been engaged to operate, and maximize registrations in all our sports leagues for the upcoming fall/winter season.”

Canlan’s financial statements and Management Discussion & Analysis for the period ended June 30, 2016 will be available via SEDAR on or before August 12, 2016 and through the Company’s website, www.icesports.com.

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 22 facilities in Canada and the United States with 59 ice surfaces, as well as five indoor soccer fields, and 21 sport, volleyball, and basketball courts.  To learn more about Canlan please visit www.icesports.com.

Canlan Ice Sports Corp. is listed on the Toronto Stock Exchange under the symbol “ICE.”

Caution concerning forward-looking statements

Certain statements in this MD&A 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 MD&A, 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 MD&A. 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. 
Michael F. Gellard 
Senior Vice President & CFO 
604 736 9152