Canlan Reports Strong Q1 Results and Continues Quarterly Dividend

BURNABY, BC / ACCESSWIRE / May 12, 2017 / Canlan Ice Sports Corp. (ICE.TO) (the "Corporation") today reported its financial results for the first quarter ended March 31, 2017.

Highlights of Q1 2017

• Record quarterly revenue of $25.1 million increased by $0.9 million or 3.8% compared to 2016;

• EBITDA was $6.6 million, consistent with prior year; and

• Reduced energy consumption by approximately 8%, which was directly related to investments made to renew and optimize facility equipment over the past two years.

First Quarter Results

	For the 3 months ended March 31
(in thousands)	2017	2016
Revenue	$25,147	$24,231
Operating expense	17,132	16,331
	8,015	7,900
G&A expense	1,402	1,256
EBITDA1	$6,613	$6,644
EBITDA per share	$0.50	$0.50
Depreciation, interest and taxes	3,336	3,133
Gain on foreign exchange	(1)	(458)
Net earnings	$3,278	$3,969
Net earnings per share	$0.25	$0.30

___________________
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):
	March 31, 2017	December 31, 2016
Assets
Cash and cash equivalents	$14,297	$16,335
Property plant and equipment	101,153	101,934
Investment properties	564	566
Other assets	7,524	6,724
Total assets	$123,538	$125,559
Liabilities and Equity
Interest bearing debt	$58,348	$59,006
Accounts payable and accrued liabilities	10,097	9,455
Deferred revenue	7,672	12,635
Other liabilities	961	898
Total liabilities	77,078	81,994
Share capital and contributed surplus	63,652	63,652
Foreign currency translation reserve	3,106	3,222
Deficit	(20,298)	(23,309)
Total shareholders' equity	46,460	43,565
Total liabilities and equity	$123,538	$125,559

First Quarter Results

(three months ended March 31, 2017 compared with three months ended March 31, 2016)

• Total revenue of $25.1 million increased by $0.9 million or 3.8% compared to the prior year. Same store revenue increased by $0.4 million or 1.8%, principally due to a rise in adult hockey league, contract ice, and youth soccer league revenue;

• Total direct operating expense of $17.1 million increased by $0.8 million or 4.9% compared to the prior year. Same store costs of $16.7 million increased by $0.4 million or 2.2% mainly due to higher labour, selling, and repair and maintenance cost, partially offset by lower utilities expense;

• Quarterly EBITDA of $6.6 million remained consistent with 2016; and

• After recording $3.3 million of depreciation, interest, foreign exchange gains, and income tax expense, net earnings for the period was $3.3 million compared to $4.0 million a year ago.

"We are happy to see the momentum generated in 2016 has carried into the first quarter of this year. Facility operating results are on target and projects that are part of Canlan's 2017 organizational priorities are in progress as planned, such as capital expenditures and roll out of new products," said Canlan's CEO, Joey St-Aubin.

"It is also good to see that investments in new refrigeration equipment, lighting fixtures and water mitigation systems are resulting in measurable reductions in energy consumption and operating costs," added Canlan's CFO, Mike Gellard. "During Q1, we incurred $1.2 million of capital expenditures out of the total of $4.5 million we plan to invest in 2017. Our capital expenditure program will continue throughout the upcoming spring and summer quarters."

"Currently, our facility teams are executing plans to maximize registrations for all our spring and summer leagues, programs and tournaments. In addition, they remain focused on rolling out new programs to diversify our product offerings to augment organic growth," said Mr. St-Aubin.

Dividend Polic

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 July 18, 2017 to shareholders of record at the close of business June 30, 2017. 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.

Filing

Canlan's financial statements and Management's Discussion & Analysis for the period ended March 31, 2017 will be available via SEDAR on or before May 12, 2017 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 20 facilities in Canada and the United States with 57 ice surfaces, as well as five indoor soccer fields, and 15 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

SOURCE: Canlan Ice Sports Corp.