TWC Enterprises Limited Announces 2024 Year End Results and Increase in Eligible Dividend
KING CITY, Ontario, March 06, 2025 (GLOBE NEWSWIRE) --
Consolidated Financial Highlights
| (in thousands of dollars except per share amounts) | Three months ended | Year ended | ||||||
| December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | |||||
| Net earnings (loss) | ($4,580 | ) | $4,289 | $40,597 | $22,042 | |||
| Basic and diluted earnings (loss) per share | ($0.19 | ) | $0.18 | $1.66 | $0.90 | |||
Operating Data
| Three months ended | Year ended | |||||||
| December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | |||||
| Canadian Full Privilege Golf Members | 14,951 | 15,256 | ||||||
| Championship rounds – Canada | 174,000 | 129,000 | 1,140,000 | 1,087,000 | ||||
| 18-hole equivalent championship golf courses – Canada | 35.5 | 35.5 | ||||||
| 18-hole equivalent managed championship golf courses – Canada | 3.5 | 2.0 | ||||||
| Championship rounds – U.S. | 51,000 | 52,000 | 217,000 | 254,000 | ||||
| 18-hole equivalent championship golf courses – U.S. | 6.5 | 6.5 | ||||||
The following is an analysis of net earnings:
| Year Ended | Year Ended | |||||||
| (thousands of Canadian dollars) | December 31, 2024 | December 31, 2023 | ||||||
| Operating revenue | $ | 241,560 | $ | 225,865 | ||||
| Direct operating expenses(1) | 197,504 | 185,804 | ||||||
| Net operating income(1) | 44,056 | 40,061 | ||||||
| Amortization of membership fees | 4,540 | 4,604 | ||||||
| Depreciation and amortization | (14,271 | ) | (14,192 | ) | ||||
| Interest, net and investment income | 11,767 | 8,973 | ||||||
| Other items | 9,735 | (7,896 | ) | |||||
| Income taxes | (15,230 | ) | (9,508 | ) | ||||
| Net earnings | $ | 40,597 | $ | 22,042 | ||||
The following is a breakdown of net operating income (loss) by segment:
| Year Ended | Year Ended | |||||||
| (thousands of Canadian dollars) | December 31, 2024 | December 31, 2023 | ||||||
| Net operating income (loss) by segment | ||||||||
| Canadian golf club operations | $ | 44,305 | $ | 42,730 | ||||
| US golf club operations | ||||||||
| (2024 - US $3,091,000: 2023 - US $4,043,000) | 4,198 | 5,463 | ||||||
| Corporate and other | (4,447 | ) | (8,132 | ) | ||||
| Net operating income(1) | $ | 44,056 | $ | 40,061 | ||||
Operating revenue is calculated as follows:
| Year Ended | Year Ended | |||||||
| (thousands of Canadian dollars) | December 31, 2024 | December 31, 2023 | ||||||
| Annual dues | $ | 72,319 | $ | 69,399 | ||||
| Golf | 46,126 | 44,817 | ||||||
| Corporate events | 7,899 | 7,595 | ||||||
| Food and beverage | 30,798 | 30,859 | ||||||
| Merchandise | 14,741 | 14,083 | ||||||
| Real estate | 65,435 | 54,594 | ||||||
| Rooms and other | 4,242 | 4,518 | ||||||
| Operating revenue | $ | 241,560 | $ | 225,865 | ||||
Direct operating expenses are calculated as follows:
| Year Ended | Year Ended | |||||||
| (thousands of Canadian dollars) | December 31, 2024 | December 31, 2023 | ||||||
| Operating cost of sales | $ | 20,474 | $ | 19,890 | ||||
| Real estate cost of sales | 66,922 | 59,895 | ||||||
| Labour and employee benefits | 68,261 | 63,579 | ||||||
| Utilities | 7,433 | 7,445 | ||||||
| Selling, general and administrative expenses | 5,044 | 5,124 | ||||||
| Property taxes | 2,954 | 3,136 | ||||||
| Insurance | 4,516 | 4,415 | ||||||
| Repairs and maintenance | 5,605 | 5,482 | ||||||
| Turf operating expenses | 4,381 | 4,230 | ||||||
| Fuel and oil | 1,468 | 1,513 | ||||||
| Other operating expenses | 10,446 | 11,095 | ||||||
| Direct Operating Expenses(1) | $ | 197,504 | $ | 185,804 | ||||
(1) Please see Non-IFRS Measures
2024 Consolidated Operating Highlights
Operating revenue increased 7.0% to $241,560,000 in 2024 from $225,865,000 in 2023 due to the incremental real estate revenue from 34 Highland Gate home sales compared to 31 in 2023. The Canadian golf club operations segment has seen a strong golf demand resulting in increases in annual dues and golf revenue.
Direct operating expenses increased 6.3% to $197,504,000 in 2024 from $185,804,000 in 2023 due to the increase in real estate cost of sales from more home sales in 2024.
Net operating income for the Canadian golf club operations segment increased to $44,305,000 in 2024 from $42,730,000 in 2023 due to an increase in Championship golf rounds from 2023 and increases in annual dues and golf revenue.
Interest, net and investment income increased 31.1% to $11,767,000 in 2024 from $8,973,000 in 2023 due to higher cash balances and the income earned on these balances along with less borrowings.
Other items consist of the following income (loss) items:
| Year Ended | Year Ended | ||||||
| December 31, 2024 | December 31, 2023 | ||||||
| Foreign exchange gain (loss) | $ | (487 | ) | $ | 659 | ||
| Unrealized gain (loss) on investment in marketable securities | 1,043 | (20,763 | ) | ||||
| Gain on property, plant and equipment | 8,209 | 1,182 | |||||
| Unrealized loss on real estate fund investments | (203 | ) | (510 | ) | |||
| Insurance proceeds | 857 | 187 | |||||
| Equity loss from investments in joint ventures | (53 | ) | (123 | ) | |||
| Contingent contractual obligation | - | 6,620 | |||||
| Gain on sale of investments in joint venture | - | 6,437 | |||||
| Other | 369 | (1,585 | ) | ||||
| Other items | $ | 9,735 | $ | (7,896 | ) | ||
At December 31, 2024, the Company recorded an unrealized gain of $1,043,000 on its investment in marketable securities (December 31, 2023 - losses of 20,763,000). This gain is attributable to the fair market value adjustments of the Company's investment in Automotive Properties REIT.
On July 3, 2024, the Company announced the closing of the sale of the former Woodlands Golf Club to a joint venture managed by 13th Floor Homes. TWC is a 50% partner in the joint venture along with 13th Floor Homes. A gain of $7,788,000 (US$5,711,000) was recorded as a result of the sale and represents one-half of the total gain due to the sale to a joint venture owned 50% by the Company. This represents the majority of the total gain on property, plant and equipment recorded at December 31, 2024.
Net earnings increased to $40,597,000 in 2024 from $22,042,000 in 2023 due to the $21,806,000 change in unrealized gain on the Company's investment in Automotive Properties REIT as compared to 2023 and the $7,788,000 gain on sale of Woodlands Golf Club recorded in 2024. Basic and diluted earnings per share increased to $1.66 per share in 2024, compared to basic and diluted earnings per share of 90 cents in 2023.
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.
Deer Creek
On February 4, 2025, the Company announced it had acquired Deer Creek, one of Canada's largest golf and event complexes, located in Ajax, Ontario, and includes 45-holes of championship golf, a nine-hole short course, large driving range and performance academy. It also features a 57,000 square foot clubhouse and event centre. Prominently located in Durham Region on 445 acres of land (375 owned and 70 leased), and just minutes away from three, 400-series highways (401, 407 and 412), Deer Creek will be a Daily Fee Club in the ClubLink network and will continue to serve daily fee golfers, members, tournaments, weddings, banquets and restaurant guests.
Eligible Dividend
Today, TWC Enterprises Limited announced an eligible cash dividend of 9 cents per common share to be paid on March 31, 2025 to shareholders of record as at March 17, 2025. This is a 20% increase to the previous quarterly dividend of 7.5 cents per common share.
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 47 18-hole equivalent championship and 2.5 18-hole equivalent academy courses (including three managed properties) at 35 locations in Ontario, Quebec and Florida.
For further information please contact:
Andrew Tamlin
Chief Financial Officer
15675 Dufferin Street
King City, Ontario L7B 1K5
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
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