In the first quarter of fiscal 2007, Canadian golf specialty retailer, Golf Town, saw sales grow 6.3% to CA$31.9 million ($27.3 mm) from CA$30.0 million ($26.0 mm) last year. The growth in sales was attributable to the addition of four new stores in the spring of 2006. During the quarter Golf Town's same-store sales decreased by 1.4%. The company saw its quarterly loss widen to CA$2.0 million ($1.7 mm) from CA$811,000 ($700,000) last year.
Golf Town's 2007 store openings have included new stores in Dartmouth, Nova Scotia, Boisbriand, Quebec and St. Catharines, Ontario. A fourth store, in Brampton, Ontario store is scheduled to open in June, and two more stores in Ottawa and Windsor, Ontario are planned for later this year.
Stephen Bebis, president and CEO, “The first quarter typically represents our quietest period, before the golf season begins in most parts of Canada. This year, the season began much later than usual and this is reflected in our results.”
Gross profit as a percentage of sales increased to 32.4%, from 31.8% for the comparable period a year ago.
Bebis concluded, “The golf season has arrived and Golf Town is ready with a wide range of new technology and products for every golfer. Our stores are well stocked and ready for another great year.”
Golf Town Income Fund CONSOLIDATED STATEMENTS OF INCOME (LOSS)/COMPREHENSIVE LOSS AND RETAINED EARNINGS (DEFICIT) (UNAUDITED) (in thousands of Canadian dollars, except per unit amounts) For the three For the three months ended months ended 31-Mar-07 31-Mar-06 $ $ ------------------------------------------------------------------------- Sales 31,943 30,018 Cost of sales 21,581 20,459 ------------------------------------------------------------------------- Gross profit 10,362 9,559 Expenses Selling, general and administrative 12,419 10,542 ------------------------------------------------------------------------- Loss before amortization, interest and taxes (2,057) (983) Amortization of fixed assets 993 920 Amortization of deferred financing costs - 29 Amortization of pre-opening costs 139 76 Amortization of intangible assets 107 107 Interest on long-term debt 234 185 Other interest 321 209 ------------------------------------------------------------------------- Loss before income taxes (3,851) (2,509) Recovery of income taxes - current - (920) Recovery of income taxes - future (1,871) (778) ------------------------------------------------------------------------- Net loss and comprehensive loss for the period (1,980) (811) Retained earnings (deficit), beginning of period 845 (1,196) Change in accounting policy (note 3) (196) - Distributions declared in the period (3,802) (3,334) ------------------------------------------------------------------------- Deficit, end of period (5,133) (5,341) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net loss per trust unit ------------------------------------------------------------------------- Basic (0.16) (0.06) Diluted (0.16) (0.06) ------------------------------------------------------------------------- Weighted average number of units outstanding (in thousands) ------------------------------------------------------------------------- Basic 12,373 12,492 Diluted 12,373 12,492 ------------------------------------------------------------------------- -------------------------------------------------------------------------
