In the first quarter of fiscal 2006, Golf Town total sales grew to CA$30.0 million ($26.0 mm), an increase of 11.9% over the CA$26.8 million ($21.9 mm) recorded for the comparable period in 2005. The growth in sales was largely attributable to the addition of new stores – two in early March 2005, one in late May 2005 and two more in March 2006.
Golf Town's 2006 store openings have included new stores in Quebec City and Kitchener, Ontario. Two more – Calgary and Victoria – are planned for the next 30 days.
Golf Town's EBITDA loss of CA$1 million ($0.87 mm) for the quarter was slightly better than management's expectations. The EBITDA decline of $0.6 million over the comparable period in 2005 was the result of new store openings and one-time professional fees.
Said Stephen Bebis, President and Chief Executive Officer, “The first quarter typically represents our quietest period, before the golf season begins in most parts of Canada. We use this period to launch new stores to ensure they are up and running properly and establishing themselves in their local markets, before the peak selling season in the second and third quarters.
“This quarter reflects our commitment to building out Golf Town's store network across the country, and ensuring a strong and stable platform for generating cash flows to support unitholder distributions,” he added.
During the quarter Golf Town's same-store sales grew at 2.5%, or CA$0.7 million.
Gross profit as a percentage of sales decreased slightly, to 31.9%, from 32.3% for the comparable period a year ago.
Said Bebis: “Consumer interest remains strong and golf equipment manufacturers are launching an expanded range of new products designed to help golfers improve their game. So we are anticipating another strong spring and summer selling season.”
Consolidated Financial Statements Golf Town Income Fund CONSOLIDATED STATEMENTS OF LOSS AND DEFICIT (UNAUDITED) (in thousands of Canadian dollars, except per unit amounts) For the three For the three months ended months ended March 31, March 31, 2006 2005 $ $ ------------------------------------------------------------------------- (restated - note 2) Sales 30,018 26,828 Cost of sales 20,459 18,170 ------------------------------------------------------------------------- Gross profit 9,559 8,658 Expenses Selling, general and administrative 10,542 9,002 ------------------------------------------------------------------------- Loss before amortization, interest and taxes (983) (344) Amortization of fixed assets 920 838 Amortization of deferred financing costs 29 29 Amortization of pre-opening costs 76 11 Amortization of intangible assets 107 107 Interest on long-term debt 185 185 Other interest 209 154 ------------------------------------------------------------------------- Loss before income taxes and minority interest (2,509) (1,668) Provision for (recovery of) income taxes (1,698) 639 ------------------------------------------------------------------------- Loss before minority interest (811) (2,307) Minority interest recovery - (214) ------------------------------------------------------------------------- Net loss for the period (811) (2,093) Deficit, beginning of period (1,196) (1,253) Distributions declared in the period (3,334) (2,978) ------------------------------------------------------------------------- Deficit, end of period (5,341) (6,324) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net loss per trust unit ------------------------------------------------------------------------- Basic (0.06) (0.18) Diluted (0.06) (0.18) ------------------------------------------------------------------------- Weighted average number of units outstanding (in thousands) ------------------------------------------------------------------------- Basic 12,492 11,342 Diluted 12,492 11,342 -------------------------------------------------------------------------
