Canlan Reports Fourth Quarter and Year-End 2011 Financial Results

- Steady growth, quarterly dividends, and gains on sale of non-strategic properties highlight FY2011 -

BURNABY, BC, March 23, 2012 /CNW/ - Canlan Ice Sports Corp., industry-leading providers of recreational and leisure multi sport facilities across North America, today announced its financial results for the three-and 12-month period ended December 31, 2011.

FY 2011 Key Financial Metrics

In thousands except share data	FY2011	FY2010	Change
Total revenue	$71,996	$69,909	+3%
EBITDA^1	$9,848	$9,718	+1%
Earnings before taxes	$4,113	$1,795	+129%
Net earnings	$2,844	$733	+288%
Earnings per share	$0.21	$0.05	+$0.16
	Dec. 31, 2011	Dec. 31, 2010
Total Assets	$104,740	$105,626	-1%
Cash and Cash equivalents	$13,886	$8,903	+56%
Total Interest bearing debt	$41,972	$45,477	-8%

"In fiscal 2011 revenues grew steadily at 3%, which led to our highest quarterly revenue in company history," said Joey St-Aubin, President and CEO of Canlan Ice Sports.  "We continued our quarterly dividend policy. We also regularly evaluate the contribution of each facility to our profitability and the associated current and future market conditions.  Due to our financial flexibility we were able to pursue exciting opportunities such as the Romeoville acquisition, while successfully divesting ourselves of challenging or unprofitable markets, which allowed us to best capitalize our assets and continuously manage our portfolio of facilities."

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1} Earnings before interest, taxes, depreciation and amortization (EBITDA) is often used as a measure of financial performance. However, EBITDA is a 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.

FY2011 Operational and Financial Highlights

• Highest quarterly revenue generated in company history for Q4 at $20.3 million
• Revenue of $72.0 million for FY2011, an increase of 3% over FY2010
• EBITDA of $9.9 million for FY2011, up 1.3% over $9.7 million in FY2010
• Net earnings of $2.8 million for FY2011 compared to $0.7 million for FY2010
• Expanded US operations with a state-of-art three-pad facility in Romeoville, Illinois
• Recorded a gain of $2.3 million from the sale of the Regina facility
• Announced a five year partnership with Hockey Canada to become partners in adult recreational hockey
• Sold its two-pad ice rink located in Candiac, Quebec to the City of Candiac, proceeds used for a combination of debt reduction and to fund future expansion of operations in key strategic markets
• Established a quarterly dividend that paid a total of $0.06 per share annually
• Reduced interest bearing debt by $3.6 million
• Refinanced 40% of our term debt and established an acquisition credit facility.
• Appointed William Bullis and Victor D'Souza as independent directors of the Company
• Successfully completed transition to IFRS from Canadian GAAP

Highlights Subsequent to Year-end

• Signed an exclusive sponsorship and advertising agreement with DEC Sports & Entertainment to leverage numerous revenue opportunities existing with the Canlan brand and its facilities
• Made strategic decision not to renew the existing operating lease at the Vineland, New Jersey facility and redeployed resources to take advantage of identified opportunities elsewhere in key strategic markets across the US

Dividend Policy
Canlan's Board of Directors has approved the continuation of the dividend policy which was announced last year and declared eligible dividends totaling $0.015 per common share that will be next paid on April 17, 2012 to shareholders of record at the close of business March 31, 2011.  Canlan's Board of Directors does review the Company'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.

Review of 2011 Financial Results
Canlan derives its revenue from the rental of its playing surfaces, registrations for internal programming, food and beverage sales, sports stores sales, tournament registrations, management and consulting fees and other related fees.

Canlan reported consolidated revenue of $72.0 million for the 12-month period ended December 31, up 2.9% from $69.9 million for the corresponding period of 2010.  The revenue growth was primarily due to an increase in ice related revenue such as contract ice/field rentals, adult hockey leagues, instructional programs and youth hockey leagues.  Revenue from the Adult Safe Hockey League (ASHL), the Company's largest component of ice revenue, was $24.5 million for the year, up 0.9% compared to the same period last year.   The relatively small increase in ASHL revenue was mainly due to the sale of Ice Sports Regina in September 2011. ASHL revenue for this facility from September to December usually accounts of approximately $400,000.

Food and beverage revenue for FY2011 was $11.6 million, relatively the same as in FY2010 when it was $11.8 million.  The sale of Ice Sports Regina in September 2011 and a decrease in food & beverage sales in the Greater Vancouver market were contributing factors for the lack of growth during the year.

Direct operating expenses were $57.8 million, up 4.0% from $55.6 million for FY2010. The year-over-year increase was attributable to an increase in wages, repairs and maintenance, start up costs associated with the Romeoville acquisition and higher utility costs due to increased Provincial energy surcharges.

Corporate general and administrative expenses totaled $4.3 million, down 6.4% from $4.6 million for FY2010 due mainly to a reduction to salaries and wages that resulted from some one-time severance and post-retirement accruals that were necessary in 2010.

EBITDA was $9.8 million for the fiscal year versus $9.7 million for FY2010. The improvement in EBITDA was a result of a growth in revenue partially offset by an increase in expenses year-over-year.  As a percentage of revenue, EBITDA was 14.0%, the same as the prior year.

Canlan generated a net gain before taxes of $4.1 million, up $2.3 million from a net gain of $1.8 million for FY2010.  The improvement being primarily due to an accounting gain of $2.3 million recorded from the September 26, 2011 sale of Ice Sports Regina.

Net earnings for the fiscal year were $2.8 million or $0.21 per share fully diluted. In FY2010, Canlan generated a net gain of $0.7 million, or $0.05 per share. 

Q4 2011 Key Financial Metrics

In thousands except share data	2011	2010	Change
Total revenue	$20,345	$19,991	+2%
EBITDA	$4,441	$4,606	-4%
Net earnings before taxes	$2,256	$2,674	-16%
Net earnings after taxes	$1,880	$1,456	+29%
Net earnings per share	$0.14	$0.11	+$0.03

Review of Q4 2011 Financial Results
On a three-month basis, Canlan generated consolidated revenue of $20.3 million for FY2011, up 1.8% from $20.0 million for FY2010. The revenue growth on a three-month basis was principally due to higher revenue contributions from contract ice/field rentals, instructional programs, ASHL, and youth hockey leagues. The ASHL accounted for approximately 46% of ice and soccer sales.

For the fourth quarter of FY2011 operating expenses were $14.9 million, up 5.7% from $14.1 million for FY2010.  The year-over-year increase was mainly due to an approximate $0.5 million roof maintenance cost incurred during the quarter.

In the fourth quarter of FY2011, general and administrative expenses totaled $1.0 million and $1.3 million for the fourth quarter of FY2010, respectively.

EBITDA for the fourth quarter FY2011 was $4.4 million, down slightly from $4.6 million for the prior period.

Canlan generated earnings before taxes of $2.3 million for Q4 FY2011 compared to $2.7 million for Q4 FY2010.

For the quarter ended December 31, 2011, Canlan generated net earnings of $1.9 million or $0.14 per fully diluted share.  This compares to net earnings of $1.5 million or $0.11 per share for same period of FY2010.

"Growing revenue, further reducing our debt, providing our shareholders a return on their investment in the form of a quarterly dividend and applying the proceeds from the sales of the Regina and Candiac facilities towards other opportunities that fit our criteria of high quality, accretive facilities at attractive valuations were the focus for the Company this past year," said Mr. Michael Gellard, Canlan's CFO. "We will build on the foundation established in 2011 and work to improve the profitability of each facility.  Our strong cash position and a debt to equity ratio of below 1:1, for the first time in recent history, put us in a great position for future growth and enable us to take advantage of opportunities that present themselves."

"The ramping up of programming and registrations at our newest acquisition in Romeoville remain on track and within our expectations," said Mr. St-Aubin.  "As we move forward we will continue to pursue other attractive opportunities to support our growth. Not only will we maintain our focus on ice-based recreational facilities, but we will broaden our scope to include facilities that support soccer and other turf sports as well as court sports, all of which align nicely with our core competencies in facility operations and programming, and meet the growing demand of an ethnically diverse North American audience."

Canlan's financial statements and Management Discussion & Analysis for the period ended December 31, 2011 will be available via SEDAR on or before March 30, 2012 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 recreational ice sports facilities in North America and currently own and/or manage 20 facilities in Canada and the United States with 62 ice surfaces, as well as indoor soccer fields, ball diamonds, curling rinks and volleyball courts.

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 Company 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 Company's markets; competition; legislation and governmental regulation; and accounting policies and practices. The foregoing list of factors is not exhaustive.

Canlan Ice Sports Corp.
Michael F. Gellard
Senior Vice President & CFO
604 736 9152

TMX Equicom
Philip Dale
416 815 0700 ext. 253
[e-mail]