ClubLink Enterprises Limited Announces 2011 Year End Results and Quarterly Eligible Dividend

KING CITY, ONTARIO -- (Marketwire) -- 03/06/12 -- ClubLink Enterprises Limited (TSX: CLK) -


Consolidated Financial Highlights
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(in thousands of dollars
 except per share amounts)    Three months ended            Year ended
                          --------------------------------------------------
                              December     December     December    December
                                   31,          31,          31,         31,
                                  2011     2010 (a)         2011    2010 (a)
----------------------------------------------------------------------------
Operating revenue               29,141       29,687      200,246     190,370
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Net operating income(1)          3,082        1,266       51,305      50,509
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Net membership fee
 income(1)                       3,698        3,631       14,353      13,781
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EBITDA(1)                        6,780        4,897       65,658      64,290
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Net earnings (loss)             (1,154)      (4,087)      16,388      10,124
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Basic and diluted earnings
 (loss) per share            $   (0.06)   $   (0.15)   $    0.59   $    0.36
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Cash flow from
 operations(1)                     397       (3,641)      40,975      35,073
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Basic and diluted cash
 flow from operations per
 share(1)                    $    0.01    $   (0.13)   $    1.47   $    1.25
----------------------------------------------------------------------------
Weighted average shares
 outstanding (000's)            27,804       27,909       27,856      27,976
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(a)  Amounts have been restated in accordance with International Financial
     Reporting Standards adopted as of January 1, 2010.

Operating Data
----------------------------------------------------------------------------
                             Three months ended            Year ended
                         ---------------------------------------------------
                         December 31, December 31, December 31, December 31,
                                 2011         2010         2011         2010
----------------------------------------------------------------------------
ClubLink One Membership More Golf
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Championship rounds -
 Canada                       109,000      151,000    1,018,000    1,064,000
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18-hole equivalent
 championship golf
 courses - Canada                41.5         40.5         41.5         40.5
----------------------------------------------------------------------------
Championship rounds -
 U.S.                          72,000       50,000      212,000       58,000
----------------------------------------------------------------------------
18-hole equivalent
 championship golf
 courses - U.S.                  12.0          7.0         12.0          7.0
----------------------------------------------------------------------------
White Pass and Yukon Route
----------------------------------------------------------------------------
Rail passengers                     -            -      382,000      368,000
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Port passengers from
 cruise ships                       -            -      712,000      697,000
----------------------------------------------------------------------------

2011 Consolidated Operating Highlights

Consolidated operating revenue increased 5.2% to $200,246,000 in 2011 for the year ended December 31, 2011 from $190,370,000 in 2010 primarily due to the revenue generated from the Florida golf clubs that have been acquired since September 2010.

Championship golf rounds increased 9.6% to 1,230,000 championship rounds from 1,122,000 championship rounds in 2010 due to the additional rounds from our Florida golf clubs.

Port passengers from cruise ships increased 2.2% to 712,000 from 697,000 in 2010. Rail passengers increased 3.8% to 382,000 in 2011 from 368,000 in 2010.

Consolidated cost of sales and operating expenses increased 6.5% to $148,941,000 in 2011 from $139,861,000 in 2010 due to additional operating costs incurred relating to the Florida golf clubs that have been acquired since September 2010.

Net operating income for the golf club and resort operations segment increased 2.3% to $36,538,000 in 2011 from $35,714,000 in 2010 due primarily to a decline in property tax expense in the amount of $813,000 resulting from ClubLink's successful property tax appeal process for Ontario golf clubs.

Net operating income for the rail, tourism and port operations increased 7.2% to U.S. $18,030,000 from U.S. $16,836,000 in 2010 due to the increase in passengers in 2011. Net operating income in Canadian dollars remains relatively unchanged due to unfavourable exchange rates on financial statement translation.

Net membership fee income increased 4.2% to $14,353,000 from $13,781,000 in 2010 primarily due to 1,277 new memberships sold in 2011.

Consolidated earnings before other items and income taxes increased 2.1% in 2011 to $65,658,000 from $64,290,000 in 2010. This increase is due primarily to the increase in golf club and resort operations net operating income.

Depreciation and amortization decreased 1.2% to $23,227,000 for the year ended December 31, 2011 from $23,519,000 in 2010. This decrease is primarily due to a stronger Canadian dollar.

Interest, net decreased 6.5% to $21,114,000 for the year ended December 31, 2011 from $22,575,000 in 2010. This reduction was caused by a 3.2% decline in debt levels, a stronger Canadian dollar and a lower average borrowing rate in 2011.

Other income increased to $6,182,000 in 2011 from $344,000 in 2010 primarily due to $9,668,000 in prior year property tax refunds recorded for Ontario golf clubs during 2011.

Consolidated net earnings increased to $16,388,000 for the year ended December 31, 2011 from $10,124,000 in 2010 primarily due to the prior year property tax refunds for Ontario golf clubs.

Weighted average shares for the year ending December 31, 2011 decreased to 27,856,000 as compared to 27,976,000 in 2010.

Earnings per share increased to 59 cents per share in 2011, compared to 36 cents per share in 2010.

The impact of the prior year Ontario golf club property tax refunds is calculated as follows:


(thousands of dollars)                                     2011        2010
----------------------------------------------------------------------------

Net earnings as reported                              $  16,388   $  10,124
Less prior year property tax refunds, net of tax
 provision                                               (7,179)       (332)
----------------------------------------------------------------------------
Pro forma net earnings                                $   9,209   $   9,792
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Earnings per share as reported                        $    0.59   $    0.36

Less: impact of prior year property tax refunds           (0.26)      (0.01)
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Pro forma earnings per share                          $    0.33   $    0.35
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Eligible Dividend

Today, ClubLink Enterprises Limited announced an eligible dividend of 7.5 cents per share to be paid on March 30, 2012 to shareholders of record as at March 15, 2012.

Normal Course Issuer Bid

The Company has been approved by the Toronto Stock Exchange for a normal course issuer bid to purchase up to 1,390,000 of its common shares which will expire on September 19, 2012. As at March 6, 2012, the Company has repurchased for cancellation 1,339,200 common shares for a total purchase price of $9,339,000 or $6.97 per common share, including commissions. As at March 6, 2012, ClubLink has 26,374,188 common shares outstanding.

Corporate Profile

ClubLink is engaged in golf club and resort operations under the trademark, "ClubLink One Membership More Golf." ClubLink is Canada's largest owner and operator of golf clubs with 53.5 18-hole equivalent championship and six 18-hole equivalent academy courses at 44 locations, primarily in Ontario, Quebec and Florida.

ClubLink is also engaged in rail, tourism and port operations based in Skagway, Alaska, which operates under the trade name "White Pass & Yukon Route." The railway stretches approximately 177 kilometres (110 miles) from Skagway, Alaska, through British Columbia to Whitehorse, Yukon. In addition, ClubLink operates three docks primarily for cruise ships.

(1) Net operating income, net membership fee income, earnings before other items and income taxes, cash flow from operations and basic and diluted cash flow from operations per share are not recognized performance measures under International Financial Reporting Standards ("IFRS"). Management believes that in addition to net earnings, these measures are useful supplemental information to provide investors with an indication of the Company's performance. Investors should be cautioned, however, that these measures should not be construed as an alternative to net earnings determined in accordance with IFRS as an indicator of the Company's performance or to cash flows from operating, investing and financing activities as a measure of liquidity and cash flows. ClubLink's method of calculating these measures is consistent from year to year, but may be different than those used by other companies (See "Management's Discussion and Analysis of Financial Condition and Results of Operations" for detailed calculations).

Management's discussion and analysis, financial statements and other disclosure information relating to the Company's 2011 fiscal year will be available later in March 2012 through SEDAR and at www.sedar.com and on the Company website at www.clublinkenterprises.ca.

Contacts:
ClubLink Enterprises Limited
Robert Visentin
Chief Financial Officer
905-841-5360
905-841-1881 (FAX)
www.clublinkenterprises.ca

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