TWC Enterprises Limited Announces Second Quarter 2025 Results And Eligible Dividend

Executive Summary

• TWC Enterprises Limited reported strong financial results for the second quarter and first half of 2025, driven by the acquisition of Deer Creek and significant unrealized gains on investments.
• Net earnings for the three months ended June 30, 2025, surged to $21.5 million (CAD) from $3.2 million in the prior year period, with basic and diluted EPS increasing to $0.88 from $0.13.
• The company also announced a quarterly cash dividend of 9 cents per share and the appointment of a new director, Gagan Navani.

Key Details

• Financial Performance (Three Months Ended June 30, 2025):
  • Net earnings: $21,479,000 (vs. $3,159,000 in 2024).
  • Basic and diluted earnings per share: $0.88 (vs. $0.13 in 2024).
  • Operating revenue: $61,560,000 (down 1.0% from $62,183,000 in 2024, primarily due to fewer home sales at Highland Gate).
  • Direct operating expenses: $47,326,000 (down 10.8% from $53,049,000 in 2024).
  • Net operating income: $14,234,000 (up from $9,134,000 in 2024).
• Financial Performance (Six Months Ended June 30, 2025):
  • Net earnings: $22,563,000 (vs. $2,458,000 in 2024).
  • Basic and diluted earnings per share: $0.93 (vs. $0.10 in 2024).
  • Operating revenue: $102,324,000 (down from $127,529,000 in 2024).
  • Direct operating expenses: $79,957,000 (down from $113,938,000 in 2024).
  • Net operating income: $22,367,000 (up from $13,591,000 in 2024).
• Segment Performance (Three Months Ended June 30, 2025):
  • Canadian golf club operations net operating income: $13,581,000 (up from $10,361,000 in 2024).
  • US golf club operations net operating income: $967,000 (up from $636,000 in 2024).
  • Corporate and other: $(314,000) loss (vs. $(1,863,000) loss in 2024).
• Revenue Breakdown (Three Months Ended June 30, 2025):
  • Annual dues: $18,953,000.
  • Golf: $15,455,000.
  • Food and beverage: $12,261,000.
  • Real estate: $5,736,000 (down significantly from $12,381,000 in 2024 due to fewer home sales).
  • Corporate events: $3,387,000.
  • Merchandise: $4,736,000.
  • Rooms and other: $1,032,000.
• Investment and Other Items:
  • Unrealized gain on investment in marketable securities (Automotive Properties REIT): $12,325,000 (vs. a loss of $5,119,000 in 2024).
  • Interest, net and investment income: $2,321,000 (down 17.5% from $2,813,000 in 2024 due to reduced cash balances following the Deer Creek acquisition).
  • Income taxes: $(5,322,000).
• Operational Updates:
  • Acquisition: On February 3, 2025, the company acquired Deer Creek in Ajax, Ontario, a 45-hole championship golf and event complex. This acquisition contributed to increases in golf, corporate events, and food & beverage revenue, as well as operating costs.
  • Membership: Canadian Full Privilege Golf Members stood at 14,999 (down slightly from 15,063 in 2024).
  • Course Volume: 37.0 18-hole equivalent championship courses in Canada (up from 35.5 in 2024).
• Corporate Actions:
  • Dividend: Announced an eligible cash dividend of 9 cents per common share, payable September 15, 2025, to shareholders of record as of August 29, 2025.
  • Director Appointment: Gagan Navani appointed as a director effective August 1, 2025.

Notable Quotes

• No direct quotes from the CEO or President were included in the provided text.