TWC Enterprises Limited Announces Second Quarter 2025 Results And Eligible Dividend

KING CITY, Ontario, Aug. 01, 2025 (GLOBE NEWSWIRE) --   Consolidated Financial Highlights (unaudited) (in thousands of dollars except per share amounts) Three months ended Six months ended   June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Net earnings 21,479 3,159 22,563 2,458 Basic and diluted earnings per share 0.88 0.13 0.93 0.10 Operating Data   Three months ended Six months ended   June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Canadian Full Privilege Golf Members     14,999 15,063 Championship rounds – Canada 405,000 399,000 405,000 399,000 18-hole equivalent championship golf courses – Canada     37.0 35.5 18-hole equivalent managed championship golf courses – Canada     3.5 3.5 Championship rounds – U.S. 46,000 46,000 130,000 136,000 18-hole equivalent championship golf courses – U.S.     6.5 6.5 The following is an analysis of net earnings:     For the three months ended (thousands of Canadian dollars)   June 30, 2025 June 30, 2024         Operating revenue   $ 61,560   $ 62,183   Direct operating expenses(1)     47,326     53,049           Net operating income(1)     14,234     9,134           Amortization of membership fees     1,200     1,126           Depreciation and amortization     (3,559 )   (3,681 )         Interest, net and investment income     2,321     2,813           Other items     12,605     (3,902 )         Income taxes     (5,322 )   (2,331 )         Net earnings   $ 21,479   $ 3,159               For the six months ended (thousands of Canadian dollars)   June 30, 2025 June 30, 2024         Operating revenue   $ 102,324   $ 127,529   Direct operating expenses(1)     79,957     113,938           Net operating income(1)     22,367     13,591           Amortization of membership fees     2,263     2,085           Depreciation and amortization     (6,944 )   (7,196 )         Interest, net and investment income     4,989     5,598           Other items     6,611     (8,503 )         Income taxes     (6,723 )   (3,117 )         Net earnings   $ 22,563   $ 2,458           The following is a breakdown of net operating income (loss) by segment:     For the three months ended (thousands of Canadian dollars)   June 30, 2025 June 30, 2024         Net operating income (loss) by segment       Canadian golf club operations   $ 13,581   $ 10,361   US golf club operations       (2025 - US $699,000; 2024 - US $467,000)     967     636   Corporate and other     (314 )   (1,863 )                 Net operating income(1)   $ 14,234   $ 9,134               For the six months ended (thousands of Canadian dollars)   June 30, 2025 June 30, 2024         Net operating income (loss) by segment       Canadian golf club operations   $ 16,913   $ 13,915   US golf club operations       (2025 - US $3,157,000; 2024 - US $2,630,000)   4,494     3,552   Corporate and other   960     (3,876 )                 Net operating income(1)   $ 22,367   $ 13,591           Operating revenue is calculated as follows:     For the three months ended (thousands of Canadian dollars)   June 30, 2025 June 30, 2024         Annual dues   $ 18,953   $ 18,246   Golf     15,455     13,407   Corporate events     3,387     2,770   Food and beverage     12,261     9,798   Merchandise     4,736     4,581   Real estate     5,736     12,381   Rooms and other     1,032     1,000           Operating revenue   $ 61,560   $ 62,183               For the six months ended (thousands of Canadian dollars)   June 30, 2025 June 30, 2024         Annual dues   $ 36,643   $ 35,753   Golf     21,752     19,409   Corporate events     3,424     2,788   Food and beverage     14,088     11,065   Merchandise     6,290     6,336   Real estate     18,721     50,890   Rooms and other     1,406     1,288           Operating revenue   $ 102,324   $ 127,529           Direct operating expenses are calculated as follows:     For the three months ended (thousands of Canadian dollars)   June 30, 2025 June 30, 2024         Operating cost of sales   $ 6,878   $   6,284         Real estate cost of sales     5,375       13,488         Labour and employee benefits     22,518       20,661         Utilities     1,685       1,884         Selling, general and administrative expenses   1,238       1,367         Property taxes     773       665         Repairs and maintenance     961       1,114         Insurance     1,686       1,789         Turf operating expenses     2,328       2,215         Fuel and oil     431       484         Other operating expenses     3,453       3,098         Direct Operating Expenses(1)   $ 47,326   $   53,049             For the six months ended (thousands of Canadian dollars)   June 30, 2024 June 30, 2025         Operating cost of sales   $ 8,708   $ 8,131           Real estate cost of sales     16,328     53,210           Labour and employee benefits     33,059     30,369           Utilities     3,639     3,584           Selling, general and administrative expenses   2,742     2,843           Property taxes     2,372     2,548           Repairs and maintenance     1,888     2,268           Insurance     2,620     2,789           Turf operating expenses     2,565     2,528           Fuel and oil     536     584           Other operating expenses     5,500     5,084           Direct Operating Expenses (1)   $ 79,957   $ 113,938           (1) Please see Non-IFRS Measures Second Quarter 2025 Consolidated Operating Highlights On February 3, 2025, the Company acquired Deer Creek, one of Canada’s largest golf and event complexes, located in Ajax, Ontario, and includes 45-holes of championship golf, a nine-hole short course, large driving range and performance academy. This is a daily fee property with a focus on food and beverage operations. This acquisition is a contributing factor to increases seen in both revenue and operating expenses, specifically golf, corporate events and food and beverage revenue, as well as operating cost of sales and labour and employee benefits. Operating revenue decreased 1.0% to $61,560,000 for the three month period ended June 30, 2025 from $62,183,000 in 2024 due to the decline in revenue from two Highland Gate home sales as compared to seven in 2024. Direct operating expenses decreased 10.8% to $47,326,000 for the three month period ended June 30, 2025 from $53,049,000 in 2024 due to the decline in Highland Gate home cost of sales as described above. Net operating income for the Canadian golf club operations segment increased to $13,581,000 for the three month period ended June 30, 2025 from $10,361,000 in 2024 due to the Deer Creek acquisition and healthy increases in golf revenue for all properties due to strong demand. Interest, net and investment income decreased 17.5% to income of $2,321,000 for the three month period ended June 30, 2025 from $2,813,000 in 2024 due to a reduction in cash (and resulting interest income on this excess cash) as a result of the Deer Creek acquisition. Other items consist of the following income (loss) items:   For the three months ended   June 30, 2025 June 30, 2024       Foreign exchange gain (loss) $ 541   $ (22 ) Unrealized loss on investment in marketable securities   12,325     (5,119 ) Business combination transaction costs   (94 )   -   Gain on sale of property, plant and equipment   103     162   Equity income from investments in joint ventures   1     -   Insurance   -     621   Other   (271 )   456         Other items $ 12,605   $ (3,902 )       At June 30, 2025, the Company recorded an unrealized gain of $12,325,000 on its investment in marketable securities (June 30, 2024 - loss of $5,119,000). This gain is attributable to the fair market value adjustments of the Company's investment in Automotive Properties REIT. Net earnings in the amount of $21,479,000 for the three month period ended June 30, 2025 increased from $3,159,000 in 2024 due to the change in unrealized gain on the Company’s investment in Automotive Properties REIT as compared to 2024. Basic and diluted earnings per share increased to $0.88 per share in 2025, compared to basic and diluted earnings per share of $0.13 cents in 2024. Non-IFRS Measures TWC uses non-IFRS measures as a benchmark measurement of our own operating results and as a benchmark relative to our competitors. We consider these non-IFRS measures to be a meaningful supplement to net earnings. We also believe these non-IFRS measures are commonly used by securities analysts, investors and other interested parties to evaluate our financial performance. These measures, which included direct operating expenses and net operating income do not have standardized meaning under IFRS. While these non-IFRS measures have been disclosed herein to permit a more complete comparative analysis of the Company’s operating performance and debt servicing ability relative to other companies, readers are cautioned that these non-IFRS measures as reported by TWC may not be comparable in all instances to non-IFRS measures as reported by other companies. The glossary of financial terms is as follows: Directoperatingexpenses = expenses that are directly attributable to company’s business units and are used by management in the assessment of their performance. These exclude expenses which are attributable to major corporate decisions such as impairment. Net operating income = operating revenue – direct operating expenses Net operating income is an important metric used by management in evaluating the Company’s operating performance as it represents the revenue and expense items that can be directly attributable to the specific business unit’s ongoing operations. It is not a measure of financial performance under IFRS and should not be considered as an alternative to measures of performance under IFRS. The most directly comparable measure specified under IFRS is net earnings. Eligible Dividend Today, TWC Enterprises Limited announced an eligible cash dividend of 9 cents per common share to be paid on September 15, 2025 to shareholders of record as at August 29, 2025. New Director The Board of Directors of TWC Enterprises Limited announced that Gagan Navani has been appointed as a director of the Company effective August 1, 2025. Corporate Profile TWC is engaged in golf club operations under the trademark, “ClubLink One Membership More Golf.” TWC is Canada’s largest owner, operator and manager of golf clubs with 47 18-hole equivalent championship and 2.5 18-hole equivalent academy courses (including three managed properties) at 35 locations in Ontario, Quebec and Florida. For further information please contact: Andrew Tamlin Chief Financial Officer 15675 Dufferin Street King City, Ontario L7B 1K5 Tel: 905-841-5372 Fax: 905-841-8488 [email protected] Management’s discussion and analysis, financial statements and other disclosure information relating to the Company is available through SEDAR and at www.sedar.com and on the Company website at www.twcenterprises.ca