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Canadian RV rental firm CanaDream Corp. reports its reservations volume increased 16% as of March 11 over the same date last year and that explains why the company has an upbeat outlook for the peak 2004 rental season.
The Calgary, Alberta firm plans to sell about 200 units from its fleet before the end of April to raise around $4.7 million (Canadian).
Currently, one Canadian dollar is worth a little more than 75 cents in U.S. currency.
Because of the planned sales, CanaDream’s fleet will be about 20% smaller during the coming peak season than it was in 2003, with the majority of the units in its fleet being 2 years old or less.
Some of the 200 units CanaDream plans to sell are expected to be bought by the rental firm’s associate dealers, with the remainder being purchased by nonaffiliated dealers and retail buyers.
CanaDream reported a loss of $800,000 (Canadian) during the third quarter of its fiscal year 2004, which ended on Jan. 31, but that represented an improvement over the $835,000 it lost during the same period a year earlier.
For the nine months ended Jan. 31, CanaDream posted net earnings of $1.69 million (Canadian), which represents a 5.5% decline from the $1.79 million earned in the same period a year earlier.
Interest rates in Canada were 14 basis points higher during the first nine months of the firm’s fiscal 2004 than they a year earlier, and that contributed to the erosion in profitability, according to Brian Gronberg, president and CEO.
The company’s income tax rate also was higher during the recent November-through-January period than it was a year earlier.
Gronberg added that CanaDream’s Kelowna, British Columbia, affiliate location now is a CanaDream-operated site.