CanaDream Corp. today (Sept. 11) reported financial results for the three months ended July 31.
The Calgary, Alberta-based RV rental chain reported income before income tax of $2.8 million for the three months was 7% lower than last year. Revenues for the three months of $10.2 million is 6% lower than last year, while cash flow from operations of $7.8 million is in line with last year.
Income before income taxes of $2.8 million decreased $224,000 or 7% from the prior year first quarter.
Decreased revenues of $645,000 is due in part from a 16% decline in fleet and available rental nights resulting in an 11% reduction in booked rental nights.
Direct expenses for the three months decreased by $78,000 or 2% compared to last year’s $5.2 million. As the decrease in revenues exceeded the decrease in direct expenses the gross margin decreased $566,000 or 10%.
Investment in rental fleet was $26.8 million at July 31, a decrease $1.9 million from July 31, 2008 and an increase of $2.0 million from April 30, 2009, year-end levels. The investment in fleet inventory available for sale was $1.3 million at July 31, a decrease of $3.6 million from July 31, 2008 and $1.4 million from April 30, 2009 year-end levels.
Fleet capital asset and other financing decreased $6.0 million or 21% to $23.3 million from the prior year’s first quarter of $29.4 million.
The company’s core business, rental of recreational vehicles, is seasonal in nature with the majority of its revenue being earned during the May to October period, its first and second quarters. The majority of the company’s direct expenses are incurred in that same period.
The company sold a minority share in its business earlier this month to Apollo Motorhomes, an Australian RV rental firm which also conducts business in New Zealand and the U.S.