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RV rental firm CanaDream Corp. reported higher sales but lower earnings during the six months ended Oct. 31, because of costs related to maintaining a bigger rental fleet last summer.
Higher interest rates in Canada added to CanaDream’s higher expenses related to the fact it expanded the size of its fleet by 7% prior to be beginning of the prime North American rental season, according to Brian Gronberg, president and CEO.
Interest rates in Canada were 54 basis points higher during the six months ended Oct. 31 than they were a year earlier, Gronberg added.
CanaDream’s sales revenue increased 5% during the six months ended Oct. 31 to $11.9 million (Canadian), compared with $11.4 million (Canadian) a year earlier.
One Canadian dollar is worth 75.9 cents in U.S. currency at current exchange rates.
Meanwhile, the Calgary-based company’s earnings declined 5% during the six months ended Oct. 31 to $2.5 million (Canadian), versus $2.6 million (Canadian) a year earlier.
CanaDream’s fleet-related debt stood at $11.72 million (Canadian) as of Oct. 31, compared with $10.05 million (Canadian) a year earlier, Gronberg said.
The company currently owns about $3.7 million (Canadian) worth of units that have been retired from its rental fleet, but Gronberg believes “all or substantially all” of those units will be sold before the end of April.
“The outlook for fiscal 2004 looks very positive with pre-bookings to date at a higher level than last year at this time,” he added.