News and Events

March 27, 2009

CanaDream Corporation Reports Third Quarter Earnings of $2.3 million or 14 cents per share

The Company encourages interested parties to access CanaDream Corporation’s Management Discussion and Analysis (MD&A) on the SEDAR website,, for a more detailed discussion of these results.

Summarized results for the nine months ended January 31, 2009 are as follows:


 January 31, 2009

 January 31, 2008










 Revenue less direct expenses 




 Income before income tax 




 Net and comprehensive income 




 Cash flow from operations 




 Basic earnings per share 

 14.0 cents 

 8.4 cents 


 Fully diluted earnings per share

 13.8 cents 

 8.2 cents 


 Common Shares outstanding 




 Weighted average number of
 common shares outstanding 




Increased revenues of $1.4 million for the nine months resulted from increased rental nights, utilization, and fleet sales.

Investment in rental fleet at January 31, 2009 increased $5.7 million or 27% from the prior year third quarter. This increase is the result of the following:  the April 30, 2008 balance of rental fleet was down $2.4 million from April 30, 2007; purchases increased $8.6 million from the prior year; increase in amortization of rental fleet of $471,000. Although purchases increased $8.6 million, the total number of units in active rental fleet decreased 2% - the overall net book value of fleet increased due to the increased number of new units purchased in the current year. Management has focused on increasing the utilization of the rental fleet (a 2% increase in utilization for the nine months of the third quarter) to increase revenues and decrease the expenditures associated with a larger fleet.

Total fleet, capital asset and other financing at January 31st, 2009 increased $4.9 million or 24% from the prior year third quarter. This increase is the result of the following: the April 30, 2008 balance of fleet, capital assets and other financing was down $4.3 million from April 30, 2007; increased proceeds on fleet financing of $9.7 million; an increase of $2.6 million in scheduled repayments; the addition of $1.8 million of mortgage financing in May of 2008.

The Company’s short-term liquidity position at January 31, 2009 decreased $1.8 million or 107% from the prior year third quarter. This decrease is the result of an increase in cash flow from operation of $1.4 million off-set by an increase in repayment of fleet financing - scheduled payments of $2.6 million and the re-payment of $1.7 million of debentures that matured February 28, 2008. The repayment of fleet financing - scheduled payments increased 55% over the prior year due to the increase in purchases of new fleet of $8.6 million from the prior year. The remaining outstanding convertible debenture matures on February 27, 2009 and the principal amount of $1.46 million will be re-paid at that time. As a result of the required convertible debenture repayment the Company is currently projecting a cash shortfall of $231,000 for the first week of April 2009. The company requested and has been approved for a temporary over extension of its current $1.5 million operating line of credit to mitigate this projected temporary shortfall. Management is continuously evaluating alternatives to meet its on-going cash flow requirements.

It should be noted that 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 markets rental units and fleet inventory available for sale on a continuous basis throughout the year, however sales of such units are generally strongest in the spring and early summer. As a result of ongoing interest, amortization and adjustments and selling, general and administrative expenses, the last two quarters of the fiscal year normally produce operating losses. Losses incurred in the last two quarters may exceed profits earned in the first two quarters of the fiscal year.

The financial data included in this release has been prepared in accordance with Canadian generally accepted accounting principles (GAAP), except for the term cash flow from operations per share. Cash flow per share is a measure that provides shareholders and potential investors with additional information regarding the Company’s liquidity and its ability to generate funds to finance its operations.

The Company encourages interested parties to access CanaDream Corporation’s MD&A on the SEDAR website,, for a more detailed discussion of these results.

CanaDream is a Canadian tourism company that is utilizing its proprietary business-to-business web-enabled system,, and its business-to-consumer on-line Internet reservation system, to operate and expand its network of RV rental locations in Canada. CanaDream maintains six Company-operated locations in Calgary, Vancouver, Whitehorse, Toronto, Montreal, and Halifax. The Company is also leveraging its proprietary technology to build a franchised network of associate dealers that are fully interconnected to CanaDream’s e-commerce systems. CanaDream currently has one associate dealer franchisee in Kelowna, British Columbia.

For further information, please contact:
Mr. Brian Gronberg, President & CEO, CanaDream Corporation
Toll Free: 800-461-7638