Canlan Sports Reports Q1 Record Revenue and Continues Quarterly Dividend

Burnaby, British Columbia--(Newsfile Corp. - May 12, 2025) - Canlan Ice Sports Corp. (TSX: ICE) (the "Corporation", "Canlan" or "Canlan Sports") today reported its financial results for the first quarter ended March 31, 2025.

Overview of Q1 2025

• Total operating revenue of $28.0 million increased by $1.8 million or 6.8% compared to a year ago;

• Operating earnings (see "Non-IFRS Financial Measure" above) of $8.5 million increased by $0.9 million or 11.3% compared to 2024; and

• Net earnings of $4.2 million or $0.32 per share were consistent with 2024.

"It's exciting to see the strong momentum from 2024 carry into the first quarter of 2025, with overall revenue up 7% and food and beverage sales climbing 10%, driven by growing participation in our leagues, party bookings, and sports simulators," said Joey St-Aubin, President and CEO of Canlan Sports. "These results are a testament to the power of community and the strength of our brand, but they also reflect the strides we've made in transforming the way we serve our customers."

"As a follow up from our February news release, the dialogue initiated through Canlan's She Plays Hockey committee so far, has been very engaging and has sparked a movement that we believe will be very productive for the long-term vision of girls' and women's participation in hockey. In addition, our recent digital improvements are starting to simplify how guests interact with us, from smoother registration processes to more relevant program suggestions, making it easier and more convenient for them to stay connected. The expansion of our indoor fields at Canlan Libertyville in 2024 was another example of listening to our communities and investing to meet their needs. The demand for indoor soccer during the fall and winter exceeded expectations, and we're now also seeing strong engagement on the ice side heading into spring and summer with hockey league registrations tracking well. With our tournament division preparing for another busy season, we're excited about what lies ahead as we continue to innovate and elevate the Canlan Sports experience for every guest."

"In addition to on-ice and field operations, we're moving forward with a number of important capital and maintenance projects that will help shape the future of our facilities," added the Company's CFO, Ivan Wu. "These projects include the anticipated completion of our first significant roof remediation program and critical life-cycle equipment replacements aimed at creating energy efficiencies and improving ice quality across our sports complexes. A number of technology-related projects are also in progress to drive process efficiencies and enhance user experience."

First Quarter Results

First Quarter Results
(three months ended March 31, 2025 compared with three months ended March 31, 2024)

• Total operating revenue of $28.0 million increased by $1.8 million or 6.8% compared to 2024 mainly due to pricing and volume increases in third-party surface rentals, the ASHL, soccer leagues, parties/events, building space rentals, and food and beverage operations;

• Facility operating expenses of $17.0 million increased by $0.7 million or 4.1% mainly due to increased wages and utilities expense;

• After G&A expenses of $2.5 million, operating earnings of $8.5 million increased by $0.9 million or 11.3% compared to 2024; and

• Net earnings for the quarter after depreciation, borrowing costs, loss on interest rate swap and income tax expense were $4.2 million or $0.32 per share consistent with a year ago.

Dividend Policy

Canlan's Board of Directors has approved the continuation of the Corporation's quarterly dividend policy. As such, the Board declares eligible dividends totaling $0.03 per common share that will next be paid on July 15, 2025 to shareholders of record at the close of business on June 30, 2025. Canlan's Board of Directors reviews the Corporation's dividend policy on a quarterly basis. Canlan's dividend is designated as an "eligible" dividend under the Income Tax Act (Canada) and any corresponding provincial legislation. Under this legislation, individuals resident in Canada may be entitled to enhanced dividend tax credits, which reduce income tax otherwise payable.

Filings

Canlan's financial statements and Management's Discussion & Analysis for the quarter ended March 31, 2025 will be available via SEDAR Plus (www.sedarplus.ca) on or before May 15, 2025 and through the Company's website, www.canlansports.com.

About Canlan

Canlan Sports is the North American leader in the operations and ownership of multi-purpose recreation and entertainment facilities. We are amongst the largest private sector owners and operators of recreation facilities in North America and currently own, lease and/or manage 15 facilities in Canada and the United States with 47 ice surfaces, as well as 10 indoor soccer fields, and 18 hard court surfaces. To learn more about Canlan please visit www.canlansports.com.

Canlan Ice Sports Corp. has proudly been listed on the Toronto Stock Exchange for over 35 years and the stock trades under the symbol "ICE."

Caution concerning forward-looking statements

This News Release may contain information that constitutes "forward-looking" information within the meaning of applicable securities laws. Often, but not always, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "budgets", "scheduled", "estimates", "forecasts", "predicts", "projects", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information in this press release includes, but is not limited to, anticipated benefits of capital expenditures (including energy efficiencies and enhanced customer experiences) and expectations of business growth. Forward-looking information is based on the reasonable assumptions, estimates, analyses, beliefs and opinions of management made in light of its experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable at the date that such information is disclosed. Forward-looking information is subject to various known and unknown risks and uncertainties, many of which are beyond the ability of Canlan to control or predict, that may cause Canlan's actual results, performance or achievements to be materially different from those expressed or implied thereby. Material risk factors that could cause actual results to differ materially from the forward-looking information provided herein include those factors identified in Canlan's public disclosure file available at www.sedarplus.ca and, in particular, the risk factors set out under the heading "Risk Factors" in the Company's MD&A available for review on the Company's profile at www.sedarplus.ca. Such forward-looking information represents management's best judgment based on information currently available. Accordingly, readers are advised not to place undue reliance on forward-looking information. The forward-looking information herein is made as of the date of this press release only, and the Company does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable securities law.

¹ Operating earnings is defined as earnings after general and administrative expenses and before interest, depreciation, foreign currency exchange, gain on assets sold and income tax. However, operating earnings is not a term that has specific meaning in accordance with IFRS, and may be calculated differently by other companies. Canlan reconciles operating earnings to its net earnings.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/251587