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TWC Enterprises Limited Announces Third Quarter 2016 Results and Eligible Cash Dividend

KING CITY, ONTARIO--(Marketwired - Nov 7, 2016) - TWC Enterprises Limited (TWC.TO)

Consolidated Financial Highlights

(in thousands of dollars except per share amounts)

Three months ended

Nine months ended

September 30,
2016

September 30,
2015

September 30,
2016

September 30,
2015

Operating revenue

94,448

96,352

189,069

185,095

Net operating income1

37,334

38,076

57,436

55,978

Net earnings

17,869

17,749

18,015

15,031

Basic and diluted earnings per share

$0.65

$0.65

$0.66

$0.55

Weighted average shares outstanding (000's)

27,345

27,350

27,345

27,364

Operating Data

Three months ended

Nine months ended

ClubLink One Membership More Golf

September 30,
2016

September 30,
2015

September 30,
2016

September 30,
2015

Championship rounds - Canada

541,000

554,000

938,000

898,000

18-hole equivalent championship golf courses - Canada

42.5

42.5

42.5

42.5

Full privilege members - Canada

15,415

15,373

Championship rounds - U.S.

51,000

59,000

280,000

298,000

18-hole equivalent championship golf courses - U.S.

11.0

12.0

11.0

12.0

White Pass and Yukon Route

Rail passengers

250,000

250,000

408,000

402,000

Port passengers from cruise ships

494,000

505,000

816,000

816,000

Cruise ship dockings

220

232

363

378

Segment Data

(thousands of dollars)

Three months ended

Nine months ended

September 30,
2016

September 30,
2015

September 30,
2016

September 30,
2015

Net operating income

Canadian golf club operations (Cdn)

17,306

17,787

27,816

27,081

US golf club operations (USD)

(867)

(741)

972

1,113

Rail and port operations (USD)

16,827

16,853

23,572

23,121

Third Quarter 2016 Consolidated Operating Highlights

The exchange rate used for translating US denominated earnings has changed to a quarterly average of 1.3051 for the three months ended September 30, 2016 from 1.3094 for the three month period ended September 30, 2015.

Consolidated operating revenue decreased 2.0% to $94,448,000 for the three month period ended September 30, 2016 from $96,352,000 in 2015, due to the lower operating revenue in Canadian and US golf club operations.

Consolidated operating expenses decreased 2.0% to $57,114,000 for the three month period ended September 30, 2016 from $58,276,000 in 2015.

Net operating income for the Canadian golf club operations segment decreased 2.7% to $17,306,000 in 2016 from $17,787,000 in 2015 due to the 2.4% decline in Ontario Daily Fee rounds due to the hot summer weather.

Net operating loss for US golf club operations segment increased 17.0% to US $867,000 in 2016 from US $741,000 in 2015.

Net operating income for the rail and port operations decreased 0.2% to US $16,827,000 from US $16,853,000 in 2015.

Consolidated net operating income decreased 1.9% to $37,334,000 for the three month period ended September 30, 2016 from $38,076,000 in 2015.

Interest, net decreased 9.2% to $4,407,000 for the three month period ended September 30, 2016 from $4,853,000 in 2015 due to the decline in borrowings.

Effective January 1, 2016, TWC has declared its 8.00% USD mortgage facility as a hedge against its net investment in White Pass. Accordingly, the foreign exchange translation gain or loss on this mortgage is now reflected in accumulated other comprehensive income effective January 1, 2016.

Net earnings increased slightly to $17,869,000 for the three month period ended September 30, 2016 from $17,749,000 in 2015.

Comparability

Other expense includes certain one-time and non-cash items which are not comparable between years.

The impact of these items is as follows:

For the nine months ended

September 30,

September 30,

(thousands of dollars - except per share amounts)

2016

2015

Net earnings as reported

$

18,015

$

15,031

Other expense (income)

Income tax provision on above adjustments

Pro Forma net earnings

$

18,307

$

17,506

Earnings per share as reported

$

0.66

$

0.55

Impact of other expense

0.01

0.11

Impact of income tax provision on above adjustments

-

(0.02

)

Pro Forma earnings per share

$

0.67

$

0.64

Eligible Dividend

Today, TWC Enterprises Limited announced an eligible cash dividend of 2 cents per common share to be paid on December 15, 2016 to shareholders of record as at November 30, 2016.

Corporate Profile

TWC is engaged in golf club operations under the trademark, "ClubLink One Membership More Golf." TWC is Canada's largest owner and operator of golf clubs with 53.5 18-hole equivalent championship and 3.5 18-hole equivalent academy courses at 41 locations in Ontario, Quebec and Florida.

TWC is also engaged in rail and port operations based in Skagway, Alaska, which operate under the trade name "White Pass & Yukon Route." The railway stretches approximately 110 kilometres (67.5 miles) from Skagway, Alaska, to Carcross, Yukon. In addition, White Pass operates three docks, primarily for cruise ships.

(1) Net operating income, operating margin, cash flow from operations and basic and diluted cash flow from operations per share are not recognized performance measures under International Financial Reporting Standards ("IFRS"). Management believes that in addition to net earnings, these measures are useful supplemental information to provide investors with an indication of the Company's performance. Investors should be cautioned, however, that these measures should not be construed as an alternative to net earnings determined in accordance with IFRS as an indicator of the Company's performance or to cash flows from operating, investing and financing activities as a measure of liquidity and cash flows. ClubLink's method of calculating these measures is consistent from year to year, but may be different than those used by other companies (See "Management's Discussion and Analysis of Financial Condition and Results of Operations" for detailed calculations).

Management's discussion and analysis, financial statements and other disclosure information relating to the Company is available through SEDAR and at www.sedar.com and on the Company website at www.twcenterprises.ca