18-hole equivalent championship golf courses – U.S.
6.5
6.5
The following is an analysis of net earnings:
For the three months ended
(thousands of Canadian dollars)
June 30, 2025
June 30, 2024
Operating revenue
$
61,560
$
62,183
Direct operating expenses(1)
47,326
53,049
Net operating income(1)
14,234
9,134
Amortization of membership fees
1,200
1,126
Depreciation and amortization
(3,559
)
(3,681
)
Interest, net and investment income
2,321
2,813
Other items
12,605
(3,902
)
Income taxes
(5,322
)
(2,331
)
Net earnings
$
21,479
$
3,159
For the six months ended
(thousands of Canadian dollars)
June 30, 2025
June 30, 2024
Operating revenue
$
102,324
$
127,529
Direct operating expenses(1)
79,957
113,938
Net operating income(1)
22,367
13,591
Amortization of membership fees
2,263
2,085
Depreciation and amortization
(6,944
)
(7,196
)
Interest, net and investment income
4,989
5,598
Other items
6,611
(8,503
)
Income taxes
(6,723
)
(3,117
)
Net earnings
$
22,563
$
2,458
The following is a breakdown of net operating income (loss) by segment:
For the three months ended
(thousands of Canadian dollars)
June 30, 2025
June 30, 2024
Net operating income (loss) by segment
Canadian golf club operations
$
13,581
$
10,361
US golf club operations
(2025 – US $699,000; 2024 – US $467,000)
967
636
Corporate and other
(314
)
(1,863
)
Net operating income(1)
$
14,234
$
9,134
For the six months ended
(thousands of Canadian dollars)
June 30, 2025
June 30, 2024
Net operating income (loss) by segment
Canadian golf club operations
$
16,913
$
13,915
US golf club operations
(2025 – US $3,157,000; 2024 – US $2,630,000)
4,494
3,552
Corporate and other
960
(3,876
)
Net operating income(1)
$
22,367
$
13,591
Operating revenue is calculated as follows:
For the three months ended
(thousands of Canadian dollars)
June 30, 2025
June 30, 2024
Annual dues
$
18,953
$
18,246
Golf
15,455
13,407
Corporate events
3,387
2,770
Food and beverage
12,261
9,798
Merchandise
4,736
4,581
Real estate
5,736
12,381
Rooms and other
1,032
1,000
Operating revenue
$
61,560
$
62,183
For the six months ended
(thousands of Canadian dollars)
June 30, 2025
June 30, 2024
Annual dues
$
36,643
$
35,753
Golf
21,752
19,409
Corporate events
3,424
2,788
Food and beverage
14,088
11,065
Merchandise
6,290
6,336
Real estate
18,721
50,890
Rooms and other
1,406
1,288
Operating revenue
$
102,324
$
127,529
Direct operating expenses are calculated as follows:
For the three months ended
(thousands of Canadian dollars)
June 30, 2025
June 30, 2024
Operating cost of sales
$
6,878
$
6,284
Real estate cost of sales
5,375
13,488
Labour and employee benefits
22,518
20,661
Utilities
1,685
1,884
Selling, general and administrative expenses
1,238
1,367
Property taxes
773
665
Repairs and maintenance
961
1,114
Insurance
1,686
1,789
Turf operating expenses
2,328
2,215
Fuel and oil
431
484
Other operating expenses
3,453
3,098
Direct Operating Expenses(1)
$
47,326
$
53,049
For the six months ended
(thousands of Canadian dollars)
June 30, 2024
June 30, 2025
Operating cost of sales
$
8,708
$
8,131
Real estate cost of sales
16,328
53,210
Labour and employee benefits
33,059
30,369
Utilities
3,639
3,584
Selling, general and administrative expenses
2,742
2,843
Property taxes
2,372
2,548
Repairs and maintenance
1,888
2,268
Insurance
2,620
2,789
Turf operating expenses
2,565
2,528
Fuel and oil
536
584
Other operating expenses
5,500
5,084
Direct Operating Expenses (1)
$
79,957
$
113,938
(1) Please see Non-IFRS Measures
Second Quarter 2025 Consolidated Operating Highlights
On February 3, 2025, the Company acquired Deer Creek, one of Canada's largest golf and event complexes, located in Ajax, Ontario, and includes 45-holes of championship golf, a nine-hole short course, large driving range and performance academy. This is a daily fee property with a focus on food and beverage operations. This acquisition is a contributing factor to increases seen in both revenue and operating expenses, specifically golf, corporate events and food and beverage revenue, as well as operating cost of sales and labour and employee benefits.
Operating revenue decreased 1.0% to $61,560,000 for the three month period ended June 30, 2025 from $62,183,000 in 2024 due to the decline in revenue from two Highland Gate home sales as compared to seven in 2024.
Direct operating expenses decreased 10.8% to $47,326,000 for the three month period ended June 30, 2025 from $53,049,000 in 2024 due to the decline in Highland Gate home cost of sales as described above.
Net operating income for the Canadian golf club operations segment increased to $13,581,000 for the three month period ended June 30, 2025 from $10,361,000 in 2024 due to the Deer Creek acquisition and healthy increases in golf revenue for all properties due to strong demand.
Interest, net and investment income decreased 17.5% to income of $2,321,000 for the three month period ended June 30, 2025 from $2,813,000 in 2024 due to a reduction in cash (and resulting interest income on this excess cash) as a result of the Deer Creek acquisition.
Other items consist of the following income (loss) items:
For the three months ended
June 30, 2025
June 30, 2024
Foreign exchange gain (loss)
$
541
$
(22
)
Unrealized loss on investment in marketable securities
12,325
(5,119
)
Business combination transaction costs
(94
)
–
Gain on sale of property, plant and equipment
103
162
Equity income from investments in joint ventures
1
–
Insurance
–
621
Other
(271
)
456
Other items
$
12,605
$
(3,902
)
At June 30, 2025, the Company recorded an unrealized gain of $12,325,000 on its investment in marketable securities (June 30, 2024 – loss of $5,119,000). This gain is attributable to the fair market value adjustments of the Company's investment in Automotive Properties REIT. Net earnings in the amount of $21,479,000 for the three month period ended June 30, 2025 increased from $3,159,000 in 2024 due to the change in unrealized gain on the Company's investment in Automotive Properties REIT as compared to 2024. Basic and diluted earnings per share increased to $0.88 per share in 2025, compared to basic and diluted earnings per share of $0.13 cents in 2024.
Non–IFRS Measures
TWC uses non-IFRS measures as a benchmark measurement of our own operating results and as a benchmark relative to our competitors. We consider these non-IFRS measures to be a meaningful supplement to net earnings. We also believe these non-IFRS measures are commonly used by securities analysts, investors and other interested parties to evaluate our financial performance. These measures, which included direct operating expenses and net operating income do not have standardized meaning under IFRS. While these non-IFRS measures have been disclosed herein to permit a more complete comparative analysis of the Company's operating performance and debt servicing ability relative to other companies, readers are cautioned that these non-IFRS measures as reported by TWC may not be comparable in all instances to non-IFRS measures as reported by other companies.
The glossary of financial terms is as follows:
Directoperatingexpenses = expenses that are directly attributable to company's business units and are used by management in the assessment of their performance. These exclude expenses which are attributable to major corporate decisions such as impairment.
Net operating income = operating revenue – direct operating expenses
Net operating income is an important metric used by management in evaluating the Company's operating performance as it represents the revenue and expense items that can be directly attributable to the specific business unit's ongoing operations. It is not a measure of financial performance under IFRS and should not be considered as an alternative to measures of performance under IFRS. The most directly comparable measure specified under IFRS is net earnings.
Eligible Dividend
Today, TWC Enterprises Limited announced an eligible cash dividend of 9 cents per common share to be paid on September 15, 2025 to shareholders of record as at August 29, 2025.
New Director
The Board of Directors of TWC Enterprises Limited announced that Gagan Navani has been appointed as a director of the Company effective August 1, 2025.
Corporate Profile
TWC is engaged in golf club operations under the trademark, “ClubLink One Membership More Golf.” TWC is Canada's largest owner, operator and manager of golf clubs with 47 18-hole equivalent championship and 2.5 18-hole equivalent academy courses (including three managed properties) at 35 locations in Ontario, Quebec and Florida.
For further information please contact:
Andrew Tamlin Chief Financial Officer 15675 Dufferin Street King City, Ontario L7B 1K5 Tel: 905-841-5372 Fax: 905-841-8488 atamlin@clublink.ca
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
