TWC TWC Enterprises Limited

Consolidated Financial Highlights (unaudited)

Operating Data

The following is an analysis of net earnings:

The following is a breakdown of net operating income (loss) by segment:

Operating revenue is calculated as follows:

Direct operating expenses are calculated as follows:

(1) Please see Non-IFRS Measures

Third Quarter 2024 Consolidated Operating Highlights

Operating revenue decreased 1.9% to $66,383,000 for the three month period ended September 30, 2024 from $67,635,000 in 2023 due to the decline in real estate revenue from one Highland Gate home sales compared to two in 2023. The Canadian golf club operations segment has seen a decrease in food and beverage revenue, but this has been offset by an increase in annual dues and golf revenue.

Direct operating expenses decreased 2.5% to $46,099,000 for the three month period ended September 30, 2024 from $47,264,000 in 2023 due to the decline in real estate cost of sales from less home sales in the third quarter of 2024. The Canadian golf club operations segment has seen an increase in maintenance and labour expenses, but these have been offset by decreases in other operating costs.

Net operating income for the Canadian golf club operations segment increased to $21,304,000 for the three month period ended September 30, 2024 from $21,173,000 in 2023.

Interest, net and investment income increased to income of $2,737,000 for the three month period ended September 30, 2024 from $2,327,000 in 2023 due to higher cash balances and the income earned on these balances.

Other items consist of the following income (loss) items:

At September 30, 2024, the Company recorded unrealized gains of $24,839,000 on its investment in marketable securities (September 30, 2023 - losses of $9,859,000). This gain is attributable to the fair market value adjustments of the Company's investment in Automotive Properties REIT.

On July 3, 2024, the Company announced the closing of the sale of the former Woodlands Golf Club to a joint venture managed by 13th Floor Homes. TWC is a 50% partner in the joint venture along with 13th Floor Homes. A gain of $7,788,000 (US$5,711,000) was recorded as a result of the sale and represents one-half of the total gain due to the sale to a joint venture owned 50% by the Company. This represents the majority of the total gain on property, plant and equipment recorded at September 30, 2024.

Net earnings in the amount of $42,719,000 for the three month period ended September 30, 2024 changed from $17,690,000 in 2023 due to the change in unrealized gain on the Company’s investment in Automotive Properties REIT as compared to 2023. Basic and diluted earnings per share increased to $1.75 per share in 2024, compared to basic and diluted earnings per share of $0.72 cents in 2023.

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:

Direct operating expenses = 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 7.5 cents per common share to be paid on December 16, 2024 to shareholders of record as at December 2, 2024.

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 45.5 18-hole equivalent championship and 2 18-hole equivalent academy courses (including three managed properties) at 35 locations in Ontario, Quebec and Florida.

For further information please contact:

Andrew TamlinChief Financial Officer15675 Dufferin StreetKing City, Ontario L7B 1K5Tel: 905-841-5372 Fax: 905-841-8488atamlin@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        

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