Mr. Andrew Tamlin reports

TWC ENTERPRISES LIMITED ANNOUNCES SECOND QUARTER 2023 RESULTS AND ELIGIBLE DIVIDEND

TWC Enterprises Ltd. has released its financial results for the second quarter of 2023.

Second quarter 2023 consolidated operating highlights

Operating revenue increased 22.6 per cent to $64,653,000 for the three-month period ended June 30, 2023, from $52,736,000 in 2022 due to the revenue from the eight Highland Gate home sales in 2023 as compared with two in 2022.

Direct operating expenses increased 36.1 per cent to $53,834,000 for the three-month period ended June 30, 2023, from $39,569,000 in 2022 due to the cost of sales from the eight Highland Gate home sales in 2023 as compared with two in 2022.

Net operating income for the Canadian golf club operations segment decreased to $10,289,000 for the three-month period ended June 30, 2023, from $12,675,000 in 2022 due to the conclusion of ClubLink's lease of The Country Club, which expired as of Dec. 31, 2023.

Depreciation and amortization decreased 21.7 per cent to $3,492,000 in 2023 from $4,458,000 in 2022 due to the conclusion of The Country Club lease, which has also resulted in a decline in depreciation of right-of-use assets.

Interest, net and investment income increased to $2,201,000 for the three-month period ended June 30, 2023, from $422,000 in 2022 due to a decrease in borrowings and an increase in distributions from the company's investment in Automotive Properties REIT.

Other items consist of the income (loss) items in the attached table.

At June 30, 2023, the company recorded unrealized losses of $474,000 on its investment in marketable securities (June 30, 2022 -- $8,366,000). This loss is attributable to the fair market value adjustments of the company's investment in Automotive Properties REIT.

The exchange rate used for translating U.S.-dollar-denominated assets has changed from 1.3544 at Dec. 31, 2022, to 1.3240 at June 30, 2023. This has resulted in a foreign exchange gain of $453,000 for the three-month period ended June 30, 2023, on the translation of the company's U.S.-denominated financial instruments.

Net earnings increased to $8,114,000 for the three-month period ended June 30, 2023, from $3,594,000 in 2022 due to an unrealized loss on the company's investment in Automotive Properties REIT in the amount of $8,366,000 recorded in 2022 as compared with $474,000 in 2023. Basic and diluted earnings per share increased to 33 cents per share in 2023, compared with basic and diluted earnings per share of 15 cents in 2022.

Eligible dividend

Today, TWC Enterprises announced an eligible cash dividend of five cents per common share to be paid on Sept. 15, 2023, to shareholders of record as at Aug. 31, 2023.

About TWC Enterprises Ltd.

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 2.5 18-hole equivalent academy courses (including two managed properties) at 35 locations in Ontario, Quebec and Florida.

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