Mr. Andrew Tamlin reports

TWC ENTERPRISES LIMITED ANNOUNCES 2023 YEAR END RESULTS AND INCREASE IN ELIGIBLE DIVIDEND

TWC Enterprises Ltd. has released its 2023 year-end results.

The attached table is an analysis of net earnings.

The attached table is a breakdown of net operating income (loss) by segment.

Operating revenue is calculated as shown in the attached table.

Direct operating expenses are calculated as shown in the attached table.

2023 consolidated operating highlights

Operating revenue increased 21.1 per cent to $225,865,000 in 2023 from $186,512,000 in 2022 due to the revenue from 31 Highland Gate home sales in 2023 (2022 -- 10).

Direct operating expenses increased 34.7 per cent to $185,804,000 in 2023 from $137,936,000 in 2022 due to the cost of sales from the 31 Highland Gate home sales in 2023 (2022 -- 10), as well as above-normal increases in labour and certain operating expenses. It continues to be a challenging environment in being able to manage labour costs due to the above normal minimum wage increases and a competitive environment for hiring staff.

Net operating income for the Canadian golf club operations segment decreased 11.0 per cent to $42,730,000 in 2023 from $48,521,000 in 2022 due to the conclusion of ClubLink's lease of The Country Club which expired as of Dec. 31, 2022, as well as above normal increases in labour and certain operating expenses. There has also been a noticeable decline in traffic in the Muskoka, Ont., tourist region this summer which has affected the results of the company's resorts which operate in this area.

Depreciation and amortization decreased 20.0 per cent to $14,192,000 in 2023 from $17,856,000 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 income of $8,973,000 in 2023 from $806,000 in 2022 due to a decrease in borrowings and an increase in distributions from the company's investment in Automotive Properties REIT. On Sept. 1, 2022, the company paid off several non-revolving mortgages in advance of their due dates resulting in an expense of $2,604,000 which includes prepayment penalties and other costs.

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

At Dec. 31, 2023, the company recorded unrealized losses of $20,763,000 on its investment in marketable securities (Dec. 31, 2022 -- loss of $15,754,000). This loss is attributable to the fair market value adjustments of the company's investment in Automotive Properties REIT. The company also recorded losses of $510,000 (Dec. 31, 2022 -- gain of $6,356,000) on fair market value adjustments of its real estate fund investments in relation to Florida and southeastern United States real estate.

The contingent contractual obligation of $5-million (U.S.) ($6.62-million) originating from the sale of White Pass in 2018 expired in July, 2023, and as such has been reversed since it had not been expended.

On Sept. 20, 2023, the company completed the divestiture of its investment in the Geranium real estate management company along with other non-Highland Gate joint ventures in which it was a co-investor with the Geranium Group. These assets were purchased by the company's co-investors with Geranium. Total proceeds for the transaction were $12.5-million including deferred proceeds of $5.3-million. A gain of $6,437,000 was recorded as a result of the transaction.

Net earnings increased to $22,042,000 in 2023 from $18,666,000 in 2022 due to the increase in interest, net and investment income as described herein. Basic and diluted earnings per share increased to 90 cents per share in 2023, compared with 76 cents in 2022.

Eligible dividend

Today, TWC Enterprises announced an eligible cash dividend of 7.5 cents per common share to be paid on April 1, 2024, to shareholders of record as at March 15, 2024. This is a 50-per-cent increase to the previous quarterly dividend of five cents per common share.

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 44 18-hole equivalent championship and two 18-hole equivalent academy courses (including two managed properties) at 34 locations in Ontario, Quebec and Florida.