Mr. Andrew Tamlin reports

TWC ENTERPRISES LIMITED ANNOUNCES FIRST QUARTER 2024 RESULTS AND ELIGIBLE DIVIDEND

TWC Enterprises Ltd. has released its first quarter 2024 results.

First quarter 2024 consolidated operating highlights

Operating revenue increased 146.5 per cent to $65,346,000 for the three-month period ended March 31, 2024, from $26.51-million in 2023 due to the revenue from 21 Highland Gate home sales (2023: nil).

Direct operating expenses increased 188.0 per cent to $60.89-million for the three-month period ended March 31, 2024, from $21,139,000 in 2023 due to the cost of sales from 21 Highland Gate home sales (2023: nil), as well as higher merchandise cost of sales from off-season merchandise sales.

Net operating income for the Canadian golf club operations segment increased to $3,554,000 for the three-month period ended March 31, 2024, from $2,852,000 in 2023 due to higher annual dues revenue and the timing of certain expenses.

Interest, net and investment income increased to income of $2,785,000 for the three-month period ended March 31, 2024, from $2.08-million in 2023 due to a decrease in borrowings.

At March 31, 2024, the company recorded unrealized losses of $4,551,000 on its investment in marketable securities (March 31, 2023: $13,558,000). This loss is attributable to the fair market value adjustments of the company's investment in Automotive Properties Real Estate Investment Trust.

The exchange rate used for translating U.S.-denominated amounts has changed from 1.3226 at Dec. 31, 2023, to 1.3550 at March 31, 2024. This has resulted in a foreign exchange loss of $167,000 for the three-month period ended March 31, 2024, on the translation of the company's U.S.-denominated financial instruments.

Net loss in the amount of $701,000 for the three-month period ended March 31, 2024, changed from $8,051,000 in 2023 due to the large unrealized loss on the company's investment in Automotive Properties REIT recorded in 2023. Basic and diluted loss per share decreased to three cents per share in 2024, compared with basic and diluted loss per share of 33 cents in 2023.

Eligible dividend

Today, TWC Enterprises announced an eligible cash dividend of 7.5 cents per common share to be paid on June 17, 2024, to shareholders of record as at May 31, 2024.

About TWC Enterprises Ltd.

TWC Enterprises is engaged in golf club operations under the trademark "ClubLink one membership more golf." TWC Enterprises is Canada's largest owner, operator and manager of golf clubs with 45.5 18-hole-equivalent championship and two 18-hole-equivalent academy courses (including three managed properties) at 35 locations in Ontario, Quebec and Florida.