Canlan Ice Sports Corp.

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Canlan Ice Sports Corp.

  1. 1. investorSCOREcardStandard Stock Report as of Sep 27, 2010 Canlan Ice Sports Corp. (ICE-T) Burnaby, BC, Canada (604) 736-9152 www.icesports.com Share Price $1.90 Market Cap (Mil) $25.34 52 Week High $2.40 Cash (Mil) $5.14 52 Week Low $1.25 Total Debt (Mil) $47.79 Avg Vol Last 3 mos. (000s) 0.58 Enterprise Value (Mil) $73.13 Basic Shares Outstanding (Mil) 13.34 Dividend Yield 0.0% Diluted Shares Outstanding (Mil) 13.34 P/E (TTM) 10.6 x Stock Price and Volume Business Description Source: Morningstar Canlan Ice Sports Corp. (Canlan) is a Canada-based 400,000 $3.00 company enagaged in the acquisition, development and operation of recreational ice facilities in North America. The 350,000 $2.50 Company owns, leases or manages a network of 22 300,000 facilities in Canada and the United States containing 63 full- sized ice sheets, two indoor soccer fields and three curling $2.00 250,000 Stock Price surfaces. It owns 11 of these facilities containing 1.2 million square feet of space, operates two facilities under long- Volume 200,000 $1.50 term land lease arrangements and a further four under operating leases. The Company manages five facilities on 150,000 behalf of third-party owners. Canlan owns and operates $1.00 these facilities directly and through several subsidiaries. It 100,000 has five segments: Ice Sales and Internal Programming (grouped as Ice Sales); Restaurant and Lounge Operations; $0.50 50,000 Sports Store Operations; Advertising and Other Operations, and Management and Consulting Services. - $- S O N D J F M A M J J A S O N D J F M A M J J A S 2008 2009 2010 Comparables Scorecard Highlights CLK-T Ratings Out of Possible 5 Stars FGL-T EAT-T Quarter Ending Jun 10 Quarter Ending Mar 10 Stock Market Performance 3.1 3.5 2.2 Insider Ownership 4.2 Not Provided Not Provided Revenue, EBITDA and EPS 1.8 2.0 2.0 Balance Sheet Analysis 2.5 2.7 2.7 Return on Capital 2.5 2.5 2.2 Valuation 4.2 4.2 3.7© 2010 The Equicom Group Inc.  All rights reserved. The Investor Scorecard is exclusively distributed by TMX Equicom. To learn more visit www.tmxmoney.com/scorecardFor a full description of the methodology used, refer to www.fsavaluation.com/scorecardinformation.aspxPlease see the final page(s) of this Investor Scorecard for important disclosure and disclaimer information.
  2. 2. investorSCOREcardCanlan Ice Sports Corp. (ICE-T)Market Overview and OpportunityCanlan Ice Sports is the world leader in ice sports facility ownership, operations and programming. The Companyis the largest private sector owner and operator of recreational ice sport facilities in the world and currently ownsand or manages 22 facilities with 63 sheets of ice, two in-door soccer fields and three curling surfaces in Canadaand the United States.Canlan is executing on a strategy that is designed to increase the utilization of facilities, increase registrations forits branded programs, such as the Adult Safe Hockey League, and expand into select US markets with a traditionof recreational ice sports.Recent Operational and Financial Highlights • Canlan has a track record of steady revenue and earnings growth over the past dozen years. • Revenue for 2009 grew by 4% to $67.2 million • Earnings before taxes increased by 55% to $3.3 million in 2009. • Launched operations in Fort Wayne, Indiana and Vineland, New Jersey as part of the Company’s strategy to expand into select U.S. markets. • Signed an exclusive marketing agreement with Molson Coors Canada that combines sponsorship, branding and web-based promotional activities • Reduced total interest bearing debt to $47.8 million at June 30, 2010.Growth StrategyCanlan derives its revenue from the rental of its playing surfaces, registrations for internal programming, food andbeverage sales, sports stores sales, tournament registrations, management and consulting fees and other relatedfees.Canlan’s strategy for growth is focused on: • Expanding into targeted markets into the U.S., where hockey and figure skating have long traditions within local communities. • Leveraging successful programs, such as the Adult Safe Hockey League, Canlan Classic Tournaments and Skating Academy, to increase utilization of facilities. • Launching new sales and marketing initiatives, including sponsorship and advertising programs on its Adult Safe Hockey Network, the premier online community of adult recreational hockey players with more than 70,000 members.
  3. 3. investorSCOREcardCanlan Ice Sports Corp. (ICE-T)Competitive AdvantagesAs the largest private sector operator of recreational ice facilities in North America, Canlan maintains a number ofcompetitive advantages, including: • Strong brand name recognition for its facilities and programs • High customer retention and loyalty • Proven, effective programs, such as the ASHL, North America’s most successful adult hockey league • High barriers to entry due to extensive capital requirementsDirectors and ManagementW. Grant Ballantyne, CAChairmanMr. Ballantyne is a chartered accountant, and holds a B.A. in Economics from Waterloo Lutheran University. Mr.Ballantyne has over thirty years of senior management experience in finance and operations. Prior to joiningCanlan he was Senior Vice President of an international, TSE 300 company with multi facility operations and withextensive acquisition activity.Frank BarkerDirectorMr. Barker is a partner and founder of Kinetic Capital Partners, a private equity investment company with over $50million under management. Mr. Barker has been active in the private equity field since 1986 and has overseen theexecution of a number of early stage growth strategies, corporate turn-arounds and financial restructurings ofportfolio companies. Prior to the formation of Kinetic Capital Partners Mr. Barker was interim President and CEO ofCanlan Ice Sports Corp. from 1987 to 2000. Prior to that he was the Vice President of Finance at Bartrac HoldingsLtd, Canlan’s controlling shareholder. Mr. Barker was an active director of Whistler Mountain Ski Corporation from1988 to 1997. Mr. Barker has served as a director of a variety of companies in the fields of wood products, oil andgas exploration, waste management and manufacturing and has been a Director of the Company since 1986.Charles AllenDirectorMr. Allen is the President of Darmajac Holdings, a holding company with investments in telecommunications andother industries. Mr. Allen is a graduate of the University of Toronto and achieved his Chartered Accountantdesignation with Clarkson Gordon in 1974. From 1987 to 1995, Mr. Allen was President and Chief Executive Officerof CUC Broadcasting, a Canadian investment company with broad interests in cable television, telephony,broadcasting, paging, satellite-delivered programming and PCS. Mr. Allen also sits on the Board of TeragoNetworks and P.S. Production Services Ltd.Geoff BarkerDirectorMr. Barker is a graduate of UBC with Bachelor of Applied Science. He spent 1978 to 1986 with the Provincial WaterManagement Branch of the Ministry of Environment. Registered with the Association of Professional Engineers ofB.C. in 1981 but has since given up professional designation. From 1986 onward, has been Vice PresidentDevelopment with Bartrac Holdings Ltd. and has been a director of Canlan since May of 1987.
  4. 4. investorSCOREcardCanlan Ice Sports Corp. (ICE-T)Edwin CohenDirectorMr. Cohen has been a director of Canlan since June of 1999. Prior to retirement he worked as a financial serviceconsultant for over 30 years. He holds a bachelor of commerce degree from the University of Manitoba.William PattisonDirector Mr. Pattison has been a director of Canlan since May of 1986. He holds a bachelor of commerce degree fromCornell University and an MBA from Harvard University.Joey St-AubinPresident & C.E.O.Mr. St-Aubin has a Bachelors Degree in Social Sciences with a concentration in Management of Public Policy fromthe University Ottawa. He has 25 years experience in the competitive ranks of the sport of hockey and his been aleader in the ice rink industry since 1997. He began his career with Canlan as the facility General Manager inOshawa and has grown through various positions to now lead Canlan Ice Sports as the President and CEO.Michael F. Gellard, CGASr. Vice President & Chief Financial OfficerMr. Gellard is a Certified General Accountant and joined Canlan as controller in 1996 after spending fifteen yearsworking in public practice where he serviced a wide variety of audit clients. Following the successful financialrestructuring of the Company in 2000, Mr. Gellard was made Vice President Finance & CFO.Duke DicksonSr. Vice President Business DevelopmentMr. Dickson has been a senior sports marketing professional for the past 27 years. He has extensive marketingexperience with professional sports organizations such as the Vancouver Canucks, Toronto Maple Leafs and B.C.Lions as well as operating a successful sports marketing consultancy prior to joining Canlan in 1999.Mark FaubertSenior Vice President of OperationsMr. Faubert has been in senior management roles in the Resort and Hospitality Industry for thirty years and hasworked with some of the largest resorts in Western Canada. He graduated with honours in Recreation FacilitiesManagement and Resort Operations Management in 1978. He joined Canlan in 2001 as Facility General Manager atBurnaby 8-rinks and has advanced through various positions to now head up our North American operations.Ivan Wu, CAVice President Finance & ControllerMr. Wu is a Chartered Accountant and holds a Bachelor of Commerce degree in Finance from the University ofBritish Columbia. Prior to joining Canlan Mr. Wu was a Senior Manager in a public accounting firm where heserviced a variety of clients in the real estate and services sectors.
  5. 5. investorSCOREcardCanlan Ice Sports Corp. (ICE-T)Mark Reynolds C.H.R.P.Vice President Human ResourcesMr. Reynolds has over thirty-years of business experience in various sales, operations and management roles. Heentered the Human resources field in 1987 and since that time has held various H.R. generalist roles, continuing tobuild human resources strength in many areas. His experience has been working with entrepreneurial, growth-oriented organizations, mostly in the service and retail industries and with multi Provincial locations.Ken MaleVice President Eastern OperationsMr. Male graduated from Mohawk College and is a Certified Management Accountant. He has twenty-three yearsmanagement experience in finance, sales and operations. Mr. Male joined Canlan in 2000 as Director Sales &Marketing for the Ontario Region and advanced through various positions to head our Eastern Operations.Greg PorcellatoVice President Western OperationsGreg Porcellato has held senior roles in Facility, Recreation, Major events and Sports management in theVancouver area. He graduated from Simon Fraser University with a Business degree in Organizational Behavior.Greg was the Facility Manager of the Pacific Coliseum, Pacific National Exhibition through to 2001. From there hetook on the role of Manager of Information Centre, Volunteers and Event Planning for the Vancouver 2010 OlympicBid Corporation through 2003. His career with Canlan began as the General Manager of Burnaby 8 Rinks in 2003,promoted to Senior General Manager, Lower Mainland in 2006 and now in his new role as Vice President WesternOperations.Shari LichtermanDirector, US Business Development / Regional General Manager - USMs. Lichterman is both a Certified Public Accountant and Certified Management Accountant, holding a Bachelor ofCommerce degree from Carleton University. She has thirteen years of experience in ice rink and recreationalfacility operations in both the United States and Canada. Prior to joining Canlan, Ms. Lichterman was a co-ownerand Director of Operations of a consulting and management company based in the United States.Paul DillonVice President Sales, Marketing & ServiceMr. Dillon is a career marketing and sales professional with nearly twenty years experience, many of which were ina senior management capacity, providing sales and marketing leadership. Prior to joining Canlan, he gainedvaluable experience in a variety of industry sectors including packaged goods, consumer electronics, transportationand real estate. Mr. Dillon holds a Bachelor of Arts degree from York University.ComparablesClubLink Enterprises Ltd. (TSX: CLK)Forzani Group Ltd. A (TSX: FGL)Prime Restaurants Inc. (TSX: EAT)
  6. 6. investorSCOREcardCanlan Ice Sports Corp. (ICE-T)Stock Market Performance Rating 3.1Stock Market Returns 30,000 $100.00 Return Percentile Rating 25,000 Three Months (5.0%) 37% 1.9 Six Months 0% 48% 2.4 $80.00 Stock Price 1 Year 41% 95% 4.8 20,000 Volume 3 Years (CAGR) 0% 60% 3.0 $60.00 5 Years (CAGR) 10% 71% 3.5 15,000Market Data 10,000 $40.00 Price $1.90 Mkt Cap (Mil) $25.34 5,000 $20.00 Shs Outstanding (Mil) 13.34 Dividend Yield % 0.0% Avg Vol Last 3mos. (000s) 0.58 - $- 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 P/E (TTM) 10.6 xInsider Ownership Rating 4.2Value of Shares and Options Percent of Ownership Shares Options Total Value Rating Percent Rating 76.1% Insiders * Adjusted 0.0% > 10% Holders # of # of $ Value if Adjusted $ $ Value $ Value if Rating Percent of Rating 23.9% Other Shares Options Exercised Value Exercised (Add all) Mkt. Value (Add all) Joey St-Aubin 9,300 $17,670 - $0 $0 $17,670 0.0 0.1% 0.0 President and CEO Michael F Gellard 16,200 $30,780 - $0 $0 $30,780 0.0 0.1% 0.0 Sep-10 CFO Other Officers Aug-10 10,650 $20,235 - $0 $0 $20,235 0.0 0.1% 0.0 Jul-10 Board of Directors (excl. CEO) 10,111,389 $19,211,639 - $0 $0 $19,211,639 4.0 75.8% 5.0 Jun-10 > 10% Holders May-10 - $0 - $0 $0 $0 0.0% For info onlyTotal (excl. >10% Holders) $19,280,324 $0 $0 $19,280,324 4.0 76.1% 4.0 0% 20% 40% 60% 80% 100% (Max of 4) (Max of 4) CEO CFO Other Officers Directors > 10% Holders Public Float* Adjusted $ Value of Options is 50% of their full value if exercised to account for volatility. Furthermore, our view is that shareholders would rather management owned shares vs. options.Add: Compensation Type Category Rating Addition Percent of Compensation Share and Total Perform- Share and Salary Perform- Unit Option All Other Comp. ance Unit Option 2.9% ance Bonus Awards Awards Comp. Bonus Awards Awards 0.0% Joey St-Aubin Salary $225,000 $8,400 $233,400 President and CEO Bonus Michael F Gellard Shares & Units $210,000 $210,000 CFO Options Aurthur Dickson All Other $160,000 $6,000 $166,000 SVP Business Development Mark Faubert $145,000 $8,000 $153,000 SVP Operations 97.1% Total $740,000 $0 $0 $0 $22,400 $762,400 0.00 0.00 0.00 (Max Score)Bonus: Net Buying/Selling Last Six Months Insider Holdings Beginning and Ending Value Transactions Adjusted Share and $25,000,000 Rating Option Value $20,000,000 Buying Selling Net Bonus $15,000,000 Joey St-Aubin, President and CEO $3,075 $0 $3,075 0.17 $10,000,000 Michael F Gellard, CFO $0 $0 $0 0.00 Other Officers $2,398 $0 $2,398 0.00 $5,000,000 Board of Directors (excl. CEO) $0 $0 $0 0.00 $- > 10% Holders (info only) $0 $0 $0Total (excl. >10% Holders) $5,473 $0 $5,473 0.17 (Total Score) Beg Trans- Ending Value actions Value
  7. 7. investorSCOREcardCanlan Ice Sports Corp. (ICE-T)Balance Sheet Analysis Rating 2.5Short-Term Liquidity Quadrant 3: Quadrant 1: "RECOVERING" "OPTIMAL" + VEThis Companys cash flow is considered to be seasonal, therefore this report uses trailing twelvemonths cash flow as a proxy for annual cash flow. $ 8.7 Dec-09 $ 6.7 Jun-10 Mar-10 Jun-09Quadrant Rating Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-09Working Capital ($6.3) ($8.1) ($5.3) ($3.7) ($4.6) $ 4.7Cash Flow Ops (Q in mil) $ 0.1 ($0.1) $ 3.4 $ 2.9 $ 0.1 Cash FlowCash Flow Ops (TTM in mil) $ 6.1 $ 5.8 $ 6.4 $ 6.3 $ 6.3 $ 2.7Quadrant Rating 2.0 2.0 2.0 2.0 2.0 $ 0.7Addition to Quadrant Rating ($1.3)Our methodology accounts for the nearness to improving or worsening a Companys quadrantranking based on current cash generation/burn rate and working capital position. The ($3.3) - VECompanys working capital is RECOVERING. The working capital is negative, but they are ($10) ($8) ($6) ($4) ($2) $- $2$4generating positive cash flow. At the current cash generation rate the Company will make up Quadrant 2: Quadrant 4:their deficit and have $0 in working capital in 9 month(s). "DRAWING DOWN" "URGENT" Add: 0.6 - VE Working Capital + VEShort-Term Liquidity Rating 2.6Debt to Equity Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Utilities TelecomEquity Number of Companies MaterialsCommon Stock Equity $ 44.5 $ 43.1 $ 46.2 $ 48.2 $ 46.9 Info Tech IndustrialsTotal Equity $ 44.5 $ 43.1 $ 46.2 $ 48.2 $ 46.9 Health Care Energy Cons StaplesDebt and Equivalents Cons DiscPref. Securities of Sub Trust - - - - -Pref. Equity Outside Stock Equity - - - - -Preferred Stock Equity - - - - -Minority Interest (Bal. Sheet) - - - - -Short-Term Debt $ 3.2 $ 3.2 $ 3.2 $ 3.2 $ 3.3Long-Term Debt $ 45.9 $ 45.3 $ 43.9 $ 43.6 $ 43.4Capital Lease Obligations $ 0.9 $ 1.1 $ 0.9 $ 1.4 $ 1.1Total Debt and Equivalents $ 50.0 $ 49.6 $ 48.0 $ 48.2 $ 47.8 0.00 1.00 2.00 3.00 4.00Debt to Equity 1.12 1.15 1.04 1.00 1.02Debt to Equity Rating 4.3 Low Risk Debt to Equity High RiskDebt to Equity Rating 4.3Interest Coverage Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 6.0 xEBIT 5.0 x Interest CoverageQuarterly ($0.7) ($1.1) $ 4.3 $ 3.5 ($0.8)TTM $ 6.3 $ 5.8 $ 6.4 $ 6.0 $ 5.9 4.0 xInterest Expense 3.0 xQuarterly $ 0.9 $ 0.9 $ 0.8 $ 0.8 $ 0.8TTM $ 3.9 $ 3.9 $ 3.5 $ 3.4 $ 3.4 2.0 xInterest Coverage 1.0 xQuarterly #N/A #N/A 5.2 x 4.3 x #N/ATTM 1.6 x 1.5 x 1.8 x 1.8 x 1.7 x 0.0 x Jun-09 Sep-09 Dec-09 Mar-10 Jun-10Interest Coverage RatingQtrly Interest Coverage Rating 1.4 1.2 QuarterlyTTM Interest Coverage Rating 0.5 0.4 0.5 0.5 0.5 TTMInterest Coverage Rating 0.5
  8. 8. investorSCOREcardCanlan Ice Sports Corp. (ICE-T)Revenue, EBITDA and EPS Rating 1.8Revenue (in millions) Revenue (in milions) on Rolling TTM $80.00 $70.00Annual (Fiscal Year) Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 $60.00Revenue $ 48.8 $ 55.2 $ 62.5 $ 64.7 $ 67.2 $50.00Quarterly Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 BasisQuarter Ending $ 14.6 $ 13.6 $ 19.6 $ 19.9 $ 15.7 $40.00TTM $ 66.0 $ 66.6 $ 67.2 $ 67.6 $ 68.8 $30.00Growth Percent Rating Stability R² Rating $20.00Rev. Growth % TTM 4.3% 1.6 $10.00Rev. Growth % LFY 3.9% 1.5 Revenue Stability Last 2 Yrs 99.0% 4.9Rev. Growth % 3 Year CAGR 4.4% 1.6 Revenue Stability Last 3 Yrs 96.9% 4.8 $-Rev. Growth % 5 Year CAGR 7.9% 2.2 Revenue Stability Last 5 Yrs 93.6% 4.7 Jun Jun Jun Jun Jun Jun Jun Jun Jun JunRevenue Growth Rating 1.7 Overall Revenue Stability Rating 4.8 01 02 03 04 05 06 07 08 09 10Revenue Growth and Stability Rating 3.3EBITDA (in millions) EBITDA (in milions) on Rolling TTM $ 14.00 $ 12.00Annual (Fiscal Year) Dec-05 Dec-06 Dec-07 Dec-08 Dec-09EBITDA $ 8.4 $ 9.3 $ 10.2 $ 11.5 $ 11.0 $ 10.00Quarterly Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 $ 8.00 BasisQuarter Ending $ 0.5 $ 0.1 $ 5.4 $ 4.7 $ 0.4TTM $ 10.9 $ 10.4 $ 11.0 $ 10.7 $ 10.6 $ 6.00 $ 4.00Growth Percent Rating Stability R² RatingEBITDA Growth % TTM -2.9% 0.9 $ 2.00EBITDA Growth % LFY -4.0% 0.8 EBITDA Stability Last 2 Yrs 4.1% 0.2EBITDA Grwth % 3 Yr CAGR 0.8% 1.4 EBITDA Stability Last 3 Yrs 17.1% 0.9 $-EBITDA Grwth % 5 Yr CAGR 4.9% 2.0 EBITDA Stability Last 5 Yrs 77.0% 3.8 Jun Jun Jun Jun Jun Jun Jun Jun Jun JunEBITDA Growth Rating 1.3 Overall EBITDA Stablitity Rating 1.6 01 02 03 04 05 06 07 08 09 10EBITDA Growth and Stability Rating 1.5Basic Earnings Per Share (EPS*) $1.50* (excluding acquired in process R&D, restructuring and M&A, special income & charges and discontinued ops) $1.00Annual (Fiscal Year) Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 EPS on Rolling TTMEPS NC $ 0.20 $ 0.06 $ 0.29 $ 0.20 $0.50Quarterly (TTM) Basis Jun-09 Sep-09 Dec-09 Mar-10 Jun-10Quarter Ending ($0.07) ($0.10) $ 0.22 $ 0.15 ($0.09) $-TTM $ 0.25 $ 0.25 $ 0.20 $ 0.20 $ 0.18 ($0.50)Growth Percent Rating Stability R² RatingEPS Growth % TTM -28.0% 0.3 ($1.00)EPS Growth % LFY -31.0% 0.2 EPS Stability Last 2 Yrs 37.3% 1.9EPS Grwth % 3 Year CAGR EPS Stability Last 3 Yrs ($1.50)EPS Grwth % 5 Year CAGR -21.4% 0.5 EPS Stability Last 5 Yrs 3.2% 0.1 Jun Jun Jun Jun Jun Jun Jun Jun Jun JunEPS Growth Rating 0.3 Overall EPS Stablitity Rating 1.0 01 02 03 04 05 06 07 08 09 10EPS Growth and Stability Rating 0.6
  9. 9. investorSCOREcardCanlan Ice Sports Corp. (ICE-T)Return On Capital Rating 2.5Return On Invested Capital (ROIC) 8%Annual (Fiscal Year) Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 7%Invested Capital Period Ending $ 87.0 $ 95.5 $ 92.6 $ 96.6 $ 95.2Average Invested Capital $ 87.0 $ 91.3 $ 94.1 $ 94.6 $ 95.9 6% ROIC on Rolling TTM* Net Income $ 1.2 $ 1.4 $ 0.8 $ 3.8 $ 2.7 5%Add Back: After Tax Interest Expense $ 2.2 $ 2.5 $ 2.7 $ 2.5 $ 2.3Annual ROIC 4.0% 4.3% 3.7% 6.7% 5.2% 4% BasisLevel Rating 2.4 2.4 2.3 2.7 2.5Consistency Rating 2.5 3% 2%Quarterly (TTM) Jun-09 Sep-09 Dec-09 Mar-10 Jun-10Invested Capital Period Ending $ 96.0 $ 94.3 $ 95.2 $ 97.4 $ 95.7 1%Average Invested Capital $ 94.9 $ 95.2 $ 95.7 $ 96.0 $ 95.7 0%* Net Income $ 3.2 $ 3.1 $ 2.7 $ 2.8 $ 2.5Add Back: After Tax Interest Expense $ 2.5 $ 2.5 $ 2.3 $ 2.2 $ 2.2 (1%)Quarterly ROIC 6.1% 5.9% 5.2% 5.2% 4.8%Level Rating 2.6 2.6 2.5 2.5 2.5 (2%)Consistency Rating 2.5 Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun 01 02 03 04 05 06 07 08 09 10Return on Invested Capital (ROIC) Rating 2.5Return On Assets (ROA) 7%Annual (Fiscal Year) Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 6%Total Assets Period Ending $ 99.8 $ 112.2 $ 109.8 $ 115.6 $ 113.1Average Total Assets $ 100.7 $ 106.0 $ 111.0 $ 112.7 $ 114.4 5% ROA on Rolling TTM* Net Income $ 1.2 $ 1.4 $ 0.8 $ 3.8 $ 2.7Add Back: After Tax Interest Expense $ 2.2 $ 2.5 $ 2.7 $ 2.5 $ 2.3 4%Annual ROA 3.4% 3.7% 3.2% 5.6% 4.4% BasisLevel Rating 2.4 2.5 2.4 2.7 2.5 3%Consistency Rating 2.5 2%Quarterly (TTM) Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 1%Total Assets Period Ending $ 109.4 $ 110.7 $ 113.1 $ 111.0 $ 109.5Average Total Assets $ 110.4 $ 111.1 $ 111.7 $ 110.9 $ 110.8 0%* Net Income $ 3.2 $ 3.1 $ 2.7 $ 2.8 $ 2.5Add Back: After Tax Interest Expense $ 2.5 $ 2.5 $ 2.3 $ 2.2 $ 2.2 (1%)Quarterly ROA 6.1% 5.9% 5.2% 5.2% 4.8%Level Rating 2.7 2.7 2.6 2.6 2.6 (2%)Consistency Rating 2.7 Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun 01 02 03 04 05 06 07 08 09 10Return on Assets (ROA) Rating 2.6Return On Common Equity (ROE) 15%Annual (Fiscal Year) Dec-05 Dec-06 Dec-07 Dec-08 Dec-09Total Equity Period Ending $ 37.5 $ 38.8 $ 41.0 $ 43.4 $ 46.2 10%Average Common Equity $ 36.9 $ 38.1 $ 39.9 $ 42.2 $ 44.8 ROE on Rolling TTM* Net Income $ 1.2 $ 1.4 $ 0.8 $ 3.8 $ 2.7 5%Add Back: NA $ - $ - $ - $ - $ -Annual ROE 3.4% 3.6% 2.0% 9.1% 6.1% 0% BasisLevel Rating 2.1 2.1 2.0 2.6 2.4Consistency Rating 2.3 (5%)Quarterly (TTM) Jun-09 Sep-09 Dec-09 Mar-10 Jun-10Total Equity Period Ending $ 44.5 $ 43.1 $ 46.2 $ 48.2 $ 46.9 (10%)Average Common Equity $ 43.5 $ 43.6 $ 44.5 $ 45.5 $ 45.8* Net Income $ 3.2 $ 3.1 $ 2.7 $ 2.8 $ 2.5 (15%)Add Back: NA $ - $ - $ - $ - $ -Quarterly ROE 7.5% 7.2% 6.1% 6.1% 5.4%Level Rating 2.5 2.5 2.4 2.4 2.3 (20%)Consistency Rating 2.4 Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun 01 02 03 04 05 06 07 08 09 10Return on Common Equity (ROE) Rating 2.3* Net Income - Excludes Net Income from Discontinued Operations, Income Acquired in Process R&D, Income Restructuring And M&A, and Other Special Income/(Charges)
  10. 10. investorSCOREcardCanlan Ice Sports Corp. (ICE-T)Valuation Rating 4.2Price to Earnings (P/E) 12.0 x(Lower numbers receive higher rankings) 10.0 xAnnual (Fiscal Year) Dec-05 Dec-06 Dec-07 Dec-08 Dec-09* Price $ 1.00 $ 1.30 $ 1.90 $ 0.99 $ 1.72 8.0 x P/E on Rolling TTMEarnings Per Share (EPS) NC $ 0.20 $ 0.06 $ 0.29 $ 0.20 6.0 xAnnual P/E 6.5 x 31.7 x 3.4 x 8.6 x BasisAnnual P/E Rating 4.6 4.1 1.0 4.4 3.9 4.0 xQuarterly (TTM) Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 2.0 x* Price $ 1.58 $ 1.40 $ 1.72 $ 2.02 $ 1.90 0.0 xEarnings Per Share (EPS) $ 0.25 $ 0.25 $ 0.20 $ 0.20 $ 0.18 (2.0x)Quarterly (TTM) P/E 6.3 x 5.6 x 8.6 x 10.1 x 10.6 xQuarterly (TTM) P/E Rating 4.2 4.2 3.9 3.8 3.7 (4.0x) Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun 01 02 03 04 05 06 07 08 09 10Price to Earnings (P/E) 3.8Price to Book (P/Book) 0.7 x(Lower numbers receive higher rankings) 0.6 xAnnual (Fiscal Year) Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 P/Book on Quarterly* Price $ 1.00 $ 1.30 $ 1.90 $ 0.99 $ 1.72Book Equity Per Share $ 2.81 $ 2.91 $ 2.97 $ 3.26 $ 3.46 0.5 xAnnual P/Book 0.4 x 0.4 x 0.6 x 0.3 x 0.5 x 0.4 x BasisAnnual P/Book Rating 4.6 4.6 4.5 4.7 4.6 0.3 xQuarterly Jun-09 Sep-09 Dec-09 Mar-10 Jun-10* Price $ 1.58 $ 1.40 $ 1.72 $ 2.02 $ 1.90 0.2 xBook Equity Per Share $ 3.34 $ 3.23 $ 3.46 $ 3.61 $ 3.52 0.1 xQuarterly P/Book 0.5 x 0.4 x 0.5 x 0.6 x 0.5 xQuarterly P/Book Rating 4.6 4.6 4.6 4.5 4.6 0.0 x Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun 01 02 03 04 05 06 07 08 09 10Price to Book (P/Book) 4.6Enterprise Value to EBITDA (EV/EBITDA) 16.0 x(Lower numbers receive higher rankings) 14.0 x EV/EBITDA on Rolling TTMAnnual (Fiscal Year) Dec-05 Dec-06 Dec-07 Dec-08 Dec-09* Enterprise Value $ 62.9 $ 74.1 $ 78.3 $ 63.9 $ 71.0 12.0 xEBITDA $ 8.40 $ 9.35 $ 10.16 $ 11.46 $ 11.01 10.0 xAnnual EV/EBITDA 7.5 x 7.9 x 7.7 x 5.6 x 6.4 x BasisAnnual EV/EBITDA Rating 3.9 3.7 3.8 4.3 4.1 8.0 xQuarterly (TTM) Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 6.0 x* Enterprise Value $ 71.1 $ 68.3 $ 71.0 $ 75.2 $ 73.1 4.0 xEBITDA $ 10.91 $ 10.36 $ 11.01 $ 10.66 $ 10.60 2.0 xQuarterly (TTM) EV/EBITDA 6.5 x 6.6 x 6.4 x 7.0 x 6.9 xQuarterly (TTM) EV/EBITDA Rating 4.1 4.1 4.1 4.0 4.0 0.0 x Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun 01 02 03 04 05 06 07 08 09 10Enterprise Value to EBITDA (EV/EBITDA) 4.1* Price - Delayed 60 days to reflect the fact that financial statements are public approximately 60 days after the last day of the reporting period. For the last period the most recent price is used.
  11. 11. investorSCOREcardDisclosure and DisclaimerThe issuer (“Issuer”) covered under this investor scorecard (“Investor Scorecard”) has paid a fee or has been charged a fee for theproduction and distribution of this Investor Scorecard. The fee paid or charged for the production and distribution of this InvestorScorecard was not subject to the rankings or information provided herein, nor was any securities of the Issuer accepted aspayment for such fee. FSA Financial Science & Art Ltd. (“FSA”), The Equicom Group Inc. (“Equicom”) and their respectiveemployees and directors may have had or from time to time acquire, hold or sell an interest in the listed securities of the Issuer.Unless specified otherwise, all forward looking statements in this Investor Scorecard have been approved by the Issuer, and theIssuer has advised FSA and Equicom, without independent verification by FSA or Equicom that a reasonable basis exists for suchforward looking statements. Other information contained in this Investor Scorecard has been compiled by FSA or Equicom fromsources believed to be reliable, which may include but not limited to, public information, research reports and discussions withmanagement of the Issuer. Prior to its publication, this Investor Scorecard had been submitted to the management of the Issuerfor review for factual accuracy.No representation or warranty, express or implied, is made by FSA, Equicom, its affiliates, any other person that providedinformation or data for this Investor Scorecard or any person that distributes this Investor Scorecard with respect to the adequacy,accuracy, completeness or timeliness of any information, estimates or opinions provided in this Investor Scorecard. All estimates,opinions and other information in this Investor Scorecard are provided by FSA, Equicom or another party as of the date of thisInvestor Scorecard. Such estimates, opinions and other information are subject to change without notice, and are provided ingood faith but without any legal responsibility. Past performance is no guarantee of future results.This Investor Scorecard is provided for informational purposes only and does not constitute an offer or solicitation to buy or sellany securities discussed herein in any jurisdiction. The securities discussed in this Investor Scorecard may not be eligible for sale insome jurisdictions. This Investor Scorecard is not, and under no circumstances should be construed as, a solicitation to act as asecurities broker, dealer or advisor in any jurisdiction by any person or company that is not legally permitted to carry on thebusiness of a securities broker, dealer or advisor in that jurisdiction. Neither FSA nor Equicom is a registered investment dealer,broker or advisor, has investment banking operations or makes markets in any securities.This Investor Scorecard is prepared for general circulation and to provide an overview of Issuer’s business. This Investor Scorecarddoes not consider the investment objectives, financial situation or particular needs of any particular person, and is not tailored tothe needs of any person receiving this Investor Scorecard. Readers of this Investor Scorecard should obtain professional advicebased on their own individual circumstances before making an investment decision. Nothing in this Investor Scorecard constitutesindividual investment, legal or tax advice. 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Furthermore, Investor Scorecard can only bedistributed in its entirety. Information or data herein, including any trade mark, service mark or logo is the intellectual property ofFSA, Equicom, Morningstar Inc. and/or its content providers, Issuer or other persons that have provided such information or data,including but not limited to the organizations listed below and their respective content providers. This report was produced in part with information from the following organizations:

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