CanaDream Corporation Reports Year End Earnings of $326,000 or 1.7 Cents Per Share

CALGARY, ALBERTA–(Marketwire – July 19, 2010) – CanaDream Corporation (TSX VENTURE:CDN) today announced financial results for the year ended April 30, 2010, as follows:

Revenues for the year of $22.3 million is 5% lower than last year, cash flow from operations of $5.0 million (25 cents per share) is 36% lower than last year, net income and comprehensive income of $326,000 is 60% lower than last year.

The Company encourages interested parties to access CanaDream Corporation’s Management Discussion and Analysis (MD&A) on the SEDAR website,, for a more detailed discussion of these results.

Summarized results for the year ended April 30, 2010 are as follows:

      April 30, 2010   April 30, 2009 %Change  
Revenue $ 22,318,000 $ 23,525,000 (5 %)
Revenue less direct expenses $ 9,329,000 $ 10,586,000 (12 %)
Income before income tax $ 513,000 $ 1,080,000 (53 %)
Net and comprehensive income $ 326,000 $ 812,000 (60 %)
Cash flow from operations $ 5,029,000 $ 7,869,000 (36 %)
Basic earnings per share   1.75 cents   4.92 cents (64 %)
Fully diluted earnings            
  per share   1.70 cents   4.69 cents (64 %)
Common Shares outstanding   19,752,657   16,472,042 20 %
Weighted average number of            
  common shares outstanding   18,640,112   16,505,239 13 %

Income before income taxes of $513,000 decreased $567,000 or 53% from the prior year. On a fully diluted basis earning per share decreased 2.99 cents or 64%.

Decreased revenues of $1,207,000 or 5% is due in part from a 7% decrease in fleet and available rental nights resulting in a 7% decrease in booked rental nights. The decrease in revenues combined with the $49,000 increase in direct expenses resulted in the gross margin decrease of $1.3 million or 12%.

Investment in rental fleet was $18 million at April 30, 2010, a decrease $6.8 million from April 30, 2099. The investment in fleet inventory available for sale was $5.2 million at April 30, 2010 an increase of $2.6 million from April 30, 2009 year-end levels.

Fleet, capital asset and other financing decreased $4.1 million, or 18%, to $18 million from the April 30, 2009 balance of $22 million.

The Company’s short-term liquidity position (cash and cash equivalents plus accounts receivable and short term deposits, minus accounts payable and accrued liabilities) stands at $760,000 compared to $(1.8 million) at April 30, 2009.

It should be noted that the Company’s core business, rental of recreational vehicles, is seasonal in nature with the majority of its revenue being earned during the May to October period, its first and second quarters. The majority of the company’s direct expenses are incurred in that same period. The Company markets rental units and fleet inventory available for sale on a continuous basis throughout the year, however sales of such units are generally strongest in the spring and early summer. As a result of ongoing interest, amortization and adjustments and selling, general and administrative expenses, the last two quarters of the fiscal year normally produce operating losses. Losses incurred in the last two quarters may exceed profits earned in the first two quarters of the fiscal year.

The financial data included in this release has been prepared in accordance with Canadian generally accepted accounting principles (GAAP), except for the term cash flow from operations per share. Cash flow per share is a measure that provides shareholders and potential investors with additional information regarding the Company’s liquidity and its ability to generate funds to finance its operations.

The Company encourages interested parties to access CanaDream Corporation’s MD&A on the SEDAR website,, for a more detailed discussion of these results.

CanaDream is a Canadian tourism company that is utilizing its proprietary business-to-business web-enabled system, , and its business-to-consumer on-line Internet reservation system, , to operate and expand its network of RV rental locations in Canada. CanaDream maintains six Company-operated locations in Calgary, Vancouver, Whitehorse, Toronto, Montreal, and Halifax. CanaDream now offers a global RV solution by partnering with Apollo Motorhome Holidays in Australia, New Zealand and the USA. The Company is also leveraging its proprietary technology to build a franchised network of associate dealers that are fully interconnected to CanaDream’s e-commerce systems. CanaDream currently has two associate dealer franchisees in Kelowna, British Columbia and Edmonton, Alberta.

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