Owning Golf Courses Today Is Both Accounting & Gambling

That may be one of the reasons the National Allied Golf Associations announced this week the launching of an economic impact study, to try and discover the true impact the game of golf brings to the Canadian and provincial economies.

To offer an example of the unpredictability of golf, even for the biggest players in the game---not the golfers who walk the courses, but the corporations who own the courses---there is an interesting study in contrasts when you look at the balance sheet for such as ClubLink, the largest operator of golf courses in Canada.

From their head office in King City, Ontario, ClubLink Corporation has released details of the company's third quarter and here is a glimpse at a portion of the rollercoaster ride that made up their three months ending September 28, 2008.

- - Operating revenue increased 0.8%, due mainly tg increases in food and beverage and merchandise sales from the 2008 RBC Canadian Open hosted by Glen Abbey Golf Club, which ClubLink owns. These increases were offset by a decline in guest fees and related discretionary merchandise and food and beverage revenue.
- - Net income increased 15.2%;
- - Cash flow from operations was unchanged from 2007;
- - Championship golf rounds decreased 1.2;
- - The number of rounds per 18-hole championship golf course decreased; - - - Operating expenses and costs of goods sold decreased 0.5% due to the decline in golf rounds and discretionary revenue.
- - Total Golf Members increased 3.8%;
- - New membership sales decreased due to no new product being available for sale compared to the 2007 additions of Eagle Creek and Islesmere Golf Clubs;
- - Transfer fees during the third quarter of 2008 decreased;
- - Resignations and terminations increased;
- - Membership fee instalments received in cash decreased;
- - Direct costs of originating membership fees;
- - Net membership fee income increased 23.2% due to the decline in direct costs of originating membership fees.
- - Earnings before interest, amortization, taxes and other increased 5.4%;
- - Net operating income from Golf Club operations increased 4.8%;
- - Net operating income from Resort operations decreased 13.6% due to a decline in bookings resulting from poor weather conditions.

The Board of Directors has declared an eligible dividend of six cents per common share payable December 15, 2008.

Additional information concerning ClubLink is available on the SEDAR website (www.sedar.com) and the investor relations section of ClubLink's website (www.clublink.ca).