As required by IFRS, ClubLink recognizes its annual dues revenue on a straight-line basis throughout the year based on when its properties are open and services are provided. As a result of COVID-19 lockdowns in both 2020 and 2021, annual dues revenue was not recognized during certain periods. There was an average of 39 days (2020 – 79 days) in the first quarter that ClubLink was allowed to operate in Canada. Canadian annual dues revenue decreased 38.6% to $6,501,000 for the three-month period ended March 31, 2021 from $10,595,000 in 2020 due to this policy. This deferral will be recognized into revenue throughout the remainder of the year on a straight-line basis
Consolidated operating revenue decreased 29.7% to $14,109,000 for the three-month period ended March 31, 2021 from $20,070,000 in 2020 due to the decline in annual dues revenue. Direct operating expenses decreased 11.3% to $16,366,000 for the three-month period ended March 31, 2021 from $18,450,000 in 2020 due to the fact that certain revenue streams were reduced which all had costs associated with them. There has also been a reduction in operating expenses due to the sale of Greenhills Golf Club, Club de Golf Val des Lacs and the closure of Woodlands Country Club in the first quarter of 2020. Net operating loss for the Canadian golf club operations segment decreased to a loss of $2,887,000 for the three-month period ended March 31, 2021 from income of $1,157,000 in 2020 due to the shift in the recognition of annual dues revenue. Amortization of membership fees decreased 4.6% to $958,000 from $1,004,000 in 2020. Interest, net and investment income decreased 26.1% to an expense of $436,000 for the three-month period ended March 31, 2021 from $590,000 in 2020 due to a decrease in borrowings and an increase in investment income from the Company’s investment in Automotive Properties REIT
TWC Enterprises Limited announced an eligible cash dividend of 2 cents per common share to be paid on June 15, 2021 to shareholders of record as at May 31, 2021.
