RV rental firm CanaDream Corp. reported a slight uptick in revenue for its full year, ended April 30, while net income declined 44%.
Revenue for the year was $27.9 million, an increase of $1.4 million from the year prior. CanaDream reported that rental revenue increased 3% while revenue from the sale of guest fleet and fleet inventory available for sale grew 9%. Operating expenses increased 8% from the prior year and finance interest decreased 7%.
CanaDream recorded net and comprehensive income of $608,000, a 44% decrease from the prior year. Cash flow earned from operating activities was $13.9 million, a 6% decrease.
At April 30, investment in guest fleet and fleet inventory available for sale was $28.6 million, a $1.5 million decrease from the prior year, due to fleet purchases less unit sales and guest fleet transferred to fleet inventory available for sale and depreciation. As a result of a decrease in guest fleet and fleet inventory available for sale, fleet financing was $20.1 million, a decrease of $1.8 million from April 30, 2012.
The company’s core business is seasonal in nature with the majority of its revenue being earned during the May to October period, the first and second quarters of its fiscal year. The majority of the company’s cost of services expenses before employee compensation, benefits and depreciation are incurred in that same period.
CanaDream noted that as a result of ongoing depreciation, interest and other operating 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.