Welcome to the From the Chairman: Looking back on 2008, it was a year of tumultuous economic uncertainty and increasing concern regarding financial stability and viability of many companies and industries. At Tri-White, we are acutely aware of market concerns and are closely monitoring developments in an effort to minimize negative impacts on our business segments. We are in close communication with our clients and are anticipating slight declines in revenue. However, an extended recession could materially affect both revenue and financial performance at ClubLink Corporation (“ClubLink”) and White Pass & Yukon Route (“White Pass”) if discretionary spending and travel is reduced. Still, we remain confident in our long-term goals of realizing sustainable cash flow and building on the underlying value of our assets. These are solid fundamentals that are and will continue to be in the best interests of Tri-White and its stakeholders. During 2008, we continued on our path of focusing on the hospitality industry through ClubLink and White Pass. Accordingly, our interests in Renasant Financial Partners Ltd. and Global Source, LLC were divested in 2008. Tri-White’s investment of $5.5 million in Renasant was sold for a modest gain of $0.2 million. Since the initial investment of approximately $24 million was made in 2003, Tri-White received proceeds and distributions from Renasant approximating $40 million. This past year also marked our first full year of consolidating ClubLink’s results after acquiring control on June 1, 2007. Year over year, this has resulted in significant increases in all areas of operations. We continue to evolve the strategic direction of ClubLink and are confident of realizing its further potential. In terms of operating performance, ClubLink’s championship rounds of golf decreased by 2.9%, in 2008 due in part to the wet weather conditions in Ontario and Quebec, however, the total number of golf members increased 2.6% in the same period. Additionally, ClubLink had modest increases in revenue (1.3%) and net operating income (0.3%) due in part to the 2008 RBC Canadian Open hosted by Glen Abbey Golf Club. We are excited that Glen Abbey will host the 2009 RBC Canadian Open again in July 2009 - it’s 100th playing and 25th time hosted by Glen Abbey. At White Pass, there was a decline in train passengers in 2008 of 5.1% that is attributed to economic factors which impacted the Alaskan tourism industry and a slight waning in capture rate of cruise lines passengers, from 47.43% in 2007 to 47.36% in 2008. We continue to realize cost savings and efficiencies in operations, which assist in offsetting lower revenue during this time. Moreover, in July 2008, White Pass finalized a US $55 million financing with a U.S. banking institution providing long-term financial security to Tri-White. Tri-White continues to be committed to the modernization and expansion of the White Pass facilities and service; we see this as an investment in the future and longevity of the Company. As Tri-White heads into 2009, we are cautious and optimistic.We believe our strategy and focus on quality investment and delivering best-in-class service through our rail, port and golf operations will continue to create a better, stronger Tri-White. In this time of insecurity in the financial markets we thank you, our shareholders, for your continuing loyalty. K. (Rai) Sahi Download full 2008 Annual Report Business Strategy Tri-White’s continued investment in programs to build the core operating business at White Pass has been the Company’s key to profitability. As a standalone entity, White Pass has an experienced onsite management team and has been able to generate growth in the passenger traffic and corresponding US dollar revenue. Significant initiatives in this sector have included capitalizing on historical relationships with the cruise lines, supporting investments to create one of the leading port facilities in southeast Alaska, and continuing to offer a unique, affordable experience for the traveling public. The effective leadership of this business combined with proper capitalization of the company has allowed Tri-White to generate sustainable cash flow. Tri-White’s recently acquired control position in ClubLink will provide a stable environment to allow for continued growth and enhanced profitability from this business segment. An experienced management team and a strategic focus which offers customers a wide variety of high quality facilities and flexible membership programs has resulted in ClubLink establishing itself as the golf industry leader in Canada. Operating synergies and continued cost reduction through economies of scale will improve operating performance and financial returns. Through Tri-White’s corporate investment operations, management has a proven record of building and delivering value. The objective of the Company is to maximize shareholder value over a five to ten year horizon, though the Company will monetize an investment when business conditions present a suitable opportunity. Similarly, Tri-White capitalizes on short-term trading opportunities as they are identified in the market. The Company is confident that the commitment to this strategy will produce above average returns over the long term. In the near term, management’s focus will be on building the underlying shareholder value of White Pass and ClubLink. News: JUNE 30, 2009 MAY 29, 2009 MAY 7, 2009 |
