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ClubLink Enterprises Limited Announces Third Quarter 2012 Results and Eligible Dividend

KING CITY, ONTARIO -- (Marketwire) -- 11/09/12 -- ClubLink Enterprises Limited (TSX:CLK)

Consolidated Financial Highlights


----------------------------------------------------------------------------
                                  Three months ended     Nine months ended  
                                --------------------------------------------
                                  September  September  September  September
(in thousands of dollars except         30,        30,        30,        30,
 per share amounts)                    2012       2011       2012       2011
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Operating revenue                    86,276     89,151    171,298    171,105
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Net operating income(1)              33,105     32,864     51,811     48,223
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Net membership fee income(1)          3,553      3,663     10,381     10,655
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Earnings before other items and                                             
 income taxes(1)                     36,658     36,527     62,192     58,878
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Net earnings                         16,488     16,886     17,255     18,019
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Basic and diluted earnings per                                              
 share                            $    0.63  $    0.61  $    0.65  $    0.65
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Cash flow from operations(1)         28,384     31,303     37,471     40,578
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Basic and diluted cash flow from                                            
 operations per share(1)          $    1.08  $    1.13  $    1.41  $    1.46
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Weighted average shares                                                     
 outstanding (000's)                 26,365     27,808     26,569     27,873
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Operating Data                                                              
                                                                            
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                                  Three months ended     Nine months ended  
                                --------------------------------------------
                                  September  September  September  September
                                        30,        30,        30,        30,
                                       2012       2011       2012       2011
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ClubLink One Membership More Golf                                           
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Championship rounds - Canada        519,000    536,000    918,000    909,000
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18-hole equivalent championship                                             
 golf courses - Canada                 41.5       41.5       41.5       41.5
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Championship rounds - U.S.           57,000     33,000    260,000    140,000
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18-hole equivalent championship                                             
 golf courses - U.S.                   12.0        9.0       12.0        9.0
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White Pass and Yukon Route                                                  
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Rail passengers                     248,000    244,000    385,000    382,000
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Port passengers from cruise                                                 
 ships                              486,000    455,000    757,000    712,000
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Cruise ship dockings                    226        219        355        345
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Third Quarter 2012 Consolidated Operating Highlights

Championship golf rounds increased 1.2% to 576,000 championship rounds for the three month period ending September 30, 2012 from 569,000 championship rounds in 2011 due to the Palm-Aire golf club acquired November 2011 in Florida. Same store golf rounds for the three month period ending September 30, 2012 is 561,000 rounds.

Rail passengers have increased 1.6% to 248,000 passengers for the three month period ending September 30, 2012 from 244,000 passengers in 2011 due to seven additional dockings during this period.

Port passengers have increased 6.8% to 486,000 passengers for the three month period ending September 30, 2012 from 455,000 passengers in 2011 due to these extra dockings.

Consolidated operating revenue decreased 3.2% to $86,276,000 for the three month period ending September 30, 2012 from $89,151,000 in 2011, primarily due to a decline in Canadian golf club operations revenue from less members and a decline in revenue from Grandview Resort which was closed in February 2012. This decrease was offset by revenue generated by Palm-Aire golf club acquired November 2011.

Consolidated cost of sales and operating expenses decreased 5.5% to $53,171,000 for the three month period ending September 30, 2012 from $56,287,000 in 2011, primarily due to the closure of Grandview Resort and cost containment measures for the Canadian golf club operations. This has been offset by increased costs from the US golf club operations relating to the Palm-Aire acquisition.

Net operating income increased 0.7% to $33,105,000 for the three month period ending September 30, 2012 from $32,864,000 in 2011 primarily due to the incremental net operating income from the additional passengers in the rail, tourism and port operations. Net operating income for the Canadian Region has decreased due to the closure of Grandview Resort which had a net operating income during the third quarter of 2011.

Net membership fee income decreased 3.0% to $3,553,000 for the three month period ending September 30, 2012 from $3,663,000 in 2011.

Earnings before other items and income taxes increased 0.4% to $36,658,000 for the three month period ending September 30, 2012 from $36,527,000 in 2011.

Interest, net decreased 1.8% to $5,193,000 for the three month period ending September 30, 2012 from $5,288,000 in 2011 primarily due to a lower average cost of borrowing from a year ago.

Other income, net decreased to an expense of $11,000 for the three month period ending September 30, 2012 from income of $750,000 for 2011, primarily due to a reduction in prior year Ontario golf club property tax refunds recorded in 2012 to $4,000 from $2,528,000 in 2011. This was offset by a change in the unrealized foreign exchange to a gain of $564,000 in 2012 from a loss of $1,404,000 in 2011.

Net earnings decreased 2.4% to $16,488,000 for the three month period ending September 30, 2012 from $16,886,000 in 2011 primarily due to a reduction in prior year Ontario golf club property tax refunds.

Basic and diluted earnings per share increased to 63 cents per share from 61 cents per share for the three month period ending September 30, 2011 due to the decline in weighted average shares outstanding to 26,365,000 for 2012 from 27,808,000 in 2011.

The impact of the prior year Ontario golf club property tax refunds is as follows:


                                 For the three months   For the nine months 
                                         ended                 ended        
                                 September  September  September  September 
                                       30,        30,        30,        30, 
(thousands of Canadian dollars)       2012       2011       2012       2011 
----------------------------------------------------------------------------
                                                                            
Net earnings as reported         $  16,488  $  16,886  $  17,255  $  18,019 
Less: prior year property tax                                               
 refunds, net of tax provision          (3)    (1,879)      (202)    (3,852)
----------------------------------------------------------------------------
                                                                            
Pro Forma net earnings           $  16,485  $  15,007  $  17,053  $  14,167 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Earnings per share as reported   $    0.63  $    0.61  $    0.65  $    0.65 
Less: impact of prior year                                                  
 property tax refunds                    -      (0.07)     (0.01)     (0.14)
----------------------------------------------------------------------------
                                                                            
Pro Forma earnings per share     $    0.63  $    0.54  $    0.64  $    0.51 
----------------------------------------------------------------------------
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Eligible Dividend

Today, ClubLink Enterprises Limited ("ClubLink") announced an eligible dividend of 7.5 cents per share to be paid on December 14, 2012 to shareholders of record as at November 30, 2012.

Normal Course Issuer Bid

The Company has been approved by the Toronto Stock Exchange for a normal course issuer bid to purchase up to 1,317,000 of its common shares which will expire on September 19, 2013. As at November 9, 2012 the Company has not made any purchases under this bid. As at November 9, 2012, ClubLink has 26,360,406 common shares outstanding.

Corporate Profile

ClubLink is engaged in golf club operations under the trade-mark, "ClubLink One Membership More Golf®". ClubLink is Canada's largest owner and operator of golf clubs with 53.5 18-hole equivalent championship and six 18-hole equivalent academy courses at 44 locations, primarily in Ontario, Quebec and Florida.

ClubLink is also engaged in rail, tourism and port operations based in Skagway, Alaska, which operates under the trade name "White Pass & Yukon Route." The railway stretches approximately 177 kilometres (110 miles) from Skagway, Alaska, through British Columbia to Whitehorse, Yukon. In addition, ClubLink operates three docks primarily for cruise ships.

(1) Net operating income, net membership fee income, earnings before other items and income taxes, cash flow (deficiency) from operations and basic and diluted cash flow (deficiency) from operations per share are not recognized performance measures under International Financial Reporting Standards ("IFRS"). Earnings before other items and income taxes is defined as earnings before taxes, interest, depreciation, amortization, and other items. Management believes that in addition to net earnings, these measures are useful supplemental information to provide investors with an indication of the Company's performance. Investors should be cautioned, however, that these measures should not be construed as an alternative to net earnings determined in accordance with IFRS as an indicator of the Company's performance. ClubLink's method of calculating these measures is consistent from year to year, but may be different than those used by other companies (See "Management's Discussion and Analysis of Financial Condition and Results of Operations").

Management's discussion and analysis, financial statements and other disclosure information relating to the Company is available through SEDAR and at www.sedar.com and on the Company website at www.clublinkenterprises.ca.

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