TWC TWC Enterprises Limited

Consolidated Financial Highlights (unaudited)

Operating Data

The following is an analysis of net earnings:

The following is a breakdown of net operating income (loss) by segment:

Operating revenue is calculated as follows:

Direct operating expenses are calculated as follows:

(1) Please see Non-IFRS Measures on following page

2021 Consolidated Highlights

As required by IFRS, ClubLink recognizes its annual dues revenue on a straight-line basis throughout the year based on when its properties are allowed to 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 early in both years. Canadian annual dues revenue increased to $56,508,000 in 2021 from $48,081,000 in 2020 due to an increase in members. Any displaced revenue from the closure period was recognized into revenue throughout the remainder of the year on a straight-line basis.

Operating revenue increased 36.8% to 174,013,000 in 2021 from $127,216,000 in 2020 due to higher annual dues revenue along with the ability to operate in 2021 with less restrictions as compared to 2020 in addition to the revenue earned from 17 Highland Gate home sales.

Direct operating expenses increased 46.0% to $121,601,000 in 2021 from $83,305,000 in 2020 due to costs associated to higher revenue and activity levels in 2021 in addition to the cost of Highland Gate sales.

Net operating income for the Canadian golf club operations segment increased 18.3% to $54,660,000 in 2021 from income of $46,213,000 in 2020.

Interest, net and investment income decreased 66.6% to an expense of $1,204,000 in 2021 from $3,609,000 in 2020 due to a decrease in operational borrowings and an increase in investment income from the Company’s investment in Automotive Properties REIT.

Other items consist of the following income (loss) items:

On October 8, 2021, the Company sold Heron Bay Golf Club for net proceeds of $40,235,000 (US$31,736,000). A gain of $39,425,000 (US$31,661,000) was recorded on the sale. This represents the vast majority of the total gain on property, plant and equipment recorded for the year.

At December 31, 2021, the Company recorded unrealized gains of $30,360,000 on investment in marketable securities (December 31, 2020 - loss of $7,311,000). This gain is attributable to the Company's investment in Automotive Properties REIT. The Company also recorded unrealized gains of $9,311,000 (December 31, 2020 - nil) on real estate fund investments in relation to Florida and southeastern US real estate.

The exchange rate used for translating US denominated assets has changed from 1.2732 at December 31, 2020 to 1.2678 at December 31, 2021. This has resulted in a foreign exchange loss of $207,000 in 2021 on the translation of the Company’s US denominated financial instruments.

Net earnings increased to $89,647,000 in 2021 from $971,000 in 2020 due to the other items as described above and the improved golf results. Basic and diluted earnings per share increased to $3.64 per share in 2021, compared to 4 cents in 2020.

Non-IFRS Measures

TWC uses non-IFRS measures as a benchmark measurement of our own operating results and as a benchmark relative to our competitors. We consider these non-IFRS measures to be a meaningful supplement to net earnings. We also believe these non-IFRS measures are commonly used by securities analysts, investors and other interested parties to evaluate our financial performance. These measures, which included direct operating expenses and net operating income do not have standardized meaning under IFRS. While these non-IFRS measures have been disclosed herein to permit a more complete comparative analysis of the Company’s operating performance and debt servicing ability relative to other companies, readers are cautioned that these non-IFRS measures as reported by TWC may not be comparable in all instances to non-IFRS measures as reported by other companies.

The glossary of financial terms is as follows:

Direct operating expenses = expenses that are directly attributable to company’s business units and are used by management in the assessment of their performance. These exclude expenses which are attributable to major corporate decisions such as impairment.

Net operating income = operating revenue – direct operating expenses

Net operating income is an important metric used by management in evaluating the Company’s operating performance as it represents the revenue and expense items that can be directly attributable to the specific business unit’s ongoing operations. It is not a measure of financial performance under IFRS and should not be considered as an alternative to measures of performance under IFRS. The most directly comparable measure specified under IFRS is net earnings.

Eligible Cash Dividend

Today, TWC Enterprises Limited announced an eligible cash dividend of 2 cents per common share to be paid on March 31, 2022 to shareholders of record as at March 15, 2022.

Corporate Profile

TWC is engaged in golf club operations under the trademark, “ClubLink One Membership More Golf.” TWC is Canada’s largest owner, operator and manager of golf clubs with 49.5 18-hole equivalent championship and 3 18-hole equivalent academy courses (including two managed properties) at 37 locations in Ontario, Quebec and Florida

For further information please contact:

Andrew Tamlin Chief Financial Officer 15675 Dufferin StreetKing City, Ontario L7B 1K5Tel: 905-841-5372 Fax: 905-841-8488atamlin@clublink.ca

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.twcenterprises.ca

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