Gamehost Announces First Quarter 2014 Financial Results and May Dividend
May 14 2014 - 6:09AM
Marketwired Canada
Gamehost Inc. (TSX:GH)
Management and Directors of Gamehost Inc. (the "Company") are pleased to present
results for the three months ended March 31, 2014 (the "Quarter").
Dealer Wins
Total operating revenues for the Quarter jumped $1.4 million or 7.3% to $20.5
million from $19.1 million in the same quarter of 2013. Earnings before
interest, taxes, depreciation and amortization ("EBITDA") that is attributable
to shareholders of the Company ("EBITDA to Shareholders") climbed $0.6 million
or 7.2% to $8.9 million versus $8.3 in the same quarter one year earlier.
EBITDA to Shareholders margin held steady at 45.4% in year over year comparison.
Tables rebounded with a vengeance and turned in some of our best results ever
with an average hold percentage of 22.2% versus 16.9% in 2013 and take credit
for most of the overall improved year over year financial results.
Rip Van Winkle
Grande Prairie appears to have reawakened following its long slumber. Combined
casino and hotel operations in the city recorded 16% growth in revenue and 15%
growth in EBITDA during the Quarter compared to the previous year. Great
Northern Casino, in the city, is enjoying increased foot traffic partially due
to the new and expanded showroom and lounge areas. AGLC also installed 5
additional slot machines at the property during the Quarter. Service Plus Inn &
Suites, in the city, ran at nearly full capacity for the Quarter. Spring
break-up in the oil patch, which often results in crews shutting down and
checking out of the hotel was hardly noticed this year. Energy companies have
found ways to better manage this annual period of spring thaw resulting in less
disruption to crews and equipment working in the field. A major refurbishment
has begun on the hotel breakfast room along with other upgrades in the guest
rooms. This was scheduled for the expected lull during spring break-up, but
will have to be stretched out over a longer period to keep as many rooms in
service as possible. For everyone's sake, let's hope this time Rip Van Winkle
can muster something more than his usual idleness while awake.
Normal Course Issuer Bid
The Company spent $6.4 million to purchase and cancel 466,650 common shares
("Shares") at an average price of $13.75 per Share on a normal course issuer bid
that expired on April 16, 2014. The Company renewed its normal course issuer
bid for another year effective April 17, 2014 (the "2014 Bid") and is authorized
to purchase for cancellation up to a maximum of 1,318,262 Shares of the Company.
On the 2014 Bid, thus far, the Company has spent $0.3 million to purchase and
cancel 22,500 Shares at an average price of $14.81 per Share.
Interim condensed consolidated statements of profit
In Canadian dollars (millions except per share
figures) (unaudited)
------------------------
three months ended
March 31
------------------------
2014 2013
------------------------
Operating revenue $ 20.5 $ 19.1
Cost of sales
Other (10.4) (9.7)
Depreciation (0.5) (0.5)
------------------------
(10.9) (10.2)
------------------------
Gross profit 9.6 8.9
Other income 0.1 0.1
Administrative expenses
Other (1.1) (0.9)
Depreciation (0.4) (0.5)
------------------------
(1.5) (1.4)
------------------------
Profit from operating activities 8.2 7.6
Net finance costs (0.6) (1.0)
------------------------
Profit before income taxes 7.6 6.6
Income tax expense (1.9) (1.9)
------------------------
Profit 5.7 4.7
------------------------
Profit attributable to:
Owners of the Company 5.4 4.4
Non-controlling interests 0.3 0.3
------------------------
5.7 4.7
------------------------
Earnings per share
Basic and diluted $ 0.23 $ 0.19
Weighted average number of common shares outstanding
Basic 23.5 22.8
Diluted - -
The accompanying notes are an integral part of the consolidated financial
statements.
EBITDA to Shareholders $ 8.9 $ 8.3
EBITDA to Shareholders % 45.4% 45.4%
Gamehost has also declared a cash dividend for the month of May 2014 of $0.0733
per common share. The dividend will be paid on June 13, 2014 to shareholders of
record on May 31, 2014. The ex-dividend date is May 28, 2014.
This dividend is considered an "Eligible Dividend" and therefore, eligible for
the enhanced gross-up and dividend tax credit available to shareholders.
This press release may contain forward-looking statements. Forward-looking
statements may contain words such as "anticipates", "believes", "could",
"expects", "indicates", "plans" or other similar expressions that suggest future
outcomes or events. Use of these statements reflect reasonable assumptions made
on the basis of management's current beliefs with information known by
management at the time of writing. Many factors could cause actual results to
differ from the results discussed in forward-looking statements. Actual results
may not be consistent with these forward-looking statements.
Gamehost is a corporation established under the laws of the Province of Alberta.
The Company's operations are all located in the Province of Alberta, Canada.
Operations of the Company include the Boomtown Casino in Ft. McMurray, the Great
Northern Casino, Service Plus Inns & Suites hotel and a strip mall all located
in Grande Prairie. The Company also holds a 91% ownership position in Deerfoot
Inn & Casino Inc. in Calgary.
These interim consolidated financial results include the accounts of Gamehost
Inc. and its subsidiaries; however, they do not include all disclosures normally
provided in annual consolidated financial statements and should be read in
conjunction with the 2013 annual consolidated financial statements. Further,
while the financial figures included in this interim results announcement have
been computed in accordance with IFRS, this announcement does not contain
sufficient information to constitute an interim financial report. The company
will file an interim financial report for the interim period ended March 31,
2014. This report will be filed in its entirety, along with historical financial
reports on the Company's website at www.gamehost.ca and on SEDAR at
www.sedar.com along with the Company's other continuous disclosure documents,
when they are available.
Gamehost common shares and convertible debentures trade on the Toronto Stock
Exchange (TSX) under the symbols GH and GH.DB respectively.
FOR FURTHER INFORMATION PLEASE CONTACT:
Gamehost Inc.
Craig M. Thomas
(877) 703-4545
(403) 340-0683 (FAX)
Gamehost Inc.
Darcy J. Will
(877) 703-4545
(403) 340-0683 (FAX)
info@gamehost.ca
www.gamehost.ca
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