RED DEER, ALBERTA--(Marketwired - Aug. 13, 2013) - Gamehost Inc. (TSX:GH) -
Management and Directors of Gamehost Inc. (the "Company") are pleased to present results for the six and three months ended June 30, 2013 (the "Period" and "Quarter" respectively).
Total operating revenues for the Quarter grew by 1.6% to $19.4 million from $19.1 in the same quarter of 2012. Earnings before interest, taxes, depreciation and amortization ("EBITDA") that is attributable to owners of the Company ("EBITDA to Owners") rose to $8.7 million versus $8.6 in the same quarter one year earlier. This is a record for quarterly EBITDA to Owners for the Company. EBITDA to Owners margin percentage fell marginally by 30 basis points to 47.0% from 47.3% in the Quarter compared to one year earlier, narrowly missing another record.
Our hearts go out to the many people and businesses adversely affected by recent river flooding events throughout Alberta. Our Company's facilities and operations were fortunate not to have been impacted in any significant or lasting way.
From the end of the last quarter management has repurchased and cancelled 0.3 million common shares of the Company at an average price of $13.31 inclusive of commissions for a total of $3.6 million. Over the same time period 5.2 million in debentures were converted to 0.5 million common shares resulting in a net increase to the public float of 0.2 million shares. Since the issuance of the Company's debentures in 2010 and subsequently embarking on a campaign of repurchasing Company shares for cancellation, shares outstanding have increased by 2.1 million common shares. In the twelve months leading up to the debenture issue, average daily trading volume for the Company's shares on the TSX was 9,302 shares per day. Over the past twelve months the average daily trading volume for the Company's shares on the TSX has climbed to 11,090 shares per day, an increase of 1,673 shares per day or 18.0%. The rate of conversions offset by the share repurchases appears to be producing the beneficial effects of a smoothly flowing river delivering increased liquidity to all shareholders while avoiding any significant dilution to existing shareholders.
An additional 30 slot machines at our Boomtown Casino in Fort McMurray are really buoying results for the property. Initially installed in February 2013 we now have a full quarter of comparable results which have solidified our belief that the business could easily absorb some additional capacity. The new machines are performing well and have not yet reached their potential.
The Peter Pond Shopping Centre in which we lease space for our Boomtown Casino was acquired by H&R REIT in July 2013. We are excited to begin a relationship with this major real-estate player, and look forward to learning their vision for the aging complex.
Tables turned in a spectacular performance for the Quarter eclipsing a previous performance high by a full 11.0% on some very strong hold percentages. This makes up for some statistically soft prior quarters and returns the Company back to our longer term average Hold percentage of approximately 19.0%.
Our renovation and facelift of our Grande Prairie casino is progressing nicely. The freshened up and expanded food & beverage and live entertainment areas in the casino will ensure we remain the number one entertainment venue in Grande Prairie. We expect completion in early fall 2013.
Interim condensed consolidated statements of profit and comprehensive income
| In Canadian dollars (millions) | (unaudited) | (unaudited) | |||||||||||||||
| six months ended June 30 | three months ended June 30 | ||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||||||||
| Operating revenue | $ | 38.5 | $ | 38.0 | $ | 19.4 | $ | 19.1 | |||||||||
| Cost of sales | |||||||||||||||||
| Other | (19.3 | ) | (18.9 | ) | (9.7 | ) | (9.5 | ) | |||||||||
| Depreciation | (1.1 | ) | (1.1 | ) | (0.5 | ) | (0.5 | ) | |||||||||
| (20.4 | ) | (20.0 | ) | (10.2 | ) | (10.0 | ) | ||||||||||
| Gross profit | 18.1 | 18.0 | 9.2 | 9.1 | |||||||||||||
| Other income | 0.1 | 0.1 | 0.1 | 0.1 | |||||||||||||
| Administrative expenses | |||||||||||||||||
| Other | (1.6 | ) | (1.5 | ) | (0.8 | ) | (0.7 | ) | |||||||||
| Depreciation | (1.0 | ) | (1.1 | ) | (0.5 | ) | (0.6 | ) | |||||||||
| (2.6 | ) | (2.6 | ) | (1.3 | ) | (1.3 | ) | ||||||||||
| Profit from operating activities | 15.6 | 15.4 | 8.0 | 7.8 | |||||||||||||
| Net finance costs | (2.2 | ) | (1.7 | ) | (1.2 | ) | 0.2 | ||||||||||
| Profit before income taxes | 13.4 | 13.7 | 6.8 | 8.0 | |||||||||||||
| Income tax expense | (3.1 | ) | (2.3 | ) | (1.2 | ) | (0.8 | ) | |||||||||
| Profit and comprehensive income | 10.3 | 11.4 | 5.6 | 7.2 | |||||||||||||
| Profit and comprehensive income attributable to: | |||||||||||||||||
| Owners of the Company | $ | 9.6 | $ | 10.7 | 5.3 | $ | 6.8 | ||||||||||
| Non-controlling interest | 0.7 | 0.7 | 0.3 | 0.4 | |||||||||||||
| $ | 10.3 | $ | 11.4 | 5.6 | $ | 7.2 | |||||||||||
| Earnings per share | |||||||||||||||||
| Basic and diluted earnings per share | $ | 0.42 | $ | 0.50 | $ | 0.23 | $ | 0.31 | |||||||||
| EBITDA to Owners | $ | 17.0 | $ | 17.0 | $ | 8.7 | $ | 8.6 | |||||||||
| EBITDA to Owners % | 46.2 | % | 46.8 | % | 47.0 | % | 47.3 | % | |||||||||
Gamehost has also declared a cash dividend for the month of August 2013 of $0.0733 per common share. The dividend will be paid on September 13, 2013 to shareholders of record on August 31, 2013. The ex-dividend date is August 28, 2013.
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.
This interim consolidated financial results announcement includes the accounts of Gamehost Inc. and its subsidiaries; however, it does not include all disclosures normally provided in interim or annual consolidated financial statements and should be read in conjunction with the 2013 Q2 interim consolidated financial statements and the 2012 annual consolidated financial statements. Further, while the financial figures included in this results announcement have been computed in accordance with IFRS applicable to interim periods, this announcement does not contain sufficient information to constitute an interim financial report. The company has published and filed an interim financial report for the interim period ended June 30, 2013. This report, along with historical financial reports can be found on the Company's website at www.gamehost.ca and will be filed in its entirety along with the Company's other continuous disclosure documents, when they are available, on SEDAR at www.sedar.com.
Gamehost common shares and convertible debentures trade on the Toronto Stock Exchange (TSX) under the symbols GH and GH.DB respectively.
Contact Information:
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