Gamehost Inc.
TSX : GH

Gamehost Inc.

November 12, 2013 19:15 ET

Gamehost Announces Third Quarter 2013 Financial Results and November Dividend

RED DEER, ALBERTA--(Marketwired - Nov. 12, 2013) - Gamehost Inc. (TSX:GH)

Management and Directors of Gamehost Inc. (the "Company") are pleased to present results for the nine and three months ended September 30, 2013 (the "Period" and "Quarter" respectively).

Total operating revenues for the Quarter grew by 2.1% to $19.2 million from $18.8 in the same quarter of 2012. Earnings before interest, taxes, depreciation and amortization ("EBITDA") that is attributable to owners of the Company ("EBITDA to Shareholders") rose 6.0% to $8.8 million versus $8.3 in the same quarter one year earlier. This is a record for quarterly EBITDA to Shareholders for the Company. EBITDA to Shareholders margin percentage was also sharply higher by 170 basis points to 48.1% from 46.4% in the Quarter compared to one year earlier, and also a record level for the Company. So in other words, everything's all right.

The introduction of new side betting options during the Quarter for players of our table games has been positively received by our patrons and continues to provide favourable financial results. We will continue to look for opportunities to expand these offerings at all of the Company's casinos.

A return to normal operations in November for our Grande Prairie casino will be promoted with a grand re-opening to show off the facility's facelift and expanded food & beverage and live entertainment seating. We look forward to showing local residents why Great Northern Casino remains the number one entertainment venue in the city.

As many as ten projects to condense natural gas to a liquefied state (LNG) for overseas transport have been proposed for the west coast of British Columbia. The industry is waiting on BC's government to communicate terms of any export levy's or other taxes so that uncertainty around the potential projects are reduced and decisions can be made on project feasibilities. The City of Grande Prairie is positioned to be a significant benefactor on any developments in LNG production, pipeline transport and export.

Suncor Energy recently announced it will proceed with its plan to construct the new $13.5 billion Fort Hills oil sands mine indicating that confidence in the industry is firm. This bodes well for Boomtown Casino in Fort McMurray.

SE Calgary continues to provide sustained residential and commercial growth at an above average pace. In turn this is fuelling our continued positive outlook for our Deerfoot property in that quadrant of the city.

Interim condensed consolidated statements of profit and comprehensive income
In Canadian dollars (millions) (unaudited) (unaudited)
nine months ended September 30 three months ended September 30
2013 2012 2013 2012
Operating revenue $ 57.7 $ 56.8 $ 19.2 $ 18.8
Cost of sales
Other (28.7 ) (28.4 ) (9.4 ) (9.4 )
Depreciation (1.6 ) (1.6 ) (0.5 ) (0.5 )
(30.3 ) (30.0 ) (9.9 ) (9.9 )
Gross profit 27.4 26.8 9.3 8.9
Other income 0.2 0.2 0.1 0.1
Administrative expenses
Other (2.3 ) (2.3 ) (0.7 ) (0.8 )
Depreciation (1.5 ) (1.7 ) (0.5 ) (0.6 )
(3.8 ) (4.0 ) (1.2 ) (1.4 )
Profit from operating activities 23.8 23.0 8.2 7.6
Net finance costs (3.1 ) (3.0 ) (0.9 ) (1.3 )
Profit before income taxes 20.7 20.0 7.3 6.3
Income tax expense (4.6 ) (4.4 ) (1.5 ) (2.1 )
Profit and comprehensive income 16.1
15.6
5.8 4.2
Profit and comprehensive income attributable to:
Shareholders of the
Company $ 15.0 $ 14.6 5.4 $ 3.9
Non-controlling interest 1.1 1.0 0.4 0.3
$ 16.1 $ 15.6 5.8 $ 4.2
Earnings per share
Basic and diluted earnings per share $ 0.65 $ 0.67 $ 0.23 $ 0.18
EBITDA to Shareholders $ 25.8 $ 25.3 $ 8.8 $ 8.3
EBITDA to Shareholders % 46.8 % 46.7 % 48.1 % 46.4 %

Gamehost has also declared a cash dividend for the month of November 2013 of $0.0733 per common 2013. The ex-dividend date is November 27, 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 September 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.

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