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RED DEER, AB / ACCESSWIRE / August 9, 2022 / Gamehost Inc. (TSX:GH)
Management and Directors of Gamehost Inc. (the 'Company') present results for the six and three months ended June 30, 2022 (the 'Period' and 'Quarter' respectively).
The Quarter was the first since the onset of the COVID-19 pandemic where the Company operated without COVID-19 restrictions of any kind. For the comparable 2021 quarter, Company casinos were mostly closed due to mandated COVID-19 restrictions and operating under capacity restrictions when they resumed operations for portions of June 2021. Results in the Quarter are compared with both the comparable prior year quarter and pre-COVID-19 quarter in 2019. Operating revenue was $17.9 versus $2.9 ($16.8 - 2019), EBITDA was $6.6 versus $0.8 ($6.5 - 2019), and Earnings per share for the Quarter was $0.15 versus loss $0.2 ($0.19 - 2019).
Major renovations at the Company's Great Northern Casino continued through the Quarter and presented a moderate disruption to patron visitations with food and beverage operations likely feeling the brunt of it. The $2.0 project is expected to be complete by end of summer 2022.
With Covid-19 moving to endemic status and stability returning to operations, unless conditions warrant a change, the Company will allocate free cash flow to complete the construction expansion/refurbishment program started at the outset of COVID-19, maintain the regular monthly dividend of $0.03 per common share and repurchase shares of the Company. The Company renewed a normal course issuer bid through July 20, 2023 and is authorized to purchase a maximum 1.2 million shares under the bid. Purchases will be made whenever shares are trading below their intrinsic value. All remaining free cash flow will be applied against variable rate debt.
The Company completed the purchase of a non-controlling/arm's length 9% interest in the Deerfoot Inn & Casino for $13.6 million during the Quarter. Prior to the transaction, the Company had a 91% interest in the Deerfoot. The Company now owns 100% of the property and business. The transaction was financed with $7.0 in new variable rate debt on a scheduled amortization over ten years and $6.6 from the Company's revolving facility. The rate on both facilities, from the Company's current lender, are at the bank's prime lending rate and are open for early payment without penalty.
Inflation, a tightening financial cycle and global recession are the current world economic headlines. Alberta is in the best possible position to weather these latest volleys of economic uncertainty. Alberta has returned to surplus fiscal performance and the prospects of strong commodity prices for the foreseeable future look to bolster these results going forward. Strong job growth and net migration to the province sets Alberta up to lead the nation in economic growth over the next two years. And, with all of Gamehost's properties newly refreshed, it feels like a new day, a sunny one at that.
Unaudited - Canadian dollars (millions except per share figures)
Gamehost has declared a cash dividend for the month of August 2022 of $0.03 (CDN) per common share, which equates to $0.36 (CDN) per common share on an annualized basis. The dividend will be paid on September 15, 2022 to shareholders of record on August 31, 2022. This dividend is considered an 'Eligible Dividend' and therefore, eligible for the enhanced gross-up and dividend tax credit available to Canadian shareholders.
This press release may contain certain 'forward-looking information' or statements within the meaning of applicable securities legislation and may contain words such as 'anticipates', 'believes', 'could', 'expects', 'indicates', 'plans', 'withstand', 'further' or other similar expressions that suggest future outcomes or events. Forward-looking information is based on the Company's current expectations, estimates, projections and assumptions that were made by the Company in light of its historical trends and other factors. All information or statements, other than statements of historical fact, are forward-looking information including any statements that address expectations related to future economic outcomes or the Company's dividend. Forward-looking 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.
The Company has included non-International Financial Reporting Standards ('non-IFRS') measures in this press release. EBITDA, as defined by the Company, means earnings before interest and financing costs, income taxes, depreciation and amortization, and foreign exchange gains or losses. The Company believes EBITDA is a useful measure because it provides information to management and investors about the Company's performance in generating operating cash flow to fund working capital needs, service debt obligations, fund future capital expenditures and support dividend policy. Readers are cautioned that non-IFRS measures do not have any standardized meaning prescribed by IFRS and should not be taken as alternatives to net earnings measured in accordance with IFRS. The Company's method of calculating non-IFRS measures may not be comparable to similarly titled measures used by other reporting entities.
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 Rivers Casino & Entertainment Centre in Ft. McMurray, the Great Northern Casino, Service Plus Inns & Suites and Encore Suites hotels as well as a strip mall all located in Grande Prairie and the Deerfoot Inn & Casino in S.E. Calgary.
These consolidated interim financial results include the accounts of Gamehost Inc. and its subsidiaries; however, they do not include all disclosures normally provided in consolidated interim financial statements and should be read in conjunction with the 2022 Q1 consolidated interim financial statements. Further, while the financial figures included in this announcement have been computed in accordance with IFRS applicable to annual periods, this announcement does not contain sufficient information to constitute an annual financial report and should be read in conjunction with the 2021 annual financial report for the twelve and three months ended December 31, 2021. This interim 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 trade on the Toronto Stock Exchange (TSX) under the symbol GH. For more information, contact:
Craig M. Thomas or Darcy J. Will
P (877) 703-4545
F (403) 340-0683
E [email protected]
SOURCE: Gamehost Inc.
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