Gamehost Announces Fourth Quarter 2013 Financial Results and March Dividend
18 March 2014 - 9:00AM
Marketwired Canada
Management and Directors of Gamehost Inc. (TSX:GH) (the "Company") are pleased
to present results for the three and twelve months ended December 31, 2013 (the
"Quarter" and "Period" respectively).
Winter Bites
Total operating revenues for the Quarter were flat at $19.8 million to the same
quarter of 2012. Earnings before interest, taxes, depreciation and amortization
("EBITDA") that is attributable to shareholders of the Company ("EBITDA to
Shareholders") declined $0.4 million to $8.2 million versus $8.6 in the same
quarter one year earlier. EBITDA to Shareholders margin percentage declined in
step by 210 basis points to 43.4% from 45.5% in the Quarter compared to one year
earlier. Stretches of difficult table Holds during the Quarter and harsh winter
temperatures and record December snowfall are to blame for what was otherwise
shaping up to be very good quarterly results.
This and That
From the end of the previous quarter to February 28, 2014, the Company
repurchased 183,200 of the Company's common shares on a Normal Course Issuer Bid
that expires April 16, 2014. Total acquisition costs were $2.7 million at an
average purchase price of $14.45/share. Over the same period, debenture
conversions of face value $2.4 million resulted in the issue of 221,118 common
shares.
Citius - Altius - Fortius
In the spirit of the Olympics we thought we'd start working out to improve our
physique. Great Northern Casino in Grande Prairie completed a $1.8 million
facelift and expansion including a complete refurbishment of the food, beverage
and entertainment areas. Great Northern has the only intimate live entertainment
showroom of its kind in the city. The additional showroom space will now
accommodate live entertainment offerings that were not previously cost effective
to showcase. City residents will benefit by seeing acts they would otherwise
have had to travel to larger centres such as Edmonton to see. Early reception to
the completed project has been very favourable and we look forward to continuing
a tradition of being Grande Prairie's gold medal entertainment venue.
Chinese Zodiac
The Chinese Zodiac doesn't have a Turtle, but they should. At the outset of the
year, we anticipated a cautious, consistent and deliberate execution of core
elements of our past success. Provide superior customer experiences; don't spend
without good potential for reward, nothing fancy. You know, slow and steady wins
the race. Sounds boring, I know. Looking back, Gamehost common shares closed the
year at $14.89 up 17.2% from their $12.70 value at the start of 2013. And that
doesn't even include the additional 6.9% in yield provided by regular monthly
dividends. By comparison, the S&P/TSX composite index rose 9.6% over the same
period. 2014 is the year of the Horse, but we say, go Turtle!
2013 has been a year of uncertainty on many fronts in the world, peace, economic
and socio-political. Isn't it nice to be able to count on something? We'll do
our best to continue to deliver the results in 2014 that you have come to expect
and count on.
Consolidated statements of profit and comprehensive income
In Canadian dollars
(millions except
per share figures) (audited) (unaudited)
-----------------------------------------------------
twelve months ended three months ended
December 31 December 31
-----------------------------------------------------
2013 2012 2013 2012
-----------------------------------------------------
Operating revenue $77.6 $76.6 $19.8 $19.8
Cost of sales
Other (39.4) (38.7) (10.5) (10.3)
Depreciation (2.1) (2.2) (0.6) (0.6)
-----------------------------------------------------
(41.5) (40.9) (11.1) (10.9)
-----------------------------------------------------
Gross profit 36.1 35.7 8.7 8.9
Other income 0.2 0.2 0.1 0.1
Administrative
expenses
Other (2.9) (2.8) (0.8) (0.6)
Depreciation (2.0) (2.3) (0.5) (0.6)
-----------------------------------------------------
(4.9) (5.1) (1.3) (1.2)
-----------------------------------------------------
Profit from
operating
activities 31.4 30.8 7.5 7.8
Other (losses) gains - (0.1) - (0.1)
Finance income 0.1 0.1 - -
Finance costs (3.3) (4.1) - (1.0)
-----------------------------------------------------
Profit before income
taxes 28.2 26.7 7.5 6.7
Income tax expense (6.7) (5.2) (2.1) (0.8)
-----------------------------------------------------
Profit and
comprehensive
income 21.5 21.5 5.4 5.9
-----------------------------------------------------
Profit and
comprehensive
income attributable
to:
Shareholders of
the Company $20.1 $20.1 $5.1 $5.5
Non-controlling
interest 1.4 1.4 0.3 0.4
-----------------------------------------------------
$21.5 $21.5 $5.4 $5.9
-----------------------------------------------------
Earnings per share
Basic and diluted $0.87 $0.92 $0.22 $0.24
Weighted average
number of common
shares outstanding
Basic 23.1 21.9 23.5 22.5
Diluted 24.9 24.9 25.3 25.5
EBITDA to
Shareholders $34.1 $33.9 $8.2 $8.6
EBITDA to
Shareholders % 46.1% 46.4% 43.4% 45.5%
Gamehost has also declared a cash dividend for the month of March 2014 of
$0.0733 per common share. The dividend will be paid on April 15, 2014 to
shareholders of record on March 31, 2014. The ex-dividend date is March 27,
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 annual 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 annual results 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. The company will file an annual financial report for the
annual period ended December 31, 2013. 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 or, Darcy J. Will
(877) 703-4545
(403) 340-0683 (FAX)
info@gamehost.ca
www.gamehost.ca
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