Gamehost Announces First Quarter 2014 Financial Results and May Dividend
14 May 2014 - 9:09PM
Marketwired
Gamehost Announces First Quarter 2014 Financial Results and May
Dividend
RED DEER, ALBERTA--(Marketwired - May 14, 2014) - 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.
Gamehost Inc.Craig M. Thomas(877) 703-4545(403) 340-0683Gamehost
Inc.Darcy J. Will(877) 703-4545(403)
340-0683info@gamehost.cawww.gamehost.ca
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