Gamehost Announces Second Quarter 2013 Financial Results and August Dividend
14 August 2013 - 1:04AM
Marketwired
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 three months ended
June 30 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.
Contacts: Gamehost Inc. 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
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