Gamehost Announces Fourth Quarter 2021 Financial Results and Resumes Dividends Beginning March 2022

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RED DEER, AB / ACCESSWIRE / March 8, 2022 / Gamehost Inc. (TSX:GH) Management and Directors of Gamehost Inc. (the "Company") present results for the twelve and three month periods ended December 31, 2021 (the "Year" and "Quarter" respectively).

In year-over-year comparison for the Quarter, operating revenue was up 52.8% to $13.6 from $8.9 ($17.3 - 2019), EBITDA to Shareholders was up 9.3% to $4.7 from $4.3 ($6.5 - 2019). Earnings per share for the Quarter were $0.01 lower to $0.7 from $0.08 per share ($0.15 - 2019).

The Company's casinos operated under Alberta's Restrictions Exemption Program (REP) from the mid-point in September 2021 through the end of the Quarter. REP mandates entry only to patrons with proof of vaccination or those providing a recent negative COVID-19 test or medical exemption certificate. Additional limitations on food and beverage service were added later in the Quarter resulting in service being cut-off at 11:00PM and no service outside of seated areas with-in lounge or restaurants. Company hotels continued to operate with standard masking and physical distancing at check-in. Restrictions had a negative affect on patron visitation and length of patron visits. This was especially the case in Grande Prairie and to a lesser extent in Fort McMurray. Citizens in both of these regions have vaccination rates lower than the provincial average and pushed back hard on government mandated, COVID-19 related restrictions.

During the Quarter, work on two major expansion projects also depressed revenue generation. Both projects, a $4.4 million, 5,000 square foot expansion of gaming and non-gaming amenities at Deerfoot Casino and a $6.3 million, 6,687 square foot expansion of non-gaming amenities and complete exterior refurbishment at Rivers Casino were completed late in the Quarter. Both projects were impacted by COVID-19 related supply and inflationary pressures. The Company used surplus cash and revolving debt to finance the two projects. The Company received a $1.9 million payment for tenant allowances in Q1 2022. The Company is finalizing plans for a renovation at Great Northern Casino which should commence this coming spring. Plans include an exterior modernization and general interior refresh along with expanded food and beverage areas.

The Company repurchased 245,100 shares for an aggregate $2.0 million or average $7.95 per share before commissions during the Quarter. The Company's current normal course issuer bid is open to July 20, 2022 and management intends to continue purchasing shares as long as the trading price of the shares do not adequately reflect underlying value.

At the regular scheduled meeting of the board of directors held March 7, 2022 the board reinstated a dividend for shareholders which has been suspended since April 2020. The board declared a dividend for the month of March 2022, of $0.03/common share. The dividend will be paid on or about April 15, 2022. In it's decision, the board considered the waning impact of COVID-19 and the lifting of related provincial operating restrictions. Management presented the board with future cash flow projections with a view of putting funds aside for accelerated debt payments through 2022 and reserving additional cash for share repurchases if warranted. The board determined that restarting the dividend at a monthly rate of $0.03 per common share is a fiscally responsible starting point and will review the dividend policy on a quarterly basis.

To say the last two years in our industry has been a challenge would be an understatement. This is especially true for our dedicated front-line team who deliver the daily services that our success is built on. They have endured multiple openings and closings and adapted to ever-changing rules for operating safely. The resulting ebbs and surges in business activity created unpredictable work schedules. The Company directors and management extend our most sincere thank you, thank you, thank you.

Looking forward, a shift from pandemic phase to endemic phase, for Covid-19, appears to be taking shape. With each restriction lifted we observed an uptick in our business. More importantly, we see a lot of green shoots in the Alberta economy. Outside of the obvious benefits from higher oil and gas prices, heavy investment is being made in solar, wind and other green energy infrastructure throughout the province. Public and private investment in biofuels, film, information technology, construction and other industries, along with affordable housing, is driving higher immigration and lower unemployment. With optimism we are looking past these last two years to a bright Alberta future!

Gamehost Inc.
Financial Highlights
Unaudited - Canadian dollars (millions except per share figures)

		twelve months ended December 31												three months ended December 31
		2021				2020				% Change				2021				2020				% Change
Operating revenue		$	33.3			$	34.6				(3.8	%)		$	13.6			$	8.9				52.8	%
Cost of sales
Other			(21.5	)			(22.5	)							(8.7	)			(5.8	)
Depreciation			(3.4	)			(3.0	)							(1.3	)			(0.8	)
			(24.9	)			(25.5	)							(10.0	)			(6.6	)
Gross profit (loss)			8.4				9.1				(7.7	%)			3.6				2.3				56.5	%
Lease and other income			4.6				4.1								0.8				2.1
Administrative expenses
Other			(2.3	)			(2.3	)							(0.7	)			(0.6	)
Depreciation			(1.0	)			(1.1	)							(0.3	)			(0.3	)
			(3.3	)			(3.4	)							(1.0	)			(0.9	)
Profit (loss) from operating activities			9.7				9.8				(1.0	%)			3.4				3.5				(2.9	%)
Fair value adjustment			(0.5	)			(0.8	)							(0.5	)			(0.2	)
Net finance costs			(1.6	)			(1.5	)							(0.5	)			(0.4	)
Profit (loss) before income tax			7.6				7.5								2.4				2.9
Income tax (expense) recovery			(1.5	)			(1.8	)							(0.5	)			(1.0	)
Profit (loss)			6.1				5.7				7.0	%			1.9				1.9				0.0	%
Profit (loss) attributable to:
Shareholders			5.6				5.3				5.7	%			1.7				1.8				(5.6	%)
Non-controlling interest			0.5				0.4								0.2				0.1
			6.1				5.7								1.9				1.9
Earnings (loss) per share
Basic and fully diluted		$	0.24			$	0.22				9.1	%		$	0.07			$	0.08				(12.5	%)
Weighted average number of common shares outstanding
Basic and fully diluted			23.0				23.8								22.7				23.4
EBITDA to Shareholders		$	13.5			$	13.4				0.7	%		$	4.7			$	4.3				9.3	%
EBITDA to Shareholders %			37.5	%			36.2	%							34.6