from Gamehost Inc. (isin : CA36468B1040)
Gamehost Announces Fourth Quarter Financial Results and Dividend for March
Not intended for distribution to U.S. newswire services or for dissemination in the U.S.
RED DEER, AB / ACCESSWIRE / March 12, 2024 / Gamehost Inc. (TSX:GH) Management and Directors of Gamehost Inc. (the "Company") present results for the twelve and three months ended December 31, 2023 (the "Year" and "Quarter" respectively).
Operating revenue for the Quarter was up 13.4% to $21,296.0 thousand ($18,776.6 thousand - 2022) and EBITDA to Shareholders was up 36.1% to $8,698.9 thousand ($6,391.4 thousand - 2022). Earnings per share for the Quarter was $0.25 ($0.19 - 2022). All revenue streams produced year over year gains during the Quarter.
All three regions of the province where the Company operates, Calgary, Grande Prairie and Fort McMurray, turned in year-over-year gains in revenue, cashflow and margins for the Quarter. The rate of population growth in Alberta is at levels not seen since the 1980's. The population growth is generally positive, and indicative of the provinces strong economy and relative affordability compared to many of our provincial counterparts.
Comparative results for the Quarter reflect a two-percentage point increase in the operators share of electronic gaming device Hold from 15% to 17%. AGLC approved the temporary, two year, increase effective April 1, 2023. The increase is intended to incentivize operators to make investments in their facilities or promotions that will increase gaming revenues and will be evaluated at regular intervals by AGLC during the two-year period. Management is hopeful that results following the two-year period will support the change being made permanent.
Effective the month of November 2023, the Company's board of directors approved a 33.3% increase in the regular monthly dividend from $0.03 per share to $0.04 per share for a new annualized rate of $0.48 per share. The Company's directors review dividend policy at all regularly scheduled meetings. The dividend payout ratio at the end of the Year was 36.0%.
During the Quarter, the Company repurchased 331,149 shares for an aggregate $2,958.5 thousand. It is expected that a proposed share buyback tax will receive royal assent in the new year resulting in a 2.0% tax being applied to the value of any share buybacks beginning January 1, 2024. Management and the Company's board of directors are evaluating the impact of the new tax. Remaining surplus cash was applied to revolving debt. Together with scheduled debt repayments, during the Quarter, the Company retired $1,125.7 thousand of debt reducing debt to EBITDA ratio to 1.3.
2023 has been one of Gamehost's best years ever. We are cautiously optimistic for continued strong Company performance in 2024. The major energy infrastructure projects of Transmountain Pipeline and Coastal Gaslink Pipeline are set for completion/commissioning in the new year. Both projects, long in development, will continue to support Alberta's economy and businesses like ours for decades.
Gamehost Inc.
Financial Highlights
Unaudited - Canadian dollars (thousands except per share figures)
| twelve months ended December 31 | three months ended December 31 | |||||||||||||||||||||||
| 2023 | 2022 | % Chg. | 2023 | 2022 | % Chg. | |||||||||||||||||||
Operating revenue | $ | 83,360.3 | $ | 69,736.4 | 19.5 | % | $ | 21,296.0 | $ | 18,776.6 | 13.4 | % | ||||||||||||
Cost of sales | ||||||||||||||||||||||||
Other | (45,212.0 | ) | (42,250.6 | ) | (11,753.0 | ) | (11,641.6 | ) | ||||||||||||||||
Depreciation | (3,354.6 | ) | (3,756.4 | ) | (808.8 | ) | (969.5 | ) | ||||||||||||||||
| (48,566.6 | ) | (46,007.0 | ) | (12,561.8 | ) | (12,611.1 | ) | |||||||||||||||||
Gross profit | 34,793.7 | 23,729.4 | 46.6 | % | 8,734.2 | 6,165.5 | 41.7 | % | ||||||||||||||||
Lease and other income (expense) | 192.0 | (560.4 | ) | 51.2 | (5.5 | ) | ||||||||||||||||||
Administrative expenses | ||||||||||||||||||||||||
Other | (3,687.8 | ) | (3,079.4 | ) | (954.4 | ) | (787.3 | ) | ||||||||||||||||
Depreciation | (921.1 | ) | (978.8 | ) | (210.9 | ) | (245.6 | ) | ||||||||||||||||
| (4,608.9 | ) | (4,058.2 | ) | (1,165.3 | ) | (1,032.9 | ) | |||||||||||||||||
Profit from operating activities | 30,376.8 | 19,110.8 | 59.0 | % | 7,620.1 | 5,127.1 | 48.6 | % | ||||||||||||||||
Fair value adjustment | - | (354.1 | ) | - | (354.1 | ) | ||||||||||||||||||
Net finance costs | (3,015.6 | ) | (2,459.6 | ) | (727.6 | ) | (753.1 | ) | ||||||||||||||||
Profit before income tax | 27,361.2 | 16,297.1 | 6,892.5 | 4,019.9 | ||||||||||||||||||||
Income tax expense | (6,303.7 | ) | (3,330.2 | ) | (1,502.8 | ) | 257.2 | |||||||||||||||||
Profit | 21,057.5 | 12,966.9 | 62.4 | % | 5,389.7 | 4,277.1 | 26.0 | % | ||||||||||||||||
Profit attributable to: | ||||||||||||||||||||||||
Shareholders | 21,057.5 | 12,670.7 | 5,389.7 | 4,277.1 | ||||||||||||||||||||
Non-controlling interest | - | 296.2 | - | - | ||||||||||||||||||||
| 21,057.5 | 12,966.9 | 62.4 | % | 5,389.7 | 4,277.1 | 26.0 | % | |||||||||||||||||
Earnings per share | ||||||||||||||||||||||||
Basic and fully diluted | $ | 0.97 | $ | 0.56 | 71.6 | % | $ | 0.25 | $ | 0.19 | 31.2 | % | ||||||||||||
Weighted average number of common shares outstanding | ||||||||||||||||||||||||
Basic and fully diluted (x 000) | 21,769.8 | 22,479.2 | 21,459.0 | 22,339.0 | ||||||||||||||||||||
EBITDA | $ | 34,954.8 | $ | 23,978.5 | 45.8 | % | $ | 8,698.9 | $ | 6,391.4 | 36.1 | % | ||||||||||||
EBITDA % | 41.7 | % | 34.6 | % | 40.6 | % | 34.0 | % | ||||||||||||||||
| 31-Dec-23 | 31-Dec-22 | |||||||||||||||||||||||
Cash | $ | |||||||||||||||||||||||