from Gamehost Inc. (isin : CA36468B1040)
Gamehost Announces Second Quarter Financial Results and Dividend For August
Not intended for distribution to U.S. newswire services or for dissemination in the U.S.
RED DEER, AB / ACCESSWIRE / August 13, 2024 / Gamehost Inc. (TSX:GH)
Management and Directors of Gamehost Inc. (the "Company") present results for the six and three months ended June 30, 2024 (the "Period" and "Quarter" respectively).
Operating revenue for the Quarter was down 2.5% to $20,303,500 ($20,833,100 - 2023) while EBITDA was down 8.9% to $7,991,200 ($8,773,500 - 2023). Earnings per share for the Quarter was $0.23 ($0.25 - 2023). Table activity posted solid growth, but less than average Hold % at Deerfoot held back overall revenue. Good Hold % more than made up for some softness in slot activity. Hotel occupancy saw some pullback from pent up COVID-19 demand enjoyed the prior year. Rivers casino was temporarily closed or operated on reduced hours for six days during the Quarter due to a wildfire threat also accounting for some of the reduced revenue.
The Company is operating under a temporary, two-year arrangement, for increase in slot commissions to operators, which is reflected in comparable quarterly results. The temporary 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 which ends March 31, 2025.
During the Quarter, the Company repurchased 131,700 shares for an aggregate $1,354,700. The Company recorded a provision for a proposed 2.0% share buyback tax that received second reading in the House of Commons in March 2024. The share buyback tax is effective on share purchases beginning January 1, 2024. The Company reduced debt by $753,000 during the Quarter while continuing with the current dividend as set by the board of directors.
The Bank of Canada is firmly in a rate easing cycle now with rate cuts in both June and July of this year. This will be welcome relief for many Alberta households. Economic growth has slowed. Still, Alberta is in an enviable position to ride out any volatility. In the meantime, we will be focused on managing costs and spending in areas with the highest potential return. We are prepared for whatever comes our way.
Gamehost Inc.
Financial Highlights
Unaudited - Canadian dollars (thousands except per share figures)
six months ended June 30 | three months ended June 30 | |||||||||||||||||||||||
2024 | 2023 | % Chg. | 2024 | 2023 | % Chg. | |||||||||||||||||||
Operating revenue | $ | 40,850.8 | 40,671.7 | 0.4 | % | $ | 20,303.5 | $ | 20,833.1 | (2.5 | %) | |||||||||||||
Cost of sales | ||||||||||||||||||||||||
Other | (23,186.1 | ) | (22,231.4 | ) | (11,557.1 | ) | (11,333.6 | ) | ||||||||||||||||
Depreciation | (1,649.3 | ) | (1,688.6 | ) | (828.5 | ) | (859.1 | ) | ||||||||||||||||
(24,835.4 | ) | (23,920.0 | ) | (12,385.6 | ) | (12,192.7 | ) | |||||||||||||||||
Gross profit | 16,015.4 | 16,751.7 | (4.4 | %) | 7,917.9 | 8,640.4 | (8.4 | %) | ||||||||||||||||
Lease and other income | 102.2 | 86.0 | 55.9 | 43.2 | ||||||||||||||||||||
Administrative expenses | ||||||||||||||||||||||||
Other | (1,966.4 | ) | (1,886.1 | ) | (865.6 | ) | (843.7 | ) | ||||||||||||||||
Depreciation | (434.1 | ) | (463.3 | ) | (217.1 | ) | (231.6 | ) | ||||||||||||||||
(2,400.5 | ) | (2,349.4 | ) | (1,082.7 | ) | (1,075.3 | ) | |||||||||||||||||
Profit from operating activities | 13,717.1 | 14,488.3 | (5.3 | %) | 6,891.1 | 7,608.3 | (9.4 | %) | ||||||||||||||||
Gain on disposal of assets | 9.4 | - | - | - | ||||||||||||||||||||
Net finance costs | (1,292.6 | ) | (1,546.7 | ) | (625.5 | ) | (778.3 | ) | ||||||||||||||||
Profit before income tax | 12,433.9 | 12,941.6 | 6,265.5 | 6,830.0 | ||||||||||||||||||||
Income tax expense | (2,898.0 | ) | (3,048.0 | ) | (1,475.8 | ) | (1,483.5 | ) | ||||||||||||||||
Profit and comprehensive profit | 9,535.9 | 9,893.6 | (3.6 | %) | 4,789.7 | 5,346.5 | (10.4 | %) | ||||||||||||||||
Earnings per share | ||||||||||||||||||||||||
Basic and fully diluted | $ | 0.45 | 0.45 | (0.7 | %) | $ | 0.23 | $ | 0.25 | (8.3 | %) | |||||||||||||
Weighted average number of common shares outstanding | ||||||||||||||||||||||||
Basic and fully diluted (x 000) | 21,312.0 | 21,960.0 | 21,265.0 | 21,761.2 | ||||||||||||||||||||
EBITDA | $ | 15,911.9 | 16,796.2 | (5.3 | %) | $ | 7,991.2 | $ | 8,773.5 | (8.9 | %) | |||||||||||||
EBITDA % | 38.7 | % | 41.1 | % | 39.1 | % | 41.9 | % | ||||||||||||||||
Cash | $ | 14,503.4 | $ | 13,979.2 | ||||||||||||||||||||
Total assets | $ | 177,760.8 | $ | 179,396.7 | ||||||||||||||||||||
Total debt | $ | 41,247.1 | $ | 46,167.1 | ||||||||||||||||||||
Gamehost has declared a cash dividend for the month of August 2024 of $0.04 (CDN) per common share, which equates to $0.48 (CDN) per common share on an annualized basis. The dividend will be paid on September 13, 2024 to shareholders of record on August 31, 2024. This dividend is considered an "Eligible Dividend" and therefore, eligible for the enhanced gross-up and dividend tax credit available to Canadian shareholders.
This press release may contain certain "forward-looking information" or statements within the meaning of applicable securities legislation and may contain words such as "anticipates", "believes", "could", "expects", "indicates", "plans", "withstand", "further" or other similar expressions that suggest future outcomes or events. Forward-looking information is based on the Company's current expectations, estimates, projections and assumptions that were made by the Company in light of its historical trends and other factors. All information or statements, other than statements of historical fact, are forward-looking information including any statements that address expectations related to future economic outcomes or the Company's dividend. Forward-looking 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.
The Company has included non-International Financial Reporting Standards ("non-IFRS") measures in this press release. EBITDA, as defined by the Company, means earnings before interest and financing costs, income taxes, depreciation and amortization, and foreign exchange gains or losses. The Company believes EBITDA is a useful measure because it provides information to management and investors about the Company's performance in generating operating cash flow to fund working capital needs, service debt obligations, fund future capital expenditures and support dividend policy. Readers are cautioned that non-IFRS measures do not have any standardized meaning prescribed by IFRS and should not be taken as alternatives to net earnings measured in accordance with IFRS. The Company's method of calculating non-IFRS measures may not be comparable to similarly titled measures used by other reporting entities.
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 Rivers Casino & Entertainment Centre in Ft. McMurray, the Great Northern Casino, Service Plus Inns & Suites and Encore Suites hotels as well as a strip mall all located in Grande Pr