GAMEHOST INC. RED DEER, ALBERTA--(Marketwired - Aug 12, 2014) - Gamehost Inc. (TSX:GH)
Management and Directors of Gamehost Inc. (the "Company") are pleased to present results for the three months ended June 30, 2014 (the "Quarter") and the six months ended June 30, 2014 (the "Period").
We're Smoking Again
Total operating revenues for the Quarter jumped $1.6 million or 8.3% to $21.0 million from $19.4 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 6.9% to $9.3 million versus $8.7 in the same quarter one year earlier. EBITDA to Shareholders margin was lower by 50 basis points to 46.5% in year over year comparison. Forget the cigarettes, tables were on fire and turned in another stellar performance with big increases in Drop and an average hold percentage of 21.5% versus 19.1% in 2013 and take most of the credit for helping produce the Company's highest quarterly revenue and EBITDA to Shareholders ever.
Boomtown has Moved
Grande Prairie is the new boomtown. The Grande Prairie and Area Association of Realtors Multiple Listing Service System has recorded the best June on record for home sales in the area. Job growth stemming from investment in the forestry, energy and tourism sectors has reduced rental vacancy rates and fuelled new home construction. Our Service Plus hotel is full and Great Northern Casino is steadily climbing back to the heady days of 2006/2007. Combined casino and hotel operations in the city recorded 15% growth in revenue and 16% growth in EBITDA during the Quarter compared to the previous year. A refurbishment of the guest rooms at our Service Plus hotel Grande Prairie is proceeding slower than planned as we try to minimize the number of rooms out of service during this period of heavy demand.
Building Asset Value in Other Ways
The Company repurchased for cancellation 137,900 of its common shares ("Shares") at an average price of $14.92 per Share during the Quarter for total cash of $2.1 million. We will continue to monitor the price of the Company shares and take advantage of opportunities of weakness.
Dead Money
For numerous years now economists, central bankers and think tanks have been chastising Canadian companies for sitting on piles of idle cash that could be used to stimulate the economy if it were invested. We're way ahead of the curve on this problem. For years we've been giving all our idle cash to you, our shareholders, $206.3 million of it to be exact. Presumably you've figured out what to do with it?
Rest Easy
Summer is short in our part of the world. Finding a way to relax and enjoy it means some investors need to sell in May before they go away. But we say get it and forget, Gamehost Shares that is, and stay relaxed the whole year through. Have a great summer!
| Interim condensed consolidated statements of profit | |||||||||||||
| In Canadian dollars (millions | (unaudited) | (unaudited) | |||||||||||
| except per share figures) | |||||||||||||
| six months ended June 30 | three months ended June 30 | ||||||||||||
| 2014 | 2013 | 2014 | 2013 | ||||||||||
| Operating revenue | $ | 41.6 | $ | 38.5 | $ | 21.0 | $ | 19.4 | |||||
| Cost of sales | |||||||||||||
| Other | (21.1 | ) | (19.3 | ) | (10.6 | ) | (9.7 | ) | |||||
| Depreciation | (1.1 | ) | (1.1 | ) | (0.5 | ) | (0.5 | ) | |||||
| (22.2 | ) | (20.4 | ) | (11.1 | ) | (10.2 | ) | ||||||
| Gross profit | 19.4 | 18.1 | 9.9 | 9.2 | |||||||||
| Other income | 0.1 | 0.1 | 0.1 | 0.1 | |||||||||
| Administrative expenses | |||||||||||||
| Other | (1.6 | ) | (1.6 | ) | (0.9 | ) | (0.8 | ) | |||||
| Depreciation | (0.9 | ) | (1.0 | ) | (0.4 | ) | (0.5 | ) | |||||
| (2.5 | ) | (2.6 | ) | (1.3 | ) | (1.3 | ) | ||||||
| Profit from operating activities | 17.0 | 15.6 | 8.7 | 8.0 | |||||||||
| Net finance costs | (1.2 | ) | (2.2 | ) | (0.5 | ) | (1.2 | ) | |||||
| Profit before income taxes | 15.8 | 13.4 | 8.2 | 6.8 | |||||||||
| Income tax expense | (3.6 | ) | (3.1 | ) | (1.7 | ) | (1.2 | ) | |||||
| Profit | 12.2 | 10.3 | 6.5 | 5.6 | |||||||||
| Profit attributable to: | |||||||||||||
| Owners of the Company | 11.5 | 9.6 | 6.1 | 5.2 | |||||||||
| Non-controlling interests | 0.7 | 0.7 | 0.4 | 0.4 | |||||||||
| 12.2 | 10.3 | 6.5 | 5.6 | ||||||||||
| Earnings per share | |||||||||||||
| Basic | $ | 0.49 | $ | 0.42 | $ | 0.26 | $ | 0.23 | |||||
| Diluted | $ | 0.48 | $ | 0.45 | $ | 0.25 | $ | 0.24 | |||||
| Weighted average number of | |||||||||||||
| common shares outstanding | |||||||||||||
| Basic | 23.5 | 22.9 | 23.5 | 23.1 | |||||||||
| Diluted | 24.9 | 25.1 | 24.9 | 25.3 | |||||||||
| EBITDA to Shareholders | $ | 18.1 | $ | 17.0 | $ | 9.3 | $ | 8.7 | |||||
| EBITDA to Shareholders % | 45.7 | % | 46.2 | % | 46.5 | % | 47.0 | % | |||||
Gamehost has also declared a cash dividend for the month of August 2014 of $0.0733 per common share. The dividend will be paid on September 15, 2014 to shareholders of record on August 31, 2014. The ex-dividend date is August 27, 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 applicable to annual periods, 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 June 30, 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.
