GAMEHOST INC. Condensed Interim Consolidated Financial Statements
For the Quarter ended March 31, 2024
Gamehost Inc.
Condensed Interim Consolidated Statements of Profit and Comprehensive Profit
In thousands | Unaudited | Unaudited | |||||||
(Except per share figures) | three months ended March 31 | three months ended March 31 | |||||||
Notes | 2024 | 2023 | 2024 | 2023 | |||||
Operating revenue | |||||||||
$ | 20,547.2 | $ | 19,838.6 | $ | 20,547.2 | $ | 19,838.6 | ||
Cost of sales | |||||||||
Other | (11,628.8) | (10,897.8) | (11,628.8) | (10,897.8) | |||||
Depreciation | 8, 9a) | (820.9) | (829.5) | (820.9) | (829.5) | ||||
(12,449.7) | (11,727.3) | (12,449.7) | (11,727.3) | ||||||
Gross profit | 8,097.5 | 8,111.3 | 8,097.5 | 8,111.3 | |||||
Lease and other income | 4 | 46.3 | 42.8 | 46.3 | 42.8 | ||||
Administrative expenses | |||||||||
Other | (1,100.7) | (1,042.5) | (1,100.7) | (1,042.5) | |||||
Depreciation | 8, 9a) | (217.1) | (231.6) | (217.1) | (231.6) | ||||
(1,317.8) | (1,274.1) | (1,317.8) | (1,274.1) | ||||||
Profit from operating activities | 6,826.0 | 6,880.0 | 6,826.0 | 6,880.0 | |||||
Gain on disposal of assets | 9.4 | - | 9.4 | - | |||||
Net finance costs | (667.1) | (768.5) | (667.0) | (768.5) | |||||
Profit before income taxes | 6,168.4 | 6,111.5 | 6,168.4 | 6,111.5 | |||||
Income tax (expense) recovery | 5 | (1,422.2) | (1,564.5) | (1,422.2) | (1,564.5) | ||||
Profit and comprehensive profit | $ | 4,746.2 | $ | 4,547.0 | $ | 4,746.2 | $ | 4,547.0 | |
Earnings per share | |||||||||
Basic and fully diluted | 6 | $ | 0.22 | $ | 0.21 | $ | 0.22 | $ | 0.21 |
Weighted average number of | 12 | ||||||||
common shares outstanding | |||||||||
Basic and fully diluted | 21,358.9 | 22,161.1 | 21,358.9 | 22,161.1 |
The accompanying notes are an integral part of the consolidated financial statements.
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Gamehost Inc.
Condensed Interim Consolidated Statements of Financial Position
Unaudited | Audited | ||||
In thousands | |||||
Notes | March 31, 2024 | December 31, 2023 | |||
Assets | |||||
Current | |||||
Cash | $ | 13,551.6 | $ | 13,979.2 | |
Restricted cash | 787.3 | 594.4 | |||
Trade and other receivables | 7 | 2,213.9 | 3,384.4 | ||
Inventories | 709.9 | 753.4 | |||
Prepaid expenses | 633.1 | 867.0 | |||
Income tax receivable | 207.6 | 73.2 | |||
18,103.4 | 19,651.6 | ||||
Property, plant and equipment | 8 | 71,735.9 | 72,466.8 | ||
Right-of-use assets | 9a) | 9,024.1 | 9,223.7 | ||
Investment property | 10 | 1,163.8 | 1,163.8 | ||
Goodwill and licences | 76,890.8 | 76,890.8 | |||
$ | 176,918.0 | $ | 179,396.7 | ||
Liabilities | |||||
Current | |||||
Trade and other payables | $ | 4,700.5 | $ | 4,545.4 | |
Loans and borrowings | 11 | 16,997.1 | 20,699.1 | ||
Lease liabilities | 9b) | 752.2 | 745.5 | ||
Dividends payable | 12 | 853.1 | 855.0 | ||
23,302.9 | 26,845.0 | ||||
Loans and borrowings | 11 | 25,003.0 | 25,468.0 | ||
Lease liabilities | 9b) | 10,670.7 | 10,862.2 | ||
Deferred tax liabilities | 5 | 7,424.2 | 7,422.5 | ||
66,400.8 | 70,597.7 | ||||
Equity | 12 | ||||
Share capital | 142,988.4 | 143,453.3 | |||
Deficit | (32,471.2) | (34,654.3) | |||
Equity attributable to Shareholders | 110,517.2 | 108,799.0 | |||
$ | 176,918.0 | $ | 179,396.7 |
The accompanying notes are an integral part of the consolidated financial statements.
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Gamehost Inc.
Condensed Interim Consolidated Statements of Changes in Equity
In thousands | Unaudited | ||||||||
Notes | |||||||||
Share capital | Deficit | Total | Total equity | ||||||
Equity as at January 1, 2023 | $ | 151,327.6 | $ | (47,456.6) | $ | 103,871.0 | $ | 103,871.0 | |
Profit and comprehensive income | - | 4,547.0 | 4,547.0 | 4,547.0 | |||||
Dividends to shareholders of the | 12 | - | (1,988.4) | (1,988.4) | (1,988.4) | ||||
Company | |||||||||
Shares repurchased for cancellation | (3,095.4) | - | (3,095.4) | (3,095.4) | |||||
Equity as at March 31, 2023 | $ | 148,232.2 | $ | (44,898.0) | $ | 103,334.2 | $ | 103,334.2 | |
Equity as at January 1, 2024 | 143,453.3 | (34,654.3) | $ | 108,799.0 | $ | 108,799.0 | |||
Profit and comprehensive income | - | 4,746.2 | 4,746.2 | 4,746.2 | |||||
Dividends declared to shareholders of | 12 | - | (2,563.1) | (2,563.1) | (2,563.1) | ||||
the Company | |||||||||
Shares repurchased for cancellation | 12 | (464.9) | - | (464.9) | (464.9) | ||||
Equity as at March 31, 2024 | $ | 142,988.4 | $ | (32,471.2) | $ | 110,517.2 | $ | 110,517.2 | |
The accompanying notes are an integral part of the consolidated financial statements.
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Gamehost Inc.
Condensed Interim Consolidated Statements of Cash Flows
In thousands | Unaudited | Unaudited | |||||||
three months ended March 31 | three months ended March 31 | ||||||||
Notes | 2024 | 2023 | 2024 | 2023 | |||||
Cash provided by (used in): | |||||||||
Operating activities | |||||||||
Profit and comprehensive profit | $ | 4,746.2 | $ | 4,547.0 | $ | 4,746.2 | $ | 4,547.0 | |
Adjustments for: | |||||||||
Depreciation of property, plant | 1,038.0 | 1,061.1 | 1,038.0 | 1,061.1 | |||||
and equipment | |||||||||
Finance costs | 729.7 | 847.7 | 729.7 | 847.7 | |||||
Foreign exchange gain | (5.9) | 2.3 | (5.9) | 2.3 | |||||
Income tax expense | 5 | 1,422.2 | 1,564.5 | 1,422.2 | 1,564.5 | ||||
7,929.3 | 8,022.6 | 7,930.2 | 8,022.6 | ||||||
Change in: | |||||||||
Non-cash working capital: | |||||||||
Trade and other receivables | 1,175.8 | 299.1 | 1,175.8 | 299.1 | |||||
Inventories | 43.5 | (10.5) | 43.5 | (10.6) | |||||
Prepaid expenses | 233.9 | 7.1 | 233.9 | 7.1 | |||||
Trade and other payables | (10.5) | 200.3 | (11.5) | 200.4 | |||||
Finance costs paid | (755.6) | (868.1) | (755.6) | (868.1) | |||||
Income taxes paid | (1,554.8) | (805.0) | (1,554.8) | (805.0) | |||||
Net cash provided by operating | 7,061.6 | 6,845.5 | 7,061.5 | 6,845.5 | |||||
activities | |||||||||
Investing activities | |||||||||
Purchase of property, plant and | 8 | (107.5) | (74.5) | (107.5) | (74.5) | ||||
equipment | |||||||||
Investment property | - | 56.3 | - | 56.3 | |||||
Net cash used in investing activities | (107.5) | (18.2) | (107.5) | (18.2) | |||||
Financing activities | |||||||||
Proceeds of loans and borrowings | - | 2,410.0 | - | 2,410.0 | |||||
Payments on loans and borrowings | (4,167.0) | (2,977.3) | (4,167.0) | (2,977.3) | |||||
Payments on lease liabilities | 9b) | (184.8) | (182.1) | (184.7) | (182.1) | ||||
Dividends paid | 12 | (2,564.9) | (2,000.0) | (2,565.0) | (2,000.0) | ||||
Share repurchases | 12 | (464.9) | (3,095.4) | (464.9) | (3,095.4) | ||||
Net cash used in financing activities | (7,381.6) | (5,844.8) | (7,381.6) | (5,844.8) | |||||
Net increase (decrease) in cash | (427.5) | 982.5 | (427.6) | 982.5 | |||||
Opening cash | 13,979.2 | 15,614.5 | 13,979.2 | 15,614.5 | |||||
Closing cash | $ | 13,551.7 | $ | 16,597.0 | $ | 13,551.6 | $ | 16,597.0 |
The accompanying notes are an integral part of the consolidated financial statements.
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Gamehost Inc
Notes to the Condensed Interim Consolidated Financial Statements
For the Quarter ended March 31, 2024
(In thousands, except share information)
1 REPORTING ENTITY
Gamehost Inc. (the "Company" or "Gamehost") is a publicly listed company incorporated in Canada under the Business Corporations Act (Alberta). The Company's shares are listed on the Toronto Stock Exchange ("TSX") under the trading symbol "GH". The head office is located at 104 - 548 Laura Avenue, Red Deer Country, Alberta T4E 0A5. The registered office and location of records is located at 1400, 350 - 7th Avenue SW Calgary, Alberta T2P 3N9.
Gamehost Inc., its wholly owned subsidiaries Gamehost Limited Partnership, and Deerfoot Inn & Casino Inc, collectively ("Gamehost") operates entirely in the province of Alberta. Operations include Deerfoot Inn & Casino ("Deerfoot") in Calgary, Rivers Casino & Entertainment Centre ("Rivers") in Fort McMurray, Great Northern Casino ("Great Northern"), Service Plus Inns & Suites ("Service Plus"), and Encore Suites by Service Plus Inns ("Encore") all located in Grande Prairie.
The Company is also the owner of an investment property located adjacent to its operating properties in Grande Prairie.
Gaming operations of the Company are controlled by Alberta Gaming, Liquor and Cannabis Commission ("AGLC"), including Company owned table games and government owned slot machines and electronic gaming tables, together referred to as electronic gaming devices ("EGD"), video lottery terminals ("VLT"), and lottery ticket kiosks. Hotel operations of the Company include full and limited service hotels, and banquet and convention services. Food, beverages and entertainment are offered at each of the Company's casino locations.
2 BASIS OF PREPARATION
These Condensed Interim Consolidated Financial Statements, including comparatives, have been prepared in accordance with International Accounting Standards ("IAS") 34 Interim Financial Reporting. Certain information and disclosures normally provided in audited annual consolidated financial statements prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Financial Accounting Standards Board ("IASB") and interpretations of the International Financial Reporting Interpretations Committee ("IFRIC") have been omitted or condensed. As such, these Condensed Interim Consolidated Financial Statements should be read in conjunction with Gamehost Inc's Audited Consolidated Financial Statements for the year ended December 31, 2023 ("Annual Financial Statements").
These Condensed Interim Consolidated Financial Statements were approved and authorized for issue by the Board of Directors on May 8, 2024. The policies applied in preparation of these Condensed Interim Consolidated Financial Statements are consistent with those applied in the Company's Annual Financial Statements.
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Gamehost Inc
Notes to the Condensed Interim Consolidated Financial Statements
For the Quarter ended March 31, 2024
(In thousands, except share information)
3 OPERATING SEGMENTS
An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Company's other components. Operating results of each segment for which specific financial information is available are reviewed regularly by the Company's Chief Operating Officer ("COO"), to make decisions about resources to be allocated to the segment and assess its performance.
Segment results that are reported to the COO include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly corporate assets (primarily the Company's headquarters), and income tax assets and liabilities.
Segment capital expenditure is the total cost incurred during the Year to acquire or develop property, plant and equipment, and licences.
The Company's reportable segments are strategic business units that offer different services. They are managed separately because of their unique operational and marketing requirements. Each segment complements the other segments. The Gaming segment includes three casinos offering slot machines, electronic gaming tables, VLT's, lottery ticket kiosks and table games. The Hotel segment includes three hotels catering to mid-range clients. The Food and Beverage segment has operations that are located within the casinos and hotels as a complement to those segments.
three months ended March 31, 2024 | Gaming | Hotel | Food & | Corporate and | Total | |||||
Beverage | Other 1 | |||||||||
Operating revenue | $ | 12,630.0 | $ | 3,391.0 | $ | 4,485.8 | $ | 40.4 | $ | 20,547.2 |
Lease and other income, gain on disposal of assets | 9.4 | - | 12.6 | 33.7 | 55.7 | |||||
Total revenues | $ | 12,639.4 | $ | 3,391.0 | $ | 4,498.4 | $ | 74.1 | $ | 20,602.9 |
Profit (loss) before income taxes | $ | 6,292.6 | $ | 476.9 | $ | 795.6 | $ | (1,396.7) | $ | 6,168.4 |
Segment assets | $ | 81,930.9 | $ | 65,714.4 | $ | 26,603.9 | $ | 2,668.8 | $ | 176,918.0 |
Segment liabilities | $ | 26,327.5 | $ | 21,343.8 | $ | 9,841.5 | $ | 8,888.0 | $ | 66,400.8 |
Capital expenditures | $ | 22.5 | $ | 71.4 | $ | 13.6 | $ | - | $ | 107.5 |
three months ended March 31, 2023 | Gaming | Hotel | Food & | Corporate and | Total | |||||
Beverage | Other 1 | |||||||||
Operating revenue | $ | 11,712.3 | $ | 3,589.4 | $ | 4,549.9 | $ | (13.0) | $ | 19,838.6 |
Lease and other income, gain on disposal of assets | 33.5 | 1.2 | 8.1 | - | 42.8 | |||||
Total revenues | $ | 11,745.8 | $ | 3,590.6 | $ | 4,558.0 | $ | (13.0) | $ | 19,881.4 |
Profit (loss) before income taxes | $ | 5,717.9 | $ | 732.0 | $ | 961.2 | $ | (1,299.6) | $ | 6,111.5 |
Segment assets | $ | 85,499.2 | $ | 67,508.6 | $ | 27,387.0 | $ | 2,354.0 | $ | 182,748.8 |
Segment liabilities | $ | 30,782.9 | $ | 27,111.8 | $ | 12,164.9 | $ | 9,355.0 | $ | 79,414.6 |
Capital expenditures | $ | 39.1 | $ | 18.9 | $ | 16.4 | -$ | 56.2 | $ | 18.2 |
1 Corporate and Other consists of revenues and expenses which are not allocated to operating segments and do not meet the definition of an operating segment on their own.
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Gamehost Inc
Notes to the Condensed Interim Consolidated Financial Statements
For the Quarter ended March 31, 2024
(In thousands, except share information)
4 LEASE AND OTHER INCOME
three months ended | three months ended | ||||
March 31 | March 31 | ||||
Lease and other income | 2024 | 2023 | 2024 | 2023 | |
Investment property | |||||
Gross revenue | 33.7 | - | 33.7 | 10.9 | |
Operating costs | (40.0) | (131.6) | (40.0) | (30.3) | |
Net profit | (6.3) | (131.6) | (6.3) | (19.4) | |
Lease revenues from food services operators | 51.8 | 178.9 | 51.8 | 51.8 | |
Other income | 0.8 | (607.7) | 0.8 | 10.4 | |
46.3 | 42.8 | 46.3 | 42.8 | ||
Lease and other income is comprised of net profits from investment property leasing activities, lease income from food services operators at the Company's Great Northern and Rivers casinos and other miscellaneous incomes. As lessor, the Company is responsible for all exterior or building shell maintenance and capital expenditures at the Company's investment property. Additionally, the Company manages the operational costs including property tax, building insurance, repairs and maintenance and security of the investment property which costs are shared pro-rata by property tenants as common area costs. The investment property has available vacant space. The Company is currently negotiating a new lease with an existing food services operator at Great Northern.
5 INCOME TAX Current income tax
three months ended March 31 | 2024 | 2023 | ||
Current tax expense | $ | 1,420.5 | $ | 1,393.7 |
Deferred tax expense (recovery) | ||||
Permanent differences in deferred tax carrying values | 1.7 | 170.8 | ||
Income tax expense | $ | 1,422.2 | $ | 1,564.5 |
Substantially enacted tax laws, as they relate to the Company's liability for current and deferred taxes, have been factored into the determination of reported taxes.
Deferred income tax
a) Recognized deferred tax assets and liabilities
The income tax effects of temporary differences that give rise to significant portions of the deferred tax liabilities are presented below:
as at | March 31, 2024 | December 31, 2023 | ||||
Assets | Liabilities | Net | Assets | Liabilities | Net | |
Leased right-of-use assets | 2,628.7 | - | 2,628.7 | 2,669.8 | - | 2,669.8 |
Goodwill and licences | - | (5,551.2) | (5,551.2) | - | (5,517.3) | (5,517.3) |
Property, plant and equipment including ROU assets | - | (4,501.7) | (4,501.7) | - | (4,575.0) | (4,575.0) |
Deferred tax assets (liabilities) | 2,628.7 | (10,052.9) | (7,424.2) | 2,669.8 | (10,092.3) | (7,422.5) |
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Gamehost Inc
Notes to the Condensed Interim Consolidated Financial Statements
For the Quarter ended March 31, 2024
(In thousands, except share information)
5 | INCOME TAX (Continued) | ||||||
b) Movement in deferred tax balances | |||||||
three months ended | March 31, 2024 | December 31, 2023 | |||||
Opening | Recognized in | Closing | Opening | Recognized in | Closing | ||
profit | profit | ||||||
Lease liabilities | 2,669.8 | (41.1) | 2,628.7 | 2,839.8 | (170.0) | 2,669.8 | |
Goodwill and licences | (5,517.3) | (33.9) | (5,551.2) | (5,372.9) | (144.4) | (5,517.3) | |
Property, plant and equipment including ROU assets | (4,575.0) | 73.3 | (4,501.7) | (4,862.8) | 287.8 | (4,575.0) | |
Deferred tax assets (liabilities) | (7,422.5) | (1.7) | (7,424.2) | (7,395.9) | (26.6) | (7,422.5) | |
6 | Earnings per share |
The calculation of basic earnings per share is based on the profit attributable to common shareholders and the weighted average number of common shares outstanding. The Company had no potentially dilutive common shares during the periods reported.
three months ended
March 31
20242023
three months ended
March 31
20242023
Profit and comprehensive profit attributable to shareholders | $ | 4,746.2 | $ | 4,547.0 | $ | 4,746.2 | $ | 4,547.0 |
Weighted average common shares outstanding | 21,358.9 | 22,161.1 |
21,358.9 22,161.1
Basic and fully diluted earnings per share | $ | 0.22 | $ | 0.21 | $ | 0.22 | $ | 0.21 |
7 TRADE AND OTHER RECEIVABLES
March 31, 2024 | December 31, 2023 | |
AGLC, ATM and statutory amounts | 1,463.1 | 1,856.4 |
Hotel guest accounts | 750.8 | 1,528.0 |
2,213.9 | 3,384.4 | |
AGLC and statutory amounts are expected to clear the month following. Hotel and guest accounts are monitored closely for changes in payment patterns and remain well within Company targets for days sales outstanding. No adjustments have been made to estimates for expected credit losses.
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Gamehost Inc
Notes to the Condensed Interim Consolidated Financial Statements
For the Quarter ended March 31, 2024
(In thousands, except share information)
8 PROPERTY, PLANT AND EQUIPMENT
The carrying values of property, plant and equipment which comprise of owned assets that do not meet the definition of investment property are reconciled below:
Land | Land | Buildings | Building | Leaseholds | Furniture and | Total | ||||||||
Improvement | Components | Equipment | ||||||||||||
Cost | ||||||||||||||
At January 1, 2023 | $ | 11,564.1 | $ | 4,215.6 | $ | 90,299.7 | $ | 468.5 | $ | 8,400.1 | $ | 25,713.9 | $ | 140,661.9 |
Additions | - | - | 43.6 | - | 29.2 | 602.5 | 675.3 | |||||||
At December 31, 2023 | $ | 11,564.1 | $ | 4,215.6 | $ | 90,343.3 | $ | 468.5 | $ | 8,429.3 | $ | 26,316.4 | $ | 141,337.2 |
Additions (disposals) | (74.6) | - | - | - | 5.8 | 176.3 | 107.5 | |||||||
At March 31, 2024 | $ | 11,489.5 | $ | 4,215.6 | $ | 90,343.3 | $ | 468.5 | $ | 8,435.1 | $ | 26,492.7 | $ | 141,444.7 |
11,489.5 | 4,215.6 | 90,343.3 | 468.5 | 8,435.0 | 26,492.7 | 141,444.6 | ||||||||
Accumulated depreciation | ||||||||||||||
At January 1, 2023 | $ | - | $ | 1,242.2 | $ | 37,926.8 | $ | 235.3 | $ | 3,340.0 | $ | 22,678.6 | $ | 65,422.9 |
Depreciation | - | 84.8 | 2,251.1 | 38.9 | 381.1 | 691.6 | 3,447.5 | |||||||
At December 31, 2023 | $ | - | $ | 1,327.0 | $ | 40,177.9 | $ | 274.2 | $ | 3,721.1 | $ | 23,370.2 | $ | 68,870.4 |
Depreciation | - | 21.2 | 542.3 | 18.7 | 95.5 | 160.7 | 838.4 | |||||||
At March 31, 2024 | $ | - | $ | 1,348.2 | $ | 40,720.2 | $ | 292.9 | $ | 3,816.6 | $ | 23,530.9 | $ | 69,708.8 |
- | 1,348.2 | 40,720.1 | 292.8 | 3,816.5 | 23,531.0 | 69,708.7 | ||||||||
Carrying value | (21.2) | (542.2) | (18.7) | (95.5) | (160.7) | |||||||||
At December 31, 2023 | $ | 11,564.1 | $ | 2,888.6 | $ | 50,165.4 | $ | 194.3 | $ | 4,708.2 | $ | 2,946.2 | $ | 72,466.8 |
At March 31, 2024 | $ | 11,489.5 | $ | 2,867.4 | $ | 49,623.1 | $ | 175.6 | $ | 4,618.5 | $ | 2,961.8 | $ | 71,735.9 |
Equipment provided by and owned by AGLC including slot, VLT, EGT, and lottery terminals are not included in property, plant and equipment.
11,564.1 | 2,888.6 | 50,165.4 | 194.3 | 4,708.2 | 2,946.2 | 72,466.8 |
9 LEASES
The Company's leases are comprised of predominantly a property lease for the Rivers Casino & Entertainment Centre and numerous pieces of small equipment throughout the Company, collectively known as right-of-use assets. The corresponding lease liabilities for ROU assets are subject to remeasurement for changes in future lease payments with corresponding adjustments made to the carrying value of the ROU asset.
Additional lease payments are recognized in profit (loss) and consist of short-term leases with durations of twelve months or less, and leases of low value consisting primarily of small equipment. Additional lease payments also include variable portions of property leases based on usage such as property tax and insurance portions of common area property costs.
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Gamehost Inc. published this content on 08 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 May 2024 01:28:03 UTC.
