Gamehost Announces Third Quarter 2021 Financial Results
RED DEER, AB / ACCESSWIRE / November 9, 2021 / Gamehost Inc. (TSX:GH)
Management and Directors of Gamehost Inc. (the “Company”) present results for the nine- and three-month periods ended September 30, 2021 (the “Period” and “Quarter” respectively).
In year-over-year comparison for the Quarter, operating revenue was up 57.0% from $10.0 to $15.7 ($16.9 - 2019), EBITDA was up 65.3% from $4.9 to $8.1 ($6.7 - 2019). Earnings per share for the Quarter was up 91.7% to $0.23 per share compared to $0.12 per share for the same quarter in 2020 ($0.16 - 2019).
Following the announcement of Government of Alberta (“GOA”) three stage ‘Open for Summer’ economic relaunch plan, the province reached the milestones required for stage three at the outset of the Quarter which allowed Company operations to operate with no capacity restrictions and no mandatory masking or physical distancing restrictions. The Company’s Rivers Casino & Entertainment Centre (formerly Boomtown Casino) remained closed until July 6th to accommodate ongoing construction efforts. Albertan’s clearly had a desire to exercise their new freedoms. Casino activity was robust, and management began reintroducing live entertainment to appreciative patrons looking to have some fun. The party lasted until September 16, 2021 when the GOA again declared a state of public health emergency with case counts hitting new highs and ICU’s overflowing. The GOA reintroduced capacity restrictions, reduced hours for liquor service and required mandatory masking while imploring those eligible, but still unvaccinated to get the jab. At the same time, the GOA introduced a Restriction Exemption Program (“REP”) for businesses willing to make proof of vaccination or a negative COVID-19 test mandatory for non-staff members entering their establishments. Gamehost opted-in to the REP and extended the mandatory vaccine or negative COVID-19 test requirement to our staff. The business witnessed an immediate drop in patron visitation and some fallout from staff reluctant to comply with the new requirements. Since the initial reaction, activity is moving higher again.
We are optimistic for our business as we move closer to normalcy, even as Alberta is experiencing a setback with a fourth wave of COVID-19. We note that the results posted for the Quarter still reflect less than optimal operations as food and beverage services at both Rivers and Deerfoot operated from significantly reduced and temporary facilities until their construction projects complete later this fall. Furthermore, we observed renewed interest in meeting and banquet bookings during the brief period of no COVID-19 restrictions indicating people are keen to resume activities that have been denied for over 18 months.
Both the Deerfoot Casino and Rivers Casino & Entertainment Centre expansion projects are nearing completion and will begin contributing to revenues. Deerfoot has reopened a number of amenities following the end of the Quarter with the remaining to gain occupancy permits by the end of the month. Rivers is expected to complete before the end of November 2021.
During the Quarter the Company repurchased 96,900 shares for an aggregate $0.8 and a further 214,300 shares in October for an aggregate $1.7. The Company will continue to purchase shares under issuer bid when Management believes the trading price of the Company shares do not adequately reflect underlying value.
The Company’s dividend remains temporarily suspended. A decision to reinstate the dividend in whole or in part is reviewed at regular intervals by the board of directors. In the next months the Company will be focused on completing construction projects, repurchasing shares and otherwise rebuilding working capital balances until confidence that full and sustained operations is reasonably assured.
A more stable operating environment as we finish up the year with fresh new assets to present to our customers into 2022 has us feeling positive about a good runway ahead. Stay safe and healthy.
Unaudited - Canadian dollars (millions except per share figures)
|nine months ended September 30||three months ended September 30|
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Cost of sales
Gross profit (loss)
Lease and other income
Profit (loss) from operating activities
Fair value adjustment
Net finance costs
Profit (loss) before income tax
Income tax (expense) recovery
Profit (loss) attributable to:
Earnings (loss) per share
Basic and fully diluted
Weighted average number of common shares outstanding
Basic and fully diluted
EBITDA to Shareholders
EBITDA to Shareholders %
|September 30, 2021||December 31, 2020|
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 to Shareholders, as defined by the Company, means earnings before interest and financing costs, income taxes, depreciation and amortization, and foreign exchange gain. 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 hotel, Encore 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 condensed 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 2020 annual consolidated financial statements. Further, while the financial figures included in this announcement have been computed in accordance with IFRS applicable to annual periods, this announcement does not contain sufficient information to constitute an interim or annual financial report. The company will file an interim financial report for the nine months ended September 30, 2021. 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 trade on the Toronto Stock Exchange (TSX) under the symbol GH. For more information, contact:
Craig M. Thomas or Darcy J. Will
P (877) 703-4545
F (403) 340-0683
SOURCE: Gamehost Inc.
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