Latest News by Industry
Not intended for distribution to U.S. newswire services or for dissemination in the U.S.
RED DEER, AB / ACCESSWIRE / November 8, 2022 / Gamehost Inc. (TSX:GH) Management and Directors of Gamehost Inc. (the "Company") present results for the nine and three months ended September 30, 2022 (the "Period" and "Quarter" respectively).
The Quarter was the second consecutive quarter of operations without COVID-19 restrictions of any kind. At the tail end of the comparable quarter in 2021, the Company's casino operations moved from unrestricted operations to operating under the provinces Restrictions Exemption program that required poof of vaccination for staff and patrons. Results in the Quarter are compared with both the comparable prior year quarter and (pre-COVID-19 quarter in 2019). Operating revenue was $18.1 million versus $15.7 million ($16.9 million - 2019), EBITDA was $6.2 million versus $8.1 million ($7.1 million - 2019), and Earnings per share for the Quarter was $0.14 versus $0.23 ($0.16 - 2019).
Major renovations at the Company's Great Northern Casino continued through the Quarter and presented a moderate disruption to patron visitations with food and beverage operations likely feeling the brunt of it. The $2.0 million project is expected to be complete by early autumn 2022.
During the Quarter, the Company continued with stated plans to allocate free cash flow to complete the construction expansion/refurbishment program started at the outset of COVID-19, maintain the regular monthly dividend of $0.03 per common share and repurchase shares of the Company. All remaining free cash flow was applied against variable rate debt. The Company spent $1.1 million on capital projects during the Quarter and $0.5 million repurchasing shares. In addition to scheduled debt repayments, the Company reduced the outstanding balance on revolving debt by $1.6 million during the Quarter.
Inflation, a tight labour market and more restrictive monetary policy by the Bank of Canada are the dominant themes playing out in our operating environment. Strong commodity prices in the oil and gas sector is another dominant theme but is a double edge sword in that it is a significant driver of inflation while also boosting the provinces Gross Domestic Product (GDP). All themes combined, Alberta is in a favourable position compared to other Canadian provinces to navigate the current turmoil and is expected to lead the nation in GDP growth for 2022 and 2023. Management is excited and eager to host and entertain in our freshly refurbished and expanded properties. We will actively manage these latest challenges for the benefit of our customers and shareholders alike.
Gamehost Inc. Financial Highlights Unaudited - Canadian dollars (millions except per share figures) | ||||||||||||||||
| nine months ended September 30 | three months ended September 30 | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
Operating revenue | $ | 51.0 | $ | 19.7 | $ | 18.1 | $ | 15.7 | ||||||||
Cost of sales | ||||||||||||||||
Other | (30.6 | ) | (12.8 | ) | (11.2 | ) | (7.7 | ) | ||||||||
Depreciation | (2.8 | ) | (2.1 | ) | (0.9 | ) | (0.7 | ) | ||||||||
| (33.4 | ) | (14.9 | ) | (12.1 | ) | (8.4 | ) | |||||||||
Gross profit (loss) | 17.6 | 4.8 | 6.0 | 7.3 | ||||||||||||
Lease and other income | (0.6 | ) | 3.9 | - | 1.2 | |||||||||||
Administrative expenses | ||||||||||||||||
Other | (2.3 | ) | (1.6 | ) | (0.8 | ) | (0.7 | ) | ||||||||
Depreciation | (0.7 | ) | (0.8 | ) | (0.2 | ) | (0.3 | ) | ||||||||
| (3.0 | ) | (2.4 | ) | (1.0 | ) | (1.0 | ) | |||||||||
Profit (loss) from operating activities | 14.0 | 6.3 | 5.0 | 7.5 | ||||||||||||
Net finance costs | (1.7 | ) | (1.2 | ) | (0.7 | ) | (0.4 | ) | ||||||||
Profit (loss) before income tax | 12.3 | 5.1 | 4.3 | 7.1 | ||||||||||||
Income tax (expense) recovery | (3.6 | ) | (1.0 | ) | (1.2 | ) | (1.4 | ) | ||||||||
Profit (loss) | 8.7 | 4.1 | 3.1 | 5.7 | ||||||||||||
Profit (loss) attributable to: | ||||||||||||||||
Shareholders | 8.4 | 3.8 | 3.1 | 5.3 | ||||||||||||
Non-controlling interest | 0.3 | 0.3 | - | 0.4 | ||||||||||||
| 8.7 | 4.1 | 3.1 | 5.7 | |||||||||||||
Earnings (loss) per share | ||||||||||||||||
Basic and fully diluted | $ | 0.37 | $ | 0.16 | $ | 0.14 | $ | 0.23 | ||||||||
Weighted average number of common shares outstanding | ||||||||||||||||
Basic and fully diluted | 22.5 | 23.1 | 22.4 | 23.0 | ||||||||||||
EBITDA | $ | 17.6 | $ | 9.2 | $ | 6.2 | $ | 8.5 | ||||||||
EBITDA % | 34.9 | % | 39.0 | % | 34.1 | % | 50.3 | % | ||||||||
| September 30, 2022 | December 31, 2021 | |||||||||||||||
Cash | 16.0 | 15.6 | ||||||||||||||
Total assets | 185.6 | 188.4 | ||||||||||||||
Total debt | 56.2 | 49.0 |
Gamehost has declared a cash dividend for the month of November 2022 of $0.03 (CDN) per common share, which equates to $0.36 (CDN) per common share on an annualized basis. The dividend will be paid on December 15, 2022 to shareholders of record on November 30, 2022. 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 Prairie and the Deerfoot Inn & Casino in S.E. Calgary.
These consolidated interim financial results include the accounts of Gamehost Inc. and its subsidiaries; however, they do not include all disclosures normally provided in consolidated interim financial statements and should be read in conjunction with the 2022 Q2 consolidated interim 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 annual financial report and should be read in conjunction with the 2021 annual financial report for the twelve and three months ended December 31, 2021. This interim 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: SharpLink Gaming Ltd.
View source version on accesswire.com: https://www.accesswire.com/724683/Gamehost-Announces-Third-Quarter-Financial-Results-and-Dividend-for-November