RED DEER, ALBERTA--(Marketwire - Nov. 14, 2011) - Gamehost Inc. ('Gamehost', the 'Company') (TSX:GH)
Management and Directors of Gamehost Inc. are pleased to present results for the nine months ended September 30, 2011 (the "Period") and three months ended September 30, 2011 (the "Quarter").
This Quarter is the first quarter to include fully comparable results of the acquisition of a further 51% interest in the Deerfoot Inn & Casino which was completed in April of 2010. Total revenues for the Quarter increased by 1.9% to $17.6 million from $17.3 million one year earlier. Stubborn table hold percentages discouraged better results. Earnings before interest, taxes, depreciation and amortization ("EBITDA") that is attributable to owners of the Company fell $0.2 million or 2.3% to $7.5 million fo r the Quarter compared to $7.7 million for the same quarter in 2010. EBITDA margin percentage fell by 1.8 percentage points to 42.7% for the Quarter versus 44.5% for the year earlier quarter. Table hold percentages and refurbishment efforts going on at a number of the Company's properties reduced otherwise better results.
Economists the world over have reduced their growth expectations for all regions in the world in large part due to the unfolding credit issues in the European Union. Forecasts for the Alberta economy have been reduced as well. Nevertheless, the Alberta government is still projecting GDP growth in the range of 6.5% to 7.9% through 2012.
We continue to see moderate growth activity in our own properties as consumers gain confidence. Alberta's unemployment rate, at 5.4% is second only to Saskatchewan and improving.
As we move into our year end banquet season, we are optimistic that spending will continue to improve producing solid results to carry us into the new year.
Condensed consolidated interim statement of comprehensive income
In Canadian dollars
Note (unaudited) (unaudited)
nine months ended three months ended
September 30 September 30
2011 2010 2011 2010
Operating revenue 53,031,656 44,628,965 17,612,172 17,284,233
Cost of sales
Other (27,568,680) (22,119,009) (9,206,339) (8,555,541)
depreciation (1,764,484) (1,595,243) (587,843) (637,974)
Total Cost of sales (29,333,164) (23,714,252) (9,794,182) (9,193,515)
Gross profit (loss) 23,698,492 20,914,713 7,817,990 8,090,718
Other income 172,129 181,398 60,746 61,256
Other (2,209,055) (2,641,492) (635,289) (739,689)
depreciation (1,980,908) (746,064) (653,771) (711,602)
expenses (4,189,963) (3,387,556) (1,289,060) (1,451,291)
assets - 27,083,015 - -
Profit (Loss) from
activities 19,680,658 44,791,570 6,589,676 6,700,683
Finance income 60,650 36,063 21,269 11,208
Finance costs (4,348,401) (9,055,032) (1,520,187) (3,507,005)
Fair value changes
to Class B
units - (14,094,944) - (7,374,176)
Net finance costs (4,287,751) (23,113,913) (1,498,918) (10,869,973)
Profit (Loss) before
income tax 15,392,907 21,677,657 5,090,758 (4,169,290)
(expense) recovery (2,316,295) 286,819 (1,213,403) 283,406
(loss) for the
period 13,076,612 21,964,476 3,877,355 (3,885,884)
Owners of the
Company 12,241,649 21,475,132 3,606,568 (4,190,803)
interests 834,963 489,344 270,787 304,919
Earnings per share
(2010 per unit)
Basic earnings per
share 0.579 1.017 0.170 (0.199)
per share 0.578 0.955 0.178 (0.122)
Gamehost has declared a cash dividend for the month of November 2011 of $0.0733 per common share. The dividend will be paid on December 15, 2011 to shareholders of record on November 30, 2011. The ex-dividend date is November 28, 2011.
This dividend is considered an "Eligible Dividend" in accordance with Bill C-28 and, therefore, eligible for the enhanced gross-up and dividend tax credit available to shareholders.
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.
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.
This press release is not a suitable source of information for readers who are unfamiliar with the Gamehost. Readers more familiar with the Company should not consider this press release a substitute for reading the financial statements and MD&A. Consolidated financial statements and MD&A, both current and historical, are available on the Company's website at www.gamehost.ca and will be filed in their entirety along with the Company's other continuous disclosure documents, when they are available, on SEDAR at www.sedar.com.
Gamehost common shares and convertible debentures trade on the Toronto Stock Exchange (TSX) under the symbols GH and GH.DB respectively.