RED DEER, AB / ACCESSWIRE / November 14, 2017 / Gamehost Inc. (TSX: GH; OTC PINK: GHIFF).
Management and Directors of Gamehost Inc. (the "Company") present results for the three and nine months ended September 30, 2017 (the "Quarter" and "Period" respectively).
Period and Quarter comparable results include the prior year closure of our Boomtown Casino in Fort McMurray from May 3, 2016 to July 14, 2016. Readers are cautioned about drawing conclusions from comparisons of line item and overall results. Prior year results include settlements negotiated with the Company's insurer for business interruption claims stemming from 2016 wildfires that resulted in mass evacuations and business closures in the Fort McMurray area.
Total operating revenues for the Quarter were up $0.2 million or 1.2% to $17.2 million compared to $17.0 million in the same quarter of 2016. Total revenues after other revenue and non-controlling interests were down $0.6 million to $16.4 million from $17.0 million. Earnings before interest, taxes, depreciation, and amortization ("EBITDA") that is attributable to shareholders of the Company ("EBITDA to Shareholders") was down $0.2 million or 2.7% to $7.2 million compared to $7.4 million in the same quarter of 2016. EBITDA to Shareholders margin for the Quarter improved to 43.9% from 43.5% in year over year comparison.
In Fort McMurray, the Company turned in lower revenue results for the Quarter in a challenging economic environment. The boost expected by the community's post-wildfire rebuilding effort has not materialized or has been more than offset by cutbacks in the energy sector. The story is completely opposite further to the south in Grande Prairie. Here, the Company's properties again posted double-digit revenue gains year over year for the Quarter. In Calgary, revenues were down moderately, in year over year quarterly comparison.
Though top line operating results are still mixed, we are pleased with efforts to manage costs and progress on other fronts. The Company reduced debt by $1.9 million during the Quarter on improved cash flow from operations and a reduction in income tax installments. The Company's dividend payout ratio improved to 89.6% from 93.5% in year over year comparison for the Quarter.
Improvement in Alberta's consumer confidence is key to a return to broad organic growth in our business. To this end we are hopeful as we head into the final quarter while witnessing some sustained firming of the price of oil which has appreciated 25% since the start of summer.
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Gamehost has also declared a cash dividend for the month of November 2017 of $0.0575 CDN per common share. The dividend will be paid on December 15, 2017 to shareholders of record on November 30, 2017. The ex-dividend date is November 28, 2017.
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 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.\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 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 2016 annual consolidated financial statements. Furthermore, 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 or interim financial report. The company will file an annual consolidated financial report for the three and nine month period ended September 30, 2017. 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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