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RED DEER, AB / ACCESSWIRE / May 10, 2022 / Gamehost Inc. (TSX:GH) Management and Directors of Gamehost Inc. (the "Company") present results for the three-month period ended March 31, 2022 (the "Quarter").
Gamehost casinos in the prior year comparable quarter were completely closed due to COVID-19. In the Quarter, Gamehost casinos operated under various levels of COVID-19 restrictions for two of the three months. Results in the Quarter are compared with both the prior year quarter and pre-COVID quarter in 2019 which are more indicative of performance. Operating revenue was $14.9 versus $1.1 ($17.0 - 2019), EBITDA to Shareholders was $4.5 versus nil ($6.3 - 2019), and Earnings per share for the Quarter was $0.09 versus loss $0.4 ($0.14 - 2019).
The Company's casinos operated under Alberta's Restrictions Exemption Program (REP) from the start of the Quarter until February 9, 2022. Alberta lifted all remaining restrictions having a direct impact on our operations on March 1, 2022. Under the REP, only patrons willing to provide proof of vaccination or those providing a recent negative COVID-19 test or medical exemption certificate were permitted to enter Company casinos. REP limitations on beverage service hours and where they could be consumed curtailed both food and beverage sales and slot and table activity. Company hotels continued to operate with standard masking and physical distancing at check-in. REP had a negative affect on patron visitation and length of patron visits. This was most profound in Grande Prairie and to a lesser extent in Fort McMurray. Vaccination rates in these regions are lower than the provincial average and residents more apt to push back on government mandated, COVID-19 related restrictions.
During the Quarter, the Company initiated a $2.0 refurbishment of the Great Northern Casino including a complete exterior refresh and complete food and beverage area renovations. With this latest project all Company properties will have been improved/expanded present to the public as newly built. Projects completed in 2021 at both Rivers in Fort McMurray and Deerfoot in Calgary are already providing expected returns.
The Company repurchased 103,500 shares for an aggregate $0.9 million or average $8.37 per share before commissions during the Quarter. An additional 85,500 shares were repurchased in April 2022 for an aggregate $0.8 million or average $8.81 per share before commissions. The Company's current normal course issuer bid is open to July 20, 2022 and management intends to continue purchasing shares as long as the trading price of the shares is below underlying value.
At the regular scheduled meeting of the board of directors held March 7, 2022 the board reinstated a regular monthly dividend for shareholders at a rate of $0.3 per common share ($0.575 - pre-COVID). The first dividend was declared for the month of March 2022 payable mid-April 2022. The board determined that restarting the dividend at a lower initial rate is a fiscally responsible starting point and will review the dividend policy on a quarterly basis. The board made their decision based on a balanced plan presented by management for dividends, accelerated debt repayments, share buybacks, capital expenditures and strategic initiatives.
On May 5, 2022, Gamehost announced the purchase of a non-controlling/arm's length 9% interest in the Deerfoot
Inn & Casino for $13.6 million. Prior to the transaction, the Company had a 91% interest in the Deerfoot. The Company now owns 100% of the property and business. The transaction was financed with traditional revolving debt from the Company's current lender at the bank's prime lending rate.
Results and events in the current Quarter and subsequent are viewed by management as highly positive. We are pleased and optimistic by the response to our property investments and the lifting of COVID-19 restrictions in all of the communities where we operate. Alberta is gaining momentum in more than just the energy sector. People are taking notice of the economic opportunities, affordable real estate and high quality of life that can be found all across this great province. We didn't sit on our hands these past two years of COVID-19. We are back and ready to impress in 2022!
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 nonIFRS 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 nonIFRS 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 Q1 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 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
E info@gamehost.ca
SOURCE: Gamehost Inc.
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