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RED DEER, AB / ACCESSWIRE / March 12, 2024 / Gamehost Inc. (TSX:GH) Management and Directors of Gamehost Inc. (the "Company") present results for the twelve and three months ended December 31, 2023 (the "Year" and "Quarter" respectively).
Operating revenue for the Quarter was up 13.4% to $21,296.0 thousand ($18,776.6 thousand - 2022) and EBITDA to Shareholders was up 36.1% to $8,698.9 thousand ($6,391.4 thousand - 2022). Earnings per share for the Quarter was $0.25 ($0.19 - 2022). All revenue streams produced year over year gains during the Quarter.
All three regions of the province where the Company operates, Calgary, Grande Prairie and Fort McMurray, turned in year-over-year gains in revenue, cashflow and margins for the Quarter. The rate of population growth in Alberta is at levels not seen since the 1980's. The population growth is generally positive, and indicative of the provinces strong economy and relative affordability compared to many of our provincial counterparts.
Comparative results for the Quarter reflect a two-percentage point increase in the operators share of electronic gaming device Hold from 15% to 17%. AGLC approved the temporary, two year, increase effective April 1, 2023. The increase is intended to incentivize operators to make investments in their facilities or promotions that will increase gaming revenues and will be evaluated at regular intervals by AGLC during the two-year period. Management is hopeful that results following the two-year period will support the change being made permanent.
Effective the month of November 2023, the Company's board of directors approved a 33.3% increase in the regular monthly dividend from $0.03 per share to $0.04 per share for a new annualized rate of $0.48 per share. The Company's directors review dividend policy at all regularly scheduled meetings. The dividend payout ratio at the end of the Year was 36.0%.
During the Quarter, the Company repurchased 331,149 shares for an aggregate $2,958.5 thousand. It is expected that a proposed share buyback tax will receive royal assent in the new year resulting in a 2.0% tax being applied to the value of any share buybacks beginning January 1, 2024. Management and the Company's board of directors are evaluating the impact of the new tax. Remaining surplus cash was applied to revolving debt. Together with scheduled debt repayments, during the Quarter, the Company retired $1,125.7 thousand of debt reducing debt to EBITDA ratio to 1.3.
2023 has been one of Gamehost's best years ever. We are cautiously optimistic for continued strong Company performance in 2024. The major energy infrastructure projects of Transmountain Pipeline and Coastal Gaslink Pipeline are set for completion/commissioning in the new year. Both projects, long in development, will continue to support Alberta's economy and businesses like ours for decades.
Gamehost Inc.
Financial Highlights
Unaudited - Canadian dollars (thousands except per share figures)
| twelve months ended December 31 | three months ended December 31 | |||||||||||||||||||||||
| 2023 | 2022 | % Chg. | 2023 | 2022 | % Chg. | |||||||||||||||||||
Operating revenue | $ | 83,360.3 | $ | 69,736.4 | 19.5 | % | $ | 21,296.0 | $ | 18,776.6 | 13.4 | % | ||||||||||||
Cost of sales | ||||||||||||||||||||||||
Other | (45,212.0 | ) | (42,250.6 | ) | (11,753.0 | ) | (11,641.6 | ) | ||||||||||||||||
Depreciation | (3,354.6 | ) | (3,756.4 | ) | (808.8 | ) | (969.5 | ) | ||||||||||||||||
| (48,566.6 | ) | (46,007.0 | ) | (12,561.8 | ) | (12,611.1 | ) | |||||||||||||||||
Gross profit | 34,793.7 | 23,729.4 | 46.6 | % | 8,734.2 | 6,165.5 | 41.7 | % | ||||||||||||||||
Lease and other income (expense) | 192.0 | (560.4 | ) | 51.2 | (5.5 | ) | ||||||||||||||||||
Administrative expenses | ||||||||||||||||||||||||
Other | (3,687.8 | ) | (3,079.4 | ) | (954.4 | ) | (787.3 | ) | ||||||||||||||||
Depreciation | (921.1 | ) | (978.8 | ) | (210.9 | ) | (245.6 | ) | ||||||||||||||||
| (4,608.9 | ) | (4,058.2 | ) | (1,165.3 | ) | (1,032.9 | ) | |||||||||||||||||
Profit from operating activities | 30,376.8 | 19,110.8 | 59.0 | % | 7,620.1 | 5,127.1 | 48.6 | % | ||||||||||||||||
Fair value adjustment | - | (354.1 | ) | - | (354.1 | ) | ||||||||||||||||||
Net finance costs | (3,015.6 | ) | (2,459.6 | ) | (727.6 | ) | (753.1 | ) | ||||||||||||||||
Profit before income tax | 27,361.2 | 16,297.1 | 6,892.5 | 4,019.9 | ||||||||||||||||||||
Income tax expense | (6,303.7 | ) | (3,330.2 | ) | (1,502.8 | ) | 257.2 | |||||||||||||||||
Profit | 21,057.5 | 12,966.9 | 62.4 | % | 5,389.7 | 4,277.1 | 26.0 | % | ||||||||||||||||
Profit attributable to: | ||||||||||||||||||||||||
Shareholders | 21,057.5 | 12,670.7 | 5,389.7 | 4,277.1 | ||||||||||||||||||||
Non-controlling interest | - | 296.2 | - | - | ||||||||||||||||||||
| 21,057.5 | 12,966.9 | 62.4 | % | 5,389.7 | 4,277.1 | 26.0 | % | |||||||||||||||||
Earnings per share | ||||||||||||||||||||||||
Basic and fully diluted | $ | 0.97 | $ | 0.56 | 71.6 | % | $ | 0.25 | $ | 0.19 | 31.2 | % | ||||||||||||
Weighted average number of common shares outstanding | ||||||||||||||||||||||||
Basic and fully diluted (x 000) | 21,769.8 | 22,479.2 | 21,459.0 | 22,339.0 | ||||||||||||||||||||
EBITDA | $ | 34,954.8 | $ | 23,978.5 | 45.8 | % | $ | 8,698.9 | $ | 6,391.4 | 36.1 | % | ||||||||||||
EBITDA % | 41.7 | % | 34.6 | % | 40.6 | % | 34.0 | % | ||||||||||||||||
| 31-Dec-23 | 31-Dec-22 | |||||||||||||||||||||||
Cash | $ | 13,979.2 | $ | 15,614.5 | ||||||||||||||||||||
Total assets | $ | 179,396.7 | $ | 183,409.5 | ||||||||||||||||||||
Total debt | $ | 46,167.1 | $ | 54,502.2 | ||||||||||||||||||||
Gamehost has declared a cash dividend for the month of March 2024 of $0.04 (CDN) per common share, which equates to $0.48 (CDN) per common share on an annualized basis. The dividend will be paid on April 15, 2024 to shareholders of record on March 31, 2024. 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 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 2023 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 annual financial report. The Company will file an annual financial report for the twelve months ended December 31, 2023. 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 ir@gamehost.ca
SOURCE: Gamehost Inc.
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