Gamehost Announces Second Quarter Financial Results and Dividend For August

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Gamehost Inc. (TSX:GH) reported its Q2 2024 financial results, showing a 2.5% decrease in operating revenue to $20,303,500 and an 8.9% decline in EBITDA to $7,991,200 compared to Q2 2023. Earnings per share for the quarter were $0.23, down from $0.25 in the previous year. Despite solid growth in table activity, lower-than-average Hold % at Deerfoot and temporary closure of Rivers casino due to wildfire threat impacted overall revenue. The company repurchased 131,700 shares for $1,354,700 and reduced debt by $753,000 during the quarter. Gamehost declared a cash dividend of $0.04 per common share for August 2024, payable on September 13, 2024.

Positive

• Solid growth in table activity
• Good Hold % compensated for softness in slot activity
• Debt reduction of $753,000 during the quarter
• Maintained current dividend of $0.04 per common share

Negative

• 2.5% decrease in operating revenue to $20,303,500
• 8.9% decline in EBITDA to $7,991,200
• Earnings per share decreased from $0.25 to $0.23
• Lower-than-average Hold % at Deerfoot impacted revenue
• Hotel occupancy pullback from previous year's pent-up demand
• Temporary closure of Rivers casino for six days due to wildfire threat

Not intended for distribution to U.S. newswire services or for dissemination in the U.S.

RED DEER, AB / ACCESSWIRE / August 13, 2024 / Gamehost Inc. (TSX:GH)

Management and Directors of Gamehost Inc. (the "Company") present results for the six and three months ended June 30, 2024 (the "Period" and "Quarter" respectively).

Operating revenue for the Quarter was down 2.5% to $20,303,500 ($20,833,100 - 2023) while EBITDA was down 8.9% to $7,991,200 ($8,773,500 - 2023). Earnings per share for the Quarter was $0.23 ($0.25 - 2023). Table activity posted solid growth, but less than average Hold % at Deerfoot held back overall revenue. Good Hold % more than made up for some softness in slot activity. Hotel occupancy saw some pullback from pent up COVID-19 demand enjoyed the prior year. Rivers casino was temporarily closed or operated on reduced hours for six days during the Quarter due to a wildfire threat also accounting for some of the reduced revenue.

The Company is operating under a temporary, two-year arrangement, for increase in slot commissions to operators, which is reflected in comparable quarterly results. The temporary 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 which ends March 31, 2025.

During the Quarter, the Company repurchased 131,700 shares for an aggregate $1,354,700. The Company recorded a provision for a proposed 2.0% share buyback tax that received second reading in the House of Commons in March 2024. The share buyback tax is effective on share purchases beginning January 1, 2024. The Company reduced debt by $753,000 during the Quarter while continuing with the current dividend as set by the board of directors.

The Bank of Canada is firmly in a rate easing cycle now with rate cuts in both June and July of this year. This will be welcome relief for many Alberta households. Economic growth has slowed. Still, Alberta is in an enviable position to ride out any volatility. In the meantime, we will be focused on managing costs and spending in areas with the highest potential return. We are prepared for whatever comes our way.

Gamehost Inc.
Financial Highlights
Unaudited - Canadian dollars (thousands except per share figures)

		six months ended June 30												three months ended June 30
		2024				2023				% Chg.				2024				2023				% Chg.
Operating revenue		$	40,850.8				40,671.7				0.4	%		$	20,303.5			$	20,833.1				(2.5	%)
Cost of sales
Other			(23,186.1	)			(22,231.4	)							(11,557.1	)			(11,333.6	)
Depreciation			(1,649.3	)			(1,688.6	)							(828.5	)			(859.1	)
			(24,835.4	)			(23,920.0	)							(12,385.6	)			(12,192.7	)
Gross profit			16,015.4				16,751.7				(4.4	%)			7,917.9				8,640.4				(8.4	%)
Lease and other income			102.2				86.0								55.9				43.2
Administrative expenses
Other			(1,966.4	)			(1,886.1	)							(865.6	)			(843.7	)
Depreciation			(434.1	)			(463.3	)							(217.1	)			(231.6	)
			(2,400.5	)			(2,349.4	)							(1,082.7	)			(1,075.3	)
Profit from operating activities			13,717.1				14,488.3				(5.3	%)			6,891.1				7,608.3				(9.4	%)
Gain on disposal of assets			9.4				-								-				-
Net finance costs			(1,292.6	)			(1,546.7	)							(625.5	)			(778.3	)
Profit before income tax			12,433.9				12,941.6								6,265.5				6,830.0
Income tax expense			(2,898.0	)			(3,048.0	)							(1,475.8	)			(1,483.5	)
Profit and comprehensive profit			9,535.9				9,893.6				(3.6	%)			4,789.7				5,346.5				(10.4	%)
Earnings per share
Basic and fully diluted		$	0.45				0.45				(0.7	%)		$	0.23			$	0.25				(8.3	%)
Weighted average number of common shares outstanding
Basic and fully diluted (x 000)			21,312.0				21,960.0								21,265.0				21,761.2
EBITDA		$	15,911.9				16,796.2				(5.3	%)		$	7,991.2			$	8,773.5				(8.9	%)
EBITDA %			38.7	%			41.1	%							39.1	%			41.9	%
Cash		$	14,503.4			$	13,979.2
Total assets		$	177,760.8			$	179,396.7
Total debt		$	41,247.1			$	46,167.1

Gamehost has declared a cash dividend for the month of August 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 September 13, 2024 to shareholders of record on August 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 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 2024 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 2023 annual financial report for the twelve and three months ended December 31, 2023. 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
E ir@gamehost.ca

SOURCE: Gamehost Inc.

View the original press release on accesswire.com

FAQ

What was Gamehost's (TSX:GH) operating revenue for Q2 2024?

Gamehost's operating revenue for Q2 2024 was $20,303,500, a 2.5% decrease from $20,833,100 in Q2 2023.

How much did Gamehost's (TSX:GH) EBITDA change in Q2 2024 compared to Q2 2023?

Gamehost's EBITDA decreased by 8.9% to $7,991,200 in Q2 2024, compared to $8,773,500 in Q2 2023.

What dividend did Gamehost (TSX:GH) declare for August 2024?

Gamehost declared a cash dividend of $0.04 per common share for August 2024, payable on September 13, 2024.

How many shares did Gamehost (TSX:GH) repurchase in Q2 2024?

Gamehost repurchased 131,700 shares for an aggregate of $1,354,700 during Q2 2024.