Mr. Craig Thomas reports
GAMEHOST ANNOUNCES FIRST QUARTER 2017 FINANCIAL RESULTS AND MAY 2017 DIVIDEND
Gamehost Inc. has presented results for the three months ended March 31, 2017.
Total operating revenues for the quarter were down $1.4-million or 7.7 per cent to $16.7-million compared with $18.1-million in the same quarter of 2016. Earnings before interest, taxes, depreciation and amortization that are attributable to shareholders of the company were down $800,000 or 11.3 per cent to $6.3-million compared with $7.1-million in the same quarter of 2016. The EBITDA to shareholders margin declined 1.9 percentage points in the quarter to 39.4 per cent from 41.3 per cent in year-over-year comparison.
A familiar pattern is emerging to the company's experience in previous recessions. The adverse impact of energy commodity cycles is felt first in the north and later in the south of the province. Recovery takes place in the same order. During the quarter, Fort McMurray turned in year-over-year revenue results that were down just 1.0 per cent. Grande Prairie revenues were lower by 6.4 per cent, and Calgary revenues were down 10.3 per cent in year-over-year comparison for the quarter. Wildfire reconstruction efforts are providing the catalyst for better results in the north. Continued investment interest in the Montney shale oil formation is helping to form a bottom in year-over-year performance results in Grande Prairie. Calgary, however, continues to feel the adverse impact of corporate layoffs in the energy sector.
Since the last report, the company has renewed a normal course issuer bid extending the company's ability to act on advantageous buying opportunities through April of 2018. The company's board of directors maintains its support of the company's current dividend.
As the company looks for further evidence that this latest of recessions affecting Alberta is firmly in the rear-view mirror, it will continue to encourage revenue growth and tightly manage costs in all of its operations.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in dollars (millions except per-share figures))
Three months ended March 31,
2017 2016
Operating revenue $ 16.7 $ 18.1
Cost of sales
Other (9.3) (10.0)
Depreciation (0.4) (0.5)
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(9.7) (10.5)
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Gross profit 7.0 7.6
Administrative expenses
Other (0.9) (0.7)
Depreciation (0.3) (0.4)
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(1.2) (1.1)
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Profit from operating activities 5.8 6.5
Net finance costs (0.3) (0.3)
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Profit before income taxes 5.5 6.2
Income tax expense (1.4) (1.6)
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Profit 4.1 4.6
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Profit attributable to
Shareholders 3.9 4.3
Non-controlling interest 0.2 0.3
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4.1 4.6
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Earnings per share
Basic and fully diluted $ 0.16 $ 0.17
EBITDA to shareholders $ 6.3 $ 7.1
EBITDA to shareholders % 39.4% 41.3%
Gamehost has also declared a cash dividend for the month of May, 2017, of 5.75 cents per common share. The dividend will be paid on June 15, 2017, to shareholders of record on May 31, 2017. The ex distribution date is May 29, 2017.
This dividend is considered an eligible dividend 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 Fort 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-per-cent ownership position in Deerfoot Inn & Casino Inc. in Calgary.
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