Mr. Craig Thomas reports

GAMEHOST ANNOUNCES FOURTH QUARTER FINANCIAL RESULTS AND DIVIDEND FOR MARCH

Gamehost Inc. has presented results for the 12 and three months ended Dec. 31, 2023.

Operating revenue for the quarter was up 13.4 per cent to $21,296,000 ($18,776,600: 2022), and earnings before interest, taxes, depreciation and amortization to shareholders were up 36.1 per cent to $8,698,900 ($6,391,400: 2022). Earnings per share for the quarter were 25 cents (19 cents: 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, cash flow and margins for the quarter. The rate of population growth in Alberta is at levels not seen since the 1980s. The population growth is generally positive and indicative of the province's strong economy and relative affordability compared with many of its provincial counterparts.

Comparative results for the quarter reflect a two-percentage-point increase in the operator's share of electronic gaming device hold from 15 per cent to 17 per cent. 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-per-cent increase in the regular monthly dividend from three cents per share to four cents per share for a new annualized rate of 48 cents 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 per cent.

During the quarter, the company repurchased 331,149 shares for an aggregate $2,958,500. It is expected that a proposed share buyback tax will receive royal assent in the new year, resulting in a 2.0-per-cent tax being applied to the value of any share buybacks beginning Jan. 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 $1,125,700 of debt, reducing debt to EBITDA ratio to 1.3.

Two thousand twenty-three has been one of Gamehost's best years ever. The company is cautiously optimistic for continued strong company performance in 2024. The major energy infrastructure projects of Trans Mountain 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 it for decades.

Gamehost has declared a cash dividend for the month of March, 2024, of four cents per common share, which equates to 48 cents 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.

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 Fort 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 southeastern Calgary.

Gamehost common shares trade on the Toronto Stock Exchange under the symbol GH.

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