Gamehost Inc. ('Gamehost', the 'Company') (TSX:GH)
Management and Directors of Gamehost Inc. are pleased to present
results for the nine months ended September 30, 2011 (the "Period")
and three months ended September 30, 2011 (the "Quarter").
This Quarter is the first quarter to include fully comparable
results of the acquisition of a further 51% interest in the
Deerfoot Inn & Casino which was completed in April of 2010.
Total revenues for the Quarter increased by 1.9% to $17.6 million
from $17.3 million one year earlier. Stubborn table hold
percentages discouraged better results. Earnings before interest,
taxes, depreciation and amortization ("EBITDA") that is
attributable to owners of the Company fell $0.2 million or 2.3% to
$7.5 million fo r the Quarter compared to $7.7 million for the same
quarter in 2010. EBITDA margin percentage fell by 1.8 percentage
points to 42.7% for the Quarter versus 44.5% for the year earlier
quarter. Table hold percentages and refurbishment efforts going on
at a number of the Company's properties reduced otherwise better
results.
Economists the world over have reduced their growth expectations
for all regions in the world in large part due to the unfolding
credit issues in the European Union. Forecasts for the Alberta
economy have been reduced as well. Nevertheless, the Alberta
government is still projecting GDP growth in the range of 6.5% to
7.9% through 2012.
We continue to see moderate growth activity in our own
properties as consumers gain confidence. Alberta's unemployment
rate, at 5.4% is second only to Saskatchewan and improving.
As we move into our year end banquet season, we are optimistic
that spending will continue to improve producing solid results to
carry us into the new year.
Condensed consolidated interim statement of comprehensive income
In Canadian dollars
Note (unaudited) (unaudited)
--------------------------------------------------------
nine months ended three months ended
September 30 September 30
--------------------------------------------------------
2011 2010 2011 2010
--------------------------------------------------------
Operating revenue
Operating revenue 53,031,656 44,628,965 17,612,172 17,284,233
Cost of sales
Other (27,568,680) (22,119,009) (9,206,339) (8,555,541)
Amortization and
depreciation (1,764,484) (1,595,243) (587,843) (637,974)
--------------------------------------------------------
Total Cost of sales (29,333,164) (23,714,252) (9,794,182) (9,193,515)
--------------------------------------------------------
Gross profit (loss) 23,698,492 20,914,713 7,817,990 8,090,718
Other income 172,129 181,398 60,746 61,256
Administrative
expenses
Other (2,209,055) (2,641,492) (635,289) (739,689)
Amortization and
depreciation (1,980,908) (746,064) (653,771) (711,602)
--------------------------------------------------------
Total
Administrative
expenses (4,189,963) (3,387,556) (1,289,060) (1,451,291)
Gain(loss) on
revaluation of
assets - 27,083,015 - -
--------------------------------------------------------
Profit (Loss) from
operating
activities 19,680,658 44,791,570 6,589,676 6,700,683
--------------------------------------------------------
Finance income 60,650 36,063 21,269 11,208
Finance costs (4,348,401) (9,055,032) (1,520,187) (3,507,005)
Fair value changes
to Class B
limited partnership
units - (14,094,944) - (7,374,176)
--------------------------------------------------------
Net finance costs (4,287,751) (23,113,913) (1,498,918) (10,869,973)
--------------------------------------------------------
Profit (Loss) before
income tax 15,392,907 21,677,657 5,090,758 (4,169,290)
Deferred tax
(expense) recovery (2,316,295) 286,819 (1,213,403) 283,406
--------------------------------------------------------
Total comprehensive
income
(loss) for the
period 13,076,612 21,964,476 3,877,355 (3,885,884)
Total comprehensive
income
(loss) attributable
to:
Owners of the
Company 12,241,649 21,475,132 3,606,568 (4,190,803)
Non-controlling
interests 834,963 489,344 270,787 304,919
--------------------------------------------------------
Total comprehensive
income
(loss) for the
period 13,076,612 21,964,476 3,877,355 (3,885,884)
--------------------------------------------------------
Earnings per share
(2010 per unit)
Basic earnings per
share 0.579 1.017 0.170 (0.199)
Diluted earnings
per share 0.578 0.955 0.178 (0.122)
Gamehost has declared a cash dividend for the month of November
2011 of $0.0733 per common share. The dividend will be paid on
December 15, 2011 to shareholders of record on November 30, 2011.
The ex-dividend date is November 28, 2011.
This dividend is considered an "Eligible Dividend" in accordance
with Bill C-28 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 Ft. 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% ownership position
in Deerfoot Inn & Casino Inc. in Calgary.
This press release may contain forward-looking statements.
Forward-looking statements may contain words such as "anticipates",
"believes", "could", "expects", "indicates", "plans" or other
similar expressions that suggest future outcomes or events. Use of
these 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.
This press release is not a suitable source of information for
readers who are unfamiliar with the Gamehost. Readers more familiar
with the Company should not consider this press release a
substitute for reading the financial statements and MD&A.
Consolidated financial statements and MD&A, both current and
historical, are available on the Company's website at
www.gamehost.ca and will be filed in their entirety along with the
Company's other continuous disclosure documents, when they are
available, on SEDAR at www.sedar.com.
Gamehost common shares and convertible debentures trade on the
Toronto Stock Exchange (TSX) under the symbols GH and GH.DB
respectively.
Contacts: Gamehost Inc. Craig M. Thomas (877) 703-4545 (403)
340-0683 (FAX) Gamehost Inc. Darcy J. Will (877) 703-4545 (403)
340-0683 (FAX)info@gamehost.cawww.gamehost.ca
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