News Column

Gamehost Announces Annual 2012 Financial Results

Mar 12 2013 12:00AM

Marketwire

LogoTracker

RED DEER, ALBERTA -- (Marketwire) -- 03/12/13 -- Gamehost Inc. (TSX: GH)

Management and Directors of Gamehost Inc. (the "Company") are pleased to present results for the twelve months ended December 31, 2012 (the "Period", or "Year") and three months ended December 31, 2012 (the "Quarter").

Put It In The Win Column

Total operating revenues for the Quarter grew by 4.4% to $19.8 million from $19.0 in the same quarter of 2011. For the Year, revenues were up 6.3% to $76.6 million from $72.0 million in the prior year. These results represent quarterly and annual revenue records for the Company. Earnings before interest, taxes, depreciation and amortization ("EBITDA") that is attributable to owners of the Company ("EBITDA to Owners") grew by $0.5 million or 6.1% to $8.6 million for the Quarter compared to $8.1 million for the same quarter in 2011. EBITDA to Owners for the Year grew by $3.3 million or 10.7% to $33.6 million compared to $30.3 million in 2011. EBITDA to Owners margin percentage was higher by 77 basis points to 45.3% from 44.6% in the Quarter compared to one year earlier. True to form, the final quarter of the year is typically a strong revenue quarter for the Company accompanied by some pressure on margins caused by seasonally high food and beverage sales from corporate banquets. Nevertheless, margins held up well producing an annual EBITDA to Owners margin of 46.3%, a 185 basis point increase from 44.5% a year earlier. All tallied, Q4 2012 was a winning Quarter in a winning Year.

LOL

While other Canadian companies steal the business headlines and euphoria and disappointment wax and wane in the market, we have run the 2012 race like the proverbial turtle. While the S&P/TSX Composite Index gained 4.0% on the Year, the Company shares rose $1.45 or 12.9% and the Company debentures rose 11.3% over the same time frame. Furthermore, over the course of the Year we have quietly reduced loans and borrowings by $6.4 million or 23.7%, increased our cash deposits by $2.0 million or 11.2%, repurchased $2.0 million of Company shares for cancellation at an average price of $11.97 per common share, and spent $1.1 million to maintain or improve our facilities. Most importantly though, we have distributed $22.0 million, an additional $0.6 million or 2.8%, over 2011 to the best people in the world, our investors. So go ahead, laugh out loud!

To Have And To Hold

During the Quarter, $1.8 million face value of debentures were presented for conversion to 0.2 million common shares leaving $31.7 million of the original $55.0 million debenture issue outstanding at the end of the Year. There were no shares repurchased under normal course issuer bid (NCIB) during the Quarter. Since the start of the year an additional 1.5 million shares have been issued net of those cancelled by repurchase under NCIB. The volume of the Company shares traded on the Toronto Stock Exchange during the year increased 10.0% over the volume of the preceding year improving the liquidity of the Company's shares.

New Neighbours

We were excited to learn of Imperial Oil's plans to relocate its Calgary headquarters to a campus-style office complex in the southeast suburban office park known as Quarry Park. While suburban office parks are not a new thing, this marks the first time an industry oil giant has ventured away from Calgary's downtown core. Imperial Oil's new offices will be located a skip and a jump from our Deerfoot Inn & Casino and will eventually house some 3,000 employees. This announcement is bound to accelerate the residential growth in nearby communities. Relocation for Imperial Oil employees will begin in mid 2014 and we look forward to welcoming our new neighbours and their out-of-town meeting guests to our hotel for years to come.

Looking Glass

We live in an ever-changing world. It seems likely that this will continue, perhaps dramatically, into 2013. For business, economies and investing the uncertainty is difficult. Will there be new pipelines to deliver Alberta bitumen or won't there? What actions should we expect from the Alberta government to address falling revenues from discounted Alberta crude oil prices? Has a sustained rebound of the USA economy really begun? What of the continued turmoil in Arab and African nations? Israeli jets in Syria? There are more questions, and big ones, than answers.

What we do know is Alberta is growing. Migration to the province, both international and interprovincial, is reaching levels not seen since 2006 and we can benefit from that. A small expansion completed at our Boomtown Casino added 30 slot machines to the gaming floor in February 2013. A renovation/expansion in the works for Great Northern Casino will improve the dining, lounge and live entertainment experience for patrons. Hospital development in close proximity to our Calgary and Grande Prairie facilities will have beneficial spinoff effects.

Cash on hand was used to make our first ever income tax payment of $5.2 million on February 28, 2013. Taxes paid include 15% of deferred partnership income taxes and 100% of the Company's 2012 income taxes. The remaining 2011 deferred taxes will be paid in monthly instalments over four years beginning January 2014. Tax instalments for estimated 2013 income taxes will begin in March 2013. As we put the deferred tax hurdle behind us we can then begin to entertain alternative uses for surplus cash.

In spite of all the headline news, we are optimistic for the days ahead. We hope you will stay with us to see how 2013 unfolds.

Consolidated statements of profit and comprehensive incomeIn Canadian dollars (audited) (unaudited) ------------------------------------------------------------ twelve months ended three months ended December 31 December 31 ------------------------------------------------------------ 2012 2011 2012 2011 ------------------------------------------------------------Operating revenue $ 76,557,136 $ 71,989,151 $ 19,795,024 $ 18,957,496Cost of sales Other (38,584,088) (37,432,038) (10,245,325) (9,863,356) Depreciation (2,234,657) (2,355,818) (617,059) (591,336) ------------------------------------------------------------ (40,818,745) (39,787,856) (10,862,384) (10,454,692) ------------------------------------------------------------Gross profit 35,738,391 32,201,295 8,932,640 8,502,804Other income 247,621 240,386 67,475 68,257Administrative expenses Other (2,927,729) (2,959,443) (681,321) (750,388) Depreciation (2,270,928) (2,663,731) (567,732) (682,823) ------------------------------------------------------------ (5,198,657) (5,623,174) (1,249,053) (1,433,211) ------------------------------------------------------------Profit from operating activities 30,787,355 26,818,507 7,751,062 7,137,850 ------------------------------------------------------------Other (losses) gains (62,814) 1,677 (62,814) 1,677Finance income 90,783 82,542 24,781 21,893Finance costs (4,141,730) (5,586,935) (1,020,092) (1,238,534) ------------------------------------------------------------Profit before income taxes 26,673,594 21,315,791 6,692,937 5,922,886 -Income tax expense (5,184,063) (5,301,001) (762,242) (2,984,706) ------------------------------------------------------------Profit and comprehensive income $ 21,489,531 $ 16,014,790 $ 5,930,695 $ 2,938,180 ------------------------------------------------------------ ------------------------------------------------------------Profit and comprehensive income attributable to: Owners of the Company $ 20,123,155 $ 14,860,454 $ 5,578,043 $ 2,618,808 Non- controlling interest 1,366,376 1,154,336 352,652 319,372 ------------------------------------------------------------ $ 21,489,531 $ 16,014,790 $ 5,930,695 $ 2,938,180 ------------------------------------------------------------ ------------------------------------------------------------Earnings per shareBasic and diluted earnings per share $ 0.919 $ 0.702 $ 0.248 $ 0.123EBITDA to Owners $ 33,854,182 $ 30,589,693 $ 8,565,236 $ 8,070,447EBITDA to Owners % 46.3% 44.5% 45.3% 44.6%



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.

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.

These annual 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 2012 annual consolidated financial statements. Further, while the financial figures included in this annual results 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 has published and filed an annual financial report for the annual period ended December 31, 2012. This report, along with historical financial reports can be found on the Company's website at www.gamehost.ca and will be filed in its 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

Gamehost Inc.
Darcy J. Will
(877) 703-4545
(403) 340-0683 (FAX)
info@gamehost.ca
www.gamehost.ca





Source: Marketwire