par Gamehost Inc. (isin : CA36468B1040)
Gamehost Announces Third Quarter Financial Results, Dividend Increase, and Dividend for November
RED DEER, AB / ACCESSWIRE / November 12, 2024 / Gamehost Inc. (TSX:GH) Management and Directors of Gamehost Inc. (the "Company") present results for the nine and three months ended September 30, 2024 (the "Period" and "Quarter" respectively).
Operating revenue for the Quarter was down 4.7% to $20,384,200 ($21,392,600 - 2023). EBITDA was down 13.6% to $8,169,700 ($9,459,700 - 2023). Earnings per share for the Quarter was $0.24 ($0.27 - 2023). Another difficult Quarter for Hold % at Deerfoot specifically but lower than average at Rivers as well.
With two quarters remaining under a temporary 2% increase in the operators share of slot Net Win, Alberta Charitable Casino Operators Association (ACCOA) and individual operators continue to advocate for making the increase permanent or increasing it. The AGLC evaluation and consultation period continues in the interim.
During the Quarter, the Company remained active on its normal course issuer bid, repurchasing 61,800 shares for an aggregate $652,700. A further 25,000 shares were acquired during October for an aggregate $265,600.
Scheduled payments and additional payments against the Company's revolving line reduced debt by $1,390,300 during the Quarter. The Bank of Canada is now clearly in a policy rate easing cycle with two consecutive $0.25% rate cuts during the Quarter and supersized 0.50% rate cut in October. The cuts are timely as management is currently working with the Company's lender on renewal terms as all existing loan instrument terms mature prior to year end. The Company is now also well below our target debt to EBITDA range.
At the most recent meeting of the Company's board of directors, the directors approved a 25% increase to the Company's regular monthly dividend. The dividend will increase to $0.05 (CDN) per common share or $0.60 (CDN) per common share on an annualized basis effective November 2024.
All in all, a pretty optimistic backdrop to the economic landscape in Alberta. We see the Company in an ideal financial position with continuing above average population growth in the province and generally improving conditions for consumers.
Gamehost Inc.
Financial Highlights
Unaudited - Canadian dollars (thousands except per share figures)
nine months ended September 30 | three months ended September 30 | |||||||||||||||||||||||
2024 | 2023 | % Chg. | 2024 | 2023 | % Chg. | |||||||||||||||||||
Operating revenue | $ | 61,235.0 | $ | 62,064.3 | (1.3 | %) | $ | 20,384.2 | $ | 21,392.6 | (4.7 | %) | ||||||||||||
Cost of sales | ||||||||||||||||||||||||
Other | (34,674.3 | ) | (33,459.1 | ) | (11,488.2 | ) | (11,227.7 | ) | ||||||||||||||||
Depreciation | (2,486.3 | ) | (2,545.8 | ) | (837.0 | ) | (857.2 | ) | ||||||||||||||||
(37,160.6 | ) | (36,004.9 | ) | (12,325.2 | ) | (12,084.9 | ) | |||||||||||||||||
Gross profit | 24,074.4 | 26,059.4 | (7.6 | %) | 8,059.0 | 9,307.7 | (13.4 | %) | ||||||||||||||||
Lease and other income | 163.6 | 140.8 | 61.5 | 54.9 | ||||||||||||||||||||
Administrative expenses | ||||||||||||||||||||||||
Other | (2,808.4 | ) | (2,733.2 | ) | (842.1 | ) | (847.1 | ) | ||||||||||||||||
Depreciation | (651.2 | ) | (710.2 | ) | (217.1 | ) | (247.0 | ) | ||||||||||||||||
(3,459.6 | ) | (3,443.4 | ) | (1,059.2 | ) | (1,094.1 | ) | |||||||||||||||||
Profit from operating activities | 20,778.4 | 22,756.8 | (8.7 | %) | 7,061.3 | 8,268.5 | (14.6 | %) | ||||||||||||||||
Gain on disposal of assets | 9.4 | - | - | - | ||||||||||||||||||||
Net finance costs | (1,890.1 | ) | (2,288.2 | ) | (597.5 | ) | (741.3 | ) | ||||||||||||||||
Profit before income tax | 18,897.7 | 20,468.6 | 6,463.8 | 7,527.1 | ||||||||||||||||||||
Income tax expense | (4,343.2 | ) | (4,800.8 | ) | (1,445.2 | ) | (1,752.8 | ) | ||||||||||||||||
Profit and comprehensive profit | 14,554.5 | 15,667.8 | (7.1 | %) | 5,018.6 | 5,774.3 | (13.1 | %) | ||||||||||||||||
Earnings per share | ||||||||||||||||||||||||
Basic and fully diluted | $ | 0.68 | $ | 0.72 | (4.4 | %) | $ | 0.24 | $ | 0.27 | (10.9 | %) | ||||||||||||
Weighted average number of common shares outstanding | ||||||||||||||||||||||||
Basic and fully diluted (x 000) | 21,262.7 | 21,875.2 | 21,165.2 | 21,706.5 | ||||||||||||||||||||
EBITDA | $ | 24,081.7 | $ | 26,255.9 | (8.3 | %) | $ | 8,169.7 | $ | 9,459.7 | (13.6 | %) | ||||||||||||
EBITDA % | 39.1 | % | 42.0 | % | 39.9 | % | 43.9 | % | ||||||||||||||||
30-Sep-24 | 31-Dec-23 | |||||||||||||||||||||||
Cash | $ | 15,154.3 | $ | 13,979.2 | ||||||||||||||||||||
Total assets | $ | 177,016.6 | $ | 179,396.7 | ||||||||||||||||||||
Total debt | $ | 39,856.9 | ||||||||||||||||||||||