Business
Gamehost Announces First Quarter 2019 Financial Results and May Dividend
RED DEER, AB / ACCESSWIRE / May 15, 2019 / Management and Directors of Gamehost Inc. (the "C...
About this update from Gamehost Inc.
[{"type":"text","content":"Gamehost Announces First Quarter 2019 Financial Results and May DividendRED DEER, AB / ACCESSWIRE / May 15, 2019 / Management and Directors of Gamehost Inc. (the \"Company\") present results for the three months ended March 31, 2019 (the \"Quarter\").Operating revenue for the Quarter was down 4.0% from the prior year or $0.7 million to $17.0 million even with contributions from the new Encore Suites hotel. Total earnings were down $1.2 million or 25.0% to $3.6 million from $4.8 million the prior year. Earnings per common share for the Quarter were $0.14 versus $0.18 in Q1 2018. Earnings before interest, taxes, depreciation, and amortization (\"EBITDA\") that is attributable to shareholders of the Company (\"EBITDA to Shareholders\") was down $0.9 million or 12.5% to $6.3 million compared to $7.2 million in the same quarter of 2018. EBITDA to Shareholders margin for the Quarter was 3.9 percentage points lower than the same quarter in 2018 at 38.7% compared to 42.6%.Factors affecting reported revenue and profitability above include, most notably, a five-week period of extreme cold during the Quarter that significantly reduced traffic to our casinos and hotels. The cold weather had an added impact of driving up utility expenses. Comparative figures also reflect the final lift of a four-year staged increase in provincial minimum wage rates to $15.00 per hour effective October 2018. The weather's impact was broadly felt by all operating centres which all reported lower year-over-year results for the Quarter. Rooming revenues posted a gain of 14.8% during the Quarter bolstered by the acquisition of the Encore Suites hotel at the end of 2018.On January 1, 2019 the Company adopted IFRS 16 for leases which resulted in the following changes in the Quarter: The Company recognized $5.6 million in right-of-use assets and $5.6 million in lease liabilities. EBITDA increased by $0.3 million from lease payments previously recognized as 'cost of sales' or 'administration expense' being recorded against lease liabilities. Depreciation increased by $0.2 million for right-of-use assets and net finance costs increased by $0.1 million for imputed interest on lease liabilities. There was no reportable impact on profit. A newly elected conservative government in Alberta was sworn in April 30, 2019, replacing the single term NDP government. The new gover...