Business
Gamehost Announces Fourth Quarter 2018 Financial Results and March Dividend
Not Intended for Distribution to U.S. Newswire Services or for Dissemination in the U.S. ...
About this update from Gamehost Inc.
[{"type":"text","content":"Gamehost Announces Fourth Quarter 2018 Financial Results and March DividendNot Intended for Distribution to U.S. Newswire Services or for Dissemination in the U.S.RED DEER, AB / ACCESSWIRE / March 12, 2019 / Gamehost Inc. (TSX: GH) Management and Directors of Gamehost Inc. (the \"Company\") present results for the twelve and three months ended December 31, 2018 (the \"Year\" and \"Quarter\" respectively). Operating revenue for the Quarter was flat to the prior year at $17.7 million while profit to shareholders was $0.8 million lower. Higher wage expenses from increases to Alberta's minimum wage had the most significant impact on costs, while a select number of other expense areas recorded either planned or unexpected short term increases to prior year levels. Earnings per common share for the Quarter were $0.15 versus $0.18 in Q4 2017.Earnings before interest, taxes, depreciation, and amortization (\"EBITDA\") that is attributable to shareholders of the Company (\"EBITDA to Shareholders\") was down $0.7 million or 9.9% to $6.4 million compared to $7.1 million in the same quarter of 2017. EBITDA to Shareholders margin for the Quarter was 1.9 percentage points lower than the same quarter in 2017 at 38.1% compared to 42.0%.Operating results during the Quarter were mixed by property and revenue streams. The local economy in Fort McMurray has faced some contraction. No clear trends are evident in either Grande Prairie or Calgary. Except for an improvement in the discount on Western Canadian Select crude prices, impediments to economic growth persist, from pipeline capacity constraints and provincial and federal regulatory burden to global geo-political tensions.The Company purchased 83,400 shares on normal course issuer bid during the Quarter at prices averaging $9.55 per common share plus commissions. The Company will continue to purchase shares at opportunistic price levels.On December 14, 2018, the Company completed the purchase of the hotel Encore Suites by Service Plus Inns located in Grande Prairie, Alberta from Peace Country Hospitality Inc (\"Peace Country\") for a price of $12.5 million. The purchase was completed using available capacity on the Company's revolving credit facility. Peace Country is a company controlled by David Will, Darcy Will and Elston Noren, each of whom are officers and significant shareholders of the C...