Business
GameHost Announces Second Quarter 2020 Financial Results
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 Second Quarter 2020 Financial ResultsNot intended for distribution to U.S. newswire services or for dissemination in the U.S.RED DEER, AB / ACCESSWIRE / August 11, 2020 / Gamehost Inc. (TSX:GH) Management and Directors of Gamehost Inc. (the \"Company\") present results for the six and three month periods ended June 30, 2020 (the \"Period\" and \"Quarter\" respectively).Operating revenue for the Quarter was down 89.3% from the prior year or down $15.0 million to $1.8 million. Shareholder loss for the Quarter was $1.5 million versus a profit of $4.5 million for the same quarter in 2019 or a loss per common share of $0.06 versus earnings per common share of $0.19. Earnings before interest, taxes, depreciation, and amortization (\"EBITDA\") that is attributable to shareholders of the Company (\"EBITDA to Shareholders\") was down $6.9 million to a loss of $0.7 million versus $6.2 million in the year ago quarter.Following a closure of three months, the Company reopened all casinos June 19, 2020 with reduced slot machines in operation and fifty percent of food and beverage seating capacities. The casinos had been under a Government of Alberta (GOA) mandatory closure order due a public health emergency declared for Covid-19. The GOA has implemented a staged reopening of Alberta's economy. The current stage of relaunch, does not allow table games and limits large gathering sizes which continues to curb any live entertainment at our casinos. Our Deerfoot hotel was also closed voluntarily when casinos closed due to negligible business volume caused by the pandemic. All Gamehost properties are now operating with enhanced health and safety protocols to limit the risk of transmission of the Covid-19 virus. A significant portion of our workforce remains on temporary lay off while table game operations remain closed and food and beverage operations operate at reduced seating capacity. The GOA has not provided any timing for when these remaining restrictions will be lifted.With less than two months of resumed operations behind us and a rising Covid-19 case count as Alberta's economy is reopened, forecasting the months ahead is not reasonably possible. What we do know from our experience over these last few months and weeks is that we are able to sustain the business at a very low cash burn rate, that federal and provincial gov...