Business
Gamehost Announces Third Quarter 2018 Financial Results, Hotel Purchase, and November 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 Third Quarter 2018 Financial Results, Hotel Purchase, and November DividendNot Intended for Distribution to U.S. Newswire Services or for Dissemination in the U.S.RED DEER, ALBERTA / ACCESSWIRE / November 13, 2018 / Gamehost Inc. (TSX: GH) Management and Directors of Gamehost Inc. (the \"Company\") present results for the nine months and three months ended September 30, 2018 (the \"Period\" and \"Quarter\" respectively).The Company posted a marginal gain in overall revenue but not significant enough to offset inflationary pressures on costs. An early and severe arrival of snow in September coupled with a general slowing of growth in Alberta cooled field activity in the energy sector resulting in fewer hotel stays and less foot traffic in our casinos.Operating revenue for the Quarter was up $0.1 million on strength in slot activity while profit to shareholders was $0.3 million lower. Earnings per common share for the Quarter were $0.17 versus $0.18 in Q3 2017.Earnings before interest, taxes, depreciation, and amortization (\"EBITDA\") that is attributable to shareholders of the Company (\"EBITDA to Shareholders\") was down $0.5 million or 6.9% to $6.7 million compared to $7.2 million in the same quarter of 2017. EBITDA to Shareholders margin for the Quarter was 1.0 percentage points lower than the same quarter in 2017 at 42.9% compared to 43.9%.The Company purchased 114,845 shares on normal course issuer bid during the Quarter at prices averaging $11.95 per common share plus commissions. The Company will continue to purchase shares at opportunistic price levels.During the Quarter, the Company renegotiated existing term credit facilities to extend terms an additional eight years to 2033. This will decelerate the repayment of debt by $1.2 million annually. At 0.9 to 1, and stable, the Company's debt to EBITDA ratio remains conservative with further prime rate increases expected in the new year. This action provides further cushion to the Company's dividend payout ratio which has also stabilized in the 90% range.On November 13, 2018, a Special Committee of the Company's independent board members approved the purchase of the business and property known as 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. Peace C...