Business
Gamehost Income Fund - Reports 2007 third quarter financial results
RED DEER, AB, Nov. 28 /CNW/ - Gamehost Income Fund (the "Fund) (TSX.V: GH.UN) We are pleased to p...
About this update from Gamehost Inc.
[{"type":"text","content":"\n\n\n\nRED DEER, AB, Nov. 28 /CNW/ - Gamehost Income Fund (the "Fund)\n(TSX.V: GH.UN)\n\n\nWe are pleased to present favourable results for the nine and three\nmonths ended September 30, 2007 (respectively the "Period" and "Quarter"). Q3\n2007 revenue's were just shy of our previous record quarterly revenue posting\nin Q2 2007. Revenues for the Period total $42.7 million up 19.3% over the\n$35.8 million posted in 2006. Revenues for the Quarter total $14.3 million up\n12.7% over the $12.7 million posted in 2006. Revenues for the Quarter were\n$14.28 million versus $14.35 million in Q2 2007.\n\n\nEarnings before interest, taxes, depreciation and amortization ("EBITDA")\nfor the Period total $21.0 million up 21.5% over the $17.3 million recorded in\n2006. EBITDA for the Quarter total $6.9 million up 12.1% over the $6.2 million\nrecorded in 2006 but down 2.4% from the previous quarters $7.1 million.\n\n\nEBITDA margins for the Period of 49.3% compare to 48.4% in 2006, an\nimprovement of 0.9%. EBITDA margins for the Quarter of 48.5% compare to 48.8%\nin 2006, a reduction of 0.3%. At this point in 2006 the Deerfoot Joint Venture\ncontributed 18.5% of total Fund Revenue. For the Period, the Deerfoot Joint\nVenture's contribution to Fund revenue was 29.1% signaling the growth rate of\nthis property in relation to the balance of Fund properties. EBITDA margin %\nat the Deerfoot Joint Venture also continues to improve. Our push is to get\nthe Fund to an overall 50% EBITDA.\n\n\nDepressed commodity prices for natural gas have created a general\nslowdown in the natural gas sector which persists. Compounding this, Grande\nPrairie had a wet summer hampering the energy industry from accessing drilling\nsites. Grande Prairie is also heavily dependant on the forestry industry which\nhas been feeling the effects of the USA sub-prime mortgage meltdown as well as\nthe high Canadian dollar. In light of these conditions, we are pleased with\nmanagement's success at maintaining revenue. While revenues at Service Plus\nInns & Suites fell back to 2006 levels during the Quarter management has\nretained more than their share of the reduced market. Occupancy is holding\nabove 80%. There has been no movement in the market area to reduce rates. The\nGreat Northern Casino experienced a down Quarter in gaming activity. W...