Business
Gamehost Income Fund - Reports 2008 Second Quarter Financial Results
RED DEER, AB, Aug. 14 /CNW/ - Gamehost Income Fund (the "Fund) (TSX.V: GH.UN) Management and Trus...
About this update from Gamehost Inc.
[{"type":"text","content":"\n\n\n\nRED DEER, AB, Aug. 14 /CNW/ - Gamehost Income Fund (the "Fund) (TSX.V:\nGH.UN)\n\n\nManagement and Trustees of Gamehost Income Fund (the "Fund") are pleased\nto report results for the three months ended June 30, 2008 (the "Quarter").\nResults for the Quarter were mixed. Quarter over quarter growth was provided\nby eleven operating days of the new Stampede Casino, otherwise revenues were\nlower year over year. The gaming and hospitality industries are working their\nway through changes in the general business environment. Non-smoking\nlegislation enforced as of January 1, 2008, a tempering of the hot Alberta\nenergy sector and inflationary factors have combined to create a few pot holes\nthat need to be negotiated.\n\n\nRevenues for the Quarter totaled $13.5 million down 5.6% from the\n$14.3 million posted in Q2 2007 but up 1.6% from the previous quarter when\nrevenue totaled $13.3 million. Earnings before interest, taxes, depreciation\nand amortization ("EBITDA") for the Quarter totaled $6.3 million down 11.0%\nfrom $7.1 million recorded in Q2 2007 and flat to the previous quarter. EBITDA\nmargins for the Quarter fell to 46.7% off 2.9% from the near record 49.5% a\nyear earlier and off 0.6% from 47.2% in the previous quarter. These results\ninclude the Fund's participating share of eleven days of operations from the\nnew Stampede Casino and all pre-opening costs for the new property.\n\n\nThe Fund's regular monthly distributions were increased by 10% during the\nQuarter. The Fund made consistent payments at the higher rate of $0.0733 per\nunit throughout the Quarter. Investors should be confident in the\nsustainability of this higher rate especially as the new Stampede Casino\nachieves profitability.\n\n\nThe new Stampede Casino had a smooth opening on June 19, 2008 and then\nfifteen days to 'warm up' before the ten day Calgary Exhibition & Stampede.\nEarly results are favourable. It will take a number of months before we\nunderstand what a normal month at the facility looks like. Similar to our\nexperience opening the Deerfoot Inn & Casino we will continue to adjust our\nmarketing efforts and product offering to appeal to what is quite clearly a\ndifferent customer base within the same city. The addition of a 20% stake in\nthe Stampede Joint Venture will help put the Fund back ...