Business
Gamehost Income Fund - Reports 2008 third quarter financial results
RED DEER, AB, Nov. 13 /CNW/ - Gamehost Income Fund (the "Fund) (TSX.V: GH.UN) Much has changed in...
About this update from Gamehost Inc.
[{"type":"text","content":"\n\n\n\nRED DEER, AB, Nov. 13 /CNW/ - Gamehost Income Fund (the "Fund) (TSX.V:\nGH.UN)\n\n\nMuch has changed in the world since our last interim report. Fallout from\nthe subprime mortgage debacle in the United States and the resulting credit\ncollapse has now spilled into stock exchanges the world over. The unwinding of\nleveraged positions as companies and lenders look to shore up their balance\nsheets and investors moving to the safety of cash has put excessive pressure\non stock valuations. Is it over done? Time will tell, but one thing is for\nsure, well performing companies with prudent management and solid balance\nsheets have been swept up in the flood.\n\n\nIn our last interim report we had already begun to discuss this changing\neconomic reality. Given the rising global and local headwinds, management and\ntrustees of Gamehost Income Fund (the "Fund") are very pleased with results\nfor the three months ended September 30, 2008 (the "Quarter"). Northern\nproperties have shown surprising resilience, while Calgary property\nperformance has been tempered by a more competitive landscape. Results\ninclude, for the first time, a complete quarter of operations from the new\nStampede Casino.\n\n\nRevenues for the Quarter totaled $14.4 million up marginally by 0.7% from\nthe $14.3 million posted in Q3 2007 but up 6.2% from the previous quarter when\nrevenue totaled $13.5 million. The new Stampede Casino together with Boomtown\nCasino gave enough to offset year over year declines at other Fund properties.\n\n\nEarnings before interest, taxes, depreciation and amortization ("EBITDA")\nfor the Quarter totaled $6.2 million down 10.2% from $6.9 million recorded in\nQ3 2007 and down marginally by 1.5% to the previous quarter's $6.3 million.\nEBITDA margins for the Quarter declined to 43.3% off 5.2% from one year\nearlier and down 3.7% from the previous quarter. The Stampede Casino took some\nluster off EBITDA margin performance which is to be expected with a startup\nproperty.\n\n\nFallout created by the collapse of the USA subprime mortgage industry is\nhaving a profound impact on many organizations' ability to raise or renew\nrequired capital. In this regard the Fund is in an enviable position. The Fund\nhas relatively little debt all placed with Canadian chartered banks. The\nInternational Monetar...