Business
Gamehost Income Fund - Reports 2009 first quarter financial results
RED DEER, AB, May 14 /CNW/ - Gamehost Income Fund (the "Fund") (TSX: GH.UN) Management and Truste...
About this update from Gamehost Inc.
[{"type":"text","content":"\n\n\n\nRED DEER, AB, May 14 /CNW/ - Gamehost Income Fund (the "Fund") (TSX:\nGH.UN) Management and Trustees of Gamehost Income Fund present results of the\nFund for the three months ended March 31, 2009 (the "Quarter").\n\n\nThe last six months, have been clouded with an economic storm of epic\nproportions. Global economies have been sinking and the race for life\npreservers has been fast and furious. The Fund has been navigating the storm\nsurge remarkably well. Revenues for the Quarter totaled $13.8 million up 3.9%\nfrom $13.3 million in Q1 2008. We entered the Quarter with our eyes wide open,\nprepared for the typical post Christmas slowdown that would be further\nhampered by looming layoffs and consumer pessimism. Accordingly, we began\ntargeted marketing campaigns and value added promotions for our customers. As\na result, Quarterly revenues posted only a slight decrease from the Christmas\nseason of Q4 2008, down 3.2% from $14.3 million.\n\n\nGrowing revenues is a real challenge in these times, so our growth\nstrategy is now a cost efficiency strategy. Earnings before interest, taxes,\ndepreciation and amortization ("EBITDA") for the Quarter were flat when\ncompared to Q1 2008, totaling $6.3 million, and were up from $6.1 million in\nQ4 2008, an improvement of 3.3%. Year over year EBITDA margins were down\nmarginally by 1.4% to 45.8%. On a monthly basis EBITDA margins have been\nsteadily improving from a low point in Q4 2008 of 42.6% increasing 3.2% during\nthe Quarter. As the Stampede Joint Venture matures, greater efficiencies are\nachieved every month and management remains diligent in monitoring\ndiscretionary spending at all operations.\n\n\nUntil this economic storm passes, the Fund is concentrating on\nmaintaining revenue strongholds. Management has a proven track record in\nproducing growth, and we haven't forgotten this. It is now a game of inches,\nand we are patiently making gains on a very muddy field. Competition brings\nout the best and we are confident that our facilities are just that. The\nQuarter has posted encouraging increases in table drop in both of our Calgary\noperations as well as in Ft. McMurray, and we don't intend to give up any\nground.\n\n\nOur Ft. McMurray property, Boomtown Casino, has faced some challenges\nwith announced deferrals of some major oil sands proj...