Gamehost Income Fund (the "Fund) (TSX.V: GH.UN)
RED DEER, AB, May 14 /CNW/ - Results for the first interim reporting period in 2007 are in. All assets performed above management expectations for the three months ended March 31, 2007 (the "Period"). Management of the Fund is pleased again to share the results of another record quarter.
Historically the strongest growth quarter, the 2007 version of Q1 did not disappoint. Revenues are up from $11.5 million in Q1 2006 and $13.5 million in Q4 2006 to $14.1 million for the Period, the fourteenth consecutive quarterly record for the Fund. These results represent growth of 22.3% and 4.4% respectively to the prior periods noted. More impressive were the results for earnings before interest, taxes, depreciation and amortization ("EBITDA") and EBITDA margins. EBITDA totaled $7.0 million for the Period. This is up $1.4 million or 25.5% from Q1 2006 and up $0.7 million or 13.6% from Q4 2006. EBITDA margins for the Period were 49.7% up significantly by 1.2% and 2.7% year over year and quarter over quarter respectively.
Mid March marked the beginning of spring breakup in Alberta together with road bans and weight restrictions for trucking. The seasonal affect of this results in a drop in occupancy at our Grande Prairie hotel and an increase in activity at our northern casinos. The 2006 expansion of Boomtown Casino in Ft. McMurray is now showing real signs of traction. Mega projects either underway or nearing startup in the oil sands rich area has bolstered the number of construction personal in the community. To meet growing demand, an additional 31 slot machines were added at our Deerfoot Joint Venture property in Calgary during the Period. The Deerfoot Joint Venture property continues to benefit from promotional efforts which are growing market awareness. The Deerfoot Joint Venture facility is quickly becoming the destination of choice in the cities fast growing southeast. A varied lineup of entertainment events intended to attract a wide range of entertainment seekers continues to attract new patrons. The recent launch of loyalty programs are proving successful in encouraging what their name suggests.
Interim Consolidated Statements of Operations
(Unaudited)
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three months ended
March 31
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2007 2006
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Revenue
Hotel - rooming $ 2,237,296 $ 1,650,038
Table games 2,083,808 1,849,130
Slot machines 5,485,784 4,722,573
Food & beverage services 3,079,031 2,333,080
Lease and rental 79,659 76,764
Other 1,117,697 879,976
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14,083,275 11,511,561
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Expenses
Cost of goods sold 1,015,767 893,735
Human resources 3,529,000 2,954,547
Marketing and promotions 464,041 296,817
Operating 1,521,766 1,316,091
Corporate and general administration 548,420 469,070
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7,078,994 5,930,260
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Earnings before amortization, interest
and income allocation to Class B
Limited Partners 7,004,281 5,581,301
Amortization 553,700 593,479
Interest charges 264,212 279,686
Income allocation to Class B
Limited Partners 3,028,888 2,305,135
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Net income $ 3,157,481 $ 2,403,001
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Net income per unit
Weighted average and fully diluted $ 0.879 $ 0.669
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This press release may contain forward-looking statements. Forward-looking statements may contain words such as "anticipates", "believes", "could", "expects", "indicates", "plans" or other similar expressions that suggest future outcomes or events. Use of these statements reflect reasonable assumptions made on the basis of management's current beliefs with information known by management at the time of writing. Many factors could cause actual results to differ from the results discussed in forward-looking statements. Actual results may not be consistent with these forward-looking statements.
The Fund is an unincorporated open-ended limited purpose trust established under the laws of the Province of Alberta. The Fund's activities are currently confined to the Province of Alberta, Canada. Operations include the Boomtown Casino in Ft. McMurray, the Great Northern Casino, Service Plus Inns & Suites and a strip mall all located in Grande Prairie. The Fund is also a 40% joint venture partner in Deerfoot Inn & Casino Inc. in Calgary.
Consolidated interim financial statements and MD&A are available on the Fund's website at www.gamehost.ca or on SEDAR at www.sedar.com.