Welcome!

Microsoft Cloud Authors: Pat Romanski, Glenn Rossman, Liz McMillan, John Basso, Elizabeth White

News Feed Item

Gamehost Announces Q3 2012 Earnings and November Dividend

RED DEER, ALBERTA -- (Marketwire) -- 11/12/12 -- Gamehost Inc. (TSX:GH)

Management and Directors of Gamehost Inc. ("Gamehost", the "Company", the "Corporation", "Our") are pleased to present results for the nine months ended September 30, 2012 (the "Period") and three months ended September 30, 2012 (the "Quarter").

Happy Dance

Total operating revenues for the Quarter grew by 6.6% to $18.8 million from $17.6 in the same quarter of 2011. Earnings before interest, taxes, depreciation and amortization ("EBITDA") that is attributable to owners of the Company ("EBITDA to Owners") grew by $0.8 million or 10.6% to $8.3 million for the Quarter compared to $7.5 million for the same quarter in 2011. EBITDA to Owners margin percentage rose by 170 basis points to 46.5% from 44.8% in the Quarter compared to one year earlier. Encompassing the summer vacation season, Q3 is typically a softer quarter for Gamehost compared to the prior Q2 with revenues lower on average by 5%. For Q3 2012 this pattern resulted in a smaller decline of only 2%. Like the good folk enjoying a night of merriment in one of our clubs, we're doing our own version of dancing in the boardroom over these results.

Hello, Our Name Is Gamehost And We're A Hoarder

Yes it's true. We are hoarding cash for the purposes of paying taxes, reducing debt and repurchasing Company stock. While cash balances are $0.5 million less than at the start of the year, we have used surplus cash to repurchase $2.0 million in Company stock or 164,400 shares, reduce our operating line to $nil from $4.0 million and reduce our term debt by a further $1.7 million. Cash flows continue to exceed our earlier projections and a $3.0 million increase to our operating line has been secured for added cushion. We are on track to comfortably meet our estimated tax payment obligations next year which include a balloon payment of $8.5 million for current year and deferred income taxes.

Risk And Reward

Holders of the Company's debentures continued to show appetite for higher returns offered by Gamehost stock dividends despite the added security offered by the debentures. During the Quarter, $4.8 million face value of debentures were presented for conversion to 0.5 million common shares leaving $33.5 million of the original $55.0 million debenture issue outstanding at the end of the Period. Since the beginning of the year $16.7 million in face value debentures have been converted to 1.6 million common shares of Gamehost.

Remembering Mr. Rogers

"Who are the people in your neighbourhood?" Our Calgary neighbours are the residents and employees who live and work around and in closest proximity to our southeast Deerfoot Inn & Casino. Southeast Calgary continues to boast the fastest most diversified growth in the city. The spin-offs of this growth pattern have resulted in above average year over year revenue growth at Deerfoot of 8.7% and a growing share of the total Calgary casino market. Continuing on this note, we were excited to learn of Imperial Oil's plans to relocate its Calgary headquarters to a campus-style office complex in the southeast suburban office park known as Quarry Park. While suburban office parks are not a new thing, this marks the first time an industry oil giant has ventured away from Calgary's downtown core. Imperial Oil's new offices will be located a skip and a jump from our Deerfoot Inn & Casino and will eventually house some 3,000 employees. This announcement is bound to accelerate the residential growth in nearby communities. Relocation for Imperial Oil employees will begin in mid-2014 and we look forward to welcoming our new neighbours and their out-of-town meeting guests to our hotel for years to come. Our northern casino properties in Fort McMurray and Grande Prairie get to cast a wider net over their neighbors. Operating with monopolistic or near monopolistic conditions everyone in these two municipalities is our neighbor when it comes to counting customers.

It was a great Quarter. Thank you for your unshaken faith in management and your investment in Gamehost Inc.


                                                                            
Condensed consolidated interim statement of profit and                      
 comprehensive income                                                       
                                                                            
In Canadian dollars          (unaudited)                 (unaudited)        
                    --------------------------------------------------------
                          nine months ended           three months ended    
                             September 30                September 30       
                    --------------------------------------------------------
                             2012          2011          2012          2011 
                    --------------------------------------------------------
                                                                            
Operating revenue    $ 56,762,112  $ 53,031,656  $ 18,776,562  $ 17,612,172 
Cost of sales                                                               
  Other               (28,338,764)  (27,568,680)   (9,381,135)   (9,206,339)
  Depreciation         (1,617,599)   (1,764,484)     (545,389)     (587,843)
                    --------------------------------------------------------
                      (29,956,363)  (29,333,164)   (9,926,524)   (9,794,182)
                    --------------------------------------------------------
Gross profit           26,805,749    23,698,492     8,850,038     7,817,990 
                                                                            
Other income              180,146       172,129        61,687        60,746 
Administrative                                                              
 expenses                                                                   
  Other                (2,246,408)   (2,209,055)     (754,043)     (635,289)
  Depreciation         (1,703,196)   (1,980,908)     (567,732)     (653,771)
                    --------------------------------------------------------
                       (3,949,604)   (4,189,963)   (1,321,775)   (1,289,060)
                    --------------------------------------------------------
Profit from                                                                 
 operating                                                                  
 activities            23,036,291    19,680,658     7,589,950     6,589,676 
----------------------------------------------------------------------------
                                                                            
Finance income             66,002        60,650        19,733        21,269 
Finance costs          (3,121,638)   (4,348,401)   (1,351,692)   (1,520,187)
                    --------------------------------------------------------
Net finance costs      (3,055,636)   (4,287,751)   (1,331,959)   (1,498,918)
                                                                            
                    --------------------------------------------------------
Profit before income                                                        
 taxes                 19,980,655    15,392,907     6,257,991     5,090,758 
                                                                            
Income tax expense     (4,421,821)   (2,316,295)   (2,051,708)   (1,213,403)
                    --------------------------------------------------------
Profit and                                                                  
 comprehensive                                                              
 income for the                                                             
 period              $ 15,558,834  $ 13,076,612  $  4,206,283  $  3,877,355 
                    --------------------------------------------------------
                                                                            
Profit and                                                                  
 comprehensive                                                              
 income attributable                                                        
 to:                                                                        
  Owners of the                                                             
   Company           $ 14,545,111  $ 12,241,649  $  3,860,961  $  3,606,568 
  Non-controlling                                                           
   interest             1,013,723       834,963       345,322       270,787 
                    --------------------------------------------------------
Profit and                                                                  
 comprehensive                                                              
 income for the                                                             
 period              $ 15,558,834  $ 13,076,612  $  4,206,283  $  3,877,355 
                    --------------------------------------------------------
                                                                            
Earnings per share                                                          
Basic earnings per                                                          
 share               $      0.670  $      0.579  $      0.174  $      0.170 
                                                                            
                                                                            
EBITDA to Owners     $ 25,288,945  $ 22,519,250  $  8,337,358  $  7,537,605 
EBITDA to Owners %           46.7%         44.4%         46.5%         44.8%

November Dividend

Gamehost has declared a cash dividend for the month of November 2012 of $0.0733 per common share. The dividend will be paid on December 14, 2012 to shareholders of record on November 30, 2012. The ex-dividend date is November 28, 2012.

This dividend is considered an "Eligible Dividend" and therefore, eligible for the enhanced gross-up and dividend tax credit available to shareholders.

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.

Gamehost is a corporation established under the laws of the Province of Alberta. The Company's operations are all located in the Province of Alberta, Canada. Operations of the Company include the Boomtown Casino in Ft. McMurray, the Great Northern Casino, Service Plus Inns & Suites hotel and a strip mall all located in Grande Prairie. The Company also holds a 91% ownership position in Deerfoot Inn & Casino Inc. in Calgary.

These unaudited interim financial results include the accounts of Gamehost Inc. and its subsidiaries; however, they do not include all disclosures normally provided in annual consolidated financial statements and should be read in conjunction with the 2011 annual consolidated financial statements. Further, while the financial figures included in this preliminary interim results announcement have been computed in accordance with IFRS applicable to interim periods, this announcement does not contain sufficient information to constitute an interim financial report as that term is defined in International Accounting Standard ("IAS") 34, "Interim Financial Reporting". The company has published and filed an interim financial report that complies with IAS 34 for the interim period ended September 30, 2012. This report, along with historical financial reports can be found on the Company's website at www.gamehost.ca and will be filed in its entirety along with the Company's other continuous disclosure documents, when they are available, on SEDAR at www.sedar.com.

Gamehost common shares and convertible debentures trade on the Toronto Stock Exchange (TSX) under the symbols GH and GH.DB respectively.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it ...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
The best-practices for building IoT applications with Go Code that attendees can use to build their own IoT applications. In his session at @ThingsExpo, Indraneel Mitra, Senior Solutions Architect & Technology Evangelist at Cognizant, provided valuable information and resources for both novice and experienced developers on how to get started with IoT and Golang in a day. He also provided information on how to use Intel Arduino Kit, Go Robotics API and AWS IoT stack to build an application tha...
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
IoT generates lots of temporal data. But how do you unlock its value? You need to discover patterns that are repeatable in vast quantities of data, understand their meaning, and implement scalable monitoring across multiple data streams in order to monetize the discoveries and insights. Motif discovery and deep learning platforms are emerging to visualize sensor data, to search for patterns and to build application that can monitor real time streams efficiently. In his session at @ThingsExpo, ...
Verizon Communications Inc. (NYSE, Nasdaq: VZ) and Yahoo! Inc. (Nasdaq: YHOO) have entered into a definitive agreement under which Verizon will acquire Yahoo's operating business for approximately $4.83 billion in cash, subject to customary closing adjustments. Yahoo informs, connects and entertains a global audience of more than 1 billion monthly active users** -- including 600 million monthly active mobile users*** through its search, communications and digital content products. Yahoo also co...
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
Large scale deployments present unique planning challenges, system commissioning hurdles between IT and OT and demand careful system hand-off orchestration. In his session at @ThingsExpo, Jeff Smith, Senior Director and a founding member of Incenergy, will discuss some of the key tactics to ensure delivery success based on his experience of the last two years deploying Industrial IoT systems across four continents.
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develo...
Basho Technologies has announced the latest release of Basho Riak TS, version 1.3. Riak TS is an enterprise-grade NoSQL database optimized for Internet of Things (IoT). The open source version enables developers to download the software for free and use it in production as well as make contributions to the code and develop applications around Riak TS. Enhancements to Riak TS make it quick, easy and cost-effective to spin up an instance to test new ideas and build IoT applications. In addition to...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effi...