Welcome!

Microsoft Cloud Authors: Elizabeth White, Mihai Corbuleac, Pat Romanski, David Bermingham, Steven Mandel

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
Digital payments using wearable devices such as smart watches, fitness trackers, and payment wristbands are an increasing area of focus for industry participants, and consumer acceptance from early trials and deployments has encouraged some of the biggest names in technology and banking to continue their push to drive growth in this nascent market. Wearable payment systems may utilize near field communication (NFC), radio frequency identification (RFID), or quick response (QR) codes and barcodes...
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, will explain how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
A critical component of any IoT project is the back-end systems that capture data from remote IoT devices and structure it in a way to answer useful questions. Traditional data warehouse and analytical systems are mature technologies that can be used to handle large data sets, but they are not well suited to many IoT-scale products and the need for real-time insights. At Fuze, we have developed a backend platform as part of our mobility-oriented cloud service that uses Big Data-based approache...
The IoTs 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, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vice president of product management, IoT solutions at GlobalSign, will teach IoT developers how t...
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, will discuss how leveraging the Industrial Interne...
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
We’ve worked with dozens of early adopters across numerous industries and will debunk common misperceptions, which starts with understanding that many of the connected products we’ll use over the next 5 years are already products, they’re just not yet connected. With an IoT product, time-in-market provides much more essential feedback than ever before. Innovation comes from what you do with the data that the connected product provides in order to enhance the customer experience and optimize busi...
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
You deployed your app with the Bluemix PaaS and it's gaining some serious traction, so it's time to make some tweaks. Did you design your application in a way that it can scale in the cloud? Were you even thinking about the cloud when you built the app? If not, chances are your app is going to break. Check out this webcast to learn various techniques for designing applications that will scale successfully in Bluemix, for the confidence you need to take your apps to the next level and beyond.
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry's single source for the cloud. Fusion's advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including cloud...
SYS-CON Events announced today that DatacenterDynamics has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY. DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.