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RED DEER, AB / ACCESSWIRE / May 8, 2024 / Gamehost Inc. (TSX:GH)

Management and Directors of Gamehost Inc. (the "Company") present results for the three months ended March 31, 2024 (the "Quarter").

Operating revenue for the Quarter was up 3.6% to $20,547.2 thousand ($19,838.6 thousand - 2023) while EBITDA to Shareholders was down 1.3% to $7,920.7 thousand ($8,022.6 thousand - 2023). Earnings per share for the Quarter was $0.22 ($0.21 - 2023). A period of severe record-breaking cold in mid-January took a bite out of revenues during the Quarter.

Comparative results for the Quarter benefit from a two-percentage point increase in the operators share of electronic gaming device Hold from 15% to 17%. AGLC approved the temporary, two year, increase effective April 1, 2023. The increase is intended to incentivize operators to make investments in their facilities or promotions that will increase gaming revenues and will be evaluated at regular intervals by AGLC during the two-year period. Management is hopeful that results following the two-year period will support the change being made permanent.

During the Quarter, the Company repurchased 48,200 shares for an aggregate $464.9 thousand. These share purchases will attract the proposed share buyback tax that received first reading in the House of Commons in 2023 resulting in a 2.0% tax being applied to the value of any share buybacks beginning January 1, 2024. The Company used remaining surplus cash to retire $4,167.0 thousand of debt following payment of dividends.

The prolonged impact of high interest rates is beginning to more heavily influence consumer behavior as reflected in our most recent Quarter. Still, Alberta is expected to grow at a pace above the national average thanks in part to robust population growth. The long awaited TMX Pipeline entered commercial service May 1, 2024 which will have an immediate beneficial impact on Alberta's energy sector and bring with it the spin off benefits to everyday Albertan's.

Gamehost Inc.
Financial Highlights
Unaudited - Canadian dollars (thousands except per share figures)

Gamehost has declared a cash dividend for the month of May 2024 of $0.04 (CDN) per common share, which equates to $0.48 (CDN) per common share on an annualized basis. The dividend will be paid on June 14, 2024 to shareholders of record on May 31, 2024. This dividend is considered an "Eligible Dividend" and therefore, eligible for the enhanced gross-up and dividend tax credit available to Canadian shareholders.

This press release may contain certain "forward-looking information" or statements within the meaning of applicable securities legislation and may contain words such as "anticipates", "believes", "could", "expects", "indicates", "plans", "withstand", "further" or other similar expressions that suggest future outcomes or events. Forward-looking information is based on the Company's current expectations, estimates, projections and assumptions that were made by the Company in light of its historical trends and other factors. All information or statements, other than statements of historical fact, are forward-looking information including any statements that address expectations related to future economic outcomes or the Company's dividend. Forward-looking 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 Company has included non-International Financial Reporting Standards ("non-IFRS") measures in this press release. EBITDA, as defined by the Company, means earnings before interest and financing costs, income taxes, depreciation and amortization, and foreign exchange gains or losses. The Company believes EBITDA is a useful measure because it provides information to management and investors about the Company's performance in generating operating cash flow to fund working capital needs, service debt obligations, fund future capital expenditures and support dividend policy. Readers are cautioned that non-IFRS measures do not have any standardized meaning prescribed by IFRS and should not be taken as alternatives to net earnings measured in accordance with IFRS. The Company's method of calculating non-IFRS measures may not be comparable to similarly titled measures used by other reporting entities.

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 Rivers Casino & Entertainment Centre in Ft. McMurray, the Great Northern Casino, Service Plus Inns & Suites and Encore Suites hotels as well as a strip mall all located in Grande Prairie and the Deerfoot Inn & Casino in S.E. Calgary.

These consolidated interim financial results include the accounts of Gamehost Inc. and its subsidiaries; however, they do not include all disclosures normally provided in consolidated interim financial statements and should be read in conjunction with the 2024 Q1 consolidated interim financial statements. Further, while the financial figures included in this announcement have been computed in accordance with IFRS applicable to annual periods, this announcement does not contain sufficient information to constitute an annual financial report and should be read in conjunction with the 2023 annual financial report for the twelve and three months ended December 31, 2023. This interim report will be filed in its entirety, along with historical financial reports on the Company's website at www.gamehost.ca and on SEDAR at www.sedar.com along with the Company's other continuous disclosure documents, when they are available.

Gamehost common shares trade on the Toronto Stock Exchange (TSX) under the symbol GH. For more information, contact:

Craig M. Thomas or Darcy J. Will
P (877) 703-4545
F (403) 340-0683
E ir@gamehost.ca

SOURCE: Gamehost Inc.