Gamehost Announces Annual 2012 Financial Results

Gamehost Announces Annual 2012 Financial Results 
RED DEER, ALBERTA -- (Marketwire) -- 03/12/13 -- Gamehost Inc.
Management and Directors of Gamehost Inc. (the "Company") are pleased
to present results for the twelve months ended December 31, 2012 (the
"Period", or "Year") and three months ended December 31, 2012 (the
Put It In The Win Column 
Total operating revenues for the Quarter grew by 4.4% to $19.8
million from $19.0 in the same quarter of 2011. For the Year,
revenues were up 6.3% to $76.6 million from $72.0 million in the
prior year. These results represent quarterly and annual revenue
records for the Company. Earnings before interest, taxes,
depreciation and amortization ("EBITDA") that is attributable to
owners of the Company ("EBITDA to Owners") grew by $0.5 million or
6.1% to $8.6 million for the Quarter compared to $8.1 million for the
same quarter in 2011. EBITDA to Owners for the Year grew by $3.3
million or 10.7% to $33.6 million compared to $30.3 million in 2011.
EBITDA to Owners margin percentage was higher by 77 basis points to
45.3% from 44.6% in the Quarter compared to one year earlier. True to
form, the final quarter of the year is typically a strong revenue
quarter for the Company accompanied by some pressure on margins
caused by seasonally high food and beverage sales from corporate
banquets. Nevertheless, margins held up well producing an annual
EBITDA to Owners margin of 46.3%, a 185 basis point increase from
44.5% a year earlier. All tallied, Q4 2012 was a winning Quarter in a
winning Year. 
While other Canadian companies steal the business headlines and
euphoria and disappointment wax and wane in the market, we have run
the 2012 race like the proverbial turtle. While the S&P/TSX Composite
Index gained 4.0% on the Year, the Company shares rose $1.45 or 12.9%
and the Company debentures rose 11.3% over the same time frame.
Furthermore, over the course of the Year we have quietly reduced
loans and borrowings by $6.4 million or 23.7%, increased our cash
deposits by $2.0 million or 11.2%, repurchased $2.0 million of
Company shares for cancellation at an average price of $11.97 per
common share, and spent $1.1 million to maintain or improve our
facilities. Most importantly though, we have distributed $22.0
million, an additional $0.6 million or 2.8%, over 2011 to the best
people in the world, our investors. So go ahead, laugh out loud! 
To Have And To Hold 
During the Quarter, $1.8 million face value of debentures were
presented for conversion to 0.2 million common shares leaving $31.7
million of the original $55.0 million debenture issue outstanding at
the end of the Year. There were no shares repurchased under normal
course issuer bid (NCIB) during the Quarter. Since the start of the
year an additional 1.5 million shares have been issued net of those
cancelled by repurchase under NCIB. The volume of the Company shares
traded on the Toronto Stock Exchange during the year increased 10.0%
over the volume of the preceding year improving the liquidity of the
Company's shares. 
New Neighbours 
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. 
Looking Glass 
We live in an ever-changing world. It seems likely that this will
continue, perhaps dramatically, into 2013. For business, economies
and investing the uncertainty is difficult. Will there be new
pipelines to deliver Alberta bitumen or won't there? What actions
should we expect from the Alberta government to address falling
revenues from discounted Alberta crude oil prices? Has a sustained
rebound of the USA economy really begun? What of the continued
turmoil in Arab and African nations? Israeli jets in Syria? There are
more questions, and big ones, than answers. 
What we do know is Alberta is growing. Migration to the province,
both international and interprovincial, is reaching levels not seen
since 2006 and we can benefit from that. A small expansion completed
at our Boomtown Casino added 30 slot machines to the gaming floor in
February 2013. A renovation/expansion in the works for Great Northern
Casino will improve the dining, lounge and live entertainment
experience for patrons. Hospital development in close proximity to
our Calgary and Grande Prairie facilities will have beneficial
spinoff effects. 
Cash on hand was used to make our first ever income tax payment of
$5.2 million on February 28, 2013. Taxes paid include 15% of deferred
partnership income taxes and 100% of the Company's 2012 income taxes.
The remaining 2011 deferred taxes will be paid in monthly instalments
over four years beginning January 2014. Tax instalments for estimated
2013 income taxes will begin in March 2013. As we put the deferred
tax hurdle behind us we can then begin to entertain alternative uses
for surplus cash. 
In spite of all the headline news, we are optimistic for the days
ahead. We hope you will stay with us to see how 2013 unfolds. 

Consolidated statements of profit and comprehensive income                  
In Canadian                                                                 
 dollars                  (audited)                    (unaudited)          
                      twelve months ended            three months ended     
                           December 31                   December 31        
                          2012           2011           2012           2011 
 revenue         $  76,557,136  $  71,989,151  $  19,795,024  $  18,957,496 
Cost of sales                                                               
  Other            (38,584,088)   (37,432,038)   (10,245,325)    (9,863,356)
  Depreciation      (2,234,657)    (2,355,818)      (617,059)      (591,336)
                   (40,818,745)   (39,787,856)   (10,862,384)   (10,454,692)
Gross profit        35,738,391     32,201,295      8,932,640      8,502,804 
Other income           247,621        240,386         67,475         68,257 
  Other             (2,927,729)    (2,959,443)      (681,321)      (750,388)
  Depreciation      (2,270,928)    (2,663,731)      (567,732)      (682,823)
                    (5,198,657)    (5,623,174)    (1,249,053)    (1,433,211)
Profit from                                                                 
 activities         30,787,355     26,818,507      7,751,062      7,137,850 
Other (losses)                                                              
 gains                 (62,814)         1,677        (62,814)         1,677 
Finance income          90,783         82,542         24,781         21,893 
Finance costs       (4,141,730)    (5,586,935)    (1,020,092)    (1,238,534)
Profit before                                                               
 income taxes       26,673,594     21,315,791      6,692,937      5,922,886 
Income tax                                                                  
 expense            (5,184,063)    (5,301,001)      (762,242)    (2,984,706)
Profit and                                                                  
 income          $  21,489,531  $  16,014,790  $   5,930,695  $   2,938,180 
Profit and                                                                  
  Owners of the                                                             
   Company       $  20,123,155  $  14,860,454  $   5,578,043  $   2,618,808 
   interest          1,366,376      1,154,336        352,652        319,372 
                 $  21,489,531  $  16,014,790  $   5,930,695  $   2,938,180 
Earnings per                                                                
Basic and                                                                   
 earnings per                                                               
 share           $       0.919  $       0.702  $       0.248  $       0.123 
EBITDA to Owners $  33,854,182  $  30,589,693  $   8,565,236  $   8,070,447 
EBITDA to Owners                                                            
 %                        46.3%          44.5%          45.3%          44.6%

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
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 annual consolidated 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 2012 annual
consolidated financial statements. Further, while the financial
figures included in this annual results 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. The company has published and filed an
annual financial report for the annual period ended December 31,
2012. This report, along with historical financial reports can be
found on the Company's website at and will be filed
in its entirety along with the Company's other continuous disclosure
documents, when they are available, on SEDAR at 
Gamehost common shares and convertible debentures trade on the
Toronto Stock Exchange (TSX) under the symbols GH and GH.DB
Gamehost Inc.
Craig M. Thomas
(877) 703-4545 
Gamehost Inc.
Darcy J. Will
(877) 703-4545
(403) 340-0683 (FAX)
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