Post by
nukester on May 13, 2024 11:28pm
GH Q1 24, my $0.02
I missed the AGM, but I am comfortable with the Q1 numbers.
Q1 seems pretty benign IMO.
Obvious slight headwinds, Food and beverage declines, etc.
I am surprised / grateful the inflationary headwinds took so long to show up.
Underlying gaming revenues seemed acceptable to me.
Conservative payout ratio while they pay down the revolvers.
Stated target of less than 1.0 total debt to EBITDA per Q1 MDA.
I am guessing target reached in early 2025, assuming 3 million a quarter debt reduction.
I say stay the course, add to the NCIB opportunistically! (Not so easy with 2% tax)
Might as well hand the cash to shareholders IMO, but I am biased :-)
Like others have predicted, plenty of macro issues to worry about looking forward, inflation, interest rates, etc. Assuming the good lord is willing and the creek don't rise, GH shareholders should be smiling a bit wider this time next year.
Cheers,
Nukester