Red Deer, Alberta, May 11, 2021–Gamehost Inc.(TSX: GH)GAMEHOST ANNOUNCES FIRSTQUARTER2021FINANCIALRESULTS
Management and Directors of Gamehost Inc. (the “Company”) present results for the three-monthperiod ended March 31, 2021 (the "Quarter").
In year-over-year comparison for the Quarter, operating revenue was down 92.3% from $13.8 to $1.1, EBITDA to shareholders was nil for the Quarter. A net loss per share for the Quarter compares to $0.09 per share for the same quarter in 2020.
The Company's three casinos are closed under health restrictions imposed by the Government of Alberta (GOA) due to COVID-19 and were not open for any portion of the Quarter. The Company's three hotels are open and operating under restrictions that limit service to appointment only check-in and COVID-19 protocols for breakfast and dining room service. The Deerfoot Inn reopened on January 19, 2021 following a month-longclosure during a seasonal slow period exacerbated by the pandemic.
A rising trend in Alberta's COVID-19 case counts has resulted in the GOA reverting back to Step 1 in their four-stepplan for relaunching the economy. Gamehost casinos are included in Step 3 of the relaunch plan so the setback will result in a longer timeline before casinos reopen. Vaccination programs are beginning to ramp up significantly and success on this front against the emergence of COVID-19 variants will be key to moving forward in the GOA's relaunch strategy.
Management believes the Company's current share valuation will prove to be steeply discounted when Alberta casinos return to full sustained operation. From the start of the year to the end of April 2021, the Company repurchased 156,900 common shares at prices averaging $6.74 per common share. The Company's current issuer bid expires in July 2021.
The Company's dividend remains temporarily suspended. A decision to reinstate the dividend in whole or in part is reviewed at regular intervals by the board of directors. Experience to date has demonstrated that the Company can operate cash flow positive under partial restrictions coupled with current COVID-19 relief subsidies. During periods of full casino closure cash burn rates are less than $0.5 million per month inclusive of relief subsidies. With $10.2 million in cash and $12.9 million in available revolving credit, the Company has ample liquidity to support restricted operations for the foreseeable future.
During this period of COVID-19 restrictions on operations, the Company is making accelerated progress on two casino expansion projects. The 7,500 square foot expansion at Calgary's Deerfoot Casino is closed in and work is advancing on all interior work. Outside excavation work has started in Fort McMurray for an additional 6,350 square feet at Boomtown Casino, while the interior work transitions from demolition to reconstruction. Both projects are on budget and schedule for completion by June 2021 and end of summer 2021 respectively. Improvements at these properties will add to the excitement of casino re-openings when they occur and contribute significantly to revenue generation.
Confidence is growing that we will soon return to previous notions of normal life here in Alberta even while we find ourselves backtracking steps in the Alberta relaunch plan amida third wave of the virus. Let’sget through this next critical period quickly by adhering to public health measures and getting vaccinated at the earliest opportunity.