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Great Canadian Gaming Corporation announced its financial results for the three month period ended December 31, 2018 (the “fourth quarter”) and the twelve month period ended December 31, 2018 (“2018”, or “the full year”).

FOURTH QUARTER AND 2018 HIGHLIGHTS

• Revenues of $342.0 million in the fourth quarter and $1,221.0 million in the full year, an increase of 126% and 99%, respectively, when compared to the same periods in the prior year.
• Adjusted EBITDA⁽¹⁾ of $120.3 million in the fourth quarter and $474.4 million in the full year, an increase of 145% and 113%, respectively, when compared to the same periods in the prior year.
• Shareholders’ net earnings of $27.4 million or $0.46 per common share in the fourth quarter, an increase of 112% and 119%, respectively, when compared to the same period in the prior year. Shareholders’ net earnings of $151.2 million or $2.49 per common share in the full year, an increase of 79% and 80%, respectively, when compared to the same period in the prior year.
• During the fourth quarter of 2018, the Company purchased for cancellation 3,167,052 common shares at a weighted average price of $48.69 per share and further purchased 136,810 common shares subsequent to 2018 at a weighted average price of $48.49. The Company has purchased a total of 3,582,462 common shares under the current normal course issuer bid.
• On October 15, 2018, Shorelines Casino Peterborough opened.
• On December 11, 2018, the Company completed the redemption of the Senior Unsecured Notes using proceeds from the $350.0 million term loan facility under the Senior Secured Credit Facilities agreement and available cash reserves.
• On December 19, 2018, Shorelines Slots at Kawartha Downs re-opened after temporarily closing on October 14, 2018.
• On December 21, 2018, the Company introduced table games at Elements Casino Mohawk and Elements Casino Flamboro, marking the first time live dealer table games are available in the Halton Region and in the City of Hamilton where these facilities are located.
• On January 23, 2019, Great Blue Heron Casino opened its new building addition to expand the gaming floor, which introduced over 200 new slot machines and a new food and beverage option.

“With a remarkable 2018 complete, Great Canadian remains focused on the continued execution of its operational and development plans for 2019 and beyond,” stated Rod Baker, the Company’s President and Chief Executive Officer. “We achieved several milestones this year including the acquisition and integration of the GTA and West GTA Gaming Bundles, the renovation and expansion of several gaming facilities, the introduction of live dealer table games for the first time in the Greater Toronto Area at Casino Woodbine, and completed corporate and project financings to support our plans to grow the business.”

Increases in revenues and Adjusted EBITDA during the fourth quarter and full year, when compared to the same periods in the prior year, reflect the contributions from the GTA Gaming Bundle and the West GTA Gaming Bundle acquisitions, which began operations under the management of Great Canadian on January 23, 2018 and May 1, 2018, respectively.

“We have begun our comprehensive development plans in the GTA and West GTA Gaming Bundles, with many of our gaming facilities commencing construction during 2018 and will continue into 2019 and 2020,” said Mr. Baker. “Development plans for these sites will expand gaming offerings and introduce an exciting mix of hospitality and entertainment features at the properties that will deliver exceptional guest experiences within our respective markets.”

“The opening of the new Shorelines Casino Peterborough marks the culmination of the Company’s significant capital investment requirements into the East Gaming Bundle, which is now expected to deliver significant free cash flow. We also worked diligently with OLG to resume operations at the Shorelines Slots at Kawartha Downs, allowing this gaming and horse racing facility to continue making meaningful economic contributions to the community it serves.”

“As we make progress on the development of our Ontario properties, we continue to explore opportunities to reinvest in our properties in B.C., Atlantic, and United States. In particular, we plan to make capital investments to enhance our B.C. properties in the next few years. We remain committed to finding opportunities to enhance guest experiences at all our properties,” added Mr. Baker.

“At the end of the fourth quarter, Great Canadian had a cash balance of $336.8 million, available capacity of $356.8 million on its Senior Secured Credit Facilities, available capacity of $918.0 million on OTG’s credit facilities, and $151.0 million on OGWGLP’s revolving credit facility. The comprehensive development plans for the Ontario gaming bundles will be supported by their respective non-recourse credit facilities, reinvested cash flows from operations, and any partner contributions required,” continued Mr. Baker.

“Great Canadian has made significant enhancements to its capital structure during the fourth quarter of 2018, resulting in long-term financial stability for the Company. We completed our corporate refinancing with the redemption of the Senior Unsecured Notes on December 11, 2018, which effectively reduced our borrowing costs. Furthermore, the new Senior Secured Credit Facilities provides the Company with the additional financial flexibility to invest in our businesses or to pursue other opportunities to enhance value. To date, we repurchased a total of 3,582,462 common shares under the current normal course issuer bid, which increased shareholder interest by 6.2%. Great Canadian continues to find opportunities to make meaningful investments that will drive its business forward and provide added value to our shareholders and guests,” concluded Mr. Baker.

Great Canadian will host a conference call for investors and analysts today, March 5, 2019, at 2:00 PM Pacific Time in order to review the financial results for the quarter and year ended December 31, 2018. To participate in the conference call, please dial 416-764-8688, 778-383-7413, or toll free at 1-888-390-0546.  Questions will be reserved for analysts and institutional investors.  Interested parties may also access the call via the Investor Relations section of the Company’s website, www.gcgaming.com/financials.  Investors using the website should allow 15 minutes for the registration and installation of any necessary software.  A replay of the call will also be available at www.gcgaming.com/financials.

 

ABOUT GREAT CANADIAN GAMING CORPORATION:
Founded in 1982, Great Canadian Gaming Corporation is a BC based company that operates 28 gaming, entertainment and hospitality facilities in Ontario, British Columbia, New Brunswick, Nova Scotia, and Washington State. Fundamental to the company’s culture is its commitment to social responsibility. “PROUD of our people, our business, our community” is Great Canadian’s brand that unifies the company’s community, volunteering and social responsibility efforts. Under the PROUD program, Great Canadian annually invests over $2.5 million in our communities, and in 2017, over 1,900 charitable organizations were supported by Great Canadian. In each Canadian gaming jurisdiction, a significant portion of gross gaming revenue from gaming facilities is retained by our Crown partners on behalf of their provincial government for the purpose of supporting programs like healthcare, education and social services.

Please refer to the consolidated financial statements, management’s discussion and analysis, and annual information form at www.gcgaming.com (available on March 5, 2019) or www.sedar.com (available on March 6, 2019) for detailed financial information and analysis.

Source: Latest News on European Gaming Media Network
This is a Syndicated News piece. Photo credits or photo sources can be found on the source article: Great Canadian Gaming Announces Fourth Quarter and Annual 2018 Results