On Wednesday, May 8 the Great Canadian Gaming Corp., which operates both Flamboro Downs and Georgian Downs, announced its financial results for the first quarter of 2013, which ended March 31.
According to The Company's official release, Great Canadian reported a two per cent decrease in both revenues ($100.5 million) and EBITDA ($38.3 million) compared to the first quarter of 2012.
The Company reported net earnings of $31.3 million in the first quarter, which it explains was 'primarily due to long-lived asset impairment reversals totalling $28.5 million.'
The release highlighted the fact that Great Canadian adjusted net earnings of $11.1 million, which was an 8 per cent decrease when compared to the prior year; and that The Company repurchased and cancelled 2.5 million common shares at an average price of $9.32 during March and early April, 2013.
The release also went on to touch on Flamboro and Georgian.
"We are pleased to have come to terms with the OLG on proposed lease arrangements for our Georgian Downs and Flamboro Downs properties," stated Great Canadian's President and Chief Executive Officer Rod N. Baker. "We are also pleased to have reached an arrangement with the Ontario government to receive the transitional funding necessary for live racing to continue at these two properties on an interim basis. While definitive lease agreements remain to be signed, we have been operating as though the key provisions of such agreements came into effect on April 1, 2013. Based on the terms of these lease arrangements and the anticipated racing schedules, both of which remain subject to government approvals, as well as our current internal assumptions regarding operating costs, our preliminary estimate of these properties' combined EBITDA for the 12-month period ending March 31, 2014 is approximately $10.0 million to $11.0 million. This compares to a combined EBITDA of $17.3 million recognized for the 12 months ended March 31, 2013."
The release also quoted Baker as saying, "Great Canadian is financially prepared to take advantage of new value-added growth opportunities, including those arising in Ontario."
To view the Great Canadian release in its entirety, click here.
(With files from Great Canadian)