Great Canadian generated revenues of $130.9m during the first quarter, a 20 per cent increase from the first quarter of 2015.
This improvement was primarily due to the company’s October 2015 acquisition of Casino New Brunswick and January 2016 acquisition of Ontario Lottery and Gaming Corporation’s Gaming Bundle 2 (East), which consists of Shorelines Casino Thousand Islands, formerly OLG Casino Thousand Islands, and Shorelines Slots at Kawartha Downs, formerly OLG Slots at Kawartha Downs, collectively known as the Shorelines Casinos. Casino New Brunswick and the Shorelines Casinos contributed $9.7m and $11.9m of revenues, respectively, in the first quarter. Revenues also increased at the majority of the company’s other properties, most notably Hard Rock Casino Vancouver, other Vancouver Area Casinos, and the Great American Casinos. These increases were partially offset by a decline in table gaming revenues at River Rock Casino Resort.
Adjusted EBITDA during the first quarter was $43.5m, a six per cent increase from the first quarter of 2015. This improvement was primarily due to the acquisition of Casino New Brunswick and Shorelines Casinos, as well as Adjusted EBITDA improvements at Hard Rock Casino Vancouver and Great American Casinos. These factors were partially offset by a decrease at River Rock.
Great Canadian generated shareholders’ net earnings of $10.4m during the first quarter. After adjusting for items of note in the current and prior periods’ shareholders’ net earnings the company’s adjusted shareholders’ net earnings for the first quarter were $12.1m, a 28 per cent decrease when compared with the same period in 2015. This decrease was primarily due to both the impact of foreign exchange and an increase in amortization expense, as well as an increase in restructuring and other costs. These factors were partially offset by the aforementioned improvement in the company’s Adjusted EBITDA.
“During the first quarter of 2016, Great Canadian generated revenues and Adjusted EBITDA improvements across the majority of our portfolio,” stated Rod Baker, the Company’s President and Chief Executive Officer. “These improvements reflect the significant contributions of our recently acquired Casino New Brunswick and Shorelines Casinos properties.
“The benefit of these new properties was partially offset by a revenue decline at River Rock Casino Resort. River Rock did generate encouraging slot machine revenues during the first quarter, recording the second highest slot win in its history. However, the property also experienced a 2.3 percentage point decrease in table hold percentage when compared to the first quarter of 2015. River Rock also witnessed a 16 per cent decline in table drop, primarily as a result of decreased high limit table volumes.”
“As a result of the aforementioned acquisitions, Great Canadian’s revenue base has gained considerable diversity, and we look forward to developing our presence within these new operating markets. This effort has already begun in Ontario, where we recently started construction of a new Shorelines Casino property in the city of Belleville. This property will encompass nearly 50,000 square feet, and feature approximately 400 slot machines and 20 tables. We have also announced plans to relocate the Shorelines Slots at Kawartha Downs to a new location within the city limits of Peterborough, pending receipt of the appropriate governmental approvals. This new location will allow the property to offer guests a wider array of gaming and entertainment options.”
“At the conclusion of the first quarter, Great Canadian maintained a strong cash balance,” concluded Mr. Baker. “As a result, Company remains well-positioned to take advantage of new opportunities for value creation. While we continue to pursue other potential opportunities in Ontario and elsewhere, we will also continue to efficiently manage our operations and explore additional options to grow our business.”