TORONTO,
FIRST QUARTER 2021 UPDATES
- The Company announced on
April 5, 2021 thatRaptor Acquisition Corp (the "Purchaser"), an affiliate of funds managed by affiliates of Apollo Global Management, Inc. (NYSE:APO) ("Apollo Funds"), has received approval under the Investment Canada Act for the acquisition of Great Canadian, pursuant to a previously announced plan of arrangement (the "Arrangement") involving Great Canadian, thePurchaser and Company securityholders. The Arrangement remains subject to certain other closing conditions. It is expected to be completed in the second quarter of 2021. - The COVID-19 coronavirus pandemic (the "Pandemic") continues to have a significant impact on the Company's business since the temporary suspension of all of its gaming facilities and ancillary amenities on
March 16, 2020 . The Company operated certain gaming properties inOntario andAtlantic under restricted operating conditions for a portion of the first quarter of 2021, but was required to temporarily close the majority of these properties again at various dates due to localized health authority mandates. As atMarch 31, 2021 , all properties, except for theAtlantic properties,Elements Casino Grand River andShorelines Casino Belleville , were closed. Subsequent to quarter-end, the remainingOntario andCasino Nova Scotia properties were mandated to close, and all non-critical construction activities on the Company'sOntario developments were suspended.
"Significant progress has been made in the closing of the Arrangement with Apollo Funds, as demonstrated by the recent Investment Canada Act approval. We believe this transaction is beneficial for our shareholders, our team members, our guests, and other stakeholders, and we are working diligently to satisfy all remaining closing conditions, including required regulatory approvals," stated
"Great Canadian remains committed to help contain the spread of COVID-19 by adhering to all directives and guidance issued by public health authorities in each jurisdiction that we operate, including suspending our operations when mandated to do so. Our ability to respond to local health mandates promptly and efficiently is a testament to the preparation and readiness of our team members," continued
"We have reason to remain optimistic, despite the challenges we have faced since the start of the Pandemic. For our properties that were allowed to reopen, we have observed encouraging visitation levels despite operating under restricted conditions. Additionally, we are encouraged by the continued progress of the mass vaccination program across
FINANCIAL REVIEW
The temporary suspension of operations and restricted operating conditions that the Company's gaming facilities experienced in the first quarter of 2021 resulted in decreased revenues, expenses, Adjusted EBITDA1, shareholders' net (loss) earnings, Free Cash Flow1, and total cash flows, when compared to the same period in the prior year. While certain of the Company's
The Company had negative Free Cash Flow of
Cash inflow in the first quarter of 2021 of
OUTLOOK
"We have completed the construction of the casino portion at
"The Company's financial and operational covenants under its credit facilities continue to be temporarily waived pursuant to amended credit facility agreements which were entered into in the fourth quarter of 2020. As at
CONFERENCE CALL
Due to limited operations and the pending Arrangement with Apollo Funds, the Company will not be hosting a conference call for investors and analysts to review its financial results. For detailed financial information and analysis, please refer to the Condensed Interim Consolidated Financial Statements and Management's Discussion and Analysis at www.gcgaming.com or www.sedar.com (available on
ABOUT
Founded in 1982,
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1 Adjusted EBITDA and Free Cash Flow are non-IFRS measures, as described in the disclaimer section of this press release. |
Financial Highlights
(Expressed in millions of Canadian dollars, except for per share information)
The financial results below are unaudited and prepared by management. Expressed in millions of Canadian dollars, except for per share information.
Three months ended | |||||
2021 | 2020 | % Chg | |||
Revenues | $ | 52.3 | $ | 273.8 | (81%) |
Less: | |||||
Human resources | 17.8 | 95.9 | (81%) | ||
Property, marketing and administration | 14.7 | 75.4 | (81%) | ||
Share of profit of equity investment | (0.7) | (0.5) | 40% | ||
Adjusted EBITDA | $ | 20.5 | $ | 103.0 | (80%) |
Changes in non-cash working capital | (4.5) | (17.7) | (75%) | ||
Capital expenditures, net of related accounts payable | (56.3) | (84.7) | (34%) | ||
Payment of lease liabilities | (22.1) | (21.4) | 3% | ||
Interest paid | (6.4) | (15.8) | (59%) | ||
Income taxes paid | (1.7) | (14.2) | (88%) | ||
Free Cash Flow | $ | (70.5) | $ | (50.8) | 39% |
Cash flow information | |||||
Cash generated by operating activities | 9.2 | 64.1 | (86%) | ||
Cash used in investing activities | (55.5) | (82.1) | (32%) | ||
Cash generated by financing activities | 48.9 | 570.0 | (91%) | ||
Effect of foreign exchange on cash | 0.1 | 0.2 | (50%) | ||
Cash inflow | $ | 2.7 | $ | 552.2 | 100% |
Net (loss) earnings information: | |||||
Net (loss) earnings attributable to: | |||||
Shareholders of the company | $ | (28.8) | $ | 19.2 | |
Non-controlling interests | (15.4) | 9.3 | |||
Net (loss) earnings | $ | (44.2) | $ | 28.5 | |
Shareholders' net (loss) earnings per common share | |||||
Basic | $ | (0.50) | $ | 0.35 | |
Diluted | $ | (0.50) | $ | 0.34 | |
Weighted average number of common shares (in thousands) | |||||
Basic | 57,155 | 55,282 | |||
Diluted | 57,155 | 56,297 | |||
Balance sheet information: | |||||
2021 | 2020 | % Chg | |||
Cash | $ | 437.5 | $ | 434.8 | 1% |
Total assets | $ | 3,120.8 | $ | 3,120.0 | 0% |
Long-term debt | $ | 1,368.2 | $ | 1,333.9 | 3% |
DISCLAIMER
This press release contains certain "forward-looking information" or statements within the meaning of applicable securities legislation. Forward-looking information is based on the Company's current expectations, estimates, projections and assumptions that were made by the Company in light of historical trends and other factors. Forward-looking statements are frequently but not always identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "targeted", "planned", "possible" or similar expressions or statements that events, conditions or results "will", "may", "could" or "should" occur or be achieved. All information or statements, other than statements of historical fact, are forward-looking information, including statements that address expectations, estimates or projections about the future, the Company's anticipated arrangement with
Although forward-looking information is based on information and assumptions that the Company believes are current, reasonable and complete, they are subject to unknown risks, uncertainties, and a number of factors that could cause actual results to vary materially from those expressed or implied by such forward-looking information. Such factors may include, but are not limited to: compliance with the terms of operational services agreements with lottery corporations; changes to gaming laws and regulations that may impact the operational services agreements; the Company's ability to successfully close its anticipated arrangement with
The forward-looking information in documents incorporated by reference speaks only as of the date of those documents. The Company believes that the expectations reflected in forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct. Readers are cautioned not to place undue reliance on the forward-looking information. The Company undertakes no obligation to revise forward-looking information to reflect subsequent events or circumstances except as required by law. The forward-looking information contained herein is made as of the date hereof, is subject to change after such date, and is expressly qualified in its entirety by cautionary statements in this press release.
The Company has included non-International Financial Reporting Standards ("non-IFRS") measures in this press release. Adjusted EBITDA, as defined by the Company, means earnings before interest and financing costs (net of interest income), income taxes, depreciation and amortization, share-based compensation, business acquisition, restructuring and other, and foreign exchange gain. Adjusted EBITDA is derived from the Condensed Interim Consolidated Statements of (Loss) Earnings and Other Comprehensive (Loss) Income, and can be computed as revenues less human resources expenses and property, marketing and administration expenses plus the share of profit of equity investments relating to principal operating entities. The Company believes Adjusted EBITDA is a useful measure because it provides information to management about the operating and financial performance of the Company and its ability to generate operating cash flow to fund future working capital needs, service outstanding debt, and fund future capital expenditures. Adjusted EBITDA is also used by investors and analysts for the purpose of valuing the Company. The Company has reported Free Cash Flow as an additional measure of its operating performance, particularly to monitor the Company's non-discretionary cash requirements during the Pandemic period. Free Cash Flow can be computed as Adjusted EBITDA less the following items derived from the Condensed Interim Consolidated Statements of Cash Flows: changes in non-cash working capital, capital expenditures, net of related accounts payable, payment of lease liabilities, interest paid and income taxes paid.
Readers are cautioned that these non-IFRS definitions are not recognized measures under International Financial Reporting Standards ("IFRS"), do not have standardized meanings prescribed by IFRS, and should not be construed to be alternatives to net earnings determined in accordance with IFRS or as indicators of performance or liquidity or cash flows. The Company's method of calculating these measures may differ from methods used by other entities and accordingly our measures may not be comparable to similarly titled measures used by other entities or in other jurisdictions. The Company uses these measures because it believes they provide useful information to both management and investors with respect to the operating and financial performance of the Company.
ON BEHALF OF
"Original Signed By
_____________________
Interim Chief Executive Officer
M3C 3K5
Website: www.gcgaming.com
SOURCE
© Canada Newswire, source