Recently Great Canadian Gaming Corporation has revealed its financial statistics for the second quarter of 2021. According to its interim CEO Terrance Doyle, the company is recovering well from the unprecedented situation as restrictions in the country have been relaxed and the firm recently reopened all of its gaming properties across Canada.
The gaming leader was founded in 1982, and to this day oversees and owns 25 gaming, entertainment, and hospitality properties in Ontario, B.C., New Brunswick, and Nova Scotia. Through its PROUD program, the company is able to support over 1,400 charity and non-profit organizations in the country and with its gaming revenue, the firm is often used to finance healthcare, education, and social services.
Second Quarter Results
According to Mr. Doyle, the company has made significant progress in the reopening of its properties in the country due to the increase in the mass vaccination rate. He thanked and welcomed back all of the company’s staff members who have demonstrated patience, perseverance, and understanding in the last 16 months which has been the toughest spell in the firm’s history.
The interim CEO also stated that the company is moving well towards rebuilding its business and that it continues to make progress on the closing of the Arrangement with Apollo Funds. Previously, the company announced that it had received approvals and it is closing a private offering by RAC and its affiliate of US$350 million senior secured notes.
Revenue numbers of the Q2 of 2021 and the previous year mainly compiled of the Ontario bundles’ annual entitlement of service provider fees for permitted capital expenditures recognized in their entirety in Q2 of each year and continued service provider base fixed fees. Revenue increased in comparison to last year’s Q2 as the company managed to reopen its Atlantic facilities under restrictions for a portion of the three-month period.
Adjusted EBITDA estimates to CA$41.8 million during Q2 of 2021, which is a CA$10 million increase over year-on-year comparison. Additionally, the corporation reports a negative Free Cash Flow of CA$22.8 million, which was CA$123.4 million during last year’s same quarter. Cash outflow for Q2 of CA$0.3 million decreased compared to the one of CA$383.7 million in the same period in 2020.
In May, the company revealed its financial statistics for the first quarter of the current year. For the bigger portion of Q1, the company’s all gaming properties were closed down except for the New Brunswick one. This has led to a significant drop in revenue, expenses, adjusted EBITDA1, cash flow, and shareholders’ earnings. For example, during the three months, the company reported a negative Free Cash Flow of CA$70.5 million, which is estimated to be CA$50.8 million for Q1 in 2020.
In July the firm managed to reopen 11 of its Ontario properties as the province entered Stage 3 of the reopening plan. Casino Woodbine, Great Blue Heron Casino, Casino Ajax, Elements Casino Mohawk, Elements Casino Flamboro, Elements Casino Brantford, Elements Casino Grand River, Shorelines Casino Belleville, Shorelines Casino Peterborough, Shorelines Casino Thousand Islands, and Shorelines Slots at Kawartha Downs all restarted operations.
Source: “Great Canadian Gaming Announces Second Quarter 2021 Results”, Cision, August 10, 2021