RED DEER, ALBERTA--(Marketwired - May 13, 2015) - Gamehost Inc. (TSX:GH) -

Management and Directors of Gamehost Inc. (the "Company") are pleased to present results for the three months ended March 31, 2015 (the "Quarter", or the "Period").

Feeling It

Gamehost has felt only minor pain compared to what energy players and their service counterparts have experienced due to the drop in oil prices. Total operating revenues for the Quarter fell $0.7 million or 3.4% to $19.8 million from $20.5 million in the same quarter of 2014. Earnings before interest, taxes, depreciation and amortization ("EBITDA") that is attributable to shareholders of the Company ("EBITDA to Shareholders") fell $0.8 million or 9.0% to $8.1 million versus $8.9 in the same quarter one year earlier. EBITDA to Shareholders margin was lower by 250 basis points to 42.9% in year over year comparison. Table revenue performance continued strong while slot revenue performance was marginally down. Weakness in overall revenue was largely attributable to fewer room sales, cuts to room rates and lower F&B sales. Stepped up repair and maintenance spending in the Quarter put a further drag on EBITDA and EBITDA margins.

Around the Province in 90 Days

The downturn in economic activity in Fort McMurray has been somewhat steeper than we had initially anticipated. Energy industry layoffs in the region mostly affected contract construction workers located in camp settings near the oil sand mine sites. Typically these workers migrate to and from their home bases on shift changes by direct flight from airstrips located at the mine sites. Therefore, they did not form a significant portion of our customer base. Nevertheless, the sour sentiment seems to have spilled over to local plant maintenance workers and other city residents. Local residential development started prior to the collapse in oil prices continues and will provide for additional capacity for full time residents when market conditions improve.

Grande Prairie remained robust throughout the Quarter. Service Plus is experiencing a typical spring breakup slowdown, but perhaps with a little less forward visibility than we have enjoyed during the past few years. The Company reduced room rates in April to align with cost cutting initiatives being implemented by energy industry clients. Great Northern continues to enjoy strong foot traffic in the gaming departments, but is beginning to see some deceleration in F&B. At the present time we are cautiously optimistic that Grande Prairie will weather the current commodity storm better than other geographical areas of the province. Our optimism is buoyed by the prospects of major projects in British Columbia including west coast LNG terminals with their feed stock pipelines as well as development of the Site C Clean Energy Project hydro dam. Development of these projects will provide significant spinoff benefits to the Grande Prairie region.

Although energy sector business does not make up a significant portion of our total business volume at Deerfoot, the property did feel the pinch from energy sector companies cancelling pre-booked events in the Quarter. Deerfoot has also reduced room rates in step with our competitors under pressure from energy industry clientele. The impact of the cancellations and rate adjustments has been felt in the F&B and rooming revenue streams while gaming revenues have yet to feel any noticeable impact by the time of writing. Calgary's economy is far more diversified that some of their counterpart cities, but we continue to watch closely for any deepening trends emerging.

Opportunities to Improve

The Company has embarked on completing a number of refurbishment initiatives in our hotels. With occupancies coming off the highs we have experienced in the last few years, we can complete these projects without taking rooms out of service that might otherwise have resulted in lost sales. An additional $0.3 million over normal average repairs and maintenance expenditures was made during the Quarter. We will complete many of these projects with in house maintenance staff keeping costs to a minimum. Our properties will emerge refreshed and ready to maintain our competitive edge.

Stocks and Bonds

The Company's 6.25% subordinated convertible debentures will mature on July 31, 2015. At the end of the April there are $12.0 million of the original $55.0 million debentures outstanding. $0.8 million debentures converted during the Quarter for which the Company issued 78,025 common shares. We expect all remaining debentures to convert on or before the maturity date resulting in the issue of a further 1.1 million common shares of the Company.

The Company believes that, from time to time, the market price of it's common shares may not fully reflect their underlying value. Gamehost purchased a further 2,400 common shares on a normal course bid that expired on April 16, 2015. Gamehost filed for and received approval for a fourth normal course issuer bid which commenced April 24, 2015. Pursuant to the bid, Gamehost can purchase for cancellation up to a maximum of 1,334,673 common shares of the Company. The Company has not made any purchases on the bid to this date. This bid will terminate on April 23, 2016 or such earlier time as the bid is completed or terminated at the option of the Company.

Sticking To It

Management will be looking under stones for costs that do not provide good value. Management intentionally positioned the Company over the past few years to ensure we could sustain such an event as has emerged with lower oil prices. Low levels of debt and a low cost operating structure will ensure your investment continues to be a solid performer.

Interim condensed consolidated statements of comprehensive income
In Canadian dollars (millions except per share figures) three months ended March 31
2015 2014
Operating revenue $ 19.8 $ 20.5
Cost of sales
Other (10.5 ) (10.4 )
Depreciation (0.5 ) (0.5 )
(11.0 ) (10.9 )
Gross profit 8.8 9.6
Other income - 0.1
Administrative expenses
Other (0.9 ) (1.1 )
Depreciation (0.4 ) (0.4 )
(1.3 ) (1.5 )
Profit from operating activities 7.5 8.2
Net finance costs (0.4 ) (0.6 )
Profit before income taxes 7.1 7.6
Income tax expense (1.7 ) (1.9 )
Profit 5.4 5.7
Profit attributable to:
Shareholders of the Company 5.1 5.4
Non-controlling interest 0.3 0.3
5.4 5.7
Earnings per share
Basic $ 0.22 $ 0.23
Fully diluted $ 0.21 $ 0.23
EBITDA to Shareholders 8.1 8.9
EBITDA to Shareholders % 42.9 % 45.4 %

Gamehost has also declared a cash dividend for the month of May 2015 of $0.0733 per common share. The dividend will be paid on June 15, 2015 to shareholders of record on May 31, 2015. The ex-dividend date is May 27, 2015.

This dividend is considered an "Eligible Dividend" and therefore, eligible for the enhanced gross-up and dividend tax credit available to shareholders.

This press release may contain forward-looking statements. Forward-looking statements may contain words such as "anticipates", "believes", "could", "expects", "indicates", "plans" or other similar expressions that suggest future outcomes or events. Use of these statements reflect reasonable assumptions made on the basis of management's current beliefs with information known by management at the time of writing. Many factors could cause actual results to differ from the results discussed in forward-looking statements. Actual results may not be consistent with these forward-looking statements.

Gamehost is a corporation established under the laws of the Province of Alberta. The Company's operations are all located in the Province of Alberta, Canada. Operations of the Company include the Boomtown Casino in Ft. McMurray, the Great Northern Casino, Service Plus Inns & Suites hotel and a strip mall all located in Grande Prairie. The Company also holds a 91% ownership position in Deerfoot Inn & Casino Inc. in Calgary.

These interim consolidated financial results include the accounts of Gamehost Inc. and its subsidiaries; however, they do not include all disclosures normally provided in annual consolidated financial statements and should be read in conjunction with the 2014 annual consolidated financial statements. Further, while the financial figures included in this interim results announcement have been computed in accordance with IFRS applicable to annual periods, this announcement does not contain sufficient information to constitute an interim financial report. The company will file an interim financial report for the interim period ended March 31, 2015. This report will be filed in its entirety, along with historical financial reports on the Company's website at and on SEDAR at along with the Company's other continuous disclosure documents, when they are available.

Gamehost common shares and convertible debentures trade on the Toronto Stock Exchange (TSX) under the symbols GH and GH.DB respectively.

Contact Information:

Gamehost Inc.
Craig M. Thomas
(877) 703-4545
(403) 340-0683 (FAX)

Gamehost Inc.
Darcy J. Will
(877) 703-4545
(403) 340-0683 (FAX)