The financial statistics for the second quarter of 2021 were recently released by Great Canadian Gaming Corporation. According to interim CEO Terrance Doyle, the company is recovering well from the unprecedented situation, since limitations in the country have been eased, and the company has recently reopened all of its gaming properties across the country.
The gaming leader was founded in 1982 and now manages and controls 25 gaming, entertainment, and hospitality properties throughout Ontario, British Columbia, New Brunswick, and Nova Scotia. The company is able to help over 1,400 charity and non-profit organizations in the country through its PROUD program, and its gaming revenue is frequently used to support healthcare, education, and social services.
Second Quarter Results
Mr. Doyle claims that, as a result of the increased mass vaccination rate, the company has made great progress in reopening its properties in the country. He thanked and welcomed back all of the company’s employees who have shown patience, perseverance, and understanding during the firm’s most difficult period in its history, which lasted 16 months.
The interim CEO further stated that the company is making good progress in rebuilding its business and that the closing of the Arrangement with Apollo Funds is still on schedule. RAC and its affiliate had previously announced that they had received approvals and were closing a private offering of US$350 million senior secured notes.
The Ontario bundles’ annual entitlement of service provider fees for approved capital expenditures recognized in their entirety in Q2 of each year, as well as continued service provider base fixed fees, are mostly compiled in the revenue numbers for Q2 of 2021 and the previous year. In comparison to last year’s Q2, revenue grew as the company was able to reopen its Atlantic facilities under restrictions for a portion of the three-month period.
During Q2 of 2021, adjusted EBITDA is expected to reach CA$41.8 million, increasing CA$10 million over the previous year. Furthermore, the company has a negative Free Cash Flow of CA$22.8 million, compared to CA$123.4 million in the same quarter last year. 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.
The company released its financial statistics for the first quarter of this year in May. Except for the one in New Brunswick, the company’s gaming properties were closed for the majority of Q1. As a result, revenue, expenses, adjusted EBITDA1, cash flow, and shareholder earnings have all decreased significantly. For example, the company reported a negative Free Cash Flow of CA$70.5 million over the three months, which is expected to be CA$50.8 million in Q1 2020.
As the province entered Stage 3 of the reopening plan in July, the company was able to reopen 11 of its Ontario properties. 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 have all reopened.