Great Canadian Gaming Corporation has counted the cost of COVID-driven closures across its properties in its financial results for the three month period ended June 30, 2020. The company’s gaming facilities and ancillary amenities across the country have been temporarily closed since March 16, 2020 in an effort to contribute to the containment of the pandemic.
Shareholders’ net loss from continuing operations of $31.4m compared to net earnings of $48m year-on-year. Revenues and Adjusted EBITDA for the second quarter were $62.8m and $31.8m respectively.
CEO Rod Baker told investors: “We had a full quarter of business closure as a result of the temporary suspensions since March 16, 2020 in response to the pandemic. While we have taken actions to significantly reduce our operating expenses during the closure period, our second quarter results were negatively impacted materially by the closures.
“Since the closure of our 25 operations across the country almost five months ago, we worked closely with key stakeholders such as our Provincial Crown corporations and regulators to ensure our plans properly address provincial health authorities’ guidance and recommendations as provincial economies reopen.”
“Certain provinces have now approved casinos to reopen as part of their phased reopening plans, and we are working diligently on determining the reopening timelines and dates as we complete the necessary health and safety enhancements outlined in our plans.”
On the outlook, Baker stated: “Since the temporary closures took effect, we have ensured that each of our operating agreements remain in good standing with our Provincial Crown corporations. Once we reopen, we expect our businesses will slowly recover, with the pace of recovery governed by our guests as they adjust to the new environment and gain confidence with our safety measures.
“In addition, we expect limitations on guest capacity and ancillary amenities to be in place for an extended period of time. However, as confidence levels increase, capacity restrictions ease, and patrons become more familiar with the new guest experience, we expect the business will further recover.
“During the second quarter, we worked with our banking partners to complete amendments to each of our credit agreements to temporarily waive certain financial and other covenants. As at June 30, 2020, Great Canadian continues to remain in stable capital and liquidity position with a cash balance of $498.2m and $1,106.7m of available undrawn credit on its credit facilities, subject to applicable covenants, which further demonstrates the company’s ability to successfully navigate through this challenging period, provided the ongoing support from our banking partners.”
