11% INCREASE IN 2017 ANNUAL SHAREHOLDERS' NET EARNINGS. 8% INCREASE IN 2017 ANNUAL REVENUES.

COQUITLAM, BC, March 6, 2018 /CNW/ - Great Canadian Gaming Corporation [TSX:GC] ("Great Canadian," or "the Company") today announced its financial results for the three month period ended December 31, 2017 (the "fourth quarter") and the twelve month period ("2017", or "the full year") ended December 31, 2017.

FOURTH QUARTER AND 2017 HIGHLIGHTS

• Subsequent to the conclusion of the fourth quarter, on January 23, 2018, the Ontario Gaming GTA Limited Partnership ("OGGTA"), a partnership in which the Company now holds a 49% interest, successfully completed the acquisition of certain gaming assets in the Greater Toronto Area (the "GTA Gaming Bundle") for a purchase price of approximately $170 million. OGGTA has entered into a 5-year credit agreement providing the partnership with credit facilities in the aggregate capacity of up to $1.05 billion, comprised of a $200 million revolving facility and an $850 million capital expenditure facility.
  
  
• On December 19, 2017, the Company announced that Ontario Gaming West GTA Limited Partnership ("OGWGLP"), a partnership in which Great Canadian holds a 55% interest, was selected as the successful proponent by the Ontario Lottery and Gaming Corporation ("OLG") to operate certain gaming facilities in the West Greater Toronto Area (the "West GTA Gaming Bundle").
  
  
• Revenues of $151.0 million in the fourth quarter and $614.3 million in the full year, an increase of 6% and 8% respectively, when compared to the same periods in the prior year.
  
  
• Adjusted EBITDA⁽¹⁾ was $49.2 million for the fourth quarter and $223.0 for the full year, an increase of 4% and 7% respectively, when compared to the same periods in the prior year.
  
  
• Shareholders' net earnings of $12.9 million or $0.21 per common share in the fourth quarter, a decrease of 17% and 19%, respectively, when compared to the same period in the prior year. Shareholders' net earnings for the full year of $84.3 million or $1.38 per common share, an increase of 11% and 13% respectively, when compared to the same period in the prior year.
  
  
• Adjusted shareholders' net earnings⁽¹⁾ in the fourth quarter of $14.8 million or $0.24 per common share, a decrease of 9% and 11%, respectively, when compared to the same period in the prior year. Adjusted shareholders' net earnings for the full year of $86.4 million or $1.41 per common share, an increase of 9% and 10%, respectively, when compared to the same period in the prior year.

"We are excited to expand our presence in Ontario through OGGTA's successful acquisition of three gaming facilities in the GTA Gaming Bundle on January 23, 2018 as well as OGWGLP being selected as the successful proponent to operate four gaming facilities in the West GTA Gaming Bundle," stated Rod Baker, the Company's President and Chief Executive Officer. "As a result of completing the acquisition of certain gaming assets in the GTA Gaming Bundle, Great Canadian now operates eight gaming facilities in Ontario, including two racetracks. Upon closing of the West GTA Gaming Bundle, which is expected to occur in the second quarter of 2018, Great Canadian will expand its Ontario operations to a total of 11 gaming facilities. The West GTA Gaming Bundle will provide OGWGLP the exclusive right to operate the acquired gaming assets for a minimum period of 20 years.  We look forward to bringing our strategic vision to create dramatic enhancements to all our Ontario properties to ensure that they deliver a premier gaming, entertainment, and hospitability experience for these local communities."

Increases in revenues during the fourth quarter and full year, when compared to the same periods in the prior year, reflect the contributions from Shorelines Casino Belleville, which opened on January 11, 2017, as well as increased revenues at most of the properties.

Adjusted EBITDA increased during the fourth quarter and full year, when compared to the same periods in the prior year, mainly due to the contributions from the Shorelines Casinos and improved Adjusted EBITDA from the majority of the property groups. 

Shareholders' net earnings for the fourth quarter decreased, when compared to the same period in the prior year, due to higher income taxes and amortization. Shareholders' net earnings during 2017 increased, when compared to the prior year, primarily due to the increase in Adjusted EBITDA and a decrease in business acquisition, restructuring, and other costs, partially offset by increases in income tax and amortization.

"Great Canadian generated increases to revenues at the majority of its properties, for both the fourth quarter and full year of 2017, when compared to the same periods in the prior year," stated Mr. Baker. "Adjusted EBITDA improved for both the fourth quarter and full year of 2017, when compared to the same periods in 2016, at most of the Company's property groups.  River Rock and Vancouver Island Casinos were both negatively impacted by major renovations during the fourth quarter.  Adjusted EBITDA decreased at Great American Casinos mainly as a result of opening the new casino in Des Moines, Washington, which continues to ramp up since its launch in 2017."

"Great Canadian is committed to making capital investments to enhance and modernize both gaming and non-gaming amenities at its properties.  On February 1, 2018, River Rock unveiled a refreshed casino floor; our guests can now enjoy more gaming options and new food and beverage offerings.  The multi-million dollar redevelopment of View Royal Casino, which includes an expansion of the gaming floor and non-gaming amenities, will be completed in the first half of 2018. Construction of the new Shorelines Casino Peterborough is underway and is expected to be completed in the second half of 2018. We are excited that these projects are close to completion and will look toward other developments at our properties to enhance guest experiences."

"The Company continues to maintain its strong financial strength and flexibility to operate and develop its business effectively. As at December 31, 2017, we had a robust financial position with a cash balance of $322 million and available capacity on its undrawn senior secured revolving credit facility of $282 million, net of outstanding letters of credit," concluded Mr. Baker. "As we pursue significant business growth and expansion opportunities in our Ontario properties, we will also explore other options to grow our business."

Great Canadian will host a conference call for investors and analysts today, March 6, 2018, at 2:00 PM Pacific Time in order to review the financial results for the quarter and year ended December 31, 2017. To participate in the conference call, please dial 416-764-8609, 778-383-7417, or toll free at 1-888-390-0605.  Questions will be reserved for institutional investors and analysts.  Interested parties may also access the call via the Investor Relations section of the Company's website, www.gcgaming.com/financials.  Investors using the website should allow 15 minutes for the registration and installation of any necessary software.  A replay of the call will also be available at www.gcgaming.com/financials.

ABOUT GREAT CANADIAN GAMING CORPORATION
Founded in 1982, Great Canadian Gaming Corporation is a BC based company that operates 25 gaming, entertainment and hospitality facilities in British Columbia, Ontario, New Brunswick, Nova Scotia, and Washington State. Fundamental to the Company's culture is its commitment to social responsibility. "PROUD of our people, our business, our community" is Great Canadian's brand that unifies the Company's community, volunteering and social responsibility efforts. Under the PROUD program, Great Canadian annually invests over $2.5 million in our communities, and in 2016, over 1,500 charitable organizations were supported by Great Canadian. In each Canadian gaming jurisdiction, a significant portion of gross gaming revenue from gaming facilities is retained by our crown partners on behalf of their provincial government for the purpose of supporting programs like healthcare, education and social services.

Please refer to the Consolidated Financial Statements and Management's Discussion and Analysis ("MD&A") at www.gcgaming.com (available on March 6, 2018) or www.sedar.com (available on March 7, 2018) for detailed financial information and analysis.

The financial results on the following page are unaudited and prepared by management. Expressed in millions of Canadian dollars, except for per share information.

The following table reconciles shareholders' net earnings to adjusted shareholders' net earnings.

After adjusting for the above items of note, the Company's adjusted shareholders' net earnings decreased by $1.4 million in the fourth quarter of 2017, when compared to the fourth quarter of 2016. Adjusted shareholders' net earnings increased by $7.5 million during 2017 when compared to the same period in the prior year.

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 strategy for growth and objectives, expected future expenditures, costs, operating and financial results, expected impact of future commitments, the future ability of the Company to operate the Georgian Downs and Flamboro Downs facilities beyond the terms of the signed Ontario Lease Agreements and Ontario Racing Agreements, the impact of conditions imposed on certain VIP players in British Columbia, the impact of unionization activities, the Company's position on its claim against the British Columbia Lottery Corporation ("BCLC") with respect to the collection of marketing contributions, the Company's beliefs about the outcome of its notices of objection and subsequent appeals challenging the Canada Revenue Agency's reassessments and its tax position on its facility development commission prevailing, the terms and expected benefits of the normal course issuer bid, the Company's expected share of BC horse racing industry revenue in future years, and expectations and implications of changes in legislation and government policies, volatile gaming holds, the effects of competition in the market and potential difficulties in employee retention and recruitment.  Such forward-looking information is not a guarantee of future performance and may involve a number of risks and uncertainties.

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: terms of operational services agreements with lottery corporations; changes to gaming laws that may impact the operational services agreements; pending, proposed or unanticipated regulatory or policy changes (including those related to anti-money laundering legislation or policy that may impact VIP play), abnormal gaming holds, the effects of competition in the market; the development of properties in Ontario and transitioning of operations to the Company and affiliates; the Company's ability to obtain and renew required business licenses, leases, and operational services agreements; unanticipated fines, sanctions and suspensions imposed on the Company by its regulators; impact of global liquidity and credit availability; actual and possible reassessments of the Company's prior tax filings by tax authorities; the results of the Company's notices of objection and subsequent appeals challenging reassessments received by the Canada Revenue Agency; the Company's tax position on its facility development commission prevailing; the results of the Company's litigation with BCLC; adverse tourism trends and further decreases in levels of travel, leisure and consumer spending; competition from established competitors and new entrants in the gaming business; dependence on key personnel; the timing and results of collective bargaining negotiations; adverse changes in the Company's labour relations; the Company's ability to manage its capital projects and its expanding operations in jurisdictions where it operates; the risk that systems, procedures and controls may not be adequate to meet regulatory requirements or to support current and expanding operations; potential undisclosed liabilities and capital expenditures associated with acquisitions; negative connotations linked to the gaming industry; the risk associated with partnership relationship; First Nations rights with respect to some land on which the Company conducts operations; future or current legal proceedings; construction disruptions; financial covenants associated with credit facilities and long-term debt; credit, liquidity and market risks associated with our financial instruments; interest and exchange rate fluctuations; demand for new products and services; fluctuations in operating results; economic uncertainty and financial market volatility; technology dependence; and privacy breaches or data theft.  The Company cautions that this list of factors is not exhaustive.  Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended.  These factors and other risks and uncertainties are discussed in the Company's continuous disclosure documents filed with the Canadian securities regulatory authorities from time to time, including in the "Risk Factors" section of the Company's Annual Information Form for fiscal 2017, and as identified in the Company's disclosure record on SEDAR at www.sedar.com.

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, impairment reversal of long-lived assets, business acquisition, restructuring and other, and foreign exchange gain and other.  Adjusted EBITDA is derived from the consolidated statements of earnings and other comprehensive income, and can be computed as revenues plus share of profit of equity investments relating to principal operating entities less human resources expenses, and property, marketing and administration expenses.  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.  Adjusted shareholders' net earnings, as defined by the Company, means shareholders' net earnings plus or minus items of note that management may reasonably quantify and that it believes will provide the reader with a better understanding of the Company's underlying business performance.  Items of note may vary from time to time and in this press release include pre-opening costs, restructuring severance costs, impairment reversal of long-lived assets, facility development commission revenues previously deferred at Casino Nanaimo, other and the related income taxes thereon.

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

GREAT CANADIAN GAMING CORPORATION

"Original Signed By Rod N. Baker"

_____________________
Rod N. Baker
President and Chief Executive Officer

GREAT CANADIAN GAMING CORPORATION [TSX:GC]
95 Schooner Street
Coquitlam, BC
V3K 7A8
(604) 303-1000
Website: www.gcgaming.com

SOURCE Great Canadian Gaming Corporation

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