COQUITLAM, BC, March 5, 2019 /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, 2018 (the "fourth quarter") and the twelve month period ended December 31, 2018 ("2018", or "the full year").

FOURTH QUARTER AND 2018 HIGHLIGHTS

• Revenues of $342.0 million in the fourth quarter and $1,221.0 million in the full year, an increase of 126% and 99%, respectively, when compared to the same periods in the prior year.
  
• Adjusted EBITDA⁽¹⁾ of $120.3 million in the fourth quarter and $474.4 million in the full year, an increase of 145% and 113%, respectively, when compared to the same periods in the prior year.
  
• Shareholders' net earnings of $27.4 million or $0.46 per common share in the fourth quarter, an increase of 112% and 119%, respectively, when compared to the same period in the prior year. Shareholders' net earnings of $151.2 million or $2.49 per common share in the full year, an increase of 79% and 80%, respectively, when compared to the same period in the prior year.
  
• During the fourth quarter of 2018, the Company purchased for cancellation 3,167,052 common shares at a weighted average price of $48.69 per share and further purchased 136,810 common shares subsequent to 2018 at a weighted average price of $48.49. The Company has purchased a total of 3,582,462 common shares under the current normal course issuer bid.
  
• On October 15, 2018, Shorelines Casino Peterborough opened.
  
• On December 11, 2018, the Company completed the redemption of the Senior Unsecured Notes using proceeds from the $350.0 million term loan facility under the Senior Secured Credit Facilities agreement and available cash reserves.
  
• On December 19, 2018, Shorelines Slots at Kawartha Downs re-opened after temporarily closing on October 14, 2018.
  
• On December 21, 2018, the Company introduced table games at Elements Casino Mohawk and Elements Casino Flamboro, marking the first time live dealer table games are available in the Halton Region and in the City of Hamilton where these facilities are located.
  
• On January 23, 2019, Great Blue Heron Casino opened its new building addition to expand the gaming floor, which introduced over 200 new slot machines and a new food and beverage option.

"With a remarkable 2018 complete, Great Canadian remains focused on the continued execution of its operational and development plans for 2019 and beyond," stated Rod Baker, the Company's President and Chief Executive Officer. "We achieved several milestones this year including the acquisition and integration of the GTA and West GTA Gaming Bundles, the renovation and expansion of several gaming facilities, the introduction of live dealer table games for the first time in the Greater Toronto Area at Casino Woodbine, and completed corporate and project financings to support our plans to grow the business."

Increases in revenues and Adjusted EBITDA during the fourth quarter and full year, when compared to the same periods in the prior year, reflect the contributions from the GTA Gaming Bundle and the West GTA Gaming Bundle acquisitions, which began operations under the management of Great Canadian on January 23, 2018 and May 1, 2018, respectively.

"We have begun our comprehensive development plans in the GTA and West GTA Gaming Bundles, with many of our gaming facilities commencing construction during 2018 and will continue into 2019 and 2020," said Mr. Baker. "Development plans for these sites will expand gaming offerings and introduce an exciting mix of hospitality and entertainment features at the properties that will deliver exceptional guest experiences within our respective markets."

"The opening of the new Shorelines Casino Peterborough marks the culmination of the Company's significant capital investment requirements into the East Gaming Bundle, which is now expected to deliver significant free cash flow. We also worked diligently with OLG to resume operations at the Shorelines Slots at Kawartha Downs, allowing this gaming and horse racing facility to continue making meaningful economic contributions to the community it serves."

"As we make progress on the development of our Ontario properties, we continue to explore opportunities to reinvest in our properties in B.C., Atlantic, and United States. In particular, we plan to make capital investments to enhance our B.C. properties in the next few years. We remain committed to finding opportunities to enhance guest experiences at all our properties," added Mr. Baker.

"At the end of the fourth quarter, Great Canadian had a cash balance of $336.8 million, available capacity of $356.8 million on its Senior Secured Credit Facilities, available capacity of $918.0 million on OTG's credit facilities, and $151.0 million on OGWGLP's revolving credit facility. The comprehensive development plans for the Ontario gaming bundles will be supported by their respective non-recourse credit facilities, reinvested cash flows from operations, and any partner contributions required," continued Mr. Baker.

"Great Canadian has made significant enhancements to its capital structure during the fourth quarter of 2018, resulting in long-term financial stability for the Company. We completed our corporate refinancing with the redemption of the Senior Unsecured Notes on December 11, 2018, which effectively reduced our borrowing costs. Furthermore, the new Senior Secured Credit Facilities provides the Company with the additional financial flexibility to invest in our businesses or to pursue other opportunities to enhance value. To date, we repurchased a total of 3,582,462 common shares under the current normal course issuer bid, which increased shareholder interest by 6.2%. Great Canadian continues to find opportunities to make meaningful investments that will drive its business forward and provide added value to our shareholders and guests," concluded Mr. Baker.

Great Canadian will host a conference call for investors and analysts today, March 5, 2019, at 2:00 PM Pacific Time in order to review the financial results for the quarter and year ended December 31, 2018. To participate in the conference call, please dial 416-764-8688, 778-383-7413, or toll free at 1-888-390-0546.  Questions will be reserved for analysts and institutional investors.  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 28 gaming, entertainment and hospitality facilities in Ontario, British Columbia, 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 2017, over 1,900 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, management's discussion and analysis, and annual information form at www.gcgaming.com (available on March 5, 2019) or www.sedar.com (available on March 6, 2019) for detailed financial information and analysis.

GREAT CANADIAN GAMING CORPORATION
Financial Highlights
(Expressed in millions of Canadian dollars, except for per share information)

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 impact of conditions imposed on certain VIP players in British Columbia, the impact of unionization activities and labour organization, 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 Company's expected facility investment commission amounts and the Company's projected future investments to obtain facility investment commission, 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, the Company and its affiliates meeting threshold revenue growth amounts in the Ontario gaming industry in future years, the Company's projected timeline for future development, 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: compliance with the terms of new operational services agreements with lottery corporations; changes to gaming laws and regulations 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), volatile 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 and potential labour disruption; 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; privacy breaches or data theft; integration of acquired properties in Ontario; and changes to anti-money laundering procedures and protocols including additional requirements for determining source of funds.  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) loss 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 operating equity investees 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.  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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