REVENUES INCREASED 15% TO $161 MILLION. 17% INCREASE IN SHAREHOLDERS' NET EARNINGS

COQUITLAM, BC, Aug. 10, 2017 /CNW/ - Great Canadian Gaming Corporation [TSX:GC] ("Great Canadian," or "the Company") today announced its financial results for the three month period ended June 30, 2017 (the "second quarter").

SECOND QUARTER 2017 HIGHLIGHTS

• On August 7, 2017, Ontario Gaming GTA Limited Partnership ("GTA LP" or "the Partnership"), a partnership in which Great Canadian holds a 49.0% interest, was selected as the successful proponent by the Ontario Lottery and Gaming Corporation ("OLG") to operate three gaming facilities in the Greater Toronto Area (the "GTA Bundle"): OLG Slots at Woodbine, OLG Slots at Ajax Downs and Great Blue Heron Casino located in the Mississaugas of Scugog Island First Nation.
  
  
• Second quarter 2017 revenues of $161.0 million, increased by 15% when compared to the same period in the prior year.
  
  
• Adjusted EBITDA⁽¹⁾ of $62.8 million, increased by 14% when compared to the same period in the prior year.
  
  
• Shareholder's net earnings of $26.7 million, increased by 17% when compared to the same period in the prior year. Shareholders' net earnings per common share of $0.43, increased by 16% when compared to the same period in the prior year.
  
  
• Adjusted shareholders' net earnings⁽¹⁾ of $26.7 million, increased by 13% when compared to the same period in the prior year. Adjusted shareholders' net earnings⁽¹⁾ per common share of $0.43, increased by 13% when compared to the same period in the prior year.
  
  
• Great American Casino Des Moines in Washington State opened on May 18, 2017. The newest addition to the Great American family offers 15 gaming tables along with a full service restaurant and lounge serving authentic Asian cuisine.
  
  
• The Company submitted a bid on the Request for Proposals ("RFP") for OLG's Gaming Bundle 6 (West GTA).
  
  
• The Company is currently assessing OLG's RFPs for Gaming Bundle 7 (Central) and Gaming Bundle 8 (Niagara).

"The GTA Bundle is a historic opportunity for Great Canadian and its partners to service Canada's largest metropolitan region," stated Rod Baker, the Company's President and Chief Executive Officer. "Great Canadian will be the operator and developer of the gaming facilities within the GTA Bundle on behalf of the Partnership. The Partnership will work closely with all vested stakeholders as it revitalizes the GTA Bundle to enhance guest experience for visitors from within the community, across the Province, and from around the world. The developments will increase local employment opportunities and bring significant economic benefit to the local communities and the Province of Ontario."

During the second quarter of 2017, Great Canadian generated revenues of $161.0 million, an increase of 15% when compared to the same period in the prior year.  This increase reflects the contributions from Shorelines Casino Belleville, which was opened on January 11, 2017 as well as increased revenues at all property groups.

Adjusted EBITDA during the second quarter was $62.8 million, an increase of 14% when compared to the same period in the prior year.  This improvement was primarily due to the additional revenues, partially offset by the decreases in Other Vancouver Area Casinos and Great American Casinos.

Shareholders' net earnings for the second quarter was $26.7 million, an increase of 17% when compared with the same period in the prior year.  The increase was primarily due to the improvement in Adjusted EBITDA, partially offset by increases in share-based compensation, business acquisition, restructuring and other costs, and income taxes.  Shareholders' net earnings per common share of $0.43, increased by 16% when compared to the same period in the prior year due to the increase in shareholders' net earnings and a reduction in weighted average number of shares outstanding following the repurchase and cancellation of common shares in the second quarter of 2017.

"Great Canadian generated improvements to revenues at all properties and Adjusted EBITDA at the majority of its properties during the second quarter of 2017, when compared to the same period in the prior year," stated Mr. Baker.

"Great Canadian remains committed to reinvesting in all of its properties. The multi-million dollar redevelopment of View Royal Casino made good progress during the second quarter of 2017 and we are excited to announce it will be rebranded as Elements Casino Victoria when the expansion completes, bringing a new standard of entertainment to Vancouver Island.  Developments at other properties, including the River Rock and Casino Nova Scotia Halifax refresh projects, are also progressing well. We look forward to having these projects completed over the course of 2017 and early 2018 to enhance guest experiences throughout our properties."

"As excited as we are about the GTA Bundle, we will continue to pursue opportunities in OLG's gaming modernization plan.  We submitted a bid on the West GTA Gaming Bundle in July, and anticipate OLG to announce the successful proponent in the Fall of 2017.  If successful, the Company intends to be a majority partner for West GTA.  The Company is currently assessing OLG's Request for Proposals for the Central Gaming Bundle and Niagara Gaming Bundle." 

"Driven by higher revenues at all our properties, our business continues to perform well," concluded Mr. Baker.  "The strength of our balance sheet and the cash flow generation of our business will allow us to meet our capital requirements of the GTA Bundle and any other potential OLG bundles awarded, as well as any capital projects and investments that we choose to pursue."

Great Canadian will host a conference call for investors and analysts today, August 10, 2017, at 2:00 PM Pacific Time in order to review the financial results for the period ended June 30, 2017.  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 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

Great Canadian Gaming Corporation is a Canadian based company that operates gaming, entertainment and hospitality facilities in British Columbia, Ontario, New Brunswick, Nova Scotia, and Washington State.  The Company has 22 gaming properties, which consist of fourteen casinos, including a four Diamond resort hotel in Richmond, British Columbia and a four star hotel in Moncton, New Brunswick, four horse racetrack casinos, three community gaming centres and one commercial bingo hall.  A key element of Great Canadian's business model 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 August 10, 2017) or www.sedar.com (available on August 11, 2017) for detailed financial information and analysis.

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

GREAT CANADIAN GAMING CORPORATION
Financial Highlights and Adjusted Shareholders' Net Earnings
(Unaudited - 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 increased by $3.0 million in the second quarter of 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 (including participation in Ontario's gaming modernization program and possible expansion of gaming in British Columbia), 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 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, and expectations and implications of changes in legislation and government policies.  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 that impact VIP play); the outcome of modernization of gaming in Ontario; 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; 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; First Nations rights with respect to some land on which we conduct our 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 2016, and as identified in the Company's disclosure record on SEDAR at www.sedar.com.

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 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.  Forward-looking information is provided for the purpose of providing information about management's current expectations and plans and allowing investors and others to get a better understanding of the Company's operating environment.  The Company undertakes no obligation to publicly revise forward-looking information to reflect subsequent events or circumstances except as required by law.

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 condensed interim consolidated statements of earnings and other comprehensive loss, and can be computed as revenues plus share of profit of equity investment 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 for the Ontario East Gaming Bundle, restructuring severance costs, impairment reversal of long-lived assets, 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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