Great Canadian Gaming Corporation has linked the continuing coronavirus pandemic to a continued challenge in 2020, with all or parts of its property portfolio shut down at different points during the year.
The company has announced that its buyout by Apollo Global Management affiliates has been approved by its lenders as well as the Supreme Court of British Columbia.
Opportunity for shareholders
Terrance Doyle, the company’s interim CEO said: “As we continue navigating through this period of uncertainty, we have made significant steps to position the company for long-term success, as demonstrated by the arrangement with Apollo Funds.
“This arrangement represents a great opportunity for shareholders and we are grateful for their strong support received in favour of this arrangement. The company is working diligently to satisfy all closing conditions, including required regulatory approvals, to complete this transaction.”
Revenue fell 82 percent in the fourth quarter to $62.6 million (2020: $357.4 million), with the full-year result falling 67 percent to $442.3 million (2019: 1.35bn).
Q4 and FY adjusted EBITDA fell by 83 percent and 70 percent, respectively, to $25.5 million (2019: $152 million) and $169.2 million (2019: $557.3 million), with a net loss of $45 million for the year, compared to a profit of $62.4 million in 2019, and a loss of $101.9 million for the year, compared to a profit of $297 million in 2019.
“We worked diligently since the onset of the pandemic on our comprehensive reopening plans which positioned the company to safely reopen its Ontario and Atlantic properties for a portion of the fourth quarter,” Doyle added.
“Great Canadian takes health and safety protocols extremely seriously, and strictly follows all directives and guidance issued by public health authorities in each jurisdiction that we operate.”
Pickering Casino Resort
Additionally, the firm claims that the casino section of Pickering Casino Resort has been completed, with 2,350 slot machines, 100 table games, and 167 live dealer stadium gaming terminals.
The facility will open in two stages, the first of which will have restricted gaming opportunities and be operational for a year until the full range of gaming, dining, entertainment, and hotel facilities are available.
Doyle explained: “During the fourth quarter, we completed the construction of the casino portion at Pickering Casino Resort. We believe this casino will be a spectacular addition to the gaming and entertainment marketplace in the Greater Toronto Area once we are in a position to safely open the property.
“We continue to work on the remaining non-gaming amenities at Pickering Casino Resort and other projects in Ontario, including Casino Woodbine and Great Blue Heron, which will be funded by One Toronto Gaming’s capital expenditures credit facility.
“Despite the impact that the Pandemic has had on our construction projects, including the timing for the launch of these developments, we do not anticipate any impact to our total planned capital spend.”