Great
Canadian Gaming Reports Loss
As reported by the CBC News:
"Great Canadian Gaming Corp. warned shareholders
Monday that it's on the verge of violating debt
agreements with its lenders as it reported a
fourth-quarter loss of $9.2 million.
"The
Richmond, B.C.-based company, which operates
racetracks and casinos in several provinces
as well as Washington state, said it lost 12
cents a share, compared with a profit of $9.7
million or 13 cents a share in the same period
a year ago, after taking writedowns totalling
$7.9 million.
"…Great
Canadian Gaming (TSX:GCD) said fourth-quarter
revenue rose to $85.6 million, compared with
$54.6 million in the same period last year,
while revenue for the full year was $278.1 million,
up from $175.7 million in 2004.
"Profit
for 2005 was $19.6 million or 25 cents a share,
down from $26.7 million or 38 cents a share
the previous year.
"…The
company said it expects to breach financial
covenants with its lenders that include a maximum
ratio of net debt to adjusted earnings as of
March 31.
"It
said it is continuing to negotiate with lenders
and noteholders, who have the right to demand
repayment if the agreements are breached…"
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