INITIATING COVERAGE ACUMEN CAPITAL | RESEARCH

Transcription

ACUMEN CAPITAL | RESEARCH
ENERGY. GROWTH. VALUE.
Gamehost Inc. (GH:TSX)
Recommendation:
SPECIAL SITUATIONS RESEARCH
12-Month Target:
Implied Total Return:
BUY
$12.10
10.9%
Gamehost Inc. (“Gamehost” or “the Company” or “GH”) is an Alberta-based Company primarily focused on the gaming industry and
hospitality. The Company operates 2 wholly owned casino’s located in Fort McMurray and Grand Prairie and a 91% interest in a casino
in Calgary. The Company also owns a limited service hotel and a complimentary retail complex adjacent to the casino in Grand Prairie.
Brian D. Pow MBA| VP Research & Equity Analyst | 403.571.0303 | bdp@acumencapital.com
Stephen Cardon| Equity Research Associate | 403.410.6840 | sjcardon@acumencapital.com
INITIATING COVERAGE
•
Gamehost is an Alberta-based company primarily focused on the gaming industry and hospitality. With
operations solely in AB, GH operates in a jurisdiction with high barriers to entry. The Company’s casinos are
located in Fort McMurray, Grand Prairie and Calgary, cities that are benefiting from the strong Alberta
economy and experiencing good population growth. Locations are benefiting from favorable demographic
trends and casino patron behavior.
•
Gaming operators in AB benefit from a high leverage business model as the government owns and services
equipment (slot machines, video lottery terminals and lottery ticket outlets) and provides back office
support for gaming equipment. The provincial model provides a vehicle for licensed charities to raise funds.
•
Turning to GH, the Company is well established, being one of the early casino operators in AB. Key principals
have built the business from inception, and developed and maintained reputable relationships with the
Alberta Liquor and Gaming Commission (“ALGC”). Looking at the operations, they have put in solid systems
to manage expenses and complemented this with disciplined and creative marketing to influence top line
performance for hospitality services.
•
Investor sentiment is high for GH. Beyond a tight float because of significant insider ownership (~49.4%), the
current valuation reflects confidence in the quality of the cash flow from this business and the support of the
attractive dividend yield (monthly dividend of $0.0733 for an annual yield of ~7.5%). We expect the
Company to continue benefiting from the “Alberta Advantage” and post reasonable growth numbers going
forward.
•
We initiate coverage with a BUY recommendation. Our $12.10 target is based on historical EV/EBITDA, 2013
peer group EV/EBITDA and discounted cash flow analysis.
ACUMEN CAPITAL FINANCE PARTNERS LIMITED | SUITE 700 – 404 – 6th AVENUE SW | CALGARY, AB | T2P 0R9
MAIN PHONE: 403.571.0300 | TOLL FREE: 1.888.422.8636
April 18, 2012
Page 2 of 24
FINANCIAL FORECASTS
Gamehost Inc.
Acumen Capital Partners
Symbol
GH
Market Capitalization
Exchange
TSX
Enterprise Value
Last Price
$11.70
12-Month Target
Shares (dil.)
21.2m
Pot. Capital Return
Monthly Dividend $0.073
Dividend Yield
Year End
Dec-31
Pot. Total Return
Operating Results
F09 (C-GAAP)
F10 (IFRS)
Total Revenue
$48.1m
$62.4m
y/y % Change
Gross Margin (%)
y/y % Change
EBITDA to Owners*
y/y % Change
Net Earnings to Owners
$247.7m
$301.9m
$12.10
3.4%
7.5%
10.9%
F11 (IFRS)
$72.0m
Share Ownership (diluted)
Insiders
49.4%
Institutions
10.4%
Other (10% Hol ders )
0.0%
F12e
$76.7m
F13e
$80.7m
-9.9%
29.9%
15.3%
6.5%
5.3%
41.0%
46.0%
44.7%
44.6%
45.1%
-2.5%
4.9%
-1.2%
-0.1%
0.4%
$21.5m
$27.1m
$30.6m
$33.0m
$35.3m
-14.9%
25.7%
13.0%
7.7%
7.2%
$10.0m
$13.9m
$14.9m
$16.9m
$18.7m
y/y % Change
-12.6%
38.5%
7.5%
13.4%
10.6%
EPS (Diluted) to Owners
$0.47
$0.66
$0.70
$0.79
$0.88
y/y % Change
-55.4%
38.5%
5.9%
14.2%
10.6%
Cash Flow
CFO (Adjusted)**
CFO per share (Adjusted)**
FCF per share (Adjusted)**
F09 (C-GAAP)
$26.2m
$1.24
$1.20
F10 (IFRS)
$27.4m
$1.30
$1.69
F11 (IFRS)
$26.3m
$1.24
$1.48
F12e
$28.4m
$1.34
$1.58
F13e
$16.5m
$0.77
$1.04
Financial Position
Working Capital
Debt
F09 (C-GAAP)
$7.6m
$23.3m
F10 (IFRS)
$10.8m
$73.6m
F11 (IFRS)
$14.5m
$71.9m
F12e
$22.8m
$66.5m
F13e
$18.1m
$59.6m
Key Metrics
ROAE
BV/Share
F09 (C-GAAP)
108.7%
-$0.64
F10 (IFRS)
34.6%
$4.67
F11 (IFRS)
16.6%
$4.43
F12e
19.0%
$4.57
F13e
20.0%
$4.80
*F09 EBITDA from F10 year-end financial statements.
**Adjusted for Class B share distributions.
Source: Acumen Capital Partners, Company Filings, Bloomberg, Figures Subjected to Rounding
Acumen Capital Finance Partners Limited #700, 404 – 6 Avenue SW | Calgary, AB | T2P 0R9| Main Phone: 403-571-0300
April 18, 2012
Page 3 of 24
INVESTMENT OVERVIEW
We are introducing coverage on GH with a Buy recommendation. Our positive thesis is centered on;
1. GH is a leader in the gaming industry in Alberta and is distinguished by its hospitality business, which attracts
patrons into the facilities and adds ancillary revenue. Non-casino revenue is currently contributing ~50% of total
revenues. GH operates all of its beverage services, while food services are either Company owned or operated by
3rd parties with a commission.
2. Organic growth is likely to be the revenue driver for the near future and GH is focused on attracting clientele to
its facility who may not be typical gamers through interesting entertainment offerings. GH’s aggressive stance
on its hospitality business, improving economic performance and population growth lend support to further
margin enhancement in the near term despite inflations.
3.
We believe industry barriers and the tight market will allow the Company to sustain above average margins over
the longer term. The Alberta government has a moratorium on new licenses so growth will be levered to
additional equipment in existing premises, additional traffic and higher spends per customers.
4. The Company is a strong cash generator and the business is not capital intensive on an ongoing basis. The
dividend currently translates to a 7.5% yield.
REGULATION AND INDUSTRY OVERVIEW
Looking at the gaming industry in Canada, Alberta is one of three provinces that allow the private ownership of casinos,
the other two being BC and Nova Scotia. Specific to Alberta;
The Alberta market is highly regulated with gaming activities used as a platform for licensed charitable and
religious groups to raise funds. These groups conduct a casino event within a licensed facility and receive the
proceeds from table games while paying a fee to the facility operator. They also earn a portion of the revenue
from slot machines and are paid in the form of a commission. Licensing and regulations are overseen by the
Alberta Gaming and Liquor Commission (“AGLC”) which is responsible for setting slot machine odds and the
revenue sharing terms for table games.
Slots and VLT machines are owned and maintained by the provincial government.
AGLC is generally protective of operators and historically haven’t awarded licenses that will create direct
competition. Currently there is a moratorium on allowing new casino licenses.
Licenses are not transferable without approval and requests for a license require a lengthy approval process.
Licenses are three years in length with operators subject to annual audits.
The current revenue arrangement for slot machines is 15/15/70 for casino operators, charities and the provincial
government in that order. For table games AGLC sets the revenue sharing agreement for casinos and charities.
April 18, 2012
Page 4 of 24
AGLC is responsible for licensing the groups that conduct the gaming events and monitoring the use of proceeds.
Licensing of charitable groups has grown at a slow pace.
FIGURE 1 | AGLC HISTORICAL CHARITABLE GAMING LICENCES ISSUED
3550
3500
3450
3400
3350
3300
3250
3200
3150
3100
Casino
2007
3259
2008
3424
2009
3471
2010
3494
2011
3524
Source: http://aglc.ca/publications/annualreports.asp, Acumen Capital Partners
Figure 2 shows that there are currently 24 licensed casino operators in Alberta with 2008 being the last time a license was
given out.
FIGURE 2 | AGLC LICENCED CASINOS FACILITIES IN ALBERTA
Traditional Casino Facilities
First Nations Casino Facilities
Total
2007
18
1
19
2008
19
4
23
2009
19
5
24
2010
19
5
24
2011
19
5
24
Figure 3 shows that slot machines are significant generators of revenue; totaling $14.6B in the 12 months ending March
2011.
FIGURE 3 | AGLC ALBERTA WIDE SLOT MACHINE HIGHLIGHTS
2007
2008
2009
Revenue
$12618.6m $15129.2m $15495.4m
Prizes
$11620.7m $13927.2m $14263.8m
Gross Profit
$997.8m $1201.9m $1231.6m
Commissions/Federal Payments $298.6m $361.3m $369.8m
Net Revenue
$699.2m $840.6m $861.9m
2010
$14621.4m
$13457.8m
$1163.6m
$339.7m
$823.9m
2011
$14610.6m
$13458.4m
$1152.2m
$343.1m
$809.0m
As a result of the licensing moratorium, growth in the number of slot machines has been limited to adding machines in
existing licensed facilities. With 1,605 slots in total, GH had ~12.1% of the total installed machines in 2011.
FIGURE 4 | AGLC TOTAL SLOT MACHINES IN ALBERTA
Edmonton
Calgary
Other
Racing Entertainment Centres
Total
2007
3808
3429
2160
835
10232
2008
3976
4188
2860
835
11859
2009
4145
4528
3171
836
12680
2010
4247
4561
3230
835
12873
2011
4381
4584
3478
835
13278
April 18, 2012
Page 5 of 24
Alberta has maintained a responsible gaming environment and constantly monitors gaming facilities to make sure the
gaming activities are in compliance of legislation and policy. Figure 5 shows Alberta charitable groups have been the
beneficiaries of the gaming activity in Alberta.
FIGURE 5 | TOTAL ALBERTA CHARITABLE FUNDRAISING FROM CASINOS
Total Gross Amount Raised
Proceeds to Charity
2007
2008
2009
2010
2011
$860.9m $1042.0m $1106.4m $1013.6m $971.8m
$198.2m $243.9m $252.4m $234.6m $230.6m
COMPANY OVERVIEW
GH was founded in 2003 as an income fund and, through a series of organic investments, ALGC authorized growth and
upping its interest in the Calgary properties outlined in Figure 6. The Company is well positioned with an attractive facility
portfolio. Hotel operations include full and limited service hotels with banquet and convention services.
FIGURE 6 | GAMEHOST INC. | BUSINESS DEVELOPMENT TIMELINE
Year
2003
2005
2006
2007
2010
Total
Event
Inception of Fund
Great Northern Casino Expansion
Deerfoot Opening
Boomtown Casino Expansion
Deerfoot Renovation
Deerfoot Acquisition
Additional Gaming and Additional Banquet Total Increase Total Sq. Ft
Entertainment Sq. Ft and Convention Sq. Ft
in Sq. Ft
Increase % Total Sq. Ft
31,864
0
0
0
31,864
9,800
1,200
11,000
34.5%
42,864
24,000
8,000
32,000
74.7%
74,864
11,000
0
11,000
14.7%
85,864
480
0
480
0.6%
86,344
31,212
10,200
41,412
48.0%
127,756
108,356
19,400
95,892
300.9%
127,756
Source: Company Filings
GH’s interest in the Calgary facility was increased from 51% to 91% in May, 2010. For reporting purposes financial results
includes 100% of assets, liabilities, revenues and expenses with adjustment for the non-controlling interest at the net
income level. While GH’s Calgary facilities provided the largest segment of revenue, Calgary has higher costs than other
properties because GH owns and operates its food and banquet services. GH has ~16.7% of the slots installed in Calgary.
FIGURE 7 | GAMEHOST INC. | CALGARY FACILITIES DETAILS
Operations
Full Service Hotel
Deerfoot Inn
Deerfoot
Convention
Deerfoot Casino
Game/Rooms
Size (Sq. Ft) Leased/Owned
188 rooms, one restaurant
Owned 91%
N/A
and one lounge.
Full Service Catering 12 conference/banquet
24,500
Owned 91%
rooms.
Casino, food &
767 slots, 3 VLT's, 26 tables,
65,000
Owned 91%
beverage services, 8 poker tables, 400 seat
and live
show room, two bars, and
entertainment
a food kiosk.
Source: Company filings, Acumen Capital Partners
April 18, 2012
Page 6 of 24
FIGURE 8 | GAMEHOST INC. | CALGARY FACILITIES
Source: Company filings
There are six other casinos operating in Calgary with the Grey Eagle Casino (Tsuu T’ina First Nation) being GH’s
most prominent competition. Unlike a traditional operator, the Grey Eagle Casino has the advantage of allowing
patrons to smoke within its facility. However, the Deerfoot Inn and Casino is the only gaming facility to operate
in Southeast Calgary. There is also a limited service hotel within blocks of the facility owned and operated by a
related party and was built on speculation to benefit from the proximity to the Deerfoot Inn and Casino. Figure 9
is a map of casinos within Calgary. The Manitoba government recently granted an expansion to a provincial
casino on the condition the facility would go non-smoking. If Alberta followed suit Deerfoot would be the
benefactor.
FIGURE 9 | GAMEHOST INC. | CALGARY COMPETITIVE LANDSCAPE
Casino
A) Calgary Casino
B) Stampede Casino
C) Grey Eagle Casino
D) Deerfoot Inn and Casino
H & J) Elbow River Casino
I) Century Casino Calgary Inc. (formerly Frank Sissons)
J) Cash Casino Place
Non-Casino
E) Silver Dollar Bowling
F) Casino Fun (Party Rental Business)
Source: Google Maps
April 18, 2012
Page 7 of 24
While GH’s Great Northern Casino is the only full service casino in Grand Prairie, there is a combined thoroughbred race
track/casino (“racino”) in the city that has 99 slot machines. With the hotel in Grand Prairie, GH does see some
seasonality associated with the oil industry. The retail complex tenants include a liquor store, a pub and a full service
restaurant to complement the service offering. (Regarding the racino, Ontario recently introduced legislation to pull back
support for these types of facilities which would benefit GH if the same legislation was to be introduced into Alberta).
FIGURE 10 | GAMEHOST INC. | GRANDE PRAIRIE FACILITIES DETAILS
Grande Prairie
Great Northern
Casino
Operations
Casino, food &
beverage services,
and live
entertainment
Service Plus Inn &
Suites
Commercial Strip
Mall
Game/Rooms
419 slots 15 tables, 3 poker
30,864
Owned
rooms, 100 seat banquet
room, 145 seat lounge and
showroom, 45 seat piano
bar, and café.
Limited service hotel 123 guest rooms, 40 seat
N/A
Owned
meeting
room,
and
breakfast room.
Retail strip mall
2 leases with 5 year terms
10,530
Owned
leasing space
expiring 2014 with 2
additional 5 year renewal
terms.
FIGURE 11 | GAMEHOST INC. | GRANDE PRAIRIE FACILITIES
April 18, 2012
Page 8 of 24
GH’s Boomtown Casino is the only gaming facility in Fort McMurray and demographics play well into GH’s operations.
FIGURE 12 | GAMEHOST INC. | FORT MCMURRAY FACILITIES DETAILS
Fort McMurray
Boomtown Casino
Operations
Game/Rooms
Casino, food &
420 slots, 10 tables, 3 table
Leased to 2020
beverage services, poker room, Café, 145 seat
with two 5 year
23,512
and live
lounge and Showroom.
renewal
entertainment
options.
FIGURE 13 | GAMEHOST INC. | FORT MCMURRAY FACILITIES
Figure 14 summarizes the facility performance and highlights how competition plays into the performance in the
different markets. The Company has seen little change in the number of electronic gaming devices and tables over the
last three years. Y/y revenue growth for Q411 of ~6.4% for Deerfoot (Calgary), 1.2% for Boomtown (Fort McMurray),
9.2% for Service Plus (Grand Prairie) and 12.9% for Great Northern Casino (Grand Prairie) point to a recovering economy.
Calgary reported consistent results for slots but continued to see underperformance of its table. Grand Prairie and Fort
McMurray results have been more consistent for slots and tables.
FIGURE 14| GAMEHOST INC. | FACILITIES OVERVIEW SUMMARY
Casino
Average Slots/VLT's
Total Slot Machine Win
Slot Machine Win/Day/Machine
Average Tables
Table Drop
Table Hold%
Average Poker Tables
Poker Rake
Hotel
Average Rooms
Average Daily Rate
Occupancy %
2009
Calgary
2010
2011e
2009
Grande Prairie
2010
2011e
740
$66.9m
$247.94
26
$61.0m
19.4%
8
$1.6m
764
$67.6m
$242.48
26
$61.4m
16.7%
8
$1.5m
770
$70.0m
$248.99
26
$54.8m
16.7%
10
$1.6m
399
$38.7m
$266.03
15
$13.3m
21.0%
3
$0.5m
416
$37.0m
$243.42
15
$13.5m
20.3%
3
$0.5m
419
$40.1m
$262.42
15
$15.6m
19.6%
3
$0.4m
399
$59.7m
$409.80
10
$20.0m
19.3%
3
$0.5m
413
$60.2m
$399.45
10
$15.7m
19.7%
3
$0.6m
188
$163.88
188
$162.43
188
$166.02
123
$133.27
123
$127.37
123
$128.93
N/A
N/A
N/A
N/A
N/A
N/A
311
$297.15
311
$289.80
311
$294.95
67.3%
67.0%
69.5%
58.8%
68.7%
68.3%
N/A
N/A
N/A
63.1%
67.9%
68.9%
2009
Fort McMurray
2010
2011e
2009
Total
2010
2011e
419
1538
1593
1608
$61.3m $165.3m $164.8m $171.4m
$401.04 $923.77 $885.35 $912.45
10
51
51
51
$17.4m $94.3m $90.5m $87.7m
17.7%
19.9%
17.7%
17.4%
3
14
14
16
$0.6m
$2.7m
$2.6m
$2.6m
April 18, 2012
Page 9 of 24
CASINO GAME OVERVIEW
Figure 15 summarizes gaming activities terms.
FIGURE 15 | GAMEHOST INC. | KEY GAMING ACTIVITY TERMS
Table Game ABC’s
Drop – money cashed to chips
Hold – amount of Drop retained or won which is shared between charities and operators
Hold% - equates from Hold over Drop
Net Table revenue – operator’s share of the Hold
Slot Machine ABC’s
Cash Play – money played on machines
Net – revenue to operator
Poker Game ABC’s
Pot – amount anted and bet by players
Rake – amount of pot retained typically based on a flat fee and shared between charities and operators
Net – Operators share of the rake
Source: Company Filings
April 18, 2012
Page 10 of 24
FINANCIAL OVERVIEW
GH manages its business and reports results by three complimentary business units - Gaming, Hotel, and Food and
Beverage. Operating revenue is generated from rooms, table gaming, slot machines, food and beverage sales and
supplementary revenues which are highly correlated to gaming revenue. Table revenue only includes GH’s net of the
Hold or Rake. Recently reported results showed Q411 operating revenue of ~$19.0MM and F11 operating revenue of
~$72.0MM, up ~ 6.4% and ~15.3% y/y respectively. The large growth for F11 shows the benefit of the additional
ownership in Deerfoot effective May F10. GH exited F11 with Q411 being a record quarter of revenue.
FIGURE 16 | GAMEHOST INC. | QUARTERLY REVENUE
$20.0m
$18.0m
$16.0m
$14.0m
$12.0m
$10.0m
$8.0m
$6.0m
$4.0m
$2.0m
$0.0m
Q207
Q307
Q407
Q108
Q208
Q308
Q408
Q109
Q209
Q309
Q409
Q110
Q210
Q310
Q410
Q111
Q211
Q311
Q411
Revenue $14.3m $14.3m $14.9m $13.3m $13.5m $13.3m $13.3m $12.9m $12.1m $11.3m $11.8m $11.4m $15.9m $17.3m $17.8m $16.8m $18.6m $17.6m $19.0m
Source: Acumen Capital Partners, Company Filings, Sedar, Figures subjected to rounding
EBITDA performance was also reasonable exiting F11 and margins remain within trend.
FIGURE 17 | GAMEHOST INC. | EBITDA VS EBITDA MARGIN
$9.0m
60%
$8.0m
50%
$7.0m
$6.0m
40%
$5.0m
30%
$4.0m
$3.0m
20%
$2.0m
10%
$1.0m
$0.0m
Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411
EBITDA
$7.1m $6.9m $7.3m $6.3m $6.3m $6.4m $6.5m $6.3m $5.3m $4.9m $4.9m $5.5m $6.4m $7.8m $7.4m $6.8m $8.2m $7.5m $8.1m
EBITDA Margin 49.5% 48.5% 49.0% 47% 46.7% 47.9% 48.6% 49.2% 44.1% 43.6% 41.8% 47.7% 40.2% 45.0% 41.8% 40.3% 44.1% 42.8% 42.6%
0%
April 18, 2012
Page 11 of 24
Figure 18 gives a better sense of the recovery that has taken place in GH’s business over the last 3 years. Q210 onwards
includes the additional 51% of the Calgary Deerfoot operation.
FIGURE 18 | GAMEHOST INC. | TTM REVENUE VS TTM EBITDA
$80.0m
$35.0m
$70.0m
$30.0m
$60.0m
$25.0m
$20.0m
$40.0m
$15.0m
EBITDA
Revenue
$50.0m
$30.0m
$10.0m
$20.0m
$5.0m
$10.0m
$0.0m
Trailing Revenue
Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411
$56.9m $56.1m $55.1m $53.5m $53.1m $51.6m $49.6m $48.1m $46.6m $50.4m $56.4m $62.4m $67.8m $70.5m $70.9m $72.0m
$0.0m
Trailing EBITDA to Owners $27.6m $26.9m $26.3m $25.5m $25.5m $24.5m $23.1m $21.5m $20.6m $21.7m $24.6m $27.1m $28.4m $30.2m $30.0m $30.6m
Table, slot and room revenues are additional ways to monitor performance. Figure 16 highlights metrics from the Table
Game segment. Hold % has averaged at ~17% but fluctuations of Table Drop and Hold % are not always reliable
indicators of performance. Table revenue remained relatively similar y/y since the Deerfoot acquisition. Boomtown and
Great Northern saw Q411 net revenue increase by ~21.9% and ~11.4% y/y respectively while Deerfoot decreased ~9.4%
y/y.
FIGURE 19 | GAMEHOST INC. | TABLE GAME METRICS
Total Revenue
General and High Limit
Poker
Caribbean Stud
Table Drop
Table Hold %
Q110
$1.8m
$1.5m
$334.7k
$15.7k
$23.0m
16.5%
Q210
$2.3m
$1.9m
$431.5k
$19.0k
$24.8m
16.4%
Q310
$2.8m
$2.3m
$506.0k
$11.0k
$20.8m
20.3%
Q410
$2.6m
$2.1m
$450.0k
$10.0k
$21.9m
17.8%
F10
$9.6m
$7.8m
$1722.2k
$55.7k
$90.5m
17.7%
Q111
$2.4m
$1.9m
$495.3k
$9.2k
$20.3m
15.0%
Q211
$2.5m
$2.1m
$482.9k
$9.3k
$22.1m
16.4%
Q311
$2.7m
$2.2m
$473.0k
$27.0k
$21.6m
19.3%
Q411
$2.8m
$2.3m
$496.0k
$33.0k
$22.4m
17.3%
F11
$10.5m
$8.5m
$1947.2k
$78.5k
$86.4m
17.5%
Slot Cash Play was consistent for the last three quarters of F11 and showed good y/y growth for Q4/11 and F11. Revenue
has increased slightly y/y as the Alberta economy continues to grow providing the Company’s clientele with more
disposable income. Compared to last Q4, Boomtown, Great Northern and Deerfoot increased revenue by ~0.6%, ~14.7%
and ~9.1% y/y respectively.
FIGURE 20 | GAMEHOST INC. | SLOT MACHINE METRICS
Slot Revenue
Slot Cash Play
Slot Machines
Q110
$4.5m
$402.3m
1127
Q210
$6.0m
$520.6m
1605
Q310
$6.2m
$546.0m
1605
Q410
F10
Q111
$6.0m
$22.7m
$5.8m
$535.0m $2003.9m $524.4m
1605
1605
1605
Q211
$6.8m
$581.4m
1605
Q311
$6.5m
$577.0m
1605
Q411
F11
$6.5m
$25.7m
$574.0m $2256.8m
1605
1605
April 18, 2012
Page 12 of 24
Rooming revenue, Average Daily Rate (“ADR”) and Occupancy were both up for Q411 and F11. As expected, revenue per
available rooms fluctuates with seasonal and economic cycles. Service Plus increased its Q4 occupancy rates y/y by ~5.4%
and Deerfoot saw ~2.2% improvement.
FIGURE 21 | GAMEHOST INC. | HOTEL METRICS
Rooming Revenue
Q110
$1.7m
Q210
$2.5m
Q310
$3.1m
Q410
$2.8m
F10
$10.1m
Q111
$3.0m
Q211
$3.0m
Q311
$3.1m
Q411
$3.0m
F11
$12.1m
Rooming Occupancy
67.7%
67.4%
71.8%
64.6%
67.9%
69.1%
67.5%
69.5%
68.2%
68.6%
Average Daily Rate
$138.65
$148.79
$150.09
$147.77
$147.11
$148.79
$154.71
$153.68
$150.21
$151.84
Food and Beverage (“F&B”) revenue was up y/y from both Q411 and F11 from increased volume. This is a good leading
indicator for customer confidence on spending disposable income and historically has led to increased gambling and
travel.
FIGURE 22 | GAMEHOST INC. | FOOD AND BEVERAGE REVENUE
Food and Mix Revenue
Liquor Revenue
Q110
$0.6m
$1.8m
Q210
$1.5m
$2.3m
Q310
$1.4m
$2.3m
Q410
$1.9m
$2.8m
F10
$5.5m
$9.2m
Q111
$1.7m
$2.5m
Q211
$1.9m
$2.6m
Q311
$1.5m
$2.4m
Q411
$2.1m
$2.9m
F11
$7.3m
$10.4m
Ancillary revenue consists of revenue generated from ATM’s, VLT’s, ticket sales for lotteries and entertainment, as well as
other extra hotel charges. Y/y increases are consistent with performances seen in other areas.
FIGURE 23 | GAMEHOST INC. | ANCILLARY REVENUE
Ancillary Revenue
Q110
$1.0m
Q210
$1.3m
Q310
$1.3m
Q410
$1.6m
F10
$5.2m
Q111
$1.3m
Q211
$1.7m
Q311
$1.4m
Q411
$1.7m
F11
$6.1m
In terms of running the business, labour is the largest component of expenses and GH has put tight controls in place to
keep costs in check. Other operating costs include entertainment, premises leases, repairs & maintenance, utilities,
property taxes, depreciation and operating supplies. Renovation costs in Grande Prairie and Calgary as well as other
general tax and utility costs increases caused the y/y increase of other operating costs in Q411.
FIGURE 24 | GAMEHOST INC. | COST OF SALES BREAKDOWN
Food & Mix
Liquor
Other
Operating Labour
Marketing
Other Operating Costs
Cost of Sales
Q110
$229.3k
$382.9k
$21.1k
$2.7m
$463.4k
$2.0m
$5.9m
Q210
$517.2k
$458.5k
$52.0k
$4.0m
$765.4k
$2.9m
$8.7m
Q310
$512.0k
$473.0k
$63.0k
$4.4m
$709.0k
$3.0m
$9.2m
Q410
$623.0k
$560.0k
$66.0k
$4.8m
$788.0k
$3.2m
$10.0m
F10
$1881.5k
$1874.4k
$202.1k
$15.9m
$2725.8k
$11.2m
$33.8m
Q111
$600.8k
$517.9k
$60.1k
$4.6m
$746.6k
$3.1m
$9.6m
Q211
$642.3k
$527.5k
$56.8k
$4.7m
$786.1k
$3.2m
$10.0m
Q311
$575.0k
$489.0k
$53.0k
$4.6m
$789.0k
$3.3m
$9.8m
Q411
$695.0k
$587.0k
$69.0k
$4.8m
$716.0k
$3.6m
$10.5m
F11
$2513.1k
$2121.4k
$238.9k
$18.7m
$3037.7k
$13.2m
$39.8m
Finally, the Company converted from an income fund in 2010 and has certain tax deferrals available to the end of 2012.
For F13 and beyond GH will be responsible for making installment payments. The combined federal and provincial rate
for F11 was 26.5% and the effective tax rate for F12 is 25.0%.
April 18, 2012
Page 13 of 24
LIQUIDITY AND CAPITAL RESOURCES
Working Capital is committed to cash floats for table games, slot machines, ATM machines, VLT’s, self-service touch point
stations for redemption (TITO Kiosks), point of sale terminals and incidental cash needs. Float balances represent ~4.0%
of slot and table activities. GH is required to maintain a net working capital position relating to casino operations by
ALGC.
GH is well positioned and has limited need to recycle a portion of its operating cash flow into its existing facilities
(maintenance expenses are ~$0.6MM p.a.). Excess cash in the past has been used to reduce LTD, buy back shares and
pay dividends to shareholders. The Company used excess capital to buy back $5.6MM worth of shares over the last 12
months (495,140 shares at ~$11.00 per share) and recently renewed its NCIB. The negative number in Q210 was a result
of an adjustment for a previous period.
FIGURE 25 | GAMEHOST INC. | MAINTENANCE CAPITAL
Q110
Q210
Q310
Q410
F10
Maintenance Capital
$360.9k ($296.2k)
$71.0k
$113.0k
$248.7k
Q111
$143.2k
Q211
$12.9k
Q311
$86.0k
Q411
$72.0k
F11
$314.1k
GH employs leverage in its business. GH exited F11 carrying ~$71.9MM (~$73.5MM exiting F10) of debt consisting of a
~$4.0MM revolving credit loan ($6.0MM total facility), two demand loans of ~$11.7MM and ~$11.3MM secured by land
and building and ~$44.9MM of 6.25% convertible unsecured subordinated debentures ($10.65 conversion and 2015
expiry). The demand loans are secured by land and buildings and have reasonable commercial payment terms and
competitive interest rates. Debt to EBITDA was ~238% at yearend F11, down from ~271% entering the year.
MODEL ASSUMPTIONS
With the Alberta economy continuing to recover we expect to see a positive growth trend going forward.
Our financial estimates include the following;
•
•
•
•
•
Our 2012 and 2013 revenue estimates translate to 6.50% to 5.25% y/y growth respectively.
GH to generate ~$16.5MM - ~$28.4MM of annual operating cash flow.
GH’s business has historically had little demand for capex (~$0.5MM to ~$1.0MM /year).
GH currently pays a monthly dividend of $0.0733 and we are not modeling any increase at this time.
GH will be cash taxable in 2013.
April 18, 2012
Page 14 of 24
VALUATION
We see outperformance from direct leverage to consumer spending as the catalyst for the stock. We also note that the
stock doesn’t appear to imbed any Alberta expansion option value in the price and, given the Company’s strong relations,
we believe GH is well positioned to be awarded any additional licenses or be allowed to grow through acquisitions.
Turning to our valuation process, as a first step, we look at GH relative to its own historical performance in Figure 8. GH
has traded at an average EV/EBITDA multiple of 9.4x.
FIGURE 26 |GAMEHOST INC. | HISTORICAL EV/EBITDA
14.0x
12.0x
10.0x
8.0x
6.0x
4.0x
2.0x
0.0x
Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411
EV/EBITDA 10.2x 12.6x 11.1x 9.9x 10.0x 10.6x 9.0x
7.3x
5.5x
7.3x
7.5x
8.2x
9.1x 11.1x 10.4x 10.2x 10.4x 9.9x
9.4x
9.6x
Source: Acumen Capital Research, Company Filings, Figures subject to rounding
From a market comparison, peers are limited in the Canadian market and a North American look at the other game
operators provides a better sense of value although they are in a more normal competitive environment. Given the
Company’s defensive position and low cost business model we believe the shares deserve to trade at premium which is
confirmed by historical trading.
FIGURE 27 |GAMEHOST INC. | PEER GROUP
Company
Great Canadian Gaming Corporation
Boyd Gaming Corp
Isle of Capri Casinos Inc.
PENN National Gaming Inc.
Pinnacle Entertainment Inc.
Mean Multiples
Ticker
GC:CN
BYD:US
ISLE:US
PENN:US
PNK:US
Shares/Units
FD
82.6m
86.6m
39.0m
76.3m
62.5m
Market
Cap
698.4m
699.6m
269.8m
3217.2m
700.4m
EV
896.3m
3911.3m
1337.4m
5021.9m
1845.8m
EV/EBITDA
2013
6.1x
7.7x
6.7x
5.9x
6.0x
6.5x
Source: Acumen Capital Research, Bloomberg, Company Filings, Figures subject to rounding
April 18, 2012
Page 15 of 24
Looking at the predictability of the business model we also use DCF analysis to round out our valuation process. Our
$12.10 target price is based on the simple average of the three methods.
FIGURE 28|GAMEHOST INC. | VALUATION
Valuation Metrics
Historical EV/EBITDA
Industry EV/EBITDA
DCF Analysis
Mean (rounded)
Factors Implied 12 Month Share Price
9.4x
$12.57
6.5x
$ 8.79
8.0x/12.5%
$15.00
$12.10
Source: Acumen Capital Research, Figures subject to rounding
RISKS
Combinations of revenue and expense risks that need to be considered include;
•
•
•
Consumers tempering spending on entertainment which means growth will be less than our estimates.
New revenue sharing rules that go against casino operators could impact margin performance.
The number of people using the Internet has been rising as has per capita monthly internet usage and this may
slow the entrance of age eligible gamblers who are likely to be bigger users of the internet.
RECOMMENDATION
We like GH for its major exposure to Alberta economic growth with locations in key benefiting areas of the province.
2011 results showed major signs of stabilization and properties showed attractive comps and we expect this to be a
continuing trend in the coming year. Looking ahead, we expect to see year over year growth in the coming quarters as
consumer discretionary spending loosens up. The important matter of legislative expansion headwinds will keep the
competitive dynamics at bay. We view Management’s ability to continue delivering growth while maintaining reasonable
operating expense discipline as key to share price strength.
April 18, 2012
Page 16 of 24
FIGURE 29 | GAMEHOST INC. | INCOME STATEMENT
$ Millions
Operating Revenue
F09
48.1
Q110
11.4
Q210
15.9
Q310
17.3
y/y Revenue Change (%)
-9.9%
-11.2%
31.4%
52.7%
Cost of Sales
Gross Profit
(28.4)
19.7
(5.9)
5.6
(8.7)
7.2
(9.2)
8.1
Gross Profit Margin (%)
Q410
17.8
F10
62.4
Q111
16.8
Q211
18.6
Q311
17.6
Q411e
19.0
F11
72.0
F12
76.7
F13
80.7
51.2%
29.9%
46.9%
17.0%
1.9%
6.4%
15.3%
6.5%
5.3%
(10.0)
7.8
(33.8)
28.7
(9.6)
7.2
(10.0)
8.7
(9.8)
7.8
(10.5)
8.5
(39.8)
32.2
(42.4)
34.2
(44.3)
36.4
41.0%
48.8%
45.5%
46.8%
43.7%
46.0%
42.9%
46.6%
44.4%
44.9%
44.7%
44.6%
45.1%
Other Income
Administrative Expenses
Gain (Loss) on Revaluation of Assets
Profit (Loss) from Operating Activities
19.7
0.1
(0.6)
5.0
0.1
(1.3)
27.1
33.1
0.1
(1.5)
6.7
0.1
(1.5)
6.3
0.2
(4.9)
27.1
51.1
0.1
(1.5)
5.8
0.1
(1.4)
7.3
0.1
(1.3)
6.6
0.1
(1.4)
0.0
7.1
0.2
(5.6)
0.0
26.8
0.3
(5.4)
29.1
0.3
(5.2)
31.5
Net Finance Costs
Profit (Loss) before Income Tax
(5.4)
14.4
(7.8)
(2.8)
(4.5)
28.6
(10.9)
(4.2)
(12.7)
(6.4)
(35.9)
15.3
(1.4)
4.4
(1.4)
5.9
(1.5)
5.1
(1.2)
5.9
(5.5)
21.3
(4.9)
24.2
(4.9)
26.6
Tax (Expense) Recovery
Total Comprehensive Income
Non-Controlling Interest
Comprehensive Income to Owners
S/O (basic)
S/O (dil.)
0.3
10.0
10.0
21.1
21.1
(0.0)
(2.8)
0.0
(2.8)
21.1
21.1
0.0
28.6
0.2
28.4
21.1
21.1
0.3
(3.9)
0.4
(4.2)
21.1
21.1
(0.9)
(7.3)
0.3
(7.5)
21.1
21.1
(0.6)
14.7
0.8
13.9
21.1
21.1
0.3
4.7
0.3
4.4
21.3
21.3
(1.4)
4.5
0.4
4.1
21.3
21.3
(1.2)
3.9
0.3
3.6
21.3
21.3
(3.0)
2.9
0.3
2.6
21.3
21.3
(5.3)
16.0
1.3
14.7
21.2
21.2
(6.1)
18.2
1.3
16.9
21.3
21.3
(6.7)
20.0
1.3
18.7
21.3
21.3
EPS (basic)
EPS (dil.)
$0.47
$0.47
-$0.13
-$0.13
$1.35
$1.35
-$0.20
-$0.20
-$0.36
-$0.36
$0.66
$0.66
$0.21
$0.21
$0.19
$0.19
$0.17
$0.17
$0.12
$0.12
$0.70
$0.70
$0.85
$0.85
$0.94
$0.94
EBITDA to Non-Controlling Interest
EBITDA to Owners
21.5
5.5
0.2
6.4
0.3
7.8
0.3
7.4
0.7
27.1
0.3
6.8
0.4
8.2
0.3
7.5
0.4
8.1
1.3
30.6
1.3
33.0
1.3
35.3
y/y EBITDA Change (%)
-15%
-14%
20%
58%
51%
26%
24%
28%
-3%
8%
13%
8%
7%
EBITDA Margin
44.8%
47.7%
40.2%
45.0%
41.8%
43.4%
40.3%
44.1%
42.8%
42.6%
42.5%
43.0%
43.8%
April 18, 2012
Page 17 of 24
FIGURE 30 | GAMEHOST INC. | BALANCE SHEET
$ Millions
Cash and Equivalents
Restricted Cash
Trade and Other Receivables
Inventories
Prepaid Expenses
Total Current Assets
F09
10.0
0.1
0.8
0.3
0.2
11.3
F10
14.6
0.0
1.4
0.5
0.3
16.8
F11
17.7
0.0
1.7
0.5
0.3
20.3
F12e
23.2
0.0
2.0
0.8
0.3
26.4
F13e
16.8
0.0
2.5
1.0
0.4
20.6
PPE
Intangibles
Investment Property
Deferred Tax Assets
Total Non-Current Assets
Total Assets
30.3
42.6
2.8
1.4
77.1
88.4
87.7
76.9
2.8
1.4
168.7
185.5
82.9
76.9
2.8
1.4
164.0
184.3
78.4
76.9
2.8
1.4
159.5
185.9
74.0
76.9
2.8
1.4
155.0
175.7
Trade and Other Payables
Loans and Borrows
Dividends Payable
Total Current Liabilities
2.9
23.3
0.9
27.0
5.1
25.3
0.9
31.3
4.3
26.9
1.5
32.8
2.0
24.5
1.5
28.1
1.0
22.1
1.5
24.7
2.7
72.3
75.0
102.0
(13.6)
(13.6)
88.4
48.3
7.4
55.7
87.0
90.5
8.1
98.5
185.5
45.0
4.7
8.1
57.7
90.5
85.8
8.1
93.9
184.3
42.0
4.7
14.1
60.7
88.8
89.0
8.1
97.1
185.9
37.5
4.7
6.8
48.9
73.6
94.0
8.1
102.1
175.7
Debentures Payable
Current Year Income Tax
Deferred Tax Liabilities
Class B Limited Partnership Units
Total Non-Current Liabilities
Total Liabilities
Equity Attributed to the Company
Non-Controlling Interest
Total Equity
Total Liabilities and Equity
April 18, 2012
Page 18 of 24
FIGURE 31 | GAMEHOST INC. | STATEMENT OF CASH FLOW
$ Millions
Total Comprehensive Income
Change in Non-cash Items
Amortization of PPE
Net Finance Costs
Gain on Revaluation of Assets
Taxes paid
Income tax expense (recovery)
F09
10.0
F10
14.7
F11
16.0
F12e
18.2
F13e
20.0
1.9
-
3.7
35.9
(27.1)
5.0
5.6
(0.0)
5.1
5.0
-
(0.3)
0.6
5.3
6.1
5.1
5.0
(14.0)
6.7
Change in Non-cash Working Capital
Cash Flow from Operating Activities
Acquisition of PPE
Acquisition of Businesses
Net Cash from Investing Activities
0.5
16.5
(0.6)
(0.6)
(10.7)
17.0
(0.2)
(47.4)
(47.6)
(5.6)
26.3
(0.3)
(0.3)
(5.9)
28.4
(0.6)
(0.6)
(6.2)
16.5
(0.6)
(0.6)
Proceeds (Payment) from Borrowings
Debenture Proceeds (Payments)
Distributions to Non-controlling interest
Distributions to Fund Unit Holders
Dividends Paid
Shares Repurchases
Net Cash from Financing Activities
3.9
(9.8)
(12.3)
(18.9)
(6.0)
52.3
(0.8)
(10.356)
35.2
1.6
(1.1)
(0.9)
(17.1)
(5.4)
(22.9)
(2.4)
(1.2)
(18.8)
(22.3)
(2.4)
(1.2)
(18.8)
(22.3)
Net Increase (Decrease) in Cash
Opening Cash Balance
Closing Cash Balance
(3.0)
12.9
10.0
4.6
10.0
14.6
3.2
14.6
17.7
5.5
17.7
23.2
(6.4)
23.2
16.8
April 18, 2012
Page 19 of 24
APPENDIX 1: MANAGEMENT
David J. Will – President, Chief Executive Officer and Director
Mr. Will has been in his current position since 2003 and is the co-founder of the Company. He is also the President and
CEO of Will Air Ltd. and President of DJ Will Holdings Limited. Furthermore, Mr. Will is a former Chairman of Service Plus
Hospitality Ltd. David has over 40 years of experience developing and operating hotels, food and beverage operations
and construction of commercial projects.
Darcy J. Will – Vice President, Secretary, and Director
Mr. Will has been in his current position since 2003 and is the co-founder of the Company. He is also the President of
Winner’s Gaming Inc. since 1990 and a former Director of Service Plus Hospitality. Mr. Will has owned and operated
numerous gaming facilities over the past 30 years and brings further experience from his 17 years in the construction and
commercial development industry.
Craig M. Thomas, CMA – Chief Financial Officer
Mr. Thomas has been in his current position since 2004 and prior to then he was the Controller for the Company circa
2003. He has also been a former manager at both Flint Energy Services Ltd. and Titan Electric & Controls Ltd.
Elston J. Noren – Chief Operations Officer
Mr. Noren has been in his current position since 2003 and was the former COO of Winners Gaming Inc. He brings multiple
years of experience in the gaming industry to the Company.
Source: Annual Information Circular
April 18, 2012
Page 20 of 24
APPENDIX 2: BOARD OF DIRECTORS
James McPherson – Director
Mr. McPherson is the founding Director of Gamehost. He sits on the Audit Committee and Compensation Committee of
the Company. Prior to GH, he served on the Board of Directors for Service Plus Hospitality Ltd. Mr. McPherson is an
independent Licensed Life Insurance Broker since 1969 and a member of the Board of Governors for the Alberta Motor
Vehicle Association. He was also a director of Bridgewater Bank.
Timothy J. Sebastian, LLB – Director
Mr. Sebastian has been in his current position since July 2004 and is currently the Vice President of Corporate
Development, General Counsel, and Corporate Secretary for IROC Energy Services Corp. He was previously a Counsel for
McCarthy Tetrault LLP and a Partner with Bryan & Company LLP.
Jerry Van Someren, CA – Director
Mr. Someren has served as a director since August 2005 and is currently the Vice President of Business Operations of the
Red Deer Rebels Hockey Club. Previously, he was the President of a private business consulting corporation.
Peter L. Miles – Director
Mr. Miles has been with Gamehost since May 2006 and is currently the President and Chief Executive Officer of Sanatana
Diamonds Inc. since 2006. He is also a director for each Western Potash Corp, Gurerrero Exploration Inc, and Vancouver
Aquarium and Marine Science Centre.
Source: Annual Information Circular
April 18, 2012
Page 21 of 24
N OT ES
April 18, 2012
Page 22 of 24
April 18, 2012
Page 23 of 24
Company: Gamehost Inc.
Disclosure Requirements
Is this an issuer related or industry related publication?
Issuer
Industry
Does the Analyst/Associate have a financial interest in securities of the subject issuer?
If yes, nature of interest:
Yes
No
Is Acumen Capital Partners a market maker in the issuer’s securities at the date of this
report?
Yes
No
Does Acumen Capital Partners beneficially own more than 1% of any class of common
equity of the issuer?
Yes
No
Does Acumen Capital Partners or the Analyst/Associate have any actual material
conflicts of interest with the issuer?
Explanation:
Yes
No
Does the Analyst/Associate or Household member serve as a Director, Officer, or
Advisory Board Member of the issuer?
Yes
No
Has the Analyst/Associate received any direct compensation from the subject company in
the past 12 months?*
Yes
No
Has Acumen Capital Partners managed or co-managed an offering of securities by the
issuer in the past 12 months?
Yes
No
Has Acumen Capital Partners received compensation for investment banking and
related services from the issuer in the past 12 months?
Yes
No
Other disclosures:
n/a
Acumen has a pool for compensation purposes, which includes research analysts,
investment banking personnel, sales people and institutional traders. Revenue in the pool
includes trading commissions, advisory fees, new issue commissions and broker warrant
proceeds.
Acumen Recommendation Structure: Buy , Speculative Buy , Hold, Reduce , Under Review , Tender
Full Recommendation Structure explanation can be found at the Acumen Capital Partners website: www.acumencapital.com
The information transmitted is privileged, confidential, may be subject to copyright and is intended solely for the use of the individual or entity to which
the transmission is addressed. This transmission is provided for informational purposes only, and does not constitute an offer or solicitation to buy or sell
any securities discussed herein in any jurisdiction where such would be prohibited, nor in any jurisdiction where Acumen is not registered to do so. The
views expressed are those of the sender and not necessarily those of Acumen Capital Finance Partners Limited or its subsidiaries. Any unauthorized use,
distribution, review or disclosure is prohibited. If you received this in error, please notify the sender and delete or destroy this message and any copies.
Acumen does or seeks to do business with companies covered in our research comments and reports. As a result, investors should be aware that the firm
may be in a conflict of interest. Investors should consider this report as only a single factor in making their investment decision©2012.
April 18, 2012
Page 24 of 24
ACUMEN CAPITAL| STAFF LIST
RESEARCH
Brian D. Pow, MBA
David Doig
Trevor Reynolds
Stephen Cardon
Vice President Research, Equity Analyst
Oil and Gas Research Analyst
Oil and Gas Research Analyst
Research Associate
(403) 571-0303
(403) 571-0530
(403) 410-6842
(403) 410-6840
bdp@acumencapital.com
ddoig@acumencapital.com
treynolds@acumencapital.com
scardon@acumencapital.com
President & CEO, Institutional Sales
Vice President, Institutional Sales
Institutional Sales
Institutional Trading
Associate
(403) 571-2514
(403) 571-0317
(403) 571-0685
(403) 571-0148
(403) 410-6730
(403) 571-0318
(403) 571-0314
bparker@acumencapital.com
doug@acumencapital.com
andre@acumencapital.com
lconn@acumencapital.com
dbarnicke@acumencapital.com
lfarrell@acumencapital.com
cbellefountaine@acumencapital.com
Vice President, Investment Banking
Associate, Investment Banking
(403) 571-0113
(403) 571-5036
(403) 571-0301
(403) 571-0319
smcgregor@acumencapital.com
khughes@acumencapital.com
ian@acumencapital.com
kchow@acumencapital.com
Vice President
Investment Advisor
Investment Advisor Assistant
Vice President, Sr. Investment Advisor
Investment Advisor
Investment Advisor Assistant
Sr. Investment Advisor
Investment Advisor
Investment Advisor
Associate
Associate
(403) 571-2522
(403) 571-0112
(403) 441-0536
(403) 571-0315
(403) 410-6018
(403) 571-2416
(403) 571-2510
(403) 441-2754
(403) 571-0532
(403) 571-2195
(403) 441-5672
rlaidlaw@acumencapital.com
imulji@acumencapital.com
mmacburnie@acumencapital.com
sheldon@acumencapital.com
cmadill@acumencapital.com
slozinski@acumencapital.com
donny@acumencapital.com
dfong@acumencapital.com
pmacdonald@acumencapital.com
dalnsour@acumencapital.com
duncan@acumencapital.com
Operations Manager
CFO, COO, CCO
Compliance Manager
Client Services
(403) 571-8045
(403) 571-0308
(403) 571-0689
(403) 571-0300
cindy@acumencapital.com
mmiller@acumencapital.com
mmartin@acumencapital.com
kcanfield@acumencapital.com
INSTITUTIONAL SALES
Brian Parker
Douglas S. Gowland, C.A., CFA
Andre Drouillard
Larry Conn
Derek Barnicke
Liam Farrell
Crystal Bellefountaine
INVESTMENT BANKING
W. Scott McGregor, MBA
Kelly Hughes
Ian Thomson
Ken Chow
RETAIL SALES
Robert Laidlaw
Imran Mulji
Margaret MacBurnie
Sheldon LeLievre
Craig Madill
Sharon Lozinski
Donny Woo
Darren Fong
Pat MacDonald
Damir Alnsour
Duncan Fong
TREASURY AND OPERATIONS
Cindy Marthaller
Myja Miller
Michelle Martin
Kaayla Canfield
Acumen Capital Finance Partners Limited | Suite 700, 404 – 6 Avenue SW Calgary, AB T2P 0R9 | Main Phone: 403-571-0300
www.acumencapital.com

INITIATING COVERAGE ACUMEN CAPITAL | RESEARCH

Transcription

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