Great Canadian Gaming Corporation yesterday announced its financial results for the three month period ended September 30, 2009. The company achieved record quarterly EBITDA of $34.2 million, a 16% increase from the third quarter of 2008, despite revenues declining to $96.0 million, a 9% decrease from the third quarter of 2008. The decline in revenue was primarily due to the weakened economy, which reduced both gaming and hospitality revenues at the Company's properties.

The EBITDA improvement reflects the benefit of the comprehensive expense reduction initiatives that the Company initiated during the fourth quarter of 2008. These initiatives reduced operating expenses by $13.8 million, when compared to the third quarter of 2008. EBITDA improvements were most pronounced at River Rock and the BC Racinos, where EBITDA improved by $1.3 million and $1.4 million, respectively.

"I am once again pleased with Great Canadian's progress in 2009," stated Ross J. McLeod, Great Canadian's Chairman and Chief Executive Officer. "Our third quarter results provide further evidence of how our various expense reduction initiatives have created both a significant and sustainable improvement in the efficiency of our operations. Our quarterly EBITDA and EBITDA as a percentage of revenues are both very impressive, despite continued revenue challenges. I'm also pleased by our three major redevelopments, all of which reached their initial phases of completion on-time and on-budget.”

He added, "The most significant of these redevelopments took place at our flagship facility, River Rock Casino Resort. The August opening of the Canada Line marked the beginning of an unprecedented stage in River Rock's evolution, as the facility now connects directly to a mass transit system, a unique operating advantage. It will be some time before we can fully evaluate the benefit that the Canada Line will provide. However, initial results, in terms of both visitation and volume of play, have been very encouraging.”

Mr. McLeod concluded, "Great Canadian's third quarter results have further reinforced both the value of our conservative mindset and the wisdom of our capital deferrals. While revenue challenges continue, they are being actively addressed. Furthermore, our expense reduction initiatives have allowed us to continue optimizing our operational efficiency. This efficiency will only increase further as the macro-economy returns to health. At that time, the full extent of Great Canadian's improvements will become apparent." (E-11.13.09)

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