According to its announcement yesterday, Great Canadian Gaming Corporation recorded revenues of $97.2 million during the fourth quarter of 2010, a $0.9 million increase from the fourth quarter of 2009. This increase was primarily due to the performance of the River Rock Casino Resort, as well as the installation of slot machines at the Maple Ridge Community Gaming Centre in October of 2010. These improvements were offset by decreased revenues at both the Boulevard Casino and the British Columbia Racinos.

Revenues for 2010 were $383.5 million, a $1.3 million increase from 2009. This increase was also primarily due to River Rock, where annual revenues grew by $16.5 million. River Rock’s improvement was offset by decreased revenues at the Boulevard Casino, the Great American Casinos, and the BC Racinos, the latter of which related primarily to the deconsolidation of TBC Teletheatre BC.

The Company’s EBITDA for the fourth quarter of 2010 was $35.0 million, a $2.0 million increase from the fourth quarter of 2009. The Company’s EBITDA for 2010 was $136.4 million, a $9.8 million increase from 2009.

“Great Canadian’s financial results for the fourth quarter of 2010 highlight the consistent trends that we have witnessed within our business,” stated Ross J. McLeod, Great Canadian’s Chairman and Chief Executive Officer. “The River Rock Casino Resort continues to build upon the momentum created by both its redevelopments and the Canada Line [transit system], momentum that we will seek to extend with the introduction of a third hotel tower at the conclusion of 2011.”

Great Canadian has operations in British Columbia, Ontario and Nova Scotia and in Washington State. These include ten casinos, a thoroughbred racetrack with slot machines, three standardbred racetracks – two with slots and one with slots and table games, two community gaming centres, a hotel and conference centre, two show theatres and various associated food and beverage and entertainment centres.

Commenting on the challenging local economy, Mr McLeod said, “Two strategies have allowed Great Canadian to remain successful within this revenue environment. The first of these is a continued focus upon expense management and efficiency. Over the course of 2009, our operating expenses improved by $40.4 million. During 2010, despite both inflationary increases and a bolstering of staffing levels and training programs, these expenses improved by a further $8.5 million. As I have said before, these improvements cannot substitute for revenue recovery. However, they have allowed us to maintain our EBITDA. In addition, they have instilled a culture of efficiency that will further benefit our business once revenues eventually return.”

Mr. McLeod concluded, “This conservative philosophy will help ensure that Great Canadian maintains our financial position, which has been fortified further by our performance in 2010.Both our cash resources and leverage ratios have improved over the past four quarters. While the revenue challenges being experienced by many our markets mean we must remain cautious as we analyze options for Great Canadian’s future, this financial flexibility means we are well equipped to improve stakeholder value as this future unfolds.” (E-03.18.11)

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