173 machines expected to be deployed by end of F2014
Revenue Growth To Commence From H2/F14. With the completion of the Windy Hill acquisition and the existing machines in Poydras’ revenue generating base, the Company currently has 326 machines deployed and generating revenue. The Company has contracted placements for an additional 173 machines for a total of 499, which are expected to be deployed by the end of F2014. We are forecasting revenues of $8.0 million and adjusted EBITDA of $5.0 million in F2015 with approximately 1,000 machines deployed by the end of F2015. We are also projecting revenues of $13.4 million and adjusted EBITDA of $9.2 million with approximately 1,500 machines deployed by the end of F2016. With existing resources and cash generated internally, we estimate the Company should be in a position to expand its machine portfolio to 1,000-1,200, and with limited additional debt ($2.0-3.0 million) can bring its footprint to 1,500 machines.