NEWS! 2015 Fourth Quarter and Full-Year Financial Results — Achieves Record Revenue and Adjusted EBITDA with Strong Q-o-Q and Y-o-Y Growth —
— Company on Track to Achieve 2016 Adjusted EBITDA Target of $10.0 Million —
— Installed Base Grows 700%+ Over the Prior Year Period, Post Successful Integration —
VANCOUVER, April 28, 2016 /CNW/ - POYDRAS GAMING FINANCE CORP. (TSXV: PYD) ("Poydras," "PGFC," or the "Company") today announces financial results for the fourth quarter and full-year ended December 31, 2015 (all amounts stated in U.S. dollars unless otherwise indicated).
Fourth Quarter 2015 Highlights & Financial Results
- Revenue grew to $3,525,411, representing an increase of 15% from $3,067,616 in Q3 2015 and an increase of 547% compared to $545,098 in Q4 2014.
- Adjusted EBITDA of $2,080,520, a 32.5% increase from $1,570,625 in Q3 2014 and compared to an Adjusted EBITDA loss of $164,739 in Q4 2014.
- Net loss of $981,101 compared to a net income of $1,103,411 in Q3 2015 and a net loss of $1,394,003 in Q4 2014.
- On December 9, 2015, Poydras closed a $3,500,000 loan financing with PDS Gaming Corporation to increase working capital and fund additional growth.
- Revenue- and interest-generating machines in operation at quarter end were approximately 2,428, compared to 2,300 at the end of Q3 2015.
2015 Full-year Highlights & Financial Results
- 400% growth in revenue, to $8,159,580 in 2015 compared to $1,631,014 in 2014.
- Adjusted EBITDA of $3,562,736, the Company's first year of positive Adjusted EBITDA.
- Net loss of $2,912,195 compared to a net loss of $12,096,526 in 2014.
- On February 25, 2015, the Company entered into a long-term gaming machine placement agreement with the Tonkawa Tribe of Indians of Oklahoma to provide 600 Class III gaming machines under a six-year and 11-month contract.
- On July 20, 2015, the Company completed the acquisition of a 100% equity interest in the Integrity Companies, a leading provider of slot machines to Native American-owned casinos in Oklahoma and Texas. Integrity Companies have approximately 1,600 machines under participation leases with 22 casinos.
- Completed a total of $9,769,098 in equity financings in 2015. Funds from financing were used to fund the Company's machine placement with the Tonkawa Tribe of Oklahoma, acquisition of the Integrity Companies as well as for general working capital purposes.
- Subsequent to December 31, 2015, the Board of Directors approved a 10 for 1 share capital consolidation, which is expected to take place on May 2, 2016.
"2015 was our first full-year as a public company and was significantly transformational: we closed on the acquisition of the Integrity Companies, added a 600 machine placement with the Tonkawa Tribe of Indians of Oklahoma, and grew our overall machine deployments to approximately 2,400, from 287 at the end of 2014," said Peter Macy, CEO of Poydras Gaming. "Our strong growth trajectory built in the last two quarters of the year will continue into 2016, as our results for the first quarter and onwards will fully reflect the 150 machines placed with the Cheyenne & Arapaho Tribes of Oklahoma at their new Lucky Star Hammon facility. We are expecting FY 16 Adjusted EBITDA to approach $10.0 million from our existing machine deployments, with further upside potential as we place additional machines."
Fourth Quarter and Full-Year 2015 Financial Results
The increase in revenue was mainly due to generating leasing revenue from an average of 1,330 gaming machines in 2015 as compared to an average of 212 gaming machines in 2014. The increase in the number of machines is mainly due to the acquisition of Integrity Companies on July 20, 2015 with its interest in approximately 1,600 revenue generating machines. The Company also generated revenues from bingo sales of $1,300,829 (2014 - $Nil).
For the twelve months ended December 31, 2015, the Company's revenue increased to $8,159,580, representing growth of 400% compared to 2014. For the fourth quarter of 2015, revenue grew to $3,525,411, representing an increase of 15% from $3,067,616 in Q3 2015 and 547% compared to $545,098 in Q4 2014.
The Company's leasing revenue grew to $6,858,751 in 2015, a 321% increase over 2014. For the fourth quarter of 2015 leasing revenue was $2,751,650, a 405% increase over $545,098 in Q4 2014. Additional revenue was received from bingo sales of $773,761 in Q4 2015, compared to nil in Q4 2014.
The Company's Adjusted EBITDA was $3,562,736 in 2015, the Company's first year of positive Adjusted EBITDA. For the fourth quarter of 2015 Adjusted EBITDA was $2,080,520, compared to a loss of $164,739 in Q4 2014. The increase in Adjusted EBITDA is the result of the increase of revenue generated as a result of the acquisition of Integrity Companies, increased revenue from additional machines placed at Tonkawa Casinos and new revenue generated from bingo sales, offset by legal, audit and consulting fees incurred in connection with the acquisition of the Integrity Companies.
The fourth quarter of 2015 and full year 2015 results include the consolidated accounts of PGFC, Platform 9 Corporation, Poydras Gaming LLC, Windy Hill Capital LLC and Poydras Street Finance II LLC for the full quarter and year. The accounts of U.S. subsidiaries Aurora Gaming, Integrity Gaming, and Kansas are consolidated from their date of acquisition on July 20, 2015.
Machine Deployments
Since the completion of its reverse takeover ("RTO") transaction on May 9, 2014, Poydras has increased the number of its revenue- and interest-generating gaming machines from 217 to approximately 2,428 as at December 31, 2015.
Conference Call
The Company will hold a conference call to discuss the results for its fourth quarter and year-end ended December 31, 2015. The call will be hosted by Peter Macy, CEO, and Adam Kniec, CFO on Monday, May 2, 2016 at 11:00 a.m. PDT (2:00 p.m. EDT), and followed by a question and answer period. All interested parties are invited to participate.
| Conference Call Details: |
| Date: | Monday, May 2, 2016 |
| Time: | 11:00 a.m. Pacific Time / 2:00 p.m. Eastern Time |
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| Dial-In Numbers: | North America Toll-Free Dial-In Number: | 1 (888) 231-8191 |
| | For Toronto: | (647) 427-7450 |
| | For Vancouver: | (778) 371-9827 |
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| Conference ID: | 96015627 |
| Taped Replay: | 1 (855) 859-2056, Available until 12:00 midnight (EDT) Monday, May 9, 2016 |
| Reference number: | 96015627 |