RE:RE:14 months - 217 slots to 2200+ slot machines- in 24 casino's"All these good numbers yet it's not being reflected in the share price,,, any comments as to why???"
I can only speak for myself but I know I am also speaking for many others. So far their increased revenues have only increased their bottom line losses. Revenues mean next to nothing unless they have a positive influence on the bottom line. I know it is early but you have to wonder if this is even a potentially profitable venture to begin with. I have read that many casinos are moving away from the very slots and related gaming machines the Poydras seem to be going after.
In the Integrity press release they danced around a few things that make me believe that Integrity is presently a money losing operation. I will give 3 quotes and comments.
"The Integrity Companies are projected to contribute US$5.0 to US$6.0 million of adjusted EBITDA to Poydras on an annualized basis."
Why is he giving positive adjusted EBITDA instead of a projecting a positive contribution towards bottom line profitability? In the leased or contracted hardware world a positive adjusted EBITDA does not necessarily mean the venture is anywhere near profitable or ever will be.
Philip Bowden, President of the Integrity Companies, added, "We are delighted to be joining the Poydras team and are excited at the growth opportunities that we will be able to pursue with the full support of Poydras' balance sheet and capital markets access."
Integrity had been in this business for 18 years but they look forward to the opportunities that Poydras balance sheet and capital market access will provide? If this was a profitable operation then their balance sheet would look good and they would have no problem accessing the capital markets, but obviously they do have a problem with that and there is only 1 reason for them to be in that position after 18 years of operations.
"Since the completion of its reverse takeover ("RTO") transaction on May 9, 2014, Poydras has increased the number of its revenue-generating gaming machines from 217 to over 2,200, with gaming machines across 24 casinos. The Company has purchased and expects to place additional machines to bring its number of revenue-generating gaming machines to over 2,300 in the third quarter. "
In this 3rd quote it supports what I have previously stated. Why through all this are they avoiding the word "Profit" or "Profitability" or even "Accreditive to the bottom line"? Anything and everything in the business world is revenue generating, but is it profitable or potentially profitable? They really do seem to be going out of their way to avoid those critical words, and you have to wonder why.
Time will tell if their "revenue generation" and "adjusted EBITDA" starts moving their bottom line towards profitability instead of continuing to move it away from it. Savvy investors are not interested in investing in a cow milking, especially when it would be their udders that are being pulled.
I hope I answered your question.