Integrity Gaming Corp. V.IGAM

Nice news release | quick analysis

[VPofFNE]

I'd like to take credit for the timing of this release, but that was pure fluke. 

Those who are looking at the entire year's EBITDA for 2015 need not bother as it is not indicative of what the company currently looks like. Q4 is the key here, and they're saying it is in the $2.1 - $2.3M USD range is exactly where I was thinking/hoping it would be. 

Regarding the shareprice, this is how I see it working out:
- $10M USD EBITDA = $13M CAN$. 
- $13M multiplied by 8x EBITDA = $104M Enterprise Value
- Subtract $30M USD debt ($39M CAN$) = $65M market cap.
- $65M divided by 345,000,000 shares = 18.8 cents per share. 

Once PYD starts consistently performing (remember, management hasn't done well the past couple of years), then I would expect we'll trade in the 15 - 20 cents range. 

Until then, I'm expecting us to trade at half that. 

VeeP

[biggerr]

 investors want to see the actual earnings, EBITDA alone won't do it. My way of deducting interest payments and depreciation from EBITDA to get to earnings makes more sense. Any estimates what interest payments and depreciation will be for 2016?

[VPofFNE]

It depends on how you view your investment. In the case of PYD, EBITDA is meaningful as it will drive their ability to refinance. They have $30M in debt,of which a large chunk is done at 12%. With a couple quarters of good performance under their belt, they should be able to cut that in half and extend the amortization period.  Plus, if they become an acquisiton target (which I believe they

[Riverfolk]

Q3 has come and gone, Q4 is around the corner and Q1 on June 1 will more then prove consistency. IMHO PYD will be able to approach financial institutions after the AUDITED Q4 and get refinanced, The average rate is 11%. Even if PYD kept the rate and took it from 2 to 5 years we would see dramatic quarterly earnings.  Foreign Exchange loss (504,594) Quarterly would no longer be an issue once

[biggerr]

OK, if the debt is $30 mil. and interest is 11% then the 2016 interest payment will be around $3.3 mil., now the question is what is the depreciation, any ideas?

[Riverfolk]

Debt is 27m and 4.2 mil of that is for integrity and not costing any interest at the moment

[biggerr]

how about this debt amortization plus interest payment that PYD owes, any acountants here who could explain?