Mr. Peter Macy reports
POYDRAS GAMING FINANCE CORP. ANNOUNCES 2017 SECOND QUARTER RESULTS
Poydras Gaming Finance Corp. has released financial results for the second quarter ended June 30, 2017 (all amounts stated in U.S. dollars unless otherwise indicated).
Second Quarter 2017 Highlights and Financial Results
25% increase in revenue to $4,250,547, compared to $3,390,891 in Q2 2016. 33% increase in leasing revenue to $3,614,580, compared to $2,721,457 in Q2 2016. 18% increase in Adjusted EBITDA to $2,339,286, compared to $1,988,157 in Q2 2016. Net loss of $1,382,586 compared with a net loss of $946,103 in Q2 2016. An average of 2,583 gaming machines in operation in Q2 2017, compared to an average of 2,435 in Q2 2016.
"Our growth in revenue and adjusted EBITDA in the second quarter of 2017 reflects our continued success at executing our growth strategy," said Peter Macy, CEO of Poydras. "This strategy includes both increasing machines in place with our existing customers and placing machines with new customers. In addition we are seeing favorable results from our active program of upgrades and conversions."
Highlights Subsequent to Quarter End
Deployed its first Gamblit Gaming machines in Quapaw, Oklahoma at the Downstream Casino Resort. The Company expects further installations of these next generation gaming devices with multiple contracts in place. Deployed its first Grand Vision Gaming machines at the Choctaw Casino's & Resorts in Durant, Oklahoma. The Company will also be placing Gamblit consoles at this casino. Signed a new agreement with a new customer for the addition of 100 gaming machines. The Company will begin placing these new machines towards the end of August with a target completion of September, 2017.
"Our leading market presence in the Oklahoma and Texas markets and our offering of innovative gaming machines will continue to drive installations," added Mr. Macy. "We expect that by the end of the third quarter we will be operating in over 30 casinos."
Appointment of the Chairman of the Board of Directors
The Company also announces that David Danziger has been appointed Chairman of the Board. The appointment is effective August 22, 2017. David is the Senior Vice President of Assurance at MNP LLP, one of the largest full-service CPA and business advisory firms in Canada, as well as the National Leader of MNP's Public Companies practice, and originally joined the Poydras Board as an independent director on June 18, 2015. He is also a Director of Jackpot Joy plc, the world's largest online bingo-led operator. Peter Macy, current CEO and former Chairman, will remain on the Board as a Director.
"David has played an active and invaluable role on our Board since joining us in 2015 sharing his wealth of experience in the global capital markets and gaming sectors," said Peter Macy, CEO of Poydras Gaming. "Our Company has reached a stage in its growth where as a Board we felt it was appropriate to separate the Chairman and CEO functions and we are delighted that David has agreed to serve as our new Chairman."
"I have enjoyed my tenure as a Board member of Poydras and look forward to helping the Company as it enters a new phase in its growth," said David Danziger, Chairman of Poydras Gaming.
Quarterly Adjusted EBITDA
Adjusted EBITDA and reconciliation to net income (loss) is as follows: Q2 2017 Q1 2017 Q4 2016 Q3 2016 Q2 2016 ($) ($) ($) ($) ($) Net Income (loss) (1,382,586)(1,167,084)(2,935,028)(2,918,891)(946,103) Adjustments: Depreciation of equipment 1,525,644 1,390,548 1,074,475 1,024,513 954,638 Amortization of placement fees 449,658 449,658 533,904 524,449 443,148 Amortization of intangible assets 199,576 198,775 218,337 223,772 217,395 Income tax expense (recovery) - - (119,904) (357,883) (498,427) Finance lease receivable reduction 308,392 467,486 513,064 664,490 501,599 Financing costs 1,145,358 1,140,346 1,153,146 2,170,864 898,576 Foreign exchange (gain) loss (196) 8,466 745 (97,863) (47,175) Impairment of placement fees - - 1,732,152 - - Impairment of loan receivable - - - (85,000) 28,505 Gain on settlement of debt 224 (28,380) - (110,487) - Loss (gain) on disposal of assets (23,200) (64,500) 12,750 - 65,858 Loss (gain) on disposal of BitBoss - (43,712) - - - Revaluation of earn-out liability - - 30,000 450,000 - Revaluation loss on investment in A&W JV - - - 588,317 - Stock based compensation 116,416 92,919 102,272 207,210 206,177 A&W JV EBITDA adjustments at 50% interest: Depreciation of equipment - - - 69,254 172,113 Amortization of placement fees - - - 4,728 10,416 Interest expense - - - 6,076 18,178 Loss (gain) on disposal of assets - - - - (36,741) Adjusted EBITDA 2,339,286 2,444,522 2,315,913 2,363,549 1,988,157
Conference Call
The Company will hold a conference call to discuss the results for its second quarter ended June 30, 2017. The call will be hosted by Peter Macy, CEO, and Adam Kniec, CFO on Thursday, August 24, 2017 at 8:00 a.m. PDT (11:00 a.m. EDT), and followed by a question and answer period. All interested parties are invited to participate.
Conference Call Details: Date: Thursday, August 24, 2017 Time: 8:00 a.m. Pacific Time / 11:00 a.m. Eastern Time Dial-In Numbers: North America Toll-Free Dial-In Number: 1 (888) 231-8191 For Toronto: (647) 427-7450 For Vancouver: (778) 371-9827 Conference ID: 68413989 Taped Replay: 1 (855) 859-2056 Available until 12:00 midnight (EST) Thursday, August 31, 2017 Reference number: 68413989
About Poydras Gaming Finance Corp.:
Poydras Gaming is a regional slot route operator with approximately 2,600 gaming machines in operation across over 25 casinos in Oklahoma and Texas. The Company primarily derives its revenue from short- and long-term revenue share contracts with Native American casinos. It provides gaming equipment such as slot machines and electronic table games, and project financing to owners, operators, and managers of casinos and other regulated gaming venues. The company works with casinos, new casino developments, and gaming machine suppliers. In addition, it distributes casino and bingo equipment, and offers direct and online sales of gaming supplies for poker and bingo. Additional information about the Company can be found on the Company's website at www.poydrasgaming.com and on the SEDAR website at www.sedar.com.