WINNIPEG, MB, April 2, 2014 /CNW/ - Pollard Banknote Limited (TSX: PBL) (Pollard Banknote) is pleased to announce that it has signed an
agreement for the purchase of a new 22-station Tresu press—the most
advanced instant ticket printing press in the lottery industry. The
press is scheduled to begin live production in the second quarter of
2015 and will provide a substantial 35% net increase to Pollard
Banknote's available print capacity. This state-of-the-art press—with a
$20 million price tag—includes a number of unique features that will
ensure it provides the most efficient and flexible inline instant
ticket printing available.
"Pollard Banknote is very excited to announce this major expansion, as
it comes as a result of the tremendous support the lottery industry has
shown us," said Doug Pollard, Co-Chief Executive Officer, Pollard
Banknote. "Our sales volumes continue to increase significantly, with
our 2013 sales volumes up 8% over 2012, and we continue to have high
expectations for 2014 and beyond. We are proud of the recent expansion
of our client base and, more importantly, the support we've been able
to provide our lottery customers in order to grow their proceeds for
good causes. This investment in a new press is significant evidence of
our belief in the growth potential of the lottery retail space,
particularly when supported by an omni-channel marketing strategy."
The new press will be housed in Pollard Banknote's 90,000-square-foot
production facility located in Ypsilanti, Michigan, allowing the
company to continue providing unprecedented service to its customers in
the United States. In conjunction with the commissioning of the new
Tresu press in Ypsilanti, Pollard Banknote will be moving its existing
production presses from Ypsilanti to its manufacturing facility in
Winnipeg, Manitoba, thereby utilizing the company's proven
manufacturing capabilities to support its expanding Canadian and
international lottery customers. This capacity expansion will allow
Pollard Banknote to transition to a more efficient, lower cost
production platform overall.
Financing for this expansion will come from a number of sources,
including the company's ongoing operating cash flow, an increase in its
secured credit facility of approximately $5 million, and a subordinated
loan of approximately $7 million from the Pollard family's holding
company, Pollard Equities Limited.
"These are very exciting times in the lottery industry," summed up Doug
Pollard. "We continue to see great opportunities for our partners and
this announcement highlights our ongoing commitment to our customers
and the sector."
About Pollard Banknote
Pollard Banknote is one of the world's leading full-service lottery
vendors and is a major supplier to North America's charitable gaming
industry. The company manufactures instant lottery tickets and provides
related programming, design and marketing support. As well, Pollard
Banknote manufactures pull-tab tickets and bingo paper, and supplies
lottery management services (including warehousing and distribution).
Established in 1907, Pollard Banknote is owned approximately 73.5% by
the Pollard family and 26.5% by public shareholders and currently
serves more than 50 lotteries worldwide, including some of the largest
and most respected lotteries in the United States, Canada, Europe,
Asia, and Central and South America. For more information, please visit
our website at www.pollardbanknote.com.
Forward-looking Statements
Certain statements in this press release may constitute
"forward-looking" statements and information, which involve known and
unknown risks, uncertainties, and other factors that may cause actual
results, performance, or achievements to be materially different from
any future results, performance, or achievements expressed or implied
by such forward-looking statements. When used in this document, such
statements include such words as "may," "will," "expect," "believe,"
"plan," and other similar terminology. These statements reflect
management's current expectations regarding future events and operating
performance and speak only as of the date of this document. There
should not be an expectation that such information will in all
circumstances be updated, supplemented, or revised whether as a result
of new information, changing circumstances, future events, or
otherwise.
SOURCE Pollard Banknote Limited
