News Press Releases

Poydras Gaming Finance Corp. Announces 2017 First Quarter Financial Results

May 23, 2017

Canada NewsWire

VANCOUVER, May 23, 2017

– Record revenue growth supported by continued growth in machine placements –

VANCOUVER, May 23, 2017 /CNW/ - POYDRAS GAMING FINANCE CORP. (TSX-V: PYD) (OTCQX: PYDGF) ("Poydras" or the "Company") today announces financial results for the first quarter ended March 31, 2017 (all amounts stated in U.S. dollars unless otherwise indicated).

First Quarter 2017 Highlights & Financial Results

Revenue increased 13% to $4.2 million from $3.7 million in Q1 2016, and 3% from $4.0 million in Q4 2016.
Adjusted EBITDA of $2.4 million versus $2.3 million in Q4 2016.
Net loss of $1.2 million for Q1 2017.
Approximately 2,665 gaming machines in operation at the end of Q1 2017, compared to 2,471 at the end of Q1 2016.

"The results in the first quarter of 2017 reflect our continuing efforts to build a strong long-term base of recurring revenue through expanding our deployed machine base, optimizing our machine placements, and creating growth opportunities through innovative gaming technologies," said Peter Macy, CEO of Poydras Gaming. "The progress we have made on these fronts will ensure revenue and earnings growth in future quarters."

Adjusted EBITDA and reconciliation to net income (loss) is as follows:

			Q1 2017	Q4 2016	Q3 2016	Q2 2016	Q1 2016	Q4 2015
			($)	($)	($)	($)	($)	($)

Net Income (loss)			(1,167,084)	(2,935,028)	(2,918,891)	(946,103)	341,262	(981,101)
Adjustments:
	Depreciation of equipment		1,390,548	1,074,475	1,024,513	954,638	888,132	805,699
	Amortization of placement fees		449,658	533,904	524,449	443,148	443,148	489,094
	Amortization of intangible assets		198,775	218,337	223,772	217,395	216,061	166,509
	Income tax expense (recovery)		-	(119,904)	(357,883)	(498,427)	131,960	287,400
	Finance lease receivable reduction		467,486	513,064	664,490	501,599	448,599	338,603
	Financing costs		1,140,346	1,153,146	2,170,864	898,576	748,145	399,945
	Foreign exchange (gain) loss		8,466	745	(97,863)	(47,175)	(411,798)	276,851
	Impairment of placement fees		-	1,732,152	-	-	-	-
	Impairment (recovery) of loan receivable		-	-	(85,000)	28,505	-	120,714
	Gain on settlement of debt		(28,380)	-	(110,487)	-	-	-
	Loss (gain) on disposal of assets		(64,500)	12,750	-	65,858	38,947	(214,338)
	Loss (gain) on disposal of BitBoss		(43,712)	-	-	-	-	-
	Revaluation of earn-out liability		-	30,000	450,000	-	(599,000)	-
	Revaluation loss on investment in A&W JV		-	-	588,317	-	-	-
	Stock based compensation		92,919	102,272	207,210	206,177	104,720	121,816
	A&W JV EBITDA adjustments at 50% interest:
		Depreciation of equipment	-	-	69,254	172,113	184,124	234,576
		Amortization of placement fees	-	-	4,728	10,416	10,416	10,416
		Interest expense	-	-	6,076	18,178	26,531	25,437
		Loss (gain) on disposal of assets	-	-	-	(36,741)	4,626	(1,101)

Adjusted EBITDA			2,444,522	2,315,913	2,363,549	1,988,157	2,575,873	2,080,520

Conference Call

The Company will hold a conference call to discuss the results for its first quarter ended March 31, 2017. The call will be hosted by Peter Macy, CEO, and Adam Kniec, CFO on Wednesday, May 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:	Wednesday, May 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:	22595298
Taped Replay:	1 (855) 859-2056, Available until 12:00 midnight (EST) Wed., May 31, 2017
Reference number:	22595298

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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward‐Looking Statements
Certain information in this news release is considered forward‐looking within the meaning of certain securities laws and is subject to important risks, uncertainties and assumptions. This forward‐looking information includes, among other things, information with respect to the Company's beliefs, plans, expectations, anticipations, estimates and intentions. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward‐looking information. The forward‐looking information in this news release, including those statements relating to expected EBITDA, and the placement of additional machines by the Company, describes the Company's expectations as of the date of this news release.

The results or events anticipated or predicted in such forward‐looking information may differ materially from actual results or events. Material factors which could cause actual results or events to differ materially from such forward‐ looking information include, among others, risks arising from general economic conditions and adverse industry events.

The Company cautions that the foregoing list of material factors is not exhaustive. When relying on the Company's forward‐looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.

THE FORWARD‐LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD‐LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME.

Non‐IFRS Measures
Adjusted EBITDA is a financial measure that does not have a standardized meaning under IFRS. Adjusted EBITDA is defined as earnings before financing costs, income taxes, depreciation, amortization, stock based compensation, unrealized foreign exchange, impairment of loans receivable, impairment of placement fees, gain/loss on settlement of debt, gain/loss on disposal of assets, finance lease receivable reduction, revaluation adjustment of earn-out liability, revaluation loss on investment in A&W JV and non-recurring costs. In addition, to arrive at the Adjusted EBITDA, the Company is adjusting its earnings for its 50% share of the above mentioned income/expense and gain/loss categories that are included in the Company's income from equity accounted investees up to the date of the acquisition of the A&W JV on August 12, 2016.

As there is no standardized method of calculating Adjusted EBITDA, it may not be directly comparable with similarly titled measures used by other companies. The Company considers Adjusted EBITDA to be a relevant indicator for measuring trends in performance and its ability to generate funds to service its debt and to meet its future working capital and capital expenditure requirements. Adjusted EBITDA is not a generally accepted earnings measure and should not be considered in isolation or as an alternative to net income (loss), cash flows or other measures of performance prepared in accordance with IFRS.

SOURCE Poydras Gaming Finance Corp.