Poydras Gaming Finance Corp. Announces 2017 First Quarter Financial Results

– 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.

For further information: Craig MacPhail, Investor Relations | NATIONAL Equicom, T: 416.586.1938, E: cmacphail@national.ca; James Kim, VP of Corporate Development, Poydras Gaming Finance Corp., T: 604.683.8393, E: jk@poydrasgaming.com


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