Revenue grows 496% on a year-over-year basis
MONTREAL, May 28, 2013 /CNW/ - Amaya Gaming Group Inc. ("Amaya" or the "Corporation") (TSX.V: AYA), an entertainment solutions
provider for the regulated gaming industry, today announced its
financial results for the three months ended March 31, 2013. All
amounts are stated in Canadian dollars unless otherwise noted.
FOR THE THREE MONTHS ENDED MARCH 31
Net earnings (loss)
Basic earnings (loss) per share
Q1 2013 AND SUBSEQUENT HIGHLIGHTS
Cash provided from operating activities for the three month period
ending March 31, 2013 was $7.48 million as compared to cash used for
operating activities of $1.38 million for the three-month period ending
March 31, 2012.
Amaya announced today that its company Cadillac Jack has executed a
multi-year agreement with one of its largest customers in Mexico to
expand Cadillac Jack's leased install base by 890 gaming units across
13 locations throughout Mexico.
During the first quarter, Amaya bought back 660,800 shares for $3.24
million pursuant to its approved normal course issuer bid under which
Amaya intends to purchase for cancellation up to 5,650,000 Common
Shares, representing, to the knowledge of Amaya, less than 10% of the
listed Common Shares held by shareholders that are not insiders,
promoters or associates or affiliates of an insider of Amaya.
The Corporation concluded the signing of the definitive agreement with
SHFL Entertainment ("SHFL"), pursuant to the terms of the memorandum of
understanding (MOU) entered into on December 17, 2012, under which
Amaya selected SHFL as its exclusive distributor for its Ongame Poker
Platform in the United States for a 10-year term.
Amaya announced that it has expanded its agreement with mybet to include
Amaya's Ongame Poker Platform and Live Dealer offering on mybet
Amaya announced that Cogetech S.p.A has chosen Amaya's Ongame Poker to
power Izipoker.it. Cogetech is one of Italy's largest sportsbetting
company and is both a leading gaming provider for the Italian
land-based market as well as an online operator with the site IZIPlay.it, which includes betting, poker, skill games, bingo and casino games.
The Corporation announced that it has entered into an MOU with
Aristocrat Technologies Inc. ("Aristocrat") whereby Aristocrat will
offer Amaya's leading Ongame poker platform to Aristocrat's U.S.
customers through its award-winning nLive™ online gaming platform.
Amaya announced the signing of a memorandum of understanding with Bally
Technologies, Inc. to integrate Amaya's Ongame poker platform into
Bally's award-winning iGaming Platform as its preferred poker provider
in the emerging U.S. online gaming market.
Amaya announced the launch of some of its most popular online casino
slot games by Microgame S.p.A., the leading service provider for the
remote gaming market in Italy.
Amaya announced the launch of its full suite of proprietary and branded
games on Circus Group's Casino777.be, one of Belgium's first regulated
online gaming sites and the country's premier online gaming
destination, pursuant to a three-year licensing agreement announced in
Amaya announced an agreement with ACEP Interactive, LLC, the interactive
gaming arm of Nevada-based American Casino & Entertainment Properties
LLC ("ACEP") for Amaya's Ongame poker network to power ACEP's online
poker offering at acePLAYpoker.com.
Amaya announced an extension of its agreement with Warner Bros. Consumer
Products, on behalf of DC Entertainment, to be the exclusive provider
of DC Comics comic book-inspired pay-to-play online casino games.
Amaya closed a private placement of Units for aggregate gross proceeds
of $30 million, with the Units consisting of: (i) $1,000 principal
amount of unsecured non-convertible subordinated debentures bearing
interest at a rate of 7.50% per annum payable semi-annually in arrears
on January 31 and July 31 in each year commencing July 31, 2013; and
(ii) 48 non-transferable common share purchase warrants (each a
"Warrant"). Amaya also announced the issuance of a redemption notice to
all the holders of its 10.5% convertible unsecured subordinated
debentures due April 30, 2014 (the "Convertible Debentures"), all the
holders of which converted their Convertible Debentures into common
shares of Amaya and the Convertible Debentures were delisted from the
TSX Venture Exchange.
Amaya was honoured as the TSX Venture Tech Stock of the Year and Amaya's
CEO David Baazov was awarded with the TSX Venture Tech Executive of the
Year in the third annual Cantech Letter Awards.
"We're extremely pleased with the substantial positive cash flow
generated from our operations in the first quarter," said David Baazov,
President and Chief Executive Officer of Amaya Gaming Group. "This is a
strong focus of Amaya's management team.
"So far this year, we have expanded the reach of our interactive
offering in the United States with the SHFL and Aristocrat
partnerships, in addition to our relationship with Bally," said Mr.
Baazov. "Nevada, New Jersey and Delaware have recently legalized some
forms of pay-to-play online gaming, and a reported 10 other U.S. states
have considered some form of Internet gambling this year. Gaming
jurisdictions are moving towards regulatory frameworks that are
evolving to adapt to the convergence of both interactive and land-based
gaming operations. We are well positioned to capitalize on this
evolving regulatory framework due to our technology, regulatory status
and strategic partnerships.
"Additionally, we are continuing to integrate the acquisitions we made
in 2012, including Cadillac Jack and Ongame," Mr. Baazov added. "We
will continue to focus on realizing on anticipated revenue and cost
synergies from these additions throughout the rest of this year."
Amaya reported revenues of $38.05 million for the fourth quarter of
2012, an increase of 496% compared to $6.38 million in the first
quarter of 2012. This revenue increase is primarily attributable: to
consolidating the software licensing and hosted casino revenue of
CryptoLogic Limited ("CryptoLogic"), which was acquired on April 2,
2012; consolidating software licensing revenue from Ongame Network
Limited ("Ongame"), which was acquired on November 1, 2012; and
consolidating participation agreement revenue of Cadillac Jack Inc.
("Cadillac Jack"), which was acquired on November 5, 2012. On a
regional basis, revenue in Q1 2013 was concentrated in North America
Gross profit percentage was 99% of revenues for the three months ended
March 31, 2013 and 96% for the three month period ended March 31, 2012.
Selling and marketing expenses increased from $1.81 million for the
three month period ended March 31, 2012 to $3.73 million for the three
month period ended March 31, 2013, representing an increase of 106%,
attributable to consolidating advertising, promotion and royalty
expenses incurred by CryptoLogic and advertising and promotion expenses
incurred by Cadillac Jack.
General and administrative expenses increased from $7.51 million for the
three month period ended March 31, 2012, to $34.37 million for the
three month period ended March 31, 2013, representing an increase of
358%. The increase in 2013 was driven by a growing employee base and
higher rent due to the CryptoLogic, Cadillac Jack, and Ongame
acquisitions, and increases in amortization costs, consulting and
professional fees, costs incurred in connection with the termination of
employment agreements, communications expense in connection with
generating CryptoLogic's hosted casino revenue, maintenance and
repairs, and other costs.
Financial expenses were $6.21 million for the three month period ended
March 31, 2013 and $0.41 million for the three month period ended March
31, 2012. The increase is primarily attributable to interest on the
convertible debentures related to the acquisition of Cryptologic, and
the senior secured term loan in connection with the agreement and plan
of merger to acquire Cadillac Jack.
Adjusted EBITDA was $10.26 million in the first quarter of 2013 compared
to $(0.53) million in the first quarter of 2012 and $16.75 million in
the fourth quarter of 2012. Q1 2013 adjusted EBITDA excludes $2.66
million in one-time costs.
Adjusted EBITDA Reconciliation
Current income taxes
Deferred income taxes
Depreciation of property and equipment
Amortization of deferred development costs
Amortization of intangible assets
Termination of employment agreements
Termination of agency agreements
Receivables related to terminated operations
Other one-time costs
2013 FULL YEAR QUARTER FINANCIAL GUIDANCE
For the full year of 2013, the Corporation is expecting:
Revenue in the range of $156 to $167 million
Adjusted EBITDA in the range of $55 to $64 million
2013 FIRST QUARTER FINANCIAL STATEMENTS AND MANAGEMENT'S DISCUSSION AND
The quarterly financial statements, notes to financial statements and
Management's Discussion and Analysis for the three months ended March
31, 2013, will be available on the SEDAR website at www.sedar.com.
Amaya will host a conference call on Wednesday, May 29, 2013 at 9:00
a.m. ET to discuss its 2013 first quarter financial results. David
Baazov, CEO of Amaya Gaming Group Inc., will chair the call. To
participate in the call, please dial 647-427-7450 or 1-888-231-8191 ten
minutes prior to the scheduled start of the call. A replay of the
conference call will be available until Wednesday, June 5, 2013 by
calling 416-849-0833 or 1-855-859-2056, reference number 76541422. The
conference call will be webcast live at http://bit.ly/14SiBzj.
ANNUAL GENERAL MEETING
Amaya announced that the five nominees listed in its management
information circular dated April 29, 2013, namely David Baazov, Daniel
Sebag, Gen. Wesley Clark Sr., Divyesh (Dave) Gadhia, and Harlan
Goodson, were re-elected as directors of the Corporation at the Annual
General Meeting of Shareholders of Amaya Gaming Group Inc. on May 28,
2013. The resolution to reappoint Richter S.E.N.C.R.L./L.L.P. as
auditors of Amaya Gaming Group Inc. for the ensuing year, was carried.
ABOUT AMAYA GAMING GROUP INC.
Amaya provides a full suite of gaming products and services including
casino, poker, sportsbook, platform, lotteries and slot machines. Some
of the world's largest gaming operators and casinos are powered by
Amaya's online, mobile, and land-based products. Amaya is present in
all major gaming markets in the world with offices in North America,
Latin America and Europe. Amaya recently acquired Cryptologic, a
pioneer within online casino, Ongame, a leader within online poker, and
Cadillac Jack, a successful slot machine manufacturer. For more
information please visit www.amayagaming.com.
DISCLAIMER IN REGARDS TO FORWARD-LOOKING STATEMENTS
Certain statements included herein, including those that express
management's expectations or estimates of our future performance
constitute "forward-looking statements" within the meaning of
applicable securities laws. Forward-looking statements are necessarily
based upon a number of estimates and assumptions that, while considered
reasonable by management at this time, are inherently subject to
significant business, economic and competitive uncertainties and
contingencies. Investors are cautioned not to put undue reliance on
forward looking statements. Except as required by law, the Corporation
does not intend, and undertakes no obligation, to update any
forward-looking statements to reflect, in particular, new information
or future events.
"Neither 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."
1 Adjusted EBITDA as defined by the Corporation means earnings before
interest and financing costs (net of interest income), income taxes,
depreciation and amortization, stock-based compensation, restructuring
and other non-recurring costs, and non-controlling interests. Adjusted
EBITDA is a non-IFRS measure.
SOURCE: AMAYA GAMING GROUP INC.
For further information:
For investor or media inquiries, please contact:
Tel: 416-815-0700 ext. 251
NA toll free: 1-800-385-5451 ext. 251