– Expected to add US$1.25 million in annualized Adjusted EBITDA –
– Company on track to meet or exceed 2016 Adjusted EBITDA target of US$10.0 million –
VANCOUVER, Aug. 12, 2016 /CNW/ - POYDRAS GAMING FINANCE CORP. (TSX‐V: PYD) ("Poydras" or the "Company"), a leading provider of gaming machines to casino operators in its core markets of Oklahoma and Texas, today announced that it has entered into a Membership Interest Purchase Agreement to purchase A&W Enterprises, LLC's ("A&W") remaining 50% interest in Aurora A&W Enterprises, LLC ("A&W JV"). Overall consideration for the transaction consists of a cash payment to A&W of $1.75 million and the assumption of approximately $1.6 million of debt formerly held by the A&W JV. Poydras intends to retire the assumed debt with a portion of the proceeds of its recently announced term loan.
Post-acquisition, Poydras will consolidate 100% of the results of operations of the A&W JV in its financial statements, rather than reporting 50% of Income from Equity Accounted Investees using the equity basis of accounting, as is its current practice. Acquiring A&W's ownership in the A&W JV is expected to add an incremental approximately $1.25 million in annualized Adjusted EBITDA to Poydras. The financial impact of the acquisition will be seen starting in Q3 2016, with the fourth quarter of 2016 being the first full quarter to realize the benefit of the consolidation.
"We are pleased to be moving forward quickly in funding our next phase of growth made possible by our recently announced debt refinancing," said Peter Macy, CEO of Poydras. "The non-dilutive purchase of A&W's interest in the A&W JV will contribute immediately to our financial performance and allows us to manage the JV's assets and contracts more efficiently, supporting enhanced growth and profitability."
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, gain/loss on settlement of loans payable, gain/loss on disposal of assets, finance lease receivable reduction, revaluation adjustment of earn-out liability 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.
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.
About Poydras Gaming Finance Corp.
Poydras Gaming is a regional slot route operator with approximately 2,500 revenue-generating gaming machines across 25 casinos in Oklahoma and Texas. The Company provides slot machines and related capital expenditures under short- and long-term contracts for existing casinos, new casino developments and gaming machine suppliers in the United States. Additional information about the Company can be found 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.
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 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.
SOURCE Poydras Gaming Finance Corp.
For further information: Keith Richards, Investor Relations, NATIONAL Equicom, T: (416) 848-1599, E: [email protected]; James Kim, VP of Corporate Development, Poydras Gaming Finance Corp., T: (604) 683-8393, E: [email protected]