Entertainment Gaming Asia Reports Third Quarter 2010 Results And Provides Market Update
Entertainment Gaming Asia Inc. (NYSE Amex: EGT) (“Entertainment Gaming Asia” or “the Company”), formerly known as Elixir Gaming Technologies, Inc., a leading provider of electronic gaming machines on a participation basis to the Pan-Asian gaming industry, today reported operating results for the third quarter ended September 30, 2010 and reviewed recent corporate progress.
- Net income was $725,000 or $0.01 per share for the third quarter of 2010 compared to a net loss of $0.01 per share in the second quarter of 2010 and a net loss of $0.03 per share in the third quarter of 2009.
- Consolidated adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, and non-cash charges) was $3.0 million for the third quarter of 2010, up from $1.4 million in the second quarter of 2010 and $338,000 in the third quarter of 2009.
- Total net revenue from gaming machines on participation for the third quarter of 2010 was a record $4.1 million, an increase of 16% from the second quarter of 2010 and 123% from the third quarter of 2009, reflecting both a higher average win per unit per day (WUD) and gaming machine installed base.
- Average consolidated WUD for the third quarter of 2010 was $125, an increase of 9% from the second quarter of 2010 and 45% from the third quarter of 2009.
- As of September 30, 2010, total installed gaming machine seats in operation were 1,525 in eight venues, comprised of six venues in the Philippines with a total of 846 seats and two venues in Cambodia with a total of 679 seats.
- Cash selling, general and administrative (SG&A) expense was $1.3 million for the third quarter of 2010, which was below the guidance range of $1.5 to $1.8 million and down 10% from the second quarter of 2010 and 11% from the third quarter of 2009.
- Cash balances of $8.8 million, including $1.0 million held in an escrow account for a potential new casino project in the Indo-China market, as of September 30, 2010, up from $6.4 million as of June 30, 2010 and $4.2 million as of December 31, 2009.
Clarence Chung, Chairman and Chief Executive Officer of Entertainment Gaming Asia, commented, “Our third quarter performance marks a new chapter for Entertainment Gaming Asia with the achievement of positive GAAP earnings. The achievement of this important milestone reflects our successful efforts over the last two years to refocus our operations and dramatically improve our cost structure. With strong contribution from our 670 gaming machine seats in operation at NagaWorld in Cambodia, in the third quarter we more than doubled our adjusted EBITDA on a quarterly sequential basis and have greatly improved our annualized adjusted EBITDA run rate going forward. With solid recurring cash flow contribution from our core gaming participation operations, we believe that we are positioned to execute on our expansion plans and achieve our goal of becoming a leading regional casino owner and operator in select emerging gaming markets in Asia. We are actively pursuing attractive casino projects in our target markets and are in late stage discussions with one particular project.”
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