Entertainment Gaming Asia Inc. (NYSE Amex:EGT) (“Entertainment Gaming Asia” or “the Company”), a leading provider of electronic gaming machines (EGMs) on a participation basis to the Pan-Asian gaming industry, today reported operating results for the first quarter ended March 31, 2011 and reviewed recent corporate progress.
Architectural rendering of Dreamworld Casino Kampot (Photo: Business Wire)
- Net income was $692,000 or $0.01 per share for the first quarter of 2011 compared to a net loss of $1.7 million or a $0.01 loss per share for the first quarter of 2010.
- Consolidated adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, and non-cash charges) was $3.0 million for the first quarter of 2011 compared to $1.3 million for the first quarter of 2010.
- Total net revenue from EGMs on participation for the first quarter of 2011 was a record high $4.2 million, an increase of 47% from the first quarter of 2010.
- Average consolidated win per unit per day (WUD) for the first quarter of 2011 was a record high of $134, an increase of 25% from the first quarter of 2010.
- As of May 1, 2011, total installed EGM seats in operation were 1,515 in seven venues, comprised of five venues in the Philippines with a total of 792 seats and two venues in Cambodia with a total of 723 seats.
- On April 30, 2011, one under-performing venue in the Philippines with 121 EGM seats was closed providing the Company the opportunity to redeploy these assets to higher-performing venues.
- Cash selling, general and administrative (SG&A) expense was $1.1 million for the first quarter of 2011, a decrease of 22% from the first quarter of 2010.
- Cash balance of $12.5 million as of March 31, 2011.
- The Company is making progress on the development of its casino project in the Kampot province of Cambodia near the Vietnam border with construction to begin in June 2011 with expected completion of the initial phase by the end of 2011.
Clarence Chung, Chairman and Chief Executive Officer of Entertainment Gaming Asia, commented, “I am pleased to report strong operating results for our first quarter of 2011. We achieved record EGM participation revenue and consolidated average net win which along with strict cost control resulted in the generation of meaningful adjusted EBITDA and positive GAAP earnings. With a sound base of solid recurring cash flow and a growing cash position, which has reached approximately $13 million as of May 6, 2011, we are well positioned to expand our business model and execute on our casino development plans within emerging gaming markets in the Indo-China region.”