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 second quarter ended June 30, 2011 and reviewed recent corporate progress.
- Net income was $307,000 for the second quarter of 2011 compared to a net loss of $1.5 million for the second quarter of 2010.
- Consolidated adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, and non-cash charges) was $3.3 million for the second quarter of 2011 compared to $1.4 million for the second quarter of 2010.
- Total net revenue from EGMs on participation for the second quarter of 2011 was a record high of $4.6 million, an increase of 29% from the second quarter of 2010.
- Average consolidated win per unit per day (WUD) for the second quarter of 2011 reached another record high of $147, an increase of 28% from the second quarter of 2010.
- As of June 30, 2011, total installed EGM seats in operation were 1,502 in seven venues, comprised of five venues in the Philippines with a total of 784 seats and two venues in Cambodia with a total of 718 seats.
- Cash-based selling, general and administrative (SG&A) expense was $1.2 million for the second quarter of 2011, a decrease of 20% from the second quarter of 2010.
- Cash balance was $14.0 million as of June 30, 2011.
- The Company is making progress on its casino development projects in the Kampot and Pailin Provinces of Cambodia with construction expected to begin in the fall of 2011 and gaming licenses secured for both projects.
- The Company continues to pursue potential new gaming projects in the Indo-China region.
Clarence Chung, Chairman and Chief Executive Officer of Entertainment Gaming Asia, commented, “I am pleased to announce that Entertainment Gaming Asia has reported another quarter of solid operating results. For our second quarter of 2011, we achieved another record high for our EGM participation revenue and consolidated average net win in our core gaming participation operations. This along with strict cost control resulted in the generation of meaningful adjusted EBITDA averaging over $1.0 million per month and positive GAAP earnings. With solid recurring cash flow and a growing cash position, which reached approximately $14 million as of June 30, 2011, we believe we are well positioned to expand our business model and execute our casino development plans within emerging gaming markets in the Indo-China region.”