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 third quarter ended September 30, 2011 and reviewed recent corporate progress.
Exterior architectural rendering of Dreamworld Casino Pailin (Photo: Business Wire)
- Net income was $647,000 for the third quarter of 2011 compared to $725,000 for the third quarter of 2010. The third quarter of 2010 included $320,000 in a one-time tax benefit.
- Consolidated adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, and non-cash charges) was $2.8 million for the third quarter of 2011 compared to $3.2 million for the third quarter of 2010.
- Total net revenue from EGMs on participation for the third quarter of 2011 was $4.4 million, an increase of 7% from the third quarter of 2010.
- Average consolidated win per unit per day (WUD) for the third quarter of 2011 was $145, an increase of 16% from the third quarter of 2010.
- As of September 30, 2011, total installed EGM seats in operation were 1,495 in seven venues, comprised of five venues in the Philippines with a total of 780 seats and two venues in Cambodia with a total of 715 seats.
- Cash-based selling, general and administrative (SG&A) expense was $1.5 million for the third quarter of 2011 compared to $1.3 million for the third quarter of 2010.
- Cash balance was $14.3 million as of September 30, 2011 compared to $10.2 million as of December 31, 2010.
- Total debt was $7.7 million as of September 30, 2011 compared to $9.2 million as of December 31, 2010.
- Recent agreement to increase revenue sharing in one of the Company’s most promising participation venues in the Philippines is expected to improve market positioning and long-term overall returns of its Philippine gaming participation operations.
- Targeted marketing initiatives result in an expanded customer base for the Company’s Dolphin gaming chips and plaques including a new customer in the Indo-China region and in Macau.
- The Company is making progress in the pre-construction phases of its casino development projects in the Pailin and Kampot Provinces of Cambodia and intends to open both projects in the second quarter of 2012 beginning with the Pailin project.
- 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 third quarter of 2011, we have continued to achieve strong EGM participation revenue and consolidated average net win in our core gaming participation operations and another quarter of positive GAAP earnings. With a healthy adjusted EBITDA run rate of approximately $1 million per month, we have maintained our cash position at over $14 million while investing in our strategic growth plans and strengthening our balance sheet. We remain focused on improving overall returns through investment in our core participation operations and our casino development growth strategy within emerging gaming markets in the Indo-China region.”