This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Entertainment Gaming Asia CEO Discusses Q3 2011 Results - Earnings Call Transcript

Stocks in this article: EGT

Now, the agenda for today’s call will be as follows: First, Clarence will discuss the highlights of our third quarter 2011 financial performance and corporate developments. Following that, Andy will review in more detail our financial results for the quarter. Clarence will then conclude our prepared remarks with an update on our growth plans for our gaming operations including the status of our existing casino project. We would then be pleased to take your questions.

With that, let me turn the call over to Clarence Chung. Clarence?

Clarence Chung

Thank you, Traci, and good morning everyone. I’m pleased to report that Entertainment Gaming Asia has reported another solid quarter of operating results with strong EGM participation revenues and consolidated average net win in our gaming participation operation and another quarter of positive GAAP earning.

With the healthy EBITDA run rate, we have maintained a solid cash positions while investing in our strategic growth plan and strengthening our balance sheet. Further, we remain focused in enhancing overall returns of our core existing operation and executing our casino development growth strategies within emerging gaming market in the Indo-China region.

Before we discuss an update of our casino growth trend, I’d like to take this opportunity to highlight some of our key financial results during the third quarter of 2011 and recent corporate development.

Total gaming participation revenues for the third quarter of 2011 was $4.4 million, this represent 7% growth from the same period last year. This growth was driven by consolidated average net win of $145 proceeds due primarily by our operations at NagaWorld, which achieved average net wins of $233 for the quarter. As a result of positive marketing to customers as well as machine mix improvement.

Adjusted EBITDA was $2.8 million for the third quarter, essentially in line with our current run rate of approximately $1 million for the month. We achieved another quarter of positive GAAP earnings with net income of $647,000. We have stronger flow from operations. We have maintained a cash possessions of approximately 14 million as of September 30, 2011, up from $10.2 million as of December 31, 2010, while we are using our debt and investing in our growth trend. While we are focused on our casino development plan, we also maintained committed to and hunting our key existing operation.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs