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TheStreet Open House

Multimedia Games Fourth Quarter Revenues Increase 17.3% To $35.7 Million, Driving Diluted Earnings Per Share Of $0.11; Fiscal 2011 Diluted EPS Of $0.20

Stocks in this article: MGAM

Multimedia Games Holding Company, Inc. (Nasdaq: MGAM) (“Multimedia Games” or the “Company”) today reported operating results for its fiscal 2011 fourth quarter and fiscal year ended September 30, 2011, as summarized in the table below:

             

Summary of 2011 Q4 and Fiscal Year Results

(In millions, except per-share and player terminal data)

 

Three Months Ended September 30,

Twelve Months Ended September 30,

2011       2010 2011       2010
Revenue $ 35.7 $ 30.5 $ 127.9 $ 117.9
EBITDA (1) $ 15.6 $ 11.6 $ 55.0 $ 47.6
Operating income (loss) $ 3.3 $ (1.5 ) $ 6.2 $ (10.6 )
Net income (2) $ 3.1 $ 12.0 $ 5.7 $ 2.6
Diluted earnings per share (2) $ 0.11 $ 0.43 $ 0.20 $ 0.09
 
New units sold 458 309 1,150 930
 
Average participation installed units:
Domestic 9,128 8,401 8,806 9,099
International (3) 3,717 4,865 4,336 5,138
 
Quarter-end participation installed units (3):
Domestic 9,379 8,248
International (3) 3,475 4,784
 
(1)   EBITDA is defined as earnings before net interest expense, income taxes, depreciation, amortization, and accretion of contract rights. EBITDA is a financial measure not calculated under Generally Accepted Accounting Principles (“GAAP”). A reconciliation of EBITDA to net income, the most comparable GAAP financial measure, can be found attached to this release.
 
(2) Net income and diluted earnings per share for the three and twelve month periods ended September 30, 2011 include an after-tax charge of $0.7 million ($0.03 per diluted share) related to various fixed asset and pre-paid loan fee disposals. Net income and diluted earnings per share for fiscal 2011 also include previously disclosed after-tax charges totaling $0.5 million ($0.01 per diluted share). Net income and diluted earnings per share for the three and twelve month periods ended September 30, 2010 include certain one-time net tax benefits of $14.1 million ($0.50 per diluted share) and $14.4 million ($0.51 per diluted share), respectively; and certain one-time after-tax charges totaling approximately $0.7 million ($0.02 per diluted share) and approximately $3.1 million ($0.11 per diluted share) related to certain write-off, reserve, impairment and settlement charges, respectively.
 
(3) International participation installed units reflect placements in Mexico.

Patrick Ramsey, President and Chief Executive Officer of Multimedia Games, commented, “We are proud of our fiscal 2011 fourth quarter results which reflect double digit revenue growth, a significant rise in new units sold, a continued expansion of our domestic installed base and a $4.9 million increase in operating income over the fiscal 2010 fourth quarter. We believe the progress achieved throughout the year with respect to our products and financial results positions the Company for ongoing success in fiscal 2012 and beyond. During fiscal 2011, Multimedia placed products in 11 new markets either through recurring revenue placements or one-time sales arrangements, including the initial placement of products into large commercial casino jurisdictions such as Louisiana and Mississippi. We placed products at 45 new casinos in fiscal 2011, a nearly 50% increase in the number of casinos that feature Multimedia Games’ products compared to the prior year.

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