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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 fourth quarter and fiscal year ended December 31, 2011 and reviewed recent corporate progress.
2011 fiscal year produced record-breaking financial performance with adjusted EBITDA (earnings before interest, taxes, depreciation, amortization and non-cash charges) of $11.7 million, an increase of 41% from the 2010 fiscal year, and net income of $642,000, marking the first time in the Company’s history to achieve an annual net profit.
Total net revenue from gaming operations was $4.3 million for the fourth quarter of 2011, an increase of 12% from the fourth quarter of 2010 and $17.4 million for the 2011 fiscal year, an increase of 22% from the 2010 fiscal year.
Average consolidated win per unit per day (WUD) was $136 for the fourth quarter of 2011, an increase of 14% from the fourth quarter of 2010 and $140 for the 2011 fiscal year, an increase of 20% from the 2010 fiscal year.
As of December 31, 2011, total installed EGM seats in operation were 1,477 in seven venues, comprised of five venues in the Philippines with a total of 758 seats and two venues in Cambodia with a total of 719 seats.
As part of its annual impairment review, the Company recorded a $1.4 million non-cash impairment charge as of December 31, 2011 associated with the write-down of certain gaming machines and systems in inventory as well as infrastructure costs related to the closure of one venue in the Philippines in April 2011.
Cash balance was $12.8 million as of December 31, 2011 compared to $10.2 million as of December 31, 2010.
Total debt was $6.2 million as of December 31, 2011 compared to $9.2 million as of December 31, 2010.
The Company intends to expand its gaming machine participation and management operations in Cambodia with the placement of an initial 200 EGM seats in Sokha Hotels and Resort’s new five-star Thansur Bokor Resort and Casino expected to open in April 2012.
The Company is making progress on the development of its casino projects in the Pailin and Kampot Provinces of Cambodia with Dreamworld Casino Pailin expected to open on May 9, 2012 and Dreamworld Casino Kampot expected to open in the third quarter of 2012.
Clarence Chung, Chairman and Chief Executive Officer of Entertainment Gaming Asia, commented, “2011 was a milestone year for the Company. It marks the third consecutive year of earnings growth since we began to implement our restructuring efforts and the achievement of record-breaking financial performance. For the 2011 fiscal year, we generated nearly $12 million in adjusted EBITDA, demonstrating dramatic improvement from essentially breakeven results just three years ago, and recorded an annual net profit for the first time in the Company’s history. This enhanced ability to generate cash flow enabled us to increase our cash position for the year while still investing in our strategic growth plans and strengthening our balance sheet. We enter 2012 a stronger Company with a solid foundation from which to invest in our core participation business and to expand our gaming operations to include the development and operation of our own casinos in the Indo-China region.”