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Entertainment Gaming Asia Reports Fourth Quarter And 2012 Fiscal Year Results And Provides Market Update

- financial tables follow -

Entertainment Gaming Asia Inc.

Consolidated Statements of Comprehensive Income

(Unaudited)

             

Three-Month Periods Ended December 31,

Years Ended December 31,

(amounts in thousands, except per share data) 2012 2011 2012 2011
Revenues:
Gaming, gross $ 5,756 $ 4,299 $ 20,389 $ 17,396
Less: promotional allowances        
Gaming, net 5,756 4,299 20,389 17,396
Other products 4,524   3,385   12,429   9,733  
Total revenues 10,280 7,684 32,818 27,129
 
Operating costs and expenses:
Cost of gaming:
Gaming equipment depreciation 1,164 1,249 4,608 4,890
Casino contract amortization 619 616 2,466 2,457
Other gaming related intangibles amortization 63 63 252 63
Other operating costs 1,733 360 4,331 1,169
Cost of other products 3,828 2,762 11,187 8,346
Selling, general and administrative expenses 2,274 2,020 6,986 5,880
Stock-based compensation expenses 164 215 840 1,452
(Gain)/loss on dispositions of assets (13 ) 23 (44 ) 175
Impairment of assets 226 1,351 339 1,351
Product development expenses 123 85 395 386
Depreciation and amortization 164   27   333   113  
Total operating costs and expenses 10,345   8,771   31,693   26,282  
(Loss)/income from operations (65 ) (1,087 ) 1,125 847
 
Other income/(expenses):
Interest expense and finance fees (100 ) (108 ) (405 )
Interest income 12 32 43 93
Foreign currency gains/(losses) 42 (28 ) 311 (94 )
Other income 74   60   314   252  
Total other income/(expenses) 128   (36 ) 560   (154 )
 
Income/(loss) before income tax 63 (1,123 ) 1,685 693
 
Income tax benefit/(expense) 205   118   81   (51 )
 
Net income/(loss) $ 268   $ (1,005 ) $ 1,766   $ 642  
 
Basic and diluted earnings per share $ 0.01 $ (0.03 ) $ 0.06 $ 0.02
 
Weighted average common shares outstanding
Basic 29,942 29,690 29,922 29,489
Diluted 31,023 29,989 30,807 29,726

Other comprehensive income/(loss), net of tax

Foreign currency translation adjustments 127 50 294 (14 )
Unrealized actuarial income 76   5   76   5  
Comprehensive income/(loss) $ 471 $ (950 ) $ 2,136 $ 633

Less: Comprehensive income/(loss)

attributable to non controlling interest

       
Comprehensive income/(loss) attributable to EGT stockholders

$

471   $ (950 )

$

2,136   $ 633  
 

Entertainment Gaming Asia Inc.

Consolidated Balance Sheets

   
December 31, December 31,
2012 2011
(amounts in thousands, except per share data) (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 10,365 $ 12,759
Accounts receivable, net 1,841 2,691
Other receivables 112 114
Inventories 2,047 1,894
Prepaid expenses and other current assets 387 841
Total current assets 14,752 18,299
 
Gaming equipment, net 9,724 8,889
Casino contracts 7,982 10,340
Property and equipment, net 6,170 2,558
Goodwill 380 357
Intangible assets, net 1,253 1,227
Contract amendment fees 342 450
Deferred tax assets 201 91
Prepaids, deposits and other assets 2,914 1,893
Total assets $ 43,718 $ 44,104
 

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable $ 3,636 $ 1,316
Amount due to related party 14
Accrued expenses 2,619 2,228
Income tax payable 68
Notes payable to a related party 6,211
Capital lease obligations 322
Customer deposits and other current liabilities 656 357
Total current liabilities 6,911 10,516
 
Other liabilities 1,078 869
Deferred tax liability 137 207
Total liabilities 8,126 11,592
 
Stockholders’ equity:
Common stock, $.001 par value, 75,000,000 shares authorized; 29,974,662 and 29,709,848 shares issued and outstanding, respectively 30 30
Additional paid-in-capital 32,224 31,280
Accumulated other comprehensive income 929 559
Retained earnings since January 1, 2011 ($386.1 million accumulated deficit eliminated upon quasi-reorganization) 2,408 642
Total EGT stockholders’ equity 35,591 32,511
Non-controlling interest 1 1
Total stockholders’ equity

35,592

32,512
Total liabilities and stockholders’ equity $ 43,718 $ 44,104
 

Entertainment Gaming Asia Inc.

Adjusted EBITDA

(Unaudited)

   
Three-Month Periods Ended Years Ended
December 31, December 31,

(amounts in thousands)

2012     2011     2012     2011
Net income/(loss) – GAAP $ 268 $ (1,005 ) $ 1,766 $ 642
Interest expense and finance fees 100 108 405
Interest income (12 ) (32 ) (43 ) (93 )
Income tax (benefit)/expense (205 ) (118 ) (81 ) 51
Depreciation and amortization 2,146

2,016

8,031 7,754
Stock-based compensation expenses 164 215 840 1,452
Impairment of assets 226 1,351 339 1,351
(Gain)/loss on dispositions of assets (13 ) 23   (44 ) 175  
EBITDA, as adjusted $ 2,574   $

2,550

  $ 10,916   $ 11,737  
 

Adjusted EBITDA is earnings before interest, taxes, depreciation, amortization, stock-based compensation, and other non-cash operating income and expenses. Adjusted EBITDA is presented exclusively as a supplemental disclosure because management believes that it is widely used to measure the performance, and as a basis for valuation, of gaming companies. Management uses Adjusted EBITDA as a measure of the operating performance of its segments and to compare the operating performance of its operations with those of its competitors. The Company also presents Adjusted EBITDA because it is used by some investors as a way to measure a company’s ability to incur and service debt, make capital expenditures and meet working capital requirements. Gaming companies have historically reported EBITDA as a supplement to financial measures in accordance with generally accepted accounting principles in the United States (“GAAP”). Adjusted EBITDA should not be considered as an alternative to operating income/(loss) as an indicator of the Company’s performance, as an alternative to cash flows from operating activities as a measure of liquidity, or as an alternative to any other measure determined in accordance with GAAP. Unlike net income/(loss), Adjusted EBITDA does not include depreciation or interest expense and, therefore, does not reflect current or future capital expenditures or the cost of capital. The Company compensates for these limitations by using Adjusted EBITDA as only one of several comparative tools, together with GAAP measurements, to assist in the evaluation of operating performance. Such GAAP measurements include operating income, net income/(loss), cash flows from operations and cash flow data. The Company has significant uses of cash flows, including capital expenditures, interest payments, debt principal repayments, taxes and other non-recurring charges, which are not reflected in Adjusted EBITDA. Entertainment Gaming Asia’s calculation of Adjusted EBITDA may be different from the calculation methods used by other companies and, therefore, comparability may be limited.

 




Stock quotes in this article: EGT 

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