“We believe we have developed a business model that provides the ability to generate quality recurring cash flow. This has allowed us to invest in and grow our operations and pay down all of our debt. We are focused on growing our existing businesses and building our resources as we actively seek new growth opportunities in the high-growth economies of Indo-China.”
Q2 2013 Financial Review
The Company effected a 1:4 reverse stock split of its common shares on June 12, 2012.
All historical share amounts and share information presented have been proportionally adjusted to reflect the impact of this reverse stock split, including basic and diluted weighted-average shares and shares issued and outstanding.
On March 28, 2013, the Company sold the portion of its subsidiary Dolphin Products Pty Limited business dedicated to the manufacture and sale of non-gaming plastic products, mainly automotive parts. All historical revenues and expenses associated with non-gaming plastic products operations for the periods presented have been reclassified as discontinued operations. Revenues of these non-gaming products and gaming chips and plaques were previously consolidated under the reporting segment “Other Products.” After the sale, the Company renamed “Other Products” as “Gaming Products,” which comprises its gaming chips and plaques operations.
Entertainment Gaming Asia’s second quarter of 2013 consolidated revenue was $5.8 million, a decrease of 5% compared to $6.2 million in the second quarter of 2012. The decrease was primarily due to lower sales of gaming products partially offset by higher gaming operations revenue.
Revenue from gaming operations, which included slot and casino operations, was $5.7 million in the second quarter of 2013, an increase of 9% compared to $5.2 million in the second quarter of 2012. The increase was attributed to incremental revenue from the Dreamworld Pailin casino, which opened in May 2012, partially offset by lower slot operations revenue.