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The company’s actual results could differ materially from those discussed on this phone call. Some of these risks and uncertainties are described in today’s news announcement and in the company’s filings with the Securities and Exchange Commission including the company’s reports on forms 8-K, 10-K and 10-Q.Entertainment Gaming assumes no obligation to publicly update or revise any forward-looking statements. Now, the agenda for today’s call will be as follows; first, Clarence will discuss the highlights of our 2011 fiscal year financial performance and corporate developments. Following that, Andy will review in more detail our financial results for the fourth quarter. Clarence will then conclude our prepared remarks with an update on our growth plans for our gaming operations. We would then be very 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 2011 was the most strong year for Entertainment Gaming Asia. It was not only a year of record-breaking financial performance, but also marked out third consecutive year of strong earnings growth since this new management team began implementing restructuring efforts in the fourth quarter of 2008. We have come along way in the last three years. Our restructuring in East Asia has resulted in a more refined business model and substantially improve our operating efficient and financial profitability. This is clearly evident in our financial performance. In the last three years, we have increased gaming revenue at a compound annual growth rate of 72% driven by consistent strong improvement in consolidated annual average net wins which reached 140 for the 2011 fiscal year. Loan [ph] adjusted EBITDA from just 140,000 in 2009 to $11.7 million in 2011. And dramatically improved out bottom line having attained net profitability for the first time ever in the company’s history in 2011, compared to a net loss of $27 million in 2008.
We are very proud of these results, and believe they clearly demonstrate the successful turnaround of the company.Let me now share with you, some of the specific highlights for 2011. Consolidated revenue was $27.1 million, up 22% from 2010 and was a record high for the company. This growth was driven by both our gaming and other products divisions. Gaming participation revenue was $17.4 million, up 22% from 2010, and was primarily driven by strong performance at operations at NagaWorld in Cambodia. Average consolidate net win was $140 for 2011, an increase of 20% from 2010. Both our operations at NagaWorld and in the Philippines post strong gains in average net win during the year. NagaWorld’s net wins improved 15% to $232. As we benefit from our proactive machine management and target this marketing initiated. The positive growth trends has continued so far this year with net wins at NagaWorld reaching $246 in January and $254 in February of 2012. In the Philippines, our strategic efforts to maximize performance in these markets are beginning to pay off, particularly in recent months. These efforts includes strategic management of machine placement, and targeted marketing focused on our most promising venues in these market. This has resulted in average net win growth of 10% to $53 for 2011 and levels has continued to climb reaching $71 in January and 77 in February of 2012. In addition to the strong performance of our gaming operation, our other product divisions meaningfully contributed to revenue. East division was up 23% from last year due to higher sales volume for existing costumers for automotive component and marked improvement in our gaming chips and plaques sales. As a result of higher customer re-orders and the addition of new customers. With strong revenue gains and a continued focus on cost control, we post record high adjusted EBITDA of $11.7 million for 2011, up an impressive 41% from the prior year. Net income was 642,000 for the year, marking the first time in the company’s history to achieve a new net profit. Read the rest of this transcript for free on seekingalpha.com