Multimedia Games’ First Quarter Revenue Increases 27% To $44.3 Million; EBITDA Rises 31% To $21.4 Million

Multimedia Games Holding Company, Inc. (Nasdaq: MGAM) (“Multimedia Games” or the “Company”) today reported operating results for its fiscal 2013 first quarter ended December 31, 2012, as summarized in the table below:
 

Summary of 2013 Q1 Results

(In millions, except per-share and unit data)
 

Three Months Ended December 31,
2012   2011
Revenue $ 44.3 $ 34.8
EBITDA (1) $ 21.4 $ 16.3
Operating income (2) $ 11.4 $ 3.8
Net income (2) (3) $ 7.1 $ 5.8
Diluted earnings per share (2) (3) $ 0.24 $ 0.21
Pro-forma diluted earnings per share (4) $ 0.24 $ 0.12
 
New units sold 644 408
 
Domestic participation installed units:
Average 10,942 9,506
Quarter-end 11,188 9,633
 
(1)   EBITDA is defined as net income before net interest expense, income taxes, depreciation, amortization and accretion of contract rights. A reconciliation of EBITDA to net income, the most comparable Generally Accepted Accounting Principles (“GAAP”) financial measure, can be found attached to this release.
(2) Operating income, net income and diluted earnings per share for the three month period ended December 31, 2012, reflects a change in the depreciable lives for the Company’s gaming operations equipment as described in the last paragraph of “Summary of Fiscal 2013 First Quarter Operating Results” below.
(3) Net income and diluted earnings per share for the three month period ended December 31, 2011, includes a one-time tax benefit totaling $1.0 million, or $0.04 per fully diluted share, and a gain on the sale of used equipment back to the original manufacturer totaling $0.9 million, or $0.03 per diluted share.
(4) Pro-forma diluted earnings per share for the three month period ended December 31, 2011, reflects the following adjustments; (i) a tax expense rate of 37.2%, the effective tax rate for the fiscal 2013 first quarter, which results in a $0.10 per diluted share reduction from reported results; (ii) the elimination of the one-time $0.03 per diluted share benefit related to the sale of used equipment to the original manufacturer; and, (iii) the Company’s estimated $0.04 benefit to fully diluted earnings per share related to the change in depreciable lives of its gaming operations equipment (which is described in more detail below).
 
Three Months Ended December 31,
2012   2011
As reported (2) (3) $ 0.24 $ 0.21
Pro-forma at 37.2% tax rate (0.10 )
Gain on sale of used equipment to original manufacturer (0.03 )
Normalize depreciation, net of tax     0.04  
Pro-forma EPS (4) $ 0.24 $ 0.12  
 

Patrick Ramsey, President and Chief Executive Officer of Multimedia Games, commented, “Our strong start to fiscal 2013 reflects a continuation of the momentum we built throughout fiscal 2012 in expanding our total addressable market and developing attractive, differentiated games and themes that address our customers’ needs and player preferences. Revenues of over $44 million in the first quarter of fiscal 2013 represent the highest quarterly revenue we have generated since the March 2006 quarter. The domestic installed base rose 5% on a quarterly sequential basis and by over 16% compared to the year ago period and we achieved another record quarter of unit sales across 17 states. Our operating leverage continues to improve, and as a result, growth in both operating income and EBITDA outpaced our 27% year-over-year increase in revenue.

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