HARRISON, N.Y., Aug. 17, 2015 /PRNewswire/ -- MGT Capital
Investments, Inc. (NYSE MKT: MGT) today reported financial and
operational results for the three and six-month periods ended
June 30, 2015.
Financial and Operational Results
For the three months ended June 30,
2015, revenues from our fantasy sports business were
$249,000, up 15% from the
$217,000 recorded in the first
quarter of this year. Second quarter 2015 revenues were down 12%
from the same quarter in 2014, as the Company adopted a strategy to
reduce overlay in its guaranteed contests. As a result, the gross
margin from gaming operations was $153,000 (61% of revenue), up 32% as compared to
$116,000 (41% of revenue) for the
same period last year, and up 20% sequentially from the first
quarter 2015 gross margin of $127,000
(58% of revenue).
Total operating expenses for the second quarter 2015 were down
39% year over year, and down over 30% sequentially from the first
quarter of this year. Operating loss improved to ($855,000) in the second quarter of 2015,
compared to ($1.5 million) in the
year ago second quarter, and ($1.3
million) in this year's first quarter.
For the six months, ended June 30,
2015, gaming revenues were up 43%, and gross margin from
gaming was up 157%, with the six month gross margin improving to
60% of revenue, as compared to 34% of revenue for the same period
last year.
Management Commentary and Outlook
As reported on Forms 8–K, filed with the Securities and Exchange
Commission on June 12, 2015,
July 6, 2015 and July 20, 2015, the Company has entered into an
Asset Purchase Agreement (as amended) for the sale of its fantasy
sports assets to a group managed by Sportech PLC. Under the terms
of the Agreement, at closing, the Company will receive over
$4.3 million in cash plus a 10%
residual equity ownership in the buyer. The necessary fundraising
for the deal is being led by Macquarie Capital Markets Canada Ltd.,
although there can be no assurance that Macquarie will be
successful prior to the expected closing date on or before
August 31, 2015.
About MGT Capital Investments, Inc.
MGT Capital and its subsidiaries operate social and real money
gaming sites online and in the mobile space, including ownership of
the 3rd largest daily fantasy sports wagering platform,
DraftDay.com. The Company also offers games of skill through
MGTplay.com and social casino games with SlotChamp™. MGT
also launched Daily Fantasy Legend in partnership with Facebook to
become the first daily fantasy sports platform on social
media. In addition, the Company owns intellectual property
relating to slot machines and has asserted its claims via patent
infringement lawsuits.
Forward-looking Statements
This press release contains forward-looking statements. The
words or phrases "would be," "will allow," "intends to," "will
likely result," "are expected to," "will continue," "is
anticipated," "estimate," "project," or similar expressions are
intended to identify "forward-looking statements." MGT's financial
and operational results reflected above should not be construed by
any means as representative of the current or future value of its
common stock. All information set forth in this news release,
except historical and factual information, represents
forward-looking statements. This includes all statements about the
Company's plans, beliefs, estimates and expectations. These
statements are based on current estimates and projections, which
involve certain risks and uncertainties that could cause actual
results to differ materially from those in the forward-looking
statements. These risks and uncertainties include issues related
to: rapidly changing technology and evolving standards in the
industries in which the Company and its subsidiaries operate; the
ability to obtain sufficient funding to continue operations,
maintain adequate cash flow, profitably exploit new business,
license and sign new agreements; the unpredictable nature of
consumer preferences; and other factors set forth in the Company's
most recently filed annual report and registration statement.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which reflect management's analysis
only as of the date hereof. The Company undertakes no obligation to
publicly revise these forward-looking statements to reflect events
or circumstances that arise after the date hereof. Readers should
carefully review the risks and uncertainties described in other
documents that the Company files from time to time with the U.S.
Securities and Exchange Commission.
|
MGT CAPITAL
INVESTMENTS, INC. AND SUBSIDIARIES
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
(in thousands,
except share and per–share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
|
December
31,
|
|
2015
|
|
|
2014
|
|
(Unaudited)
|
|
|
Assets
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
1,097
|
|
$
|
1,455
|
|
Accounts
receivable
|
|
12
|
|
|
5
|
|
Prepaid expenses and
other current assets
|
|
123
|
|
|
172
|
|
Note
receivable
|
|
251
|
|
|
–
|
|
Total current
assets
|
|
1,483
|
|
|
1,632
|
|
|
|
|
|
|
|
Non–current
assets
|
|
|
|
|
|
|
Restricted
cash
|
|
39
|
|
|
138
|
|
Property and
equipment, at cost, net
|
|
26
|
|
|
43
|
|
Intangible assets,
net
|
|
2,117
|
|
|
2,417
|
|
Goodwill
|
|
6,444
|
|
|
6,444
|
|
Other non–current
assets
|
|
–
|
|
|
2
|
|
Total
assets
|
$
|
10,109
|
|
$
|
10,676
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts
payable
|
$
|
324
|
|
$
|
245
|
|
Accrued
expenses
|
|
152
|
|
|
180
|
|
Player deposit
liability
|
|
742
|
|
|
952
|
|
Other
payables
|
|
2
|
|
|
2
|
|
Total current
liabilities
|
|
1,220
|
|
|
1,379
|
|
|
|
|
|
|
|
Total
liabilities
|
|
1,220
|
|
|
1,379
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
Redeemable
convertible preferred stock – Temporary equity
|
|
|
|
|
|
|
Preferred stock,
series A convertible preferred, $0.001 par value; 1,416,160 and
1,416,160 shares authorized at June 31, 2015 and December 31, 2014,
respectively; 10,296 and 9,993 shares issued and outstanding at
June 31, 2015 and December 31, 2014, respectively
|
|
–
|
|
|
–
|
|
Stockholders'
equity
|
|
|
|
|
|
|
Undesignated preferred
stock, $0.001 par value; 8,583,840 and 8,583,840 shares authorized
at June 31, 2015 and December 31, 2014, respectively. No shares
authorized, issued and outstanding at March 31, 2015 and December
31, 2014 respectively
|
|
–
|
|
|
–
|
|
Common Stock, $0.001
par value; 75,000,000 shares authorized; 14,116,999 and 10,731,160
shares issued and outstanding at June 31, 2015 and December 31,
2014, respectively
|
|
14
|
|
|
11
|
|
Additional paid–in
capital
|
|
310,108
|
|
|
308,288
|
|
Accumulated other
comprehensive loss
|
|
(281)
|
|
|
(281)
|
|
Accumulated
deficit
|
|
(301,285)
|
|
|
(299,163)
|
|
Total stockholders'
equity
|
|
8,556
|
|
|
8,855
|
|
Non–controlling
interests
|
|
333
|
|
|
442
|
|
Total
equity
|
|
8,889
|
|
|
9,297
|
|
|
|
|
|
|
|
Total stockholders'
equity, liabilities and non–controlling interest
|
$
|
10,109
|
|
$
|
10,676
|
|
MGT CAPITAL
INVESTMENTS, INC. AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS
|
|
(In thousands,
except share and per-share amounts)
|
|
(Unaudited)
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Licensing
|
$
|
12
|
|
$
|
37
|
|
$
|
12
|
|
$
|
80
|
|
Gaming
|
|
249
|
|
|
283
|
|
|
466
|
|
|
325
|
|
|
261
|
|
|
320
|
|
|
478
|
|
|
405
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming
|
|
96
|
|
|
167
|
|
|
186
|
|
|
216
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
165
|
|
|
153
|
|
|
292
|
|
|
189
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
981
|
|
|
1,536
|
|
|
2,369
|
|
|
2,800
|
|
Sales and
marketing
|
|
39
|
|
|
91
|
|
|
118
|
|
|
108
|
|
Research and
development
|
|
–
|
|
|
53
|
|
|
–
|
|
|
113
|
|
|
1,020
|
|
|
1,680
|
|
|
2,487
|
|
|
3,021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
(855)
|
|
|
(1,527)
|
|
|
(2,195)
|
|
|
(2,832)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
non–operating (expense) / income
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other
income
|
|
5
|
|
|
2
|
|
|
(36)
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss before
income taxes and non–controlling interest
|
|
(850)
|
|
|
(1,525)
|
|
|
(2,231)
|
|
|
(2,827)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (expense)
/ benefit
|
|
–
|
|
|
1
|
|
|
–
|
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss before
non–controlling interest
|
$
|
(850)
|
|
$
|
(1,524)
|
|
|
(2,231)
|
|
|
(2,816)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to non–controlling interest
|
|
(1)
|
|
|
133
|
|
|
109
|
|
|
303
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to MGT Capital Investments, Inc.
|
$
|
(851)
|
|
$
|
(1,391)
|
|
$
|
(2,122)
|
|
$
|
(2,513)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per–share
data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
loss per share
|
$
|
(0.06)
|
|
$
|
(0.15)
|
|
$
|
(0.17)
|
|
$
|
(0.28)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding
|
|
13,578,181
|
|
|
9,057,867
|
|
|
12,373,621
|
|
|
8,921,935
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/mgt-capital-reports-financial-results-for-the-second-quarter-ending-june-30-2015-300129105.html
SOURCE MGT Capital Investments, Inc.