— Continued expansion of customer base driving
revenue growth —
— Well-positioned for 2018 —
VANCOUVER, April 25, 2018 /CNW/ - INTEGRITY GAMING
CORP. (TSX-V: IGAM) (OTCQX: IGAMF) ("Integrity" or the
"Company") today announces financial results for the fourth quarter
and full-year ended December 31, 2017
(all amounts stated in U.S. dollars unless otherwise
indicated).
Fourth Quarter 2017 Highlights & Financial
Results
- 1% increase in revenue to $4.1
million, compared to $4.0
million in Q4 2016.
- 9% decrease in Adjusted EBITDA to $2.1
million, versus $2.3 million
in Q4 2016.
- Net loss of $3.9 million for Q4
2017, compared to net loss of $2.9
million in Q4 2016.
- On December 21, 2017, the Company
announced it would be changing its name from Poydras Gaming Finance
Corp. to Integrity Gaming Corp. effective January 1, 2018.
- On December 22, 2017, the Company
sold its bingo supply business to American Games for a gain of
$139,032.
- On December 28, 2017, the Company
closed a financing arrangement with Prudential Capital Group,
consisting of senior and subordinated debt, for up to $41.0 million.
2017 Full-year Highlights & Financial
Results
- 9% growth in revenue, to $16.4
million in 2017 compared to $15.0
million in 2016.
- Adjusted EBITDA of $9.3 million
in 2017, compared to $9.2 million in
2016.
- Net loss of $8.5 million, or
$0.24 per share, for 2017, compared
to $6.5 million, or $0.19 per share, for 2016.
- Machines deployed in 31 casinos on December 31, 2017, compared to 27 on December 31, 2016.
- Approximately 2,634 gaming machines in operation as of
December 31, 2017, compared to 2,618
as at December 31, 2016. Over 2,700
machines in operation as of April 25,
2018.
"In 2017 we successfully expanded our market presence in terms
of the number of casinos we serve, the range of products we
provide, and our overall installed base," said Peter Macy, CEO of Integrity. "Looking into
2018, we entered the year with a focus on our slot machine business
and the financial resources in place to execute our growth
strategy. We've assembled a differentiated product portfolio that
is accelerating our rate of new deployments."
Grant of Stock Options
On April 24, 2018, the
Company granted 299,000 stock options to its directors.
Directors' stock options vest on the date of grant, and can be
exercised at the price of C$0.27 per
share until April 24, 2023.
Adjusted EBITDA and reconciliation to net income (loss) is as
follows:
|
Q4 2017
|
Q3 2017
|
Q2 2017
|
Q1 2017
|
Q4 2016
|
Q3 2016
|
|
($)
|
($)
|
($)
|
($)
|
($)
|
($)
|
Net Income
(loss)
|
(3,895,783)
|
(2,022,129)
|
(1,382,586)
|
(1,167,084)
|
(2,935,028)
|
(2,918,891)
|
Adjustments:
|
|
|
|
|
|
|
|
Depreciation of
equipment
|
1,321,685
|
1,599,168
|
1,525,644
|
1,390,548
|
1,074,475
|
1,024,513
|
|
Amortization of
placement fees
|
441,393
|
424,863
|
449,658
|
449,658
|
533,904
|
524,449
|
|
Amortization of
intangible assets
|
200,375
|
200,642
|
199,576
|
198,775
|
218,337
|
223,772
|
|
Income tax expense
(recovery)
|
3,307
|
98,199
|
-
|
-
|
(119,904)
|
(357,883)
|
|
Finance lease
receivable reduction
|
204,521
|
538,231
|
308,392
|
467,486
|
513,064
|
664,490
|
|
Financing
costs
|
3,882,101
|
1,163,893
|
1,145,358
|
1,140,346
|
1,153,146
|
2,170,864
|
|
Foreign exchange
(gain) loss
|
299
|
1,948
|
(196)
|
8,466
|
745
|
(97,863)
|
|
Impairment of
placement fees
|
-
|
-
|
-
|
-
|
1,732,152
|
-
|
|
Impairment (recovery)
of loan receivable
|
-
|
-
|
-
|
-
|
-
|
(85,000)
|
|
Gain on settlement of
debt
|
(194)
|
(580)
|
224
|
(28,380)
|
-
|
(110,487)
|
|
Loss (gain) on
disposal of assets
|
(139,032)
|
(990)
|
(23,200)
|
(108,212)
|
12,750
|
-
|
|
Revaluation of
earn-out liability
|
-
|
-
|
-
|
-
|
30,000
|
450,000
|
|
Revaluation loss on
investment in A&W JV
|
-
|
-
|
-
|
-
|
-
|
588,317
|
|
Stock based
compensation
|
89,024
|
92,691
|
116,416
|
92,919
|
102,272
|
207,210
|
|
Employee separation
fees
|
-
|
290,000
|
-
|
-
|
-
|
-
|
|
A&W JV EBITDA
adjustments at 50% interest:
|
|
|
|
|
|
|
|
|
Depreciation of
equipment
|
-
|
-
|
-
|
-
|
-
|
69,254
|
|
|
Amortization of
placement fees
|
-
|
-
|
-
|
-
|
-
|
4,728
|
|
|
Interest
expense
|
-
|
-
|
-
|
-
|
-
|
6,076
|
Adjusted
EBITDA
|
2,107,696
|
2,385,936
|
2,339,286
|
2,444,522
|
2,315,913
|
2,363,549
|
|
|
|
|
|
|
|
Conference Call
The Company will hold a conference call to discuss the
results for its fourth quarter and year-end ended December 31, 2017. The call will be hosted by
Peter Macy, CEO, and Adam Kniec, CFO on Thursday, April 26, 2018 at 8:00 a.m. PST (11:00 a.m.
EST), followed by a question and answer period. All
interested parties are invited to participate.
Conference Call Details:
Date:
|
Thursday, April 26, 2018
|
Time:
|
8:00 a.m. Pacific
Time / 11:00 a.m. Eastern Time
|
|
|
Dial-In
Numbers:
|
North America
Toll-Free Dial-In Number:
|
1 (888)
231-8191
|
|
For
Toronto:
|
(647)
427-7450
|
|
For
Vancouver:
|
(778)
371-9827
|
|
|
Conference
ID:
|
9390789
|
TAPED
|
1 (855) 859‐2056
|
REPLAY:
|
Available until 12:00 midnight (EST) Thursday, May 3, 2018
|
|
Reference number: 9390789
|
About Integrity Gaming Corp.:
Formerly Poydras Gaming Finance Corp., Integrity Gaming Corp. is a
regional slot route operator with over 2,700 gaming machines in
operation across 30 casinos in Oklahoma and Texas. The Company primarily derives its
revenue from short‐ and long-term revenue share contracts with
Native American casinos. It provides gaming equipment such as slot
machines and electronic table games, and project financing to
owners, operators, and managers of casinos and other regulated
gaming venues. The Company works with casinos, new casino
developments, and gaming machine suppliers. Additional information
about the Company can be found on the Company's website at
www.integritygaming.com and on the SEDAR website at
www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Note Regarding Forward‐Looking
Statements
Certain information in this news release is considered
forward‐looking within the meaning of certain securities laws and
is subject to important risks, uncertainties and assumptions. This
forward‐looking information includes, among other things,
information with respect to the Company's beliefs, plans,
expectations, anticipations, estimates and intentions. The words
"may", "could", "should", "would", "suspect", "outlook", "believe",
"anticipate", "estimate", "expect", "intend", "plan", "target" and
similar words and expressions are used to identify forward‐looking
information. The forward‐looking information in this news release,
including those statements relating to expected EBITDA, and the
placement of additional machines by the Company, describes the
Company's expectations as of the date of this news release.
The results or events anticipated or predicted in such
forward‐looking information may differ materially from actual
results or events. Material factors which could cause actual
results or events to differ materially from such forward‐ looking
information include, among others, risks arising from general
economic conditions and adverse industry events.
The Company cautions that the foregoing list of material factors
is not exhaustive. When relying on the Company's forward‐looking
information to make decisions, investors and others should
carefully consider the foregoing factors and other uncertainties
and potential events. The Company has assumed a certain
progression, which may not be realized. It has also assumed that
the material factors referred to in the previous paragraph will not
cause such forward‐looking information to differ materially from
actual results or events. However, the list of these factors is not
exhaustive and is subject to change and there can be no assurance
that such assumptions will reflect the actual outcome of such items
or factors.
THE FORWARD‐LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE
REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS
NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH
DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD‐LOOKING
INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY
OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE
TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME.
Non‐IFRS Measures
Adjusted EBITDA is a financial
measure that does not have a standardized meaning under IFRS.
Adjusted EBITDA is defined as earnings before financing costs,
income taxes, depreciation, amortization, stock based compensation,
unrealized foreign exchange, impairment of loans receivable,
impairment of placement fees, gain/loss on settlement of debt,
gain/loss on disposal of assets, gain/loss on disposal of BitBoss,
finance lease receivable reduction, revaluation adjustment of
earn-out liability, revaluation loss on investment in A&W JV,
employee separation fees and non-recurring costs. In
addition, to arrive at the Adjusted EBITDA, the Company was
adjusting its earnings for its 50% share of the income/expense and
gain/loss categories that are included in the Company's income from
equity accounted investees up to the date of the acquisition of the
A&W JV.
As there is no standardized method of calculating Adjusted
EBITDA, it may not be directly comparable with similarly titled
measures used by other companies. The Company considers
Adjusted EBITDA to be a relevant indicator for measuring trends in
performance and its ability to generate funds to service its debt
and to meet its future working capital and capital expenditure
requirements. Adjusted EBITDA is not a generally accepted earnings
measure and should not be considered in isolation or as an
alternative to net income (loss), cash flows or other measures of
performance prepared in accordance with IFRS.
SOURCE Integrity Gaming Corp.