Poydras earns $1.1-million in Q3
2015-11-27 14:42 MT - News Release
Mr. Peter Macy reports
POYDRAS GAMING FINANCE CORP. ANNOUNCES 2015 THIRD QUARTER FINANCIAL RESULTS
Poydras Gaming Finance Corp. has released financial results for the third quarter ended Sept. 30, 2015, and has entered into of a new financing relationship with PDS Gaming Corp. (all amounts stated in U.S. dollars unless otherwise indicated).
Third quarter 2015 highlights and financial results:
Revenue grew to $3,067,616, representing an increase of 464 per cent compared with third quarter 2014 and an increase of 237 per cent compared with second quarter 2015.
Adjusted earnings before interest, taxes, depreciation and amortization were $1,570,625, representing an increase of $1,713,455 compared with second quarter 2015.
Net income was $1,103,411 compared with a net loss of ($1,302,155) in third quarter 2014.
The company completed the acquisition of the Integrity companies, a leading provider of gaming equipment to Native American-owned casinos, on July 20, 2015.
Revenue and interest-generating machines in operation at quarter-end were approximately 2,300, compared with 717 at the end of second quarter 2015.
New financing relationship with PDS Gaming
Subsequent to quarter-end, the company entered into a new financing relationship with PDS Gaming (PDS), a leading provider of customized financing of gaming equipment in the United States and internationally with a recently announced $150-million dedicated equipment financing facility. The initial financing for Poydras will consist of:
A loan package of approximately $1.0-million over four years, directly financing machines owned by the company and the company's joint venture with A&W Enterprises;
A $3.5-million loan over four years, including a one-year interest-only period, secured by the company's contract with the Tonkawa Tribe of Indians of Oklahoma.
Proceeds will be used to finance new machine deployments, working capital requirements and additional growth initiatives in the coming year.
The direct machine financing loans were closed Nov. 16, and the $3.5-million facility is expected to close in early December. As part of the agreement, PDS will also supply 42 of the 600 machines under contract with the Tonkawa Tribe of Indians of Oklahoma.
Other highlights subsequent to quarter-end:
The company installed 114 machines at the Lucky Star Casino in Hammon, Okla., a newly opened facility owned and operated by the Cheyenne & Arapaho Tribes of Oklahoma, a long-standing customer of the company, with an additional 36 machines to be installed within the next 60 days.
Lucky Star Hammon is the Oklahoma casino located closest to the Texas panhandle and is expected to draw heavily from the north Texas market.
With the completion of the company's renovation project undertaken with the Tonkawa Tribe of Indians of Oklahoma, Poydras is entitled to contractual minimum payments for all Class 3 machines placed with the tribe starting Oct. 1, 2015, and as additional machines are deployed.
"Our third quarter results reflect the promise and momentum of our business moving forward, with significant growth in revenue and adjusted EBITDA," said Peter Macy, chief executive officer of Poydras Gaming. "This trajectory will be supported in part through the new funding facilities with PDS Gaming, which mark the next step in a long-standing relationship between our respective management teams. We are delighted to gain a flexible and non-dilutive capital partner in PDS, enabling us to accelerate our growth and rapidly expand our footprint in both our core market and in new markets."
"Given our historical relationship with Poydras's senior management team, we are excited to be establishing a more formal agreement that matches our deep capital base and traditional equipment financing expertise both with Poydras's strengths in this area, as well as their deep relationships and service capabilities," said Johan Finley, founder, chief executive officer and chairman of PDS Gaming. "We believe that Poydras is very well positioned to capture opportunities in their target markets, and we are pleased to be a partner in funding their continued growth and success."
Fiscal third quarter 2015 financial results
Increases in revenue and adjusted earnings before interest, taxes, depreciation and amortization are mainly due to the significant increase in leasing revenue from the acquisition of the Integrity companies on July 20, 2015, the addition of $527,068 in bingo revenue and the placement of additional machines at the Tonkawa casinos.
For the third quarter ended Sept. 30, 2015, the company's revenue increased to $3,067,616, representing growth of 237 per cent compared with second quarter 2015 and 464 per cent compared with third quarter 2014.
The company's leasing revenue grew to $2,540,548 in third quarter 2015, a 179-per-cent increase over second quarter 2015 and a 367-per-cent increase over third quarter 2014. The increase in leasing revenue from second quarter 2015 to third quarter 2015 is due to generating revenue from an average of 1,982 gaming machines in third quarter 2015 as compared with 581 gaming machines in second quarter 2015.
The company's adjusted EBITDA increased by $1,713,455 from negative ($142,830) in second quarter 2015 to $1,570,625 in third quarter 2015. Third quarter 2015 adjusted EBITDA was negatively impacted by approximately $96,000 of legal, audit and consulting costs incurred in connection with the acquisition of the Integrity companies.
The third quarter results include the consolidated accounts of PGFC, Platform 9 Corp., Poydras Gaming LLC, Windy Hill Capital LLC and Poydras Street Finance II LLC for the full quarter, as well as the accounts of U.S. subsidiaries Aurora Gaming, Integrity Gaming and Kansas from their date of acquisition on July 20, 2015.
Restricted share unit grants
On Aug. 25, 2015, the board of directors of the company approved the grant of 10 million restricted share units to certain directors, officers and employees of the company, subject to the meeting of certain vesting and performance conditions. The restricted share units were granted in accordance with the company's fixed restricted share unit plan.
Machine deployments
Since the completion of its reverse takeover transaction on May 9, 2014, Poydras has increased the number of its revenue and interest-generating gaming machines from 217 to approximately 2,300 as at Sept. 30, 2015, and over 2,400 as of today.
Conference call
The company will hold a conference call to discuss the results for its third quarter ended Sept. 30, 2015. The call will be hosted by Mr. Macy, chief executive officer, and Adam Kniec, chief financial officer, on Dec. 1, 2015, at 8 a.m. PST (11 a.m. EST), followed by a question-and-answer period. All interested parties are invited to participate.
CONFERENCE CALL DETAILS
Date Dec. 1, 2015
Time 8 a.m. Pacific Time/11 a.m. Eastern Time
Dial-in number
North America toll-free dial-in number 1-888-231-8191
For Toronto 647-427-7450
For Vancouver 778-371-9827
Conference ID 80600188
Taped replay 1-855-859-2056 available until 12 a.m. (EST) Dec. 8, 2015
Reference No. 80600188
About PDS Gaming
PDS Gaming is a finance and leasing company that specializes in customized financing solutions, including equipment leasing, project and corporate financing, and manufacturing vendor financing programs for the gaming industry. PDS Gaming is licensed in most of the major U.S. and native American jurisdictions.
We seek Safe Harbor.
