TNA.V Year End Results (Ending December 31st 2017)
All Numbers Are In US Dollars. Information From SEDAR
Price: $0.18
Common Shares: 124,716,865
Insider/Institutional Holdings: 95,967,855 or 77.51%
ASSETS (USD)
Cash: $7,068,019
Property, Plant & Equipment: $8,941,741
Trademarks: $1,185,000
Licenses: $58,934
Deposits: $42,269
Inventories: $151,808
Accounts Receivable: $39,507
Other Current Assets: $163,925
Cash (Restricted): $2,975,946
Total Assets: $27,062,630 (2016 - $23,922,129)
LIABILITIES (USD)
Payables: $5,820,147
Notes Payable: $272,976
Deferred Tax: $279,000
Notes Payable (Mortgages): $5,573,855
Total Liabilities: $11,945,978 (2016 - $11,838,378)
2017 Sale Performance
Total Revenue: $35,609,459
Income Before Tax: $4,259,644
Income Tax Expense: $1,226,743 (will be less in 2018 due to Trump tax policy change)
Net Income: $3,032,901 USD
Earnings per share: $3,032,901 USD X 1.28 CAD = $3,882,113
$3,882,113 CAD / 124,716,865 (common shares = $0.031 CAD
Prior Quarters - Revenue Breakdown per quarter
Date – Sales – Net Income
2014 - $30,555,757 - $2,720,669 USD
2015 - $33,338,543 - $3,933,883 USD
2016 - $33,187,853 - $1,909,408 USD
2017 - $35,609,459 - $3,032,901 USD
Q1 2018 results will be out end of May. Should be another healthy profit.
Management Discussion Highlights
Casino revenues for the quarter ended December 31, 2017 were $9,413,336, an increase of $1,317,208 compared to the same period in the prior year. Gaming dollars dropped were 11.5% higher than the same period last year, which was partially offset by the hold percentage being down slightly by .1%. Operating expenses were $8,394,959 in the quarter ended December 31, 2017 compared to $7,965,032 in the prior year quarter. Labor and benefits expense increased approximately $132,000. This increase was primarily due to the increase in the minimum wage. This increase would have been even higher except for the closure of the Palace Tukwila that took place on February 4, 2017. In the fourth quarter of 2016 the Palace Tukwila had labor and benefit expense of approximately $233,000. Marketing and administrative increased approximately $267,000 which was primarily due to the final payment of $175,000 to Michels Management Services related to the termination of the management agreement. The Company had net non-operating income of $170,207 in the fourth quarter of 2017 compared to net non-operating expense of $151,418 in the fourth quarter of 2016. This increase of $321,625 was primarily due to the gain on disposal of property, plant and equipment of $246,774 recorded in the fourth quarter of 2017. This gain was primarily related to the sale of the real property of Palace Tukwila that closed on December 1, 2017.
The Company recorded year to date net revenues of $35,609,459 compared to $33,187,853 for the year 2016. Table games revenue increased approximately $1,356,000 primarily due to gaming dollars dropped increasing 6.6%. Poker revenue increased $636,000 and Food and beverage revenues net of promotional allowances increased $394,000. Total operating expenses for 2017 was $31,284,524 compared to $29,958,017 in 2016. Labor and benefits expense increased approximately $822,000 primarily due to the increase in the minimum wage from $9.47 to $11.00 an hour effective January 1, 2017. Marketing and administrative expenses increased approximately $457,000 due to management fees increasing $215,000 and professional fees increasing $128,000. The management agreement with Michels Management Services was terminated effective December 31, 2017 with the Company agreeing to make a final payment of $175,000.
Working capital at December 31, 2017 was $4,306,082 compared to working capital of $1,744,546 at December 31, 2016. With sustained healthy revenues and ongoing game protection and expense controls, management expects continued profitable operations sufficient to exceed the cash demands necessary for the company to meet its future obligations.
The Company’s assets at December 31, 2017 totaled $27,062,630 compared to total liabilities of $11,945,978. At December 31, 2016, total assets were $23,922,129 compared to total liabilities of $11,838,378. The increase in assets is primarily due to the increase in cash as a result of the income from operations of $4,324,935 in 2017
The Company’s cash at December 31, 2017 was $10,043,965, compared to $4,563,587 at December 31, 2016. These amounts include “Restricted Cash” balances of $2,975,946 and $914,071 respectively. “Restricted Cash” balances are jackpot funds held for prizes being offered at the casinos. Cash provided by operating activities as of the year ended December 31, 2017 was $6,317,699 compared to $2,819,477 as of the year ended December 31, 2016.
The operating results for the quarter ending December 31, 2017 showed an increase in net revenues of $858,639 from the prior quarter offset by an increase in operating expenses of $882,801. Net revenues increased due to an increase in table games revenue of approximately $491,000 as a result of the hold percentage being 0.9% higher in the fourth quarter. Poker revenue also increased by $165,000 in the fourth quarter compared to the prior quarter. Operating expense increase was due to Labor and benefits increasing $120,000 and Marketing and administrative expenses increasing $683,000.
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