International Lottery & Totalizator Systems (fka ITSI)

[MikeDDKing]

Here is my summary of the ITSI 10-K for fiscal 2013. For the year they had $10.571M in revenue and earnings of $0.24. Earnings did have a significant income tax benefit. The backlog is very strong at $18.3M.

Looking forward I expect fiscal 2014 (ending April 2014) to be a banner year due to the backlog. I'm looking for revenue to be somewhere in the ballpark of $18M with diluted EPS in the $0.20-$0.30/share range. The earnings expectations would be a bit higher but they will start accruing taxes even though they will not be paying taxes. They could also have another income tax benefit which would further increase earnings.

The balance sheet is looking pristine. They have tangible book value of $0.65/share and cash of $0.66/share. After fiscal 2014, the balance sheet should look even better.

One other thing I believe we will see in fiscal 2014 is increased traction in the voting business segment.