Amaya Gaming Group announces its 2013 second quarter financial results
(Canada Newswire Via Acquire Media NewsEdge) Revenue grows 156% on a year-over-year basis
MONTREAL, Aug. 29, 2013 /CNW/ - Amaya Gaming Group Inc. ("Amaya" or the "Corporation") (TSX.V: AYA), an entertainment solutions
provider for the regulated gaming industry, today announced its
financial results for the three and six months ended June 30, 2013. All
amounts are stated in Canadian dollars unless otherwise noted.
FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30
Adjusted EBITDA1 margin (as % of revenue)
Adjusted net earnings (loss)2
Basic and diluted adjusted net earnings (loss)2 per share
Adjusted EBITDA as defined by the Corporation means earnings before
interest and financing costs (net of interest income), income taxes,
depreciation and amortization, stock-based compensation, restructuring
and other non-recurring costs, and non-controlling interests. Adjusted
EBITDA is a non-IFRS measure.
Adjusted Net Earnings (loss) as defined by the Corporation means Net
earnings before interest accretion, amortization of Intangible assets
resulting from purchase price allocation following acquisitions,
stock-based compensation, foreign exchange, and other non-recurring
costs. Adjusted Net Earnings (loss) is a non-IFRS measure.
Q2 2013 AND SUBSEQUENT HIGHLIGHTS
On August 7, 2013, Amaya announced that it had received conditional
approval from Toronto Stock Exchange ("TSX") to graduate from TSX
Venture Exchange and list its securities, including its common shares,
all common share purchase warrants and unsecured non-convertible
subordinated debentures on TSX. Upon its listing on TSX, Amaya's Common
Shares will continue to trade under the symbol "AYA."
On July 11, 2013, Amaya announced that it had closed a private placement
of common shares in Amaya at a price of $6.25 per common share for
total gross proceeds of approximately $40.0 million (the "Private
Placement"). The Private Placement was conducted through a syndicate of
underwriters led by Canaccord Genuity Corp. and including Cantor
Fitzgerald Canada Corporation, Cormark Securities Inc., BMO Capital
Markets, Clarus Securities Inc. and Global Maxfin Capital Inc. The net
proceeds from the Private Placement will be used for general corporate
purposes and working capital to assist in the implementation of Amaya's
growth strategy and the expansion of its international activities.
On June 25, 2013, Cadillac Jack Inc. ("Cadillac Jack"), a wholly owned
subsidiary of Amaya, announced that it had entered into an agreement
with the California Nations Indian Gaming Association (CNIGA) to become
the provider of Wide Area Progressive gaming products to CNIGA's gaming
On June 12, 2013, the Corporation entered into a definitive purchase
agreement to acquire 100% of the issued and outstanding securities (the
"Transaction") of a private, arms-length company Diamond Game
Enterprises ("Diamond Game") for USD$25 million, subject to customary
price adjustments. Diamond Game is a designer and manufacturer of
gaming related products for the global casino gaming and lottery
industries. Closing of the Transaction will be subject to Amaya
receiving all necessary licensing and regulatory approvals and is
expected to occur during the fourth quarter of 2013. Concurrently with
the execution of the definitive purchase agreement, Amaya agreed to
make available to Diamond Game credit facilities of up to USD$2.5
million dollars to support equipment acquisition to fulfill existing
contracts by Diamond Game until closing of the Transaction.
On May 28, 2013, Amaya announced that its company Cadillac Jack had
executed a multi-year agreement with one of its largest customers in
Mexico to expand Cadillac Jack's leased install base by 890 gaming
units across 13 locations throughout Mexico.
On May 13, 2013, Amaya announced that it had expanded its agreement with
mybet to include Amaya's Ongame Poker Platform and Live Dealer offering
on mybet websites.
On May 6, 2013, Amaya announced that Cogetech S.p.A had chosen Amaya's
Ongame Poker to power Izipoker.it. Cogetech is one of Italy's largest
sportsbetting company and is both a leading gaming provider for the
Italian land-based market as well as an online operator with the site
IZIPlay.it, which includes betting, poker, skill games, bingo and
On May 2, 2013, the Corporation announced that it had entered into an
MOU with Aristocrat Technologies Inc. ("Aristocrat") whereby Aristocrat
will offer Amaya's leading Ongame poker platform to Aristocrat's U.S.
customers through its award-winning nLive™ online gaming platform.
"We're quite pleased with the continued progress we made in the second
quarter in our land-based, interactive, and lottery solutions," said
David Baazov, President and Chief Executive Officer of Amaya Gaming
Group. "Cadillac Jack's agreement with one of its largest customers in
Mexico for an additional 890 gaming machines will increase our install
base of revenue producing units in the country by close to 13% and
almost 10% in North America. Additionally, its agreement with CNIGA in
California, a state Cadillac Jack has only recently entered, represents
a positive step in a very large market. Tribal gaming gross gaming
revenues in California and northern Nevada were $7 billion in 2012,
more than a quarter of total tribal gaming revenues in the U.S. We
anticipate that we will start to see the impact from these agreements
in our revenues in the back half of 2013. As well, we have completed
most of the integration of Ongame and Cadillac Jack, both of which we
acquired in late 2012. This will result in a positive impact on our
operating expenses going forward.
"Within our interactive solutions, during the second quarter we
continued to prepare ourselves to participate in real money online
gaming in the United States including filing our application for a
licence in New Jersey, a state which expects to launch regulated online
poker and casino gaming late this year," Mr Baazov added.
"Additionally, we are seeing progress from our partnership with SHFL
Entertainment, which is the exclusive distributor of our online poker
platform, Ongame Network, in the U.S.
"Finally, during the quarter we also announced our acquisition of
Diamond Game. We anticipate the company's lottery technology, on which
we can integrate our extensive game library, will increase our lottery
footprint in North America while being accretive to our adjusted
EBITDA," concluded Mr. Baazov. "We expect the acquisition to close in
the fourth quarter of this year."
Revenue for the three month period ended June 30, 2013 was $37.25
million compared to $14.54 million for the three month period ended
June 30, 2012, representing an increase of 156%. The increase is
primarily attributable to the acquisitions of Ongame Network Limited
("Ongame") on November 1, 2012 and Cadillac Jack Inc. ("Cadillac Jack")
on November 5, 2012. Revenue for the six month period ended June 30,
2013 was $75.31 million compared to $20.92 million for the six month
period ended June 30, 2012, representing an increase of 260%. The
increase is primarily attributable to the acquisitions of CryptoLogic
Limited ("CryptoLogic") on April 2, 2012, Ongame and Cadillac Jack. On
a regional basis, revenue in 2013 has been primarily concentrated in
North America and Europe.
Gross profit, measured as revenue minus the cost of products,
represented 98% of total revenues ("gross profit percentage") for the
three months ended June 30, 2013 and 97% for the three month period
ended June 30, 2012. Gross profit percentage was 99% for the the six
months ended June 30, 2013 and 97% for the six month period ended June
30, 2012. The increase in gross profit percentage for the six month
period ended June 30, 2013 is primarily attributable to consolidating
CryptoLogic's software licensing and hosted casino revenue,
consolidating Ongame's software licensing revenue and consolidating
Cadillac Jack's participation agreement revenue.
Total expenses, comprised of sales and marketing, general and
administrative, and financial expenses as well as acquisition-related
costs, were $17.67 million for the three month period ended June 30,
2012, compared to $44.45 million for the three month period ended June
30, 2013, an increase of 160%. The percentage increase was slighly
higher than the year-over-year growth rate in revenue partially due to
a negative impact of $(3.28) million from foreign exchange in the
second quarter of 2013 versus a positive impact of $0.28 million in the
same quarter in 2012. Total expenses for the six month period ended
June 30, 2012 were $29.67 million compared to $89.07 million for the
six month period ended June 30, 2013, an increase of 200%,
significantly less than the year-over-year growth rate in revenue.
There was a negative impact of $(3.76) million from foreign exchange in
the first six months of 2013 versus a positive impact of $0.09 million
in the same period in 2012.
Net loss was $11.44 million, or $0.14 per basic and diluted share, in
the second quarter of 2013 versus $2.72 million, or $0.05 per basic and
diluted share, in the same quarter of 2012, an increase of 320%. The
increase was higher than the growth rate in revenue in the
corresponding periods primarily due to the impact from foreign exchange
noted above and the Corporation recording a combined $3.53 million
provision for current and deferred income taxes in the second quarter
of 2013 versus $0.04 million in the same quarter in 2012. Net loss for
the six months ended June 30, 2013 was $18.88 million, or $0.22 per
basic and diluted share, compared to $7.28 million, or $0.14 per basic
and diluted share, in the same period in 2012, an increase of 159%. The
Corporation recorded a combined $4.29 million provision in current and
deferred income taxes in the first half of 2013 versus a recovery of
$1.27 million in the same period in 2012. Despite the negative impact
from foreign exchange and income taxes, the year-over-year increase in
net loss in the first half of 2013 was significantly below the growth
rate in revenue.
Adjusted EBITDA was $10.17 million in the second quarter of 2013, or 27%
of total revenue, compared to $2.09 million, or 14% of total revenue,
in the second quarter of 2012, and $10.26 million, or 27% of total
revenue, in the first quarter of 2013.
Q2 2013 Adjusted EBITDA Reconciliation $
Current income taxes
Deferred income taxes
Depreciation of property and equipment
Amortization of deferred development costs
Amortization of intangible assets
Adjusted EBITDA 10,169,349
Adjusted Net Income Reconciliation $
Amortization of purchase price allocation Intangibles
Adjusted Net income
2013 SECOND QUARTER FINANCIAL STATEMENTS AND MANAGEMENT'S DISCUSSION AND
The financial statements, notes to financial statements and Management's
Discussion and Analysis for the three and six months ended June 30,
2013, will be available on the SEDAR website at www.sedar.com.
Amaya will host a conference call host a conference call on Friday,
August 30, 2013 at 9:00 a.m. ET to discuss its 2013 second quarter
financial results. David Baazov, CEO of Amaya Gaming Group Inc., will
chair the call. To participate in the call, please dial 647-427-7450 or
1-888-231-8191 ten minutes prior to the scheduled start of the call. A
replay of the conference call will be available until Friday, September
6, 2013 by calling 416-849-0833 or 1-855-859-2056, reference number
36290520. The conference call will be webcast live at http://bit.ly/173CUu8.
ABOUT AMAYA GAMING GROUP INC.
Amaya provides a full suite of gaming products and services including
casino, poker, sportsbook, platform, lotteries and slot machines. Some
of the world's largest gaming operators and casinos are powered by
Amaya's online, mobile, and land-based products. Amaya is present in
all major gaming markets in the world with offices in North America,
Latin America and Europe. Amaya recently acquired Cryptologic, a
pioneer within online casino, Ongame, a leader within online poker, and
Cadillac Jack, a successful slot machine manufacturer. For more
information please visit www.amayagaming.com.
DISCLAIMER IN REGARDS TO FORWARD-LOOKING STATEMENTS
Certain statements included herein, including those that express
management's expectations or estimates of our future performance
constitute "forward-looking statements" within the meaning of
applicable securities laws. Forward-looking statements are necessarily
based upon a number of estimates and assumptions that, while considered
reasonable by management at this time, are inherently subject to
significant business, economic and competitive uncertainties and
contingencies. Investors are cautioned not to put undue reliance on
forward looking statements. Except as required by law, the Corporation
does not intend, and undertakes no obligation, to update any
forward-looking statements to reflect, in particular, new information
or future events.
"Neither 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."
SOURCE Amaya Gaming Group Inc.
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