Multimedia Games' First Quarter Revenue Rises 21.6% to $34.8 Million; Reports Diluted EPS of $0.21 Inclusive of $0.07 Per Diluted Share Benefit from Non-Recurring Items
- Sells 408 New Units and Adds 254 Net New Units to Domestic
Installed Base in Q1 -
- Raises Fiscal 2012 Diluted EPS Outlook to a Range of $0.42-$0.45 -
AUSTIN, Texas--(BUSINESS WIRE)--
Multimedia Games Holding Company, Inc. (Nasdaq: MGAM) ("Multimedia
Games" or the "Company") today reported operating results for its fiscal
2012 first quarter ended December 31, 2011, as summarized in the table
below:
|
Summary of 2012 Q1 Results
(In millions, except per-share and player terminal data)
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
|
2011
|
|
2010
|
|
Revenue
|
|
$
|
34.8
|
|
$
|
28.6
|
|
|
EBITDA(1)
|
|
$
|
16.3
|
|
$
|
10.5
|
|
|
Net income (loss) (2)
|
|
$
|
5.8
|
|
$
|
(1.4
|
)
|
|
Diluted income (loss) per share (2)
|
|
$
|
0.21
|
|
$
|
(0.05
|
)
|
|
|
|
|
|
|
|
New proprietary units sold
|
|
|
408
|
|
|
201
|
|
|
|
|
|
|
|
|
Average participation installed units:
|
|
|
|
|
|
Domestic
|
|
|
9,506
|
|
|
8,442
|
|
|
International(3)
|
|
|
2,862
|
|
|
4,667
|
|
|
|
|
|
|
|
|
Quarter-end participation installed units:
|
|
|
|
|
|
Domestic
|
|
|
9,633
|
|
|
8,672
|
|
|
International(3)
|
|
|
2,226
|
|
|
4,451
|
|
|
(1)
|
|
EBITDA is defined as earnings (loss) before net interest expense,
income taxes, depreciation, amortization and accretion of contract
rights. A reconciliation of EBITDA to net income (loss), the most
comparable Generally Accepted Accounting Principles ("GAAP")
financial measure, can be found attached to this release.
|
|
|
|
|
|
(2)
|
|
Net income and diluted income per share for the three-month period
ended December 31, 2011, includes a one-time tax benefit totaling
$1.0 million, or $0.04 per fully diluted share, and a gain on the
sale of used equipment back to the original manufacturer totaling
$0.9 million, or $0.03 per diluted share.
|
|
|
|
|
|
(3)
|
|
International participation installed units reflect placements in
Mexico.
|
Patrick Ramsey, President and Chief Executive Officer of Multimedia
Games, commented, "Our first quarter results reflect a continuation of
the momentum the Company built throughout fiscal 2011 and represent a
very strong start to fiscal 2012. By successfully executing against key
strategic initiatives including growing our unit sales and installed
base, refreshing our installed base at our largest customer's facilities
with proprietary Class II games, expanding the number of markets we can
serve, and maintaining a focus on operating discipline, Multimedia Games
continues to strengthen our competitive position and prospects for
long-term growth. Our progress with these initiatives is evidenced by
the year-over-year increase in unit sales, the fifth consecutive quarter
of growth in our domestic installed base and our ninth consecutive
quarter of operating income improvement, all of which helped drive
fiscal 2012 first quarter diluted earnings per share of $0.21, inclusive
of a $0.07 benefit from non-recurring items."
Ramsey continued, "With growing acceptance of our products in a variety
of domestic gaming jurisdictions, Multimedia Games' total revenues for
the fiscal 2012 first quarter increased 21.6%. We more than doubled the
number of units sold compared with the first quarter last year and
recorded double digit year-over-year revenue growth in our gaming
operations segment, as our quarter-end domestic installed base increased
by 961 units, or approximately 11%, from the prior-year period.
"Our new products continue to gain traction in a number of markets —
including Oklahoma, California, Washington, Mississippi and Louisiana —
as we deployed an aggregate 662 new revenue units in the quarter,
including the sale of 408 new units in ten jurisdictions and the net
addition of 254 units to our installed base. Our strengthened product
portfolio was also a key factor in the Company's ability to further
solidify our long-term strategic alliance with the Chickasaw Nation, as
we recently extended several long-term unit placement agreements which
positions the Company to retain approximately 90% of our current
footprint at their facilities through the end of our fiscal 2015.
Revenues from our operation of the New York Lottery's central
determinant system also continue to rise reflecting the recent opening
of Resorts World New York as well as solid year-over-year increases at
existing facilities.
"The deployment of an increasing number of new revenue units, the
renewal of several long-term agreements with the Chickasaw Nation, and
our ongoing new market licensing efforts, coupled with consistent cash
flow generation have established a strong platform for future growth.
Reflecting the strong fiscal 2012 first quarter performance, we are
raising our full year diluted EPS outlook to a range of $0.42-$0.45 from
a range of $0.23-$0.26."
Summary of Fiscal 2012 First Quarter Operating Results
Multimedia Games' fiscal 2012 first quarter revenue rose 21.6%, or $6.2
million, to $34.8 million, compared to revenue of $28.6 million in the
fiscal 2011 first quarter. Fiscal 2012 first quarter revenue included
approximately $24.9 million from gaming operations and approximately
$9.6 million from gaming equipment and system sales, compared with $22.0
million in revenue from gaming operations and $6.1 million from gaming
equipment and system sales in the year-ago period.
Gaming operations revenue in the fiscal 2012 first quarter grew 13.2% to
$24.9 million reflecting year-over-year improvements in all of the
domestic markets where the Company has installed machines, which more
than overcame the $1.0 million year-over-year decline in revenues from
Mexico operations. The year-over-year revenue increase primarily
reflects a 1,064 unit increase in the Company's average installed base
for the fiscal 2012 first quarter compared to the fiscal 2011 first
quarter. The domestic installed base rose 254 units, or 2.7%, on a
quarterly sequential basis, with unit growth coming from all of the
Company's domestic markets. The strong growth also includes a 60.4%, or
$1.2 million, year-over-year rise in revenues related to the Company's
operation of the central determinant system for the New York Lottery.
Gaming equipment and system sales in the fiscal 2012 first quarter
increased 57.6% to $9.6 million, from $6.1 million in the prior-year
period. During the quarter, the Company recorded revenue of $7.5 million
related to the sale of 408 new units and $1.5 million in revenue related
to parts and equipment sales. Multimedia Games sold units into ten
markets in the fiscal 2012 first quarter, including Arkansas for the
first time. Washington and California remained key markets with a total
of 216 units sold and unit sales also continued to increase in markets
such as Mississippi and Iowa. Gaming equipment and system sales in the
2011 first quarter included $3.4 million in revenue related to the sale
of 201 new proprietary units and $1.1 million related to parts and
equipment sales. There was $0.6 million and $1.6 million of deferred
revenues for the sale of player stations in a prior-year period
recognized in the fiscal 2012 and fiscal 2011 first quarter periods,
respectively.
Other revenue, primarily comprised of service revenue, was approximately
$0.3 million in the fiscal 2012 first quarter compared to $0.5 million
in the fiscal 2011 first quarter.
Total operating expenses for the fiscal 2012 first quarter rose $1.3
million, or 4.2%, to $31.0 million. Selling, general and administrative
("SG&A") expenses were essentially flat at $11.5 million and $11.4
million in the fiscal 2012 and fiscal 2011 first quarter periods,
respectively, while total cost of goods sold increased by $1.0 million.
SG&A for the fiscal 2012 and fiscal 2011 first quarter periods include
non-cash stock compensation costs of approximately $0.6 million and $0.5
million, respectively. Depreciation and amortization was down slightly
to $9.7 million from $10.0 million in the prior-year period while
research and development of $3.6 million in the December 2011 quarter
compares to $3.2 million recorded in the prior-year period.
Reflecting the year-over-year revenue growth generated in the fiscal
2012 first quarter, Multimedia Games reported net income of $5.8
million, or $0.21 per diluted share, compared to a net loss of $1.4
million, or $0.05 per diluted share, in the fiscal 2011 first quarter.
Fiscal 2012 first quarter net income and diluted EPS include a $1.0
million, or $0.04 per diluted share, income tax benefit related to a
federal income tax refund and a gain on the sale of used equipment back
to the original manufacturer totaling $0.9 million, or $0.03 per diluted
share. Fiscal 2011 first quarter net income and diluted EPS included
income tax expense of $0.1 million.
For the fiscal 2012 first quarter, net capital expenditures were $8.0
million compared to $9.1 million a year ago (definition of "net capital
expenditures" is provided below).
Balance Sheet Continues to Strengthen
During the fiscal 2012 first quarter, the Company reduced total
outstanding borrowings by approximately $0.9 million to $36.1 million
and, as of December 31, 2011, total cash was $53.7 million. As a result,
Multimedia Games was in a net cash position (total cash in excess of
total debt) of $17.7 million as of December 31, 2011, compared with a
net cash position of $9.7 million as of September 30, 2011, and a net
debt position of $18.2 million as of December 31, 2010. The fiscal 2012
first quarter represents the twelfth consecutive quarter Multimedia
Games has grown net cash or reduced net debt.
The Company generated free cash flow of $5.9 million in the fiscal 2012
first quarter compared to free cash flow of $3.6 million in the year-ago
period. Total cash generation in the quarter was $6.9 million compared
to $6.4 million a year ago. Free cash flow and cash generation are
non-GAAP financial measures and there are no truly comparable GAAP
financial measures. (Definitions of "free cash flow" and "cash
generation" are provided below).
In the first quarter of fiscal 2012, the Company repurchased
approximately 392,821 shares of its common stock for total consideration
of approximately $1.9 million. The Company has purchased a total of 2.2
million shares at an average price of $5.36 per share since the
inception of the share repurchase program in December 2010, and as of
December 31, 2011, had approximately $3.1 million remaining under its
$15.0 million common stock repurchase plan.
Adam Chibib, Chief Financial Officer, commented, "Multimedia Games
continues to benefit from its dual focus on generating profitable
revenue while exercising fiscal discipline. We grew quarterly free cash
flow approximately 63% on a year-over-year basis and generated a nearly
$36 million improvement in our net cash/net debt position. With our
strengthened balance sheet, Multimedia Games has a strong financial
foundation that allows us to prudently invest in the development of new
products and refresh our existing installed base, while simultaneously
allocating capital to secure long-term unit placement extensions with
our largest customer and expand our addressable markets in order to
drive sustainable long-term growth."
Raises Fiscal 2012 EPS Outlook
Multimedia Games today raised its EPS expectations for fiscal 2012.
While the Company maintains a conservative outlook regarding the
economic environment and the pace of customer capital spending,
reflecting the strength of the fiscal 2012 first quarter results,
Multimedia Games now anticipates fiscal 2012 diluted EPS will be in a
range of $0.42-$0.45, compared to its prior expectation of a range of
$0.23-$0.26.
Multimedia Games cautions that market dynamics are constantly changing
and as such, actual results could vary materially from the expectations
noted above based on changes in the Company's markets, operations,
regulatory requirements, estimates and assumptions, risk factors and
other factors as more fully described in the section below titled
"Cautionary Language."
Definitions of "cash generation," "free cash flow," "net cash
position" and "net capital expenditures"
Multimedia Games' management tracks cash generation (which is cash flow
from operating activities plus cash flows from investing activities),
free cash flow (cash flow from operating activities less net capital
expenditures), net cash position and net capital expenditures as
relevant measures of the Company's performance. Cash generation, free
cash flow, net cash position and net capital expenditures are not
recognized financial measures under GAAP, but we believe that each is
useful in measuring our operating performance. Cash generation helps
assess the performance of operations, manufacturing investments and
includes the amounts received and paid for our development agreements.
We believe cash generation is a more comprehensive internal metric and
more representative of our ability to pay down debt. Free cash flow
helps measure the efficiency of our capital expenditures. Net cash
position is defined as cash and cash equivalents less long-term debt.
Net capital expenditures are defined as acquisitions of property and
equipment and leased gaming equipment less transfer of leased gaming
equipment to inventory.
2012 First Quarter Conference Call and Webcast
Multimedia Games is hosting a conference call and webcast today,
February 1, 2012, beginning at 9:00 a.m. ET (8:00 a.m. CT). Both the
call and the webcast are open to the general public. The conference call
number is 720-545-0001 (domestic or international). Please call five
minutes prior to the presentation to ensure that you are connected.
Interested parties may also access the conference call live on the
Internet at http://ir.multimediagames.com/events.cfm.
Approximately two hours after the call has concluded, an archived
version of the webcast will be available for replay at the same location
at http://ir.multimediagames.com/events.cfm.
About Multimedia Games Holding Company, Inc.
Through its wholly owned subsidiaries, Multimedia Games Holding Company,
Inc. ("Multimedia Games") develops and distributes gaming technology.
The company is a creator and supplier of comprehensive systems, content
and electronic gaming units for Native American gaming markets, as well
as for commercial casinos and charity and international bingo markets.
Revenue is primarily derived from gaming units in operation domestically
and internationally installed on revenue-sharing arrangements.
Multimedia Games also supplies the central determinant system for the
video lottery terminals ("VLTs") installed at racetracks in the State of
New York. The company is focused on pursuing market expansion and new
product development for Class II, Class III and VLT markets. Additional
information may be found at www.multimediagames.com.
Cautionary Language
This press release contains forward-looking statements based on
Multimedia Games' current expectations and projections, which are
intended to qualify for the safe harbor from liability established by
the Private Securities Litigation Reform Act of 1995. The words
"believe", "will", "expect", "continue", "intend", "plan", "seek",
"estimate", project", "may", or the negative or other variations thereof
or comparable terminology as they relate to Multimedia Games and its
products, plans, and markets are intended to identify such
forward-looking statements. All forward-looking statements are based on
current expectations and projections of future events.
These forward-looking statements reflect the current views, models, and
assumptions of Multimedia Games, and are subject to various risks and
uncertainties that cannot be predicted or qualified and could cause
actual results in Multimedia Games' performance to differ materially
from those expressed or implied by such forward looking statements.
These risks and uncertainties include, but are not limited to, the
ability of Multimedia Games to maintain strategic alliances, unit
placements or installations, grow revenue, garner new market share,
secure new licenses in new jurisdictions, successfully develop or place
proprietary product, comply with regulations, or have its games approved
by relevant jurisdictions. Other important risks and uncertainties that
may affect the Company's business are detailed from time to time in the
"Certain Risks" and "Risk Factors" sections of Multimedia Games' Annual
Report on Form 10-K, its Quarterly Reports on Form 10-Q, and elsewhere
in Multimedia Games' filings with the Securities and Exchange
Commission. All forward-looking statements made herein are qualified by
these cautionary statements and there can be no assurance that the
actual results, events or developments referenced herein will occur or
be realized. Readers are cautioned that all forward-looking statements
speak only to the facts and circumstances present as of the date of this
press release. Multimedia Games expressly disclaims any obligation to
update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.
- financial tables follow -
|
CONDENSED CONSOLIDATED BALANCE SHEETS
As of December 31, 2011 and September 30, 2011
(In thousands, except share and per-share amounts)
(Unaudited)
|
|
|
|
|
|
December 31,
|
|
September 30,
|
|
ASSETS
|
|
2011
|
|
2011
|
|
CURRENT ASSETS:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
53,745
|
|
|
$
|
46,710
|
|
|
Accounts receivable, net of allowance for doubtful accounts
of $473 and $400, respectively
|
|
|
15,360
|
|
|
|
16,004
|
|
|
Inventory
|
|
|
8,968
|
|
|
|
7,291
|
|
|
Prepaid expenses and other
|
|
|
3,936
|
|
|
|
5,300
|
|
|
Current portion of notes receivable, net
|
|
|
14,397
|
|
|
|
14,280
|
|
|
Federal and state income tax receivable
|
|
|
1,204
|
|
|
|
142
|
|
|
Total current assets
|
|
|
97,610
|
|
|
|
89,727
|
|
|
Property and equipment and leased gaming equipment, net
|
|
|
46,313
|
|
|
|
47,399
|
|
|
Long-term portion of notes receivable, net
|
|
|
7,885
|
|
|
|
10,449
|
|
|
Intangible assets, net
|
|
|
27,006
|
|
|
|
28,395
|
|
|
Value added tax receivable, net of allowance of $787 and $817,
respectively
|
|
|
2,878
|
|
|
|
2,787
|
|
|
Other assets
|
|
|
2,398
|
|
|
|
2,471
|
|
|
Total assets
|
|
$
|
184,090
|
|
|
$
|
181,228
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
Current portion of long-term debt
|
|
$
|
3,700
|
|
|
$
|
3,700
|
|
|
Accounts payable and accrued liabilities
|
|
|
22,170
|
|
|
|
25,855
|
|
|
Deferred revenue
|
|
|
1,518
|
|
|
|
1,131
|
|
|
Total current liabilities
|
|
|
27,388
|
|
|
|
30,686
|
|
|
Long-term debt, less current portion
|
|
|
32,375
|
|
|
|
33,300
|
|
|
Other long-term liabilities
|
|
|
657
|
|
|
|
679
|
|
|
Deferred revenue, less current portion
|
|
|
369
|
|
|
|
661
|
|
|
Total liabilities
|
|
|
60,789
|
|
|
|
65,326
|
|
|
Stockholders' equity:
|
|
|
|
|
|
Preferred stock:
|
|
|
|
|
|
|
|
|
|
Series A, $0.01 par value, 1,800,000 shares authorized,
no
shares issued and outstanding
|
|
|
—
|
|
|
|
—
|
|
|
Series B, $0.01 par value, 200,000 shares authorized,
no
shares issued and outstanding
|
|
|
—
|
|
|
|
—
|
|
|
Common stock, $0.01 par value, 75,000,000 shares authorized,
35,210,640
and 34,559,522 shares issued, and 27,090,362
and
26,832,065, shares outstanding, respectively
|
|
|
352
|
|
|
|
346
|
|
|
Additional paid-in capital
|
|
|
98,709
|
|
|
|
95,063
|
|
|
Treasury stock, 8,120,278 and 7,727,457 common shares at cost,
respectively
|
|
|
(62,048
|
)
|
|
|
(60,164
|
)
|
|
Retained earnings
|
|
|
86,891
|
|
|
|
81,109
|
|
|
Accumulated other comprehensive loss, net
|
|
|
(603
|
)
|
|
|
(452
|
)
|
|
Total stockholders' equity
|
|
|
123,301
|
|
|
|
115,902
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
184,090
|
|
|
$
|
181,228
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended December 31, 2011 and 2010
(In thousands, except per-share amounts)
(Unaudited)
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
|
2011
|
|
2010
|
|
REVENUES:
|
|
|
|
|
|
Gaming operations
|
|
$
|
24,901
|
|
|
$
|
21,995
|
|
|
Gaming equipment and system sales
|
|
|
9,593
|
|
|
|
6,085
|
|
|
Other
|
|
|
301
|
|
|
|
527
|
|
|
Total revenues
|
|
|
34,795
|
|
|
|
28,607
|
|
|
|
|
|
|
|
|
OPERATING COSTS AND EXPENSES:
|
|
|
|
|
|
Cost of gaming operations revenue(1)
|
|
|
2,015
|
|
|
|
1,938
|
|
|
Cost of equipment and system sales
|
|
|
4,158
|
|
|
|
3,248
|
|
|
Selling, general and administrative expenses
|
|
|
11,503
|
|
|
|
11,380
|
|
|
Research and development
|
|
|
3,634
|
|
|
|
3,196
|
|
|
Amortization and depreciation
|
|
|
9,690
|
|
|
|
9,988
|
|
|
Total operating costs and expenses
|
|
|
31,000
|
|
|
|
29,750
|
|
|
Operating income (loss)
|
|
|
3,795
|
|
|
|
(1,143
|
)
|
|
|
|
|
|
|
|
OTHER INCOME (EXPENSE):
|
|
|
|
|
|
Interest income
|
|
|
453
|
|
|
|
793
|
|
|
Interest expense
|
|
|
(372
|
)
|
|
|
(835
|
)
|
|
Other income (expense)
|
|
|
919
|
|
|
|
(89
|
)
|
|
Income (loss) before income taxes
|
|
|
4,795
|
|
|
|
(1,274
|
)
|
|
Income tax benefit (expense)
|
|
|
987
|
|
|
|
(100
|
)
|
|
Net income (loss)
|
|
$
|
5,782
|
|
|
$
|
(1,374
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per common share
|
|
$
|
0.21
|
|
|
$
|
(0.05
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per common share
|
|
$
|
0.21
|
|
|
$
|
(0.05
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in earnings (loss) per common share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
27,265,844
|
|
|
|
27,649,184
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
28,108,576
|
|
|
|
27,649,184
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Cost of revenues exclude depreciation and amortization of gaming
equipment, content license rights and other depreciable assets,
which are included separately in the amortization and depreciation
line item.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Three Months Ended December 31, 2011 and 2010
|
|
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
(In thousands)
|
|
Net income (loss)
|
|
$
|
5,782
|
|
|
$
|
(1,374
|
)
|
|
Adjustments to reconcile net income (loss) to cash
provided
by operating activities:
|
|
|
|
|
|
Amortization and depreciation
|
|
|
9,690
|
|
|
|
9,988
|
|
|
Accretion of contract rights
|
|
|
1,896
|
|
|
|
1,740
|
|
|
Share-based compensation
|
|
|
554
|
|
|
|
489
|
|
|
Other non-cash items
|
|
|
447
|
|
|
|
41
|
|
|
Interest income from imputed interest
|
|
|
(418
|
)
|
|
|
(686
|
)
|
|
Changes in operating assets and liabilities
|
|
|
(4,028
|
)
|
|
|
2,575
|
|
|
|
|
|
|
|
|
|
|
|
|
NET CASH PROVIDED BY OPERATING ACTIVITIES
|
|
|
13,923
|
|
|
|
12,773
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
Acquisitions of property and equipment
and leased gaming
equipment
|
|
|
(9,189
|
)
|
|
|
(9,264
|
)
|
|
Transfer of leased gaming equipment to inventory
|
|
|
1,177
|
|
|
|
122
|
|
|
Acquisition of intangible assets
|
|
|
(1,404
|
)
|
|
|
(789
|
)
|
|
Repayments under development agreements
|
|
|
2,361
|
|
|
|
3,542
|
|
|
|
|
|
|
|
|
|
|
|
|
NET CASH USED IN INVESTING ACTIVITIES
|
|
|
(7,055
|
)
|
|
|
(6,389
|
)
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
Proceeds from exercise of stock options,
warrants and
related tax benefit
|
|
|
3,098
|
|
|
|
575
|
|
|
Principal payments of long-term debt
|
|
|
(925
|
)
|
|
|
(187
|
)
|
|
Purchase of treasury stock
|
|
|
(1,884
|
)
|
|
|
(2,030
|
)
|
|
NET CASH PROVIDED BY (USED IN) FINANCING
ACTIVITIES
|
|
|
289
|
|
|
|
(1,642
|
)
|
|
EFFECT OF EXCHANGE RATES ON CASH AND
CASH EQUIVALENTS
|
|
|
(122
|
)
|
|
|
(338
|
)
|
|
Net increase in cash and cash equivalents
|
|
|
7,035
|
|
|
|
4,404
|
|
|
Cash and cash equivalents, beginning of period
|
|
|
46,710
|
|
|
|
21,792
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
53,745
|
|
|
$
|
26,196
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of U.S. GAAP Net income (loss) to EBITDA:
EBITDA is defined as earnings (loss) before net interest expense, taxes,
amortization, depreciation, and accretion of contract rights. Although
EBITDA is not a measure of performance calculated in accordance with
generally accepted accounting principles ("GAAP"), Multimedia Games
believes the use of the non-GAAP financial measure EBITDA enhances an
overall understanding of Multimedia Games' past financial performance,
and provides useful information to the investor because of its
historical use by Multimedia Games as a performance measure, and the use
of EBITDA by other companies in the gaming equipment sector as a measure
of performance. However, investors should not consider this measure in
isolation or as a substitute for net income (loss), operating income
(loss), or any other measure for determining Multimedia Games' operating
performance that is calculated in accordance with GAAP. In addition,
because EBITDA is not calculated in accordance with GAAP, it may not
necessarily be comparable to similarly titled measures employed by other
companies. A reconciliation of EBITDA to the most comparable GAAP
financial measure, net income (loss), follows:
|
Reconciliation of U.S. GAAP Net income (loss) to EBITDA:
|
|
|
|
|
|
For the Three Months
Ended December 31,
|
|
|
|
2011
|
|
2010
|
|
|
|
(in thousands)
|
|
Net income (loss)
|
|
$
|
5,782
|
|
|
$
|
(1,374
|
)
|
|
Add back:
|
|
|
|
|
|
Amortization and depreciation
|
|
|
9,690
|
|
|
|
9,988
|
|
|
Accretion of contract rights
|
|
|
1,896
|
|
|
|
1,740
|
|
|
Interest expense (income), net
|
|
|
(81
|
)
|
|
|
42
|
|
|
Income tax expense (benefit)
|
|
|
(987
|
)
|
|
|
100
|
|
|
EBITDA
|
|
$
|
16,300
|
|
|
$
|
10,496
|
|
Multimedia Games Holding Company, Inc.
Adam Chibib,
512-334-7500
Chief Financial Officer
or
Jaffoni & Collins
Incorporated
Joseph N. Jaffoni or Richard Land, 212-835-8500
mgam@jcir.com
Source: Multimedia Games Holding Company, Inc.
News Provided by Acquire Media
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