 Newsletter Signup
Stay informed with the
NEW Casino City Times newsletter! |
Gaming News
Anchor Gaming Reports Q4 and Full-Year Results9 August 2000LAS VEGAS, Nevada – (Press Release) --Aug. 9, 2000 -- Anchor Gaming (Nasdaq: SLOT) today reported its operating results for the fourth quarter and year ended June 30, 2000. The June quarter is the fourth to include the results of the operating units acquired in the June 29, 1999 acquisition of Powerhouse Technologies, Inc. and comparisons to fiscal 1999 periods are presented on a pro forma basis, as if the acquisition occurred on July 1, 1998. For the fourth quarter, revenues increased 16% to $142 million, earnings before interest, taxes, depreciation (including Anchor Gaming's share of joint venture depreciation), amortization, and impairment charges (``EBITDA'') increased 36% to $51 million, net income increased 48% to $18 million, and diluted earnings per share increased 54% to $1.54 per share compared to the pro forma quarter ended June 30, 1999. These levels of revenues, EBITDA, and diluted earnings per share represent the highest such amounts in the Company's history. On a pro forma basis for the fourth quarter of the previous year, revenues were $122 million, EBITDA was $38 million, net income was $12 million, and diluted earnings per share were $1.00. For the year ended June 30, 2000, revenues increased 13% to $525 million, EBITDA increased 17% to $185 million, net income increased 13% to $65 million, and diluted earnings per share increased 17% to $5.41 compared to the pro forma year ended June 30, 1999. On a pro forma basis for the previous year, revenues were $466 million, EBITDA was $159 million, net income was $58 million, and diluted earnings per share were $4.63 per share. The fourth quarter of fiscal 2000 included certain non-recurring items that impacted diluted earnings per share. Non-recurring items that had a positive impact on diluted earnings per share primarily included one-time sales of international lottery equipment; the effects of the reduction of Anchor Gaming's effective tax rate; and non-recurring income related to the Company's agreements with the Pala Band of Mission Indians. Non-recurring items that had a negative effect on diluted earnings per share include the effects of impairment and restructuring charges and write-downs of inventory. The net effect of the non-recurring items added $.05 to diluted earnings per share. Summarizing the Company's performance, Anchor Gaming Chief Executive Officer T.J. Matthews said, ``After four consecutive quarters of year-over-year declines, we are extremely pleased to report our second consecutive quarter with year-over-year growth in revenue, EBITDA, and earnings per share. Our management team is excited about this momentum as well as our growth prospects for the next eight quarters and beyond.'' Matthews continued, ``These favorable results were driven primarily by accelerated placements of our joint venture Video Wheel of Fortune® game, new on-line lottery system installations in China and the Caribbean, and revenue increases at our Sunland Park Racetrack & Casino property after one full year with slot machines.'' He added, ``During the fourth quarter, we broke ground with the Pala Tribe and our partner Jerry Turk on the Pala Indian Casino & Entertainment Center project, which we believe will contribute to Anchor's earnings in the June 2001 quarter.'' ``As we enter the new year, we believe that Anchor Gaming -- with the broadest portfolio of products and services in the gaming and wagering industries -- is exceptionally well positioned to benefit from the new California Native American gaming market, opportunities to place slot machines at racetracks, and the demand for new and replacement technology in the international lottery and pari-mutuel wagering jurisdictions,'' Matthews said. The Company's cash balance at June 30, 2000 was $26 million, working capital was $51 million, and the available bank line of credit was $76 million. In March 2000, Anchor Gaming expanded its share repurchase program to include authorization to buy back an additional one million shares of Anchor Gaming common stock. Since January 1, 2000, the Company has repurchased 489,000 shares for $19 million, or an average price of $38.73 per share. Anchor Gaming has an 821,000-share balance remaining under the expanded program. ANCHOR GAMING
SUMMARY OF OPERATIONS
(unaudited)
(in thousands, except per share amounts)
Three months ended
June 30,
Pro forma Percent
2000 1999 Change
Revenues $141,996 $121,938 16%
Income from Operations 31,068 23,750 31%
EBITDA 50,892 37,451 36%
Net Income 17,884 12,044 48%
Diluted Earnings Per Share $1.54 $1.00 54%
Weighted Average Common and
Common Equivalent Shares
Outstanding 11,626 12,101
Year ended
June 30,
Pro forma Percent
2000 1999 Change
Revenues $525,203 $465,925 13%
Income from Operations 120,236 107,878 11%
EBITDA 185,169 158,599 17%
Net Income 64,959 57,503 13%
Diluted Earnings Per Share $5.41 $4.63 17%
Weighted Average Common and
Common Equivalent Shares
Outstanding 12,011 12,428
ANCHOR GAMING Three months ended June 30,
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited) 2000 1999(a) 1999(b)
(in thousands, except per
share amounts)
Revenues:
Gaming operations $ 47,534 $ 46,026 $ 32,078
Gaming machines and systems 48,277 44,200 30,593
Lottery systems 41,129 25,659 --
Pari-mutuel systems 5,056 6,053 --
Total revenues 141,996 121,938 62,671
Costs of revenues:
Gaming operations 31,470 27,712 18,037
Gaming machines and systems 11,444 17,693 9,367
Lottery systems 26,639 16,986 --
Pari-mutuel systems 3,205 3,526 --
Total costs of revenues 72,758 65,917 27,404
Gross margin 69,238 56,021 35,267
Other costs:
Selling, general and
administrative 17,843 17,508 6,253
Research and development 3,792 3,462 979
Acquired in-process research
and development -- -- 17,500
Impairment and restructuring
charges 2,641 -- --
Depreciation and amortization 13,894 11,301 4,782
Total other costs 38,170 32,271 29,514
Income from operations 31,068 23,750 5,753
Other income (expense):
Interest income 465 625 1,021
Interest expense (4,312) (4,087) (113)
Other income 1,980 (181) (189)
Minority interest in earnings
of consolidated subsidiary (163) (163) (133)
Total other income (2,030) (3,806) 586
Income before provision for
income taxes 29,038 19,944 6,339
Income tax provision 11,154 7,900 8,999
Net income (loss) $ 17,884 $ 12,044 $ (2,660)
Basic earnings (loss) per share $ 1.55 $ 1.01 $ (0.22)
Weighted average shares
outstanding 11,511 11,895 11,895
Diluted earnings (loss)
per share $ 1.54 $ 1.00 $ (0.22)
Weighted average common and
common equivalent shares
outstanding 11,626 12,101 11,895
(a)Pro forma, presented as if the acquisition of Powerhouse Technologies,
Inc. occurred on July 1, 1998
(b) Historical
ANCHOR GAMING Years ended June 30,
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited) 2000 1999(a) 1999(b)
(in thousands, except per
share amounts)
Revenues:
Gaming operations $ 189,938 $ 159,632 $ 125,233
Gaming machines and systems 180,750 183,849 123,698
Lottery systems 134,813 101,569 --
Pari-mutuel systems 19,702 20,875 --
Total revenues 525,203 465,925 248,931
Costs of revenues:
Gaming operations 124,529 96,145 70,419
Gaming machines and systems 47,451 69,010 34,401
Lottery systems 80,622 62,067 --
Pari-mutuel systems 12,902 13,213 --
Total costs of revenues 265,504 240,435 104,820
Gross margin 259,699 225,490 144,111
Other costs:
Selling, general and
administrative 69,343 64,662 24,243
Research and development 16,528 11,038 1,173
Acquired in-process research
and development -- -- 17,500
Impairment and restructuring
charges 2,641 -- --
Depreciation and amortization 50,951 41,912 17,380
Total other costs 139,463 117,612 60,296
Income from operations 120,236 107,878 83,815
Other income (expense):
Interest income 1,998 2,239 3,850
Interest expense (16,475) (15,189) (113)
Other income 2,219 281 47
Minority interest in earnings
of consolidated subsidiary (608) (700) (670)
Total other income (12,866) (13,369) 3,114
Income before provision for
income taxes 107,370 94,509 86,929
Income tax provision 42,411 37,006 39,422
Net income $ 64,959 $ 57,503 $ 47,507
Basic earnings per share $ 5.49 $ 4.73 $ 3.91
Weighted average shares
outstanding 11,833 12,164 12,164
Diluted earnings per share $ 5.41 $ 4.63 $ 3.82
Weighted average common and
common equivalent shares
outstanding 12,011 12,428 12,428
(a)Pro forma, presented as if the acquisition of Powerhouse Technologies,
Inc. occurred on July 1, 1998
(b) Historical
ANCHOR GAMING June 30, June 30,
CONSOLIDATED BALANCE SHEETS (Unaudited) 2000 1999
(in thousands, except share amounts)
ASSETS
Current assets:
Cash and cash equivalents $ 25,883 $ 32,835
Accounts and notes receivable, net 43,959 38,526
Inventory, net 17,378 21,375
Other current assets 18,907 8,928
Total current assets 106,127 101,664
Property and equipment, net 200,976 188,048
Goodwill, net 117,218 117,436
Other intangible assets, net 43,896 34,520
Investments in unconsolidated affiliates 66,822 29,053
Other long-term assets 17,862 36,448
Total assets $ 552,901 $ 507,169
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 17,777 $ 21,073
Current portion of long-term debt 1,524 4,051
Income tax payable 6,040 5,146
Other current liabilities 30,177 42,486
Total current liabilities 55,518 72,756
Long-term debt, net of current portion 222,770 212,805
Minority interest in consolidated subsidiary 4,093 1,255
Total liabilities and minority interest
in consolidated subsidiary 282,381 286,816
Stockholders' equity:
Preferred stock, $.01 par value, 1,000,000
shares authorized, 0 shares issued and
outstanding at June 30, 2000 and
June 30, 1999 -- --
Common stock, $.01 par value, 50,000,000
shares authorized, 14,049,850 issued and
11,525,707 outstanding at June 30, 2000,
13,841,750 issued and 11,866,307 outstanding
at June 30,1999 140 138
Treasury stock at cost, 2,524,143 shares
at June 30, 2000 and 1,975,443 at
June 30, 1999 (115,342) (93,043)
Additional paid-in capital 124,357 116,854
Retained earnings 261,365 196,404
Total stockholders' equity 270,520 220,353
Total liabilities and stockholders' equity $ 552,901 $ 507,169
|