Amaya Gaming Group announces its 2013 first quarter financial results
Revenue grows 496% on a year-over-year basis
MONTREAL, May 28, 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
months ended March 31, 2013. All amounts are stated in Canadian dollars unless
Q1 2013 Q1 2012
FOR THE THREE MONTHS ENDED MARCH 31 $ $
Revenues 38,053,247 6,384,037
Adjusted EBITDA(1) 10,264,017 (532,402)
Net earnings (loss) (7,440,841) (4,558,054)
Basic earnings (loss) per share (0.09) (0.09)
Q1 2013 AND SUBSEQUENT HIGHLIGHTS
-- Cash provided from operating activities for the three month
period ending March 31, 2013 was $7.48 million as compared to
cash used for operating activities of $1.38 million for the
three-month period ending March 31, 2012.
-- Amaya announced today that its company Cadillac Jack has
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.
-- During the first quarter, Amaya bought back 660,800 shares for
$3.24 million pursuant to its approved normal course issuer bid
under which Amaya intends to purchase for cancellation up to
5,650,000 Common Shares, representing, to the knowledge of
Amaya, less than 10% of the listed Common Shares held by
shareholders that are not insiders, promoters or associates or
affiliates of an insider of Amaya.
-- The Corporation concluded the signing of the definitive
agreement with SHFL Entertainment ("SHFL"), pursuant to the
terms of the memorandum of understanding (MOU) entered into on
December 17, 2012, under which Amaya selected SHFL as its
exclusive distributor for its Ongame Poker Platform in the
United States for a 10-year term.
-- Amaya announced that it has expanded its agreement with mybet
to include Amaya's Ongame Poker Platform and Live Dealer
offering on mybet websites.
-- Amaya announced that Cogetech S.p.A has 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 casino games.
-- The Corporation announced that it has 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.
-- Amaya announced the signing of a memorandum of understanding
with Bally Technologies, Inc. to integrate Amaya's Ongame poker
platform into Bally's award-winning iGaming Platform as its
preferred poker provider in the emerging U.S. online gaming
-- Amaya announced the launch of some of its most popular online
casino slot games by Microgame S.p.A., the leading service
provider for the remote gaming market in Italy.
-- Amaya announced the launch of its full suite of proprietary and
branded games on Circus Group's Casino777.be, one of Belgium's
first regulated online gaming sites and the country's premier
online gaming destination, pursuant to a three-year licensing
agreement announced in July, 2012.
-- Amaya announced an agreement with ACEP Interactive, LLC, the
interactive gaming arm of Nevada-based American Casino &
Entertainment Properties LLC ("ACEP") for Amaya's Ongame poker
network to power ACEP's online poker offering at
-- Amaya announced an extension of its agreement with Warner Bros.
Consumer Products, on behalf of DC Entertainment, to be the
exclusive provider of DC Comics comic book-inspired pay-to-play
online casino games.
-- Amaya closed a private placement of Units for aggregate gross
proceeds of $30 million, with the Units consisting of: (i)
$1,000 principal amount of unsecured non-convertible
subordinated debentures bearing interest at a rate of 7.50% per
annum payable semi-annually in arrears on January 31 and July
31 in each year commencing July 31, 2013; and (ii) 48
non-transferable common share purchase warrants (each a
"Warrant"). Amaya also announced the issuance of a redemption
notice to all the holders of its 10.5% convertible unsecured
subordinated debentures due April 30, 2014 (the "Convertible
Debentures"), all the holders of which converted their
Convertible Debentures into common shares of Amaya and the
Convertible Debentures were delisted from the TSX Venture
-- Amaya was honoured as the TSX Venture Tech Stock of the Year
and Amaya's CEO David Baazov was awarded with the TSX Venture
Tech Executive of the Year in the third annual Cantech Letter
"We're extremely pleased with the substantial positive cash flow generated
from our operations in the first quarter," said David Baazov, President and
Chief Executive Officer of Amaya Gaming Group. "This is a strong focus of
Amaya's management team.
"So far this year, we have expanded the reach of our interactive offering in
the United States with the SHFL and Aristocrat partnerships, in addition to
our relationship with Bally," said Mr. Baazov. "Nevada, New Jersey and
Delaware have recently legalized some forms of pay-to-play online gaming, and
a reported 10 other U.S. states have considered some form of Internet gambling
this year. Gaming jurisdictions are moving towards regulatory frameworks that
are evolving to adapt to the convergence of both interactive and land-based
gaming operations. We are well positioned to capitalize on this evolving
regulatory framework due to our technology, regulatory status and strategic
"Additionally, we are continuing to integrate the acquisitions we made in
2012, including Cadillac Jack and Ongame," Mr. Baazov added. "We will
continue to focus on realizing on anticipated revenue and cost synergies from
these additions throughout the rest of this year."
Amaya reported revenues of $38.05 million for the fourth quarter of 2012, an
increase of 496% compared to $6.38 million in the first quarter of 2012. This
revenue increase is primarily attributable: to consolidating the software
licensing and hosted casino revenue of CryptoLogic Limited ("CryptoLogic"),
which was acquired on April 2, 2012; consolidating software licensing revenue
from Ongame Network Limited ("Ongame"), which was acquired on November 1,
2012; and consolidating participation agreement revenue of Cadillac Jack Inc.
("Cadillac Jack"), which was acquired on November 5, 2012. On a regional
basis, revenue in Q1 2013 was concentrated in North America and Europe.
Gross profit percentage was 99% of revenues for the three months ended March
31, 2013 and 96% for the three month period ended March 31, 2012.
Selling and marketing expenses increased from $1.81 million for the three
month period ended March 31, 2012 to $3.73million for the three month period
ended March 31, 2013, representing an increase of 106%, attributable to
consolidating advertising, promotion and royalty expenses incurred by
CryptoLogic and advertising and promotion expenses incurred by Cadillac Jack.
General and administrative expenses increased from $7.51 million for the three
month period ended March 31, 2012, to $34.37 million for the three month
period ended March 31, 2013, representing an increase of 358%. The increase in
2013 was driven by a growing employee base and higher rent due to the
CryptoLogic, Cadillac Jack, and Ongame acquisitions, and increases in
amortization costs, consulting and professional fees, costs incurred in
connection with the termination of employment agreements, communications
expense in connection with generating CryptoLogic's hosted casino revenue,
maintenance and repairs, and other costs.
Financial expenses were $6.21 million for the three month period ended March
31, 2013 and $0.41 million for the three month period ended March 31, 2012.
The increase is primarily attributable to interest on the convertible
debentures related to the acquisition of Cryptologic, and the senior secured
term loan in connection with the agreement and plan of merger to acquire
Adjusted EBITDA was $10.26 million in the first quarter of 2013 compared to
$(0.53) million in the first quarter of 2012 and $16.75 million in the fourth
quarter of 2012. Q1 2013 adjusted EBITDA excludes $2.66 million in one-time
Adjusted EBITDA Reconciliation
| Net Income| -7,440,841|
|Financial expenses | 6,212,059|
|Current income taxes | 689,914|
|Deferred income taxes | 64,502|
|Depreciation of property and equipment | 3,395,010|
|Amortization of deferred development costs | 131,482|
|Amortization of intangible assets | 4,125,252|
|Stock-based compensation | 431,622|
| EBITDA| 7,609,000|
|Termination of employment agreements | 1,447,829|
|Termination of agency agreements | 100,834|
|Acquisition-related costs | 309,479|
|Receivables related to terminated operations| 497,668|
|Other one-time costs | 299,207|
| Adjusted EBITDA| 10,264,017|
2013 FULL YEAR QUARTER FINANCIAL GUIDANCE
For the full year of 2013, the Corporation is expecting:
-- Revenue in the range of $156 to $167 million
-- Adjusted EBITDA in the range of $55 to $64 million
2013 FIRST QUARTER FINANCIAL STATEMENTS AND MANAGEMENT'S DISCUSSION AND
The quarterly financial statements, notes to financial statements and
Management's Discussion and Analysis for the three months ended March 31,
2013, will be available on the SEDAR website at www.sedar.com.
Amaya will host a conference call on Wednesday, May 29, 2013 at 9:00 a.m. ET
to discuss its 2013 first 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
Wednesday, June 5, 2013 by calling 416-849-0833 or 1-855-859-2056, reference
number 76541422. The conference call will be webcast live at
ANNUAL GENERAL MEETING
Amaya announced that the five nominees listed in its management information
circular dated April 29, 2013, namely David Baazov, Daniel Sebag, Gen. Wesley
Clark Sr., Divyesh (Dave) Gadhia, and Harlan Goodson, were re-elected as
directors of the Corporation at the Annual General Meeting of Shareholders of
Amaya Gaming Group Inc. on May 28, 2013. The resolution to reappoint Richter
S.E.N.C.R.L./L.L.P. as auditors of Amaya Gaming Group Inc. for the ensuing
year, was carried.
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 inNorth America, Latin America andEurope. 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
"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."
(1) 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
For investor or media inquiries, please contact:
Tim Foran TMX Equicom Tel: 416-815-0700 ext. 251 NA toll free: 1-800-385-5451
ext. 251 firstname.lastname@example.org
SOURCE: AMAYA GAMING GROUP INC.
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