CORRECTING and REPLACING Asia Entertainment & Resources Ltd. Announces Second Quarter and First Half 2013 Financial Results

  CORRECTING and REPLACING Asia Entertainment & Resources Ltd. Announces
  Second Quarter and First Half 2013 Financial Results

CORRECTION...by Asia Entertainment & Resources Ltd.

Business Wire

HONG KONG -- August 29, 2013

Please replace the release with the following corrected version due to several
revisions.

The corrected release reads:

 ASIA ENTERTAINMENT & RESOURCES LTD. ANNOUNCES SECOND QUARTER AND FIRST HALF
                            2013 FINANCIAL RESULTS

Asia Entertainment & Resources Ltd. (“AERL” or the “Company”) (NASDAQ: AERL),
which operates through its subsidiaries and related promoter companies that
act as VIP room gaming promoters, today announced unaudited financial results
for the three and six months ended June 30, 2013. All currency amounts are
stated in United States dollars.

Second Quarter 2013 Highlights

  *Rolling Chip Turnover (a metric used by casinos to measure the aggregate
    amount of players’ bets and overall volume of VIP gaming room business
    transacted, which is further defined below) for the three months ended
    June 30, 2013 was $4.5 billion, a decrease of 4.9% compared to $4.7
    billion for the three months ended June 30, 2012.
  *Net loss, including the change in fair value of contingent consideration
    of $9.6 million related to the King’s Gaming and Bao Li Gaming
    acquisitions, was $3.0 million, or $0.06 per share (fully diluted), in the
    second quarter of 2013 compared to net income of $22.0 million, or $0.48
    per share (fully diluted), in the same period of 2012.
  *Non-GAAP income, which is operating income before amortization of
    intangible assets and the change in fair value of contingent consideration
    related to the acquisitions of King's Gaming and Bao Li Gaming declined
    42.0% to $9.1 million, or $0.19 per share (fully diluted), for the three
    months ended June 30, 2013 as compared to income of $15.6 million, or
    $0.34 per share (fully diluted), for the three months ended June 30, 2012.
  *On June 26, 2013, AERL completed the purchase of the profit interest
    pursuant toa Profit Interest Purchase Agreement(“Oriental VIP Room
    Purchase Agreement”) with Mr. Vong Veng Im (the “Oriental VIP Room
    Seller”), to acquire the right to 100% of the profit derived from the
    operations of the Level 1 VIP Room, effective July 1, 2013, from the
    promotion of a VIP gaming room at Le Royal Arc Casino in Macau.
  *On June 21, 2013, the Company concluded its Rights Offering and standby
    purchase of shares not sold in the Rights Offering, issuing a total of
    19,527,950 ordinary shares. The Company incurred offering costs of $2.1
    million, which have been recorded as a reduction of Additional Paid in
    Capital. AERL used the net proceeds of the Rights Offering (approximately
    $61.4 million), along with the issuance of shares in exchange for the
    cancellation of debt pursuant to the standby purchase, to repay
    outstanding indebtedness owed to certain of AERL’s shareholders.

For the three months ended June 30, 2013, AERL recorded revenue of $63.5
million, an 8.6% increase from the same period of 2012. The increase in
revenues was a result of a higher than normal win rate of 3.06%, the change in
remuneration model from the fixed commission model of 1.25% on Rolling Chip
Turnover to the revenue sharing model in September 2012, and an increase in
net services revenues related to hotel and casino services charged to junket
agents after the adjustment to commission rates.

The decrease in net income and Non-GAAP income for the three months ended June
30, 2013 was due primarily to decreased Rolling Chip Turnover, higher
commissions as a result of greater non-marker commission paid, the upward
adjustment to commission rates as a result of the company compensating its
junket agents for no longer providing complimentary hotel and casino services,
increased market competition, and a smaller percentage of direct business.
AERL also incurred higher selling, general and administrative expenses for the
three months ended June 30, 2013, including $3.3 million of additional costs
related to Hong Kong Listing expenses, acquisition costs, additional
management fees paid as a result of the acquisition of Bao Li Gaming in
September 2012 and an increase in the number of employees due to direct
employment of some employees from Pak Si and the acquisition of Bao Li.

“We continue to conservatively manage our business to reduce risk exposure
that can impair longer-term growth,” said Mr. Man Pou Lam (Mr. Lam), Chairman
of AERL. “We were pleased to complete the acquisition of our VIP room at Le
Royal Arc Casino, which further expands our presence in the Macau VIP gaming
market, as well as concluding our Rights Offering which puts us on the path to
listing our stock on the Hong Kong exchange. Our ultimate goal remains
unchanged – to increase our market share leading to growth in revenue and net
income, and to create long-term shareholder value.”

Six Month 2013 Highlights

  *Rolling Chip Turnover (a metric used by casinos to measure the aggregate
    amount of players’ bets and overall volume of VIP gaming room business
    transacted, which is further defined below) for the six months ended June
    30, 2013 was $8.6 billion, a decrease of 15.0% compared to $10.1 billion
    for the six months ended June 30, 2012.
  *Net income, including the change in fair value of contingent consideration
    of $15.5 million related to the King’s Gaming and Bao Li Gaming
    acquisitions, decreased 89% to $4.0 million, or $0.09 per share (fully
    diluted), in the six months ended June 30, 2013 from $37.4 million, or
    $0.81 per share (fully diluted), in the same period of 2012.
  *Non-GAAP income, which is operating income before amortization of
    intangible assets and the change in fair value of contingent consideration
    related to the acquisitions of King’s Gaming and Bao Li Gaming declined
    28.1% to $24.4 million, or $0.54 per share (fully diluted), for the six
    months ended June 30, 2013 as compared to income of $34.0 million, or
    $0.74 per share (fully diluted), for the six months ended June 30, 2012.

Outlook for 2013

For the first six months of 2013, AERL’s Rolling Chip Turnover was $8.6
billion (an average of $1.4 billion per month), down 15% year-over-year,
compared to US$10.1 billion (an average of $1.7 billion per month) for the
first six months of 2012. Win rate for the first six months of 2013 was 3.17%.

In view of the tightening of credit to junket agents, the Company is providing
Rolling Chip Turnover guidance for its five existing VIP rooms in Macau of $19
billion in the aggregate for full year 2013.

The Company believes that for the remainder of 2013, all of its business will
remain on a revenue sharing basis. The Company is providing Non-GAAP income
guidance for the year ended December 31, 2013 of $60 million to $75 million
based on the current and expected performance of its existing five VIP gaming
rooms in Macau. The guidance includes $2.8 million in additional expenses
associated with the Hong Kong Listing and acquisition of the VIP gaming room
at Le Royal Arc Casino in Macau, and does not take into consideration any
possible future expansion or additional VIP gaming rooms.

Conference Call and Replay Information

AERL will conduct a conference call to discuss the financial results today at
9:00AM EDT/9:00 PM Macau. To participate, please dial one of the following
numbers at least 10 minutes prior to the scheduled start of the call:

1-888-359-3624 (United States/Canada)

10-800-714-0940 (North China)

10-800-140-0915 (South China)

800-968-149 (Hong Kong)

800-101-1739 (Singapore)

0800-404-7655 (United Kingdom)

1-719-325-2177 (Other International)

Interested parties may also access the live call on the Internet at
www.aerlf.com (select Events and Presentations). Following its completion, a
replay of the call can be accessed on the Internet at the above link or for
one week by calling either 1-877-870-5176 (U.S. callers) or 1-858-384-5517
(International callers) and providing conference ID 9120722.

Definition of Rolling Chip Turnover

Rolling Chip Turnover is used by casinos to measure the volume of VIP business
transacted and represents the aggregate amount of bets players make. Bets are
wagered with “non-negotiable chips” and winning bets are paid out by casinos
in so-called “cash” chips. “Non-negotiable chips” are specifically designed
for VIP players to allow casinos to calculate the commission payable to VIP
room gaming promoters. Commissions are paid based on the total amount of
“non-negotiable chips” purchased by each player. VIP room gaming promoters
therefore require the players to “roll,” from time to time, their “cash chips”
into “non-negotiable” chips for further betting so that they may receive their
commissions (hence the term “Rolling Chip Turnover”). Through the promoters,
“non-negotiable chips” can be converted back into cash at any time. Betting
using rolling chips, as opposed to using cash chips, is also used by the DICJ
(Macau Gaming Control Board) to distinguish between VIP table revenue and mass
market table revenue.

About Asia Entertainment & Resources Ltd.

AERL is a holding company which operates through its subsidiaries and related
promoter companies as a VIP room gaming promoter, and is entitled to receive
all of the profits of the VIP gaming promoters from VIP gaming rooms. AERL's
VIP room gaming promoters currently participate in the promotion of five major
luxury VIP gaming facilities in Macau, China, the largest gaming market in the
world. One VIP gaming room is located at the top-tier 5-star hotel, the
StarWorld Hotel & Casino in downtown Macau, and another is located in the
luxury 5-star hotel, the Galaxy Macau™ Resort in Cotai, each of which is
operated by Galaxy Casino, S.A. Additional VIP gaming rooms are located at the
Sands Cotai Central and City of Dreams Macau, both in Cotai, and Le Royal Arc
Casino, located in NAPE, Downtown Macau.

Forward-Looking Statements

This press release includes forward-looking statements made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995
that involve risks and uncertainties. Forward-looking statements are
statements that are not historical facts. Such forward-looking statements,
based upon the current beliefs and expectations of AERL’s management, are
subject to risks and uncertainties, which could cause actual results to differ
from the forward-looking statements. The gaming industry is characterized by
an element of chance. Theoretical win rates for AERL’s VIP room gaming
promoters’ VIP gaming room operations depend on a variety of factors,some
beyond their control. In addition to the element of chance, theoretical win
rates are also affected by other factors, including gaming patrons’ skill and
experience, the mix of games played, the financial resources of gaming
patrons, the spread of table limits, the volume of bets placed by AERL’s VIP
room gaming promoters’ gaming patrons and the amount of time gaming patrons
spend on gambling — thus VIP gaming rooms’ actual win rates may differ greatly
over short time periods, such as from quarter to quarter, and could cause
their quarterly results to be volatile. These factors, alone or in
combination, have the potential to negatively impact the VIP gaming rooms' win
rates. Investors and potential investors should consult all of the information
set forth herein and should also refer to the risk factors set forth in AERL’s
Annual Report on Form 20-F filed on April 5, 2013, and other reports filed or
to be filed from time-to-time with the Securities and Exchange Commission.

                                                                                                
ASIA ENTERTAINMENT & RESOURCES LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME
(Unaudited)
                                                                                                   
                  For the Three    For the         For the Six       For the Six
                                         Three
                     Months Ended        Months Ended       Months Ended         Months Ended
                     June 30, 2013       June 30,           June 30, 2013        June 30, 2012
                                         2012
Revenue from
VIP Gaming           $ 63,544,865        $ 58,531,067       $ 125,663,364        $ 125,849,178
Operations
Total Revenues        63,544,865         58,531,067        125,663,364         125,849,178
Expenses
- Commission           47,651,409          38,095,211         90,392,261           81,623,353
to Agents
- Selling,
General and            6,325,662           4,367,472          9,981,531            9,211,287
Administrative
Expenses
- Special              446,199             468,249            855,794              1,006,662
Rolling Tax
- Amortization
of Intangible         2,548,542          1,268,319         4,977,454           2,536,835
Assets
Total Expenses        56,971,812         44,199,251        106,207,040         94,378,137
Operating
income
attributable
to ordinary
shareholders           6,573,053           14,331,816         19,456,324           31,471,041
before change
in fair value
of contingent
consideration
Change in Fair
Value of
Contingent
Consideration
for the               (9,551,634)        7,705,352         (15,481,200)        5,894,431
Acquisitions
of King's
Gaming and Bao
Li
Net Income
(Loss)
Attributable          (2,978,581)        22,037,168        3,975,124           37,365,472
to Ordinary
Shareholders
                                                                                                   
Other
Comprehensive
Income
Foreign
Currency
- Translation         208,433            183,054           (163,706)           507,895
Adjustment
Total
Comprehensive        $ (2,770,148)       $ 22,220,222       $ 3,811,418          $ 37,873,367
Income (Loss)
                                                                                                   
Net Income
(Loss) Per
Share
Basic                $ (0.06)            $ 0.48             $ 0.09               $ 0.81
Diluted              $ (0.06)            $ 0.48             $ 0.09               $ 0.81
Weighted
Average Shares
Outstanding
Basic                 46,101,725         45,906,424        45,032,405          45,912,282
Diluted               46,101,725         45,906,917        45,292,949          46,029,232
                                                                                                   

                                                                    
ASIA ENTERTAINMENT & RESOURCES LTD.
CONSOLIDATED BALANCE SHEETS
                                                                             
                                   June 30, 2013       December 31, 2012
                                   (Unaudited)         *
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents          $ 39,840,817        $   20,644,296
Accounts Receivable, Net             2,969,032             2,480,961
Markers Receivable                   260,149,814           241,706,663
Prepaid Expenses and Other          251,553              303,570
Assets
Total Current Assets                 303,211,216           265,135,490
Intangible Assets (net of
accumulated amortization of
$17,454,613 and $12,553,037          146,502,703           94,451,063
at June 30, 2013 and
December 31, 2012,
respectively)
Goodwill                             17,748,642            17,037,761
Property and Equipment (net
of accumulated depreciation
of $27,492 and $14,366 at            65,648                13,698
June 30, 2013 and December
31, 2012, respectively)
Deferred Offering Costs              -                     807,401
Other Assets                        23,420               21,592
TOTAL ASSETS                       $ 467,551,629       $   377,467,005
LIABILITIES AND
SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Lines of Credit Payable            $ 40,225,365        $   34,799,982
Accrued Expenses                     19,229,681            14,091,723
Oriental VIP Room
Acquisition-Contingent               10,000,000            -
Purchase Price Obligation
Bao Li Gaming
Acquisition-Contingent               31,232,308            -
Purchase Price Obligation
King's Gaming
Acquisition-Contingent               9,000,000             9,000,000
Purchase Price Obligation
Loan Payable, Shareholders,         29,032,597           2,214,078
current
Total Current Liabilities            138,719,951           60,105,783
Loan Payable, Shareholders           -                     60,000,000
Bao Li Gaming
Acquisition-Contingent               16,526,162            32,294,981
Purchase Price Obligation,
net of current portion
Oriental VIP Room
Acquisition-Contingent               37,813,997            -
Purchase Price Obligation,
net of current portion
King's Gaming
Acquisition-Contingent              -                    9,000,000
Purchase Price Obligation,
net of current portion
Total Liabilities                   193,060,110          161,400,764
                                                                             
COMMITMENTS AND
CONTINGENCIES
                                                                             
SHAREHOLDERS' EQUITY
Preferred Shares, $0.0001
par value Authorized                 -                     -
1,150,000 shares; none
issued
Ordinary Shares, $0.0001 par
value Authorized 200,000,000
shares; issued and
outstanding 59,979,114 and           5,997                 4,118
41,177,217 shares at June
30, 2013 and December 31,
2012 respectively.
Additional Paid-in Capital           128,425,102           69,670,922
Retained Earnings                    145,661,185           145,828,260
Accumulated Comprehensive           399,235              562,941
Income
Total Shareholders' Equity          274,491,519          216,066,241
TOTAL LIABILITIES AND              $ 467,551,629       $   377,467,005
SHAREHOLDERS' EQUITY
                                                                             

* Derived from the audited financial statements for the year ended December
31, 2012.

                                          Cash Flow Information For the Six
                                           Months Ended June 30,
                                           (Unaudited )
                                           2013               2012
                                                                             
Net cash provided by operating             $  16,799,893       $ 38,905,094
activities
Net cash (used in) investing activities    $  (10,065,074  )   $ -
Net cash provided by (used in) financing   $  12,487,600       $ (14,733,107 )
activities
Net increase in cash and cash              $  19,222,419       $ 24,171,987
equivalents
                                                                             

Non-GAAP Financial Measures

Our calculation of Non-GAAP income (operating income before amortization of
intangible assets and change in fair value of contingent consideration) and
Non-GAAP EPS for the three and six months ended June 30, 2013 and 2012 differs
from EPS based on net income because it does not include amortization of
intangible assets and change in fair value of contingent consideration. We use
this information internally in evaluating our operations and believe this
information is important to investors because it provides a complete picture
of our operations for the entire period and is more accurately comparable to
the prior-year period. Notwithstanding the foregoing, Non-GAAP income and EPS
should not be considered an alternative to, or more meaningful than, net
income and EPS as determined in accordance with GAAP. The following is a
reconciliation of our unaudited net income to Non-GAAP income and GAAP EPS to
our Non-GAAP EPS:

                                                           
                                           For                 For
                                           the Three           the Three
                                           Months Ended        Months Ended
                                           June 30, 2013       June 30, 2012
                                                                             
Net income (loss) attributable to          $  (2,978,581 )     $  22,037,168
ordinary shareholders
                                                                             
Amortization of intangible assets             2,548,542           1,268,319
                                                                             
Change in fair value of contingent           9,551,634          (7,705,352 )
consideration
                                                                             
Non-GAAP income (before amortization of
intangible assets and change in fair       $  9,121,595        $  15,600,135
value of contingent consideration)
                                                                             

                                                   
                           For the Three               For the Three
                           Months Ended                Months Ended
                           June 30, 2013               June 30, 2012
                                       Fully                     Fully
                           Basic         Diluted       Basic         Diluted
                                                                             
Earnings (Loss) per
share attributable to      $ (0.06 )     $ (0.06 )     $ 0.48        $ 0.48
ordinary shareholders
                                                                             
Amortization of              0.06          0.05          0.03          0.03
intangible assets
                                                                             
Change in fair value of     0.21         0.20         (0.17 )      (0.17 )
contingent consideration
                                                                             
Non-GAAP Earnings per
share (before
amortization of
intangible assets and      $ 0.21        $ 0.19        $ 0.34        $ 0.34
change in fair value of
contingent
consideration)
                                                                             

                                                           
                                             For               For
                                             the Six           the Six
                                             Months Ended      Months Ended
                                             June 30, 2013     June 30, 2012
                                                                             
Net Income attributable to ordinary          $  3,975,124      $  37,365,472
shareholders
                                                                             
Amortization of intangible assets               4,977,454         2,536,835
                                                                             
Change in fair value of contingent             15,481,200       (5,894,431 )
consideration
                                                                             
Non-GAAP income (before amortization of
intangible assets and change in fair value   $  24,433,778     $  34,007,876
of contingent consideration)
                                                                             

                                                
                       For the Six Months Ended     For the Six Months Ended
                       June 30, 2013                June 30, 2012
                                     Fully                       Fully
                       Basic           Diluted      Basic           Diluted
                                                                             
Earnings per share
attributable to        $   0.09        $  0.09      $  0.81         $  0.81
ordinary
shareholders
                                                                             
Amortization of            0.11           0.11         0.06            0.06
intangible assets
                                                                             
Change in fair value
of contingent             0.34          0.34        (0.13  )       (0.13 )
consideration
                                                                             
Non-GAAP Earnings
per share (before
amortization of
intangible assets      $   0.54        $  0.54      $  0.74         $  0.74
and change in fair
value of contingent
consideration)
                                                                             

Contact:

Asia Entertainment & Resources Ltd.
James Preissler, +1 646-450-8808
preissj@aerlf.com
or
ICR
William Schmitt, 203-682-8294
william.schmitt@icrinc.com
 
Press spacebar to pause and continue. Press esc to stop.