[PGIC]
Progressive Gaming International Reports First Quarter 2007 Financial Results
- Systems Installed Base Grows 18% Year-Over-Year and 6% on a Quarterly Sequential Basis -
- CJS Installations at March 31, 2007 Rise to 5,558, or 46% of Company’s 2007 Year-End CJS Target of 12,000 -
Progressive Gaming International Corporation® (NASDAQ: PGIC):
Conference Call: Today, May 14, 2007 at 11:00 a.m. EDT
Dial-in numbers: 800/260-8140 or 617/614-3672 (international)
Webcast: www.progressivegaming.net
Progressive Gaming International Corporation® (NASDAQ: PGIC) (“the Company”), a leading provider of diversified technology and content products and services used in the gaming industry worldwide, today reported revenues of $16.9 million and a net loss of approximately $8.7 million, or $0.25 per share, for the quarter ended March 31, 2007, compared to revenues of $16.9 million and a net loss of $8.8 million, or $0.26 per share in the comparable year ago period. ****The first quarter 2007 operating results do not include approximately $3.8 million in revenues, representing $0.11 per fully diluted share, related to several large systems arrangements that were completed in the first quarter of 2007, but which, pursuant to Generally Accepted Accounting Principles (“GAAP”), will be recorded in the second quarter of 2007.*****
Excluding the results of the Company’s Table Games Division (“TGD”), pro forma revenues in the 2007 first quarter were approximately $15.1 million compared to pro forma revenues of approximately $14.5 million in the prior year period. In the first quarter of 2007, the Company’s systems business grew approximately 22% on a year-over-year basis when including the $3.8 million that was deferred in the first quarter of 2007. At March 31, 2007, the Company had approximately 5,558 CasinoLink® Jackpot Systems™ (“CJS”) installations, representing approximately 46% of the Company’s target of approximately 12,000 CJS systems installations at December 31, 2007.
First Quarter 2007 Highlights:
Continued expansion of systems installations with presence in over 33 countries and 21 North American jurisdictions as of March 31, 2007.
Significant quarterly sequential growth in slot management systems, including approximately 2,400 CJS and over 800 CasinoLink® installations.
Several large systems installations were completed and installed in the first quarter of 2007 but pursuant to GAAP, the revenue related to these installations will not be recorded until the second quarter of 2007. As a result, approximately $3.8 million of revenue will be reflected in the Company’s second quarter results. These installations are included in the reported installed base figures in this press release and in aggregate, these systems installations are expected to contribute multi-year recurring revenues of over $0.6 million annually.
Adjusted Pro Forma EBITDA was $1.3 million, which left the Company in compliance with the financial covenants under its $22.5 million Senior Credit Facility. Adjusted Pro Forma EBITDA is defined in the Company’s credit facility as EBITDA plus non-cash stock compensation cost plus the change in deferred revenues.
Initiated the process for sale of TGD as part of ongoing focus on streamlining operations to focus on the Company’s core systems business.
Summary of Systems Installed Base:
As of
3/31/2007
As of
3/31/2006
% Change
As of
12/31/2006
% Change
CasinoLink® 56,717 52,255 9% 55,863 2%
CasinoLink® Jackpot Systems™ (“CJS”) 5,558
1,445
285%
3,137
77%
Table Management 3,155 1,954 61% 2,947 7%
Commenting on the results, Progressive Gaming International Corporation President and Chief Executive Officer, Russel McMeekin, stated, “Strong first quarter systems installations reflect our progress in positioning the Company for growth based on our ability to innovate, develop and market systems-centric products that provide measurable benefits to our customers. Installations completed in the first quarter will also benefit our operating results in the 2007 second quarter based on the recognition of approximately $3.8 million of deferred revenue. Our focus continues to be on growing the installed base of our new products and our ability to execute against this goal is reflected in the strong year-over-year and quarterly sequential gains we achieved in our systems installed base. Momentum in this business is growing as on a quarterly sequential basis the CasinoLink® installed base grew 2%, or over 800 installations, the CJS installed base grew by 77%, or by approximately 2,400 new installations, and Table Management systems grew by 7% or by over 200 units. |
