Seven Aces Limited Announces Financial Results for the First Quarter Ended March 31, 2019; NCIB Update
Thursday, May 30, 2019 7:45 AM
Closed Three Asset Acquisitions; Adj. EBITDA up ~73% in Q1 FY 2019 Compared to the Three Months Ended February 28, 2018
TORONTO, ON / ACCESSWIRE / May 30, 2019 / Seven Aces Limited (formerly Quantum International Income Corp.) (the "Company" or "Aces") (TSXV: ACES) is pleased to announce the filing of its financial results for the first quarter of fiscal 2019. The Company recently changed its fiscal year end date from February 28th to December 31st. For more information, please see the condensed interim consolidated financial statements of the Company for the first quarter ended March 31, 2019 and the related management's discussion and analysis, which are available electronically on SEDAR under Aces' issuer profile at www.sedar.com. All figures are in U.S. dollars unless otherwise noted.
"In addition to being nominated to our second consecutive TSX Venture 50 award, operationally our first quarter has been a strong start to the year with three acquisitions closed and a record reported Revenue and Adjusted EBITDA" said Manu K. Sekhri, Chief Executive Officer of Aces. "We have also purchased over one million shares as part of our NCIB at attractive prices which is accretive to all shareholders".
Highlights - Quarter Ended March 31, 2019(1)
- Completed three acquisitions that totaled thirteen (13) location contracts - six (6) from Goldstar Amusement LLC., three (3) from A&R Entertainment Inc and four (4) from Universal Games LLC - for a combined purchase price of $4.53 million.
- Generated gaming revenues of approximately $20.1 million for the quarter ended March 31, 2019, compared to $16.4 million for the quarter ended February 28, 2018; representing an increase of 23% (2).
- Generated Adjusted EBITDA of $8.3 million for the quarter ended March 31, 2019, compared to $4.8 million for the quarter ended February 28, 2018; representing an increase of 73% (2).
- Generated positive cash flow from operations of approximately $4.8 million for the quarter ended March 31, 2019, compared to $5.4 million for the quarter ended February 28, 2018(2). Prior to non-cash changes to operating working capital the Company generated $5.9 million for the quarter ended March 31, 2019, compared to $3.0 million for quarter ended February 28, 2018(2).
- Net profit of approximately $3.8 million for the quarter ended March 31, 2019, compared to a net loss of approximately $2.9 million for the quarter ended February 28, 2018(2).
- Basic and diluted earnings per share for continuing operations was $0.031 and $0.026 respectively for the quarter ended March 31, 2019, compared to a loss per share of $0.041 for the quarter ended February 28, 2018(2).
- On February 21, 2019, the Corporation was recognized in the 2019 TSX Venture 50TM for the second consecutive year.
Note: (1) These reported figures are based on consolidated results and do not reflect the impact of the non-controlling interest.
(2) The quarterly results are not directly comparable with last fiscal year due to change in year end from February 28th to December 31st.
Normal Course Issuer Bid
The Corporation also announces that as at May 28, 2019 it has repurchased 1,004,500 common shares under its normal course issuer bid ("NCIB") at an average price of $0.7861. The Corporation received approval from the Exchange to commence the NCIB on February 19, 2019 as announced in the press release on February 15, 2019.
About Seven Aces Limited
Seven Aces Limited (formerly Quantum International Income Corp.) is a gaming company, with a vision of building a diversified portfolio of world class gaming operations. The Corporation looks to enhance shareholder value by growing organically and through acquisitions. Currently, the Corporation is the largest route operator of skill-based gaming machines in the State of Georgia, United States of America.
For more information about ACES is available online at www.sevenaces.com.
For further information please contact Aces:
Vice President, Corporate Affairs
Tel. (416) 569-3292
Tel. (416) 477-3411
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 news release.
Cautionary Statement Regarding Forward-Looking Information
This news release may contain forward-looking statements or "forward-looking information" within the meaning of applicable Canadian securities laws ("forward-looking statements"). Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. In this press release, forward-looking statements pertain, among other things, to the Corporation's ability to deliver sustainable growth to its shareholders; the success of the Corporation in the Georgia gaming market; the ability of the Corporation to execute upon a consolidation strategy in the Georgia gaming market; and ACES stock not accurately reflecting value compared to similar sized gaming companies.
All forward-looking statements reflect the Corporation's beliefs and assumptions based on information available at the time the statements were made. Actual results or events may differ from those predicted in these forward-looking statements. All of the Corporation's forward-looking statements are qualified by the assumptions that are stated or inherent in such forward-looking statements, including the assumptions listed below. Although the Corporation believes that these assumptions are reasonable, this list is not exhaustive of factors that may affect any of the forward-looking statements. The key assumptions that have been made in connection with the forward-looking statements include the following: the digital gaming terminals being fully-licensed by the Georgia State Lottery, the continuation of the Corporation's consolidation strategy in the Georgia gaming market, the growing footprint of Aces in the Georgia gaming market, generating value for the shareholders of the Corporation, the regulatory regime governing the business of Aces in Georgia, the exchange rate between the U.S. dollar and Canadian dollar, the ability to grow the business and generate stable distributions for shareholders, the availability of high growth, high margin opportunities, and the execution of the Corporation's business strategy.
Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the availability of opportunities to consolidate additional assets in the Georgia gaming market, the availability of investment opportunities on terms acceptable to the Corporation, the regulatory regime in the State of Georgia, the licensing regime governing the Georgia State Lottery, the exchange rate between the U.S. dollar and Canadian dollar, and other internal and external factors disclosed in the most recent annual information form of the Corporation and other documents publicly filed by the Corporation. Although Aces has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
The Corporation disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise, except in accordance with applicable securities laws.
Non-IFRS Financial Measures
Statements in this news release make reference to Adjusted EBITDA, which is a non-IFRS (as defined herein) financial measure that the Corporation believes is appropriate to provide meaningful comparison with, and to enhance an overall understanding of, the Corporation's past financial performance and prospects for the future. The Corporation believes that Adjusted EBITDA provides useful information to both management and investors by excluding specific expenses and items that management believe are not indicative of Aces' core operating results. Adjusted EBITDA is a financial measure that does not have a standardized meaning under International Financial Reporting Standards ("IFRS"). Adjusted EBITDA is defined as earnings before financing costs, income taxes, depreciation, amortization of property and equipment and intangible assets, stock-based compensation, foreign exchange, impairment, gain/loss on settlement of accounts payable, financing income, business acquisition costs, warrant fair value adjustment and derivative asset fair value adjustment. As there is no standardized method of calculating Adjusted EBITDA, it may not be directly comparable with similarly titled measures used by other companies. The Corporation considers Adjusted EBITDA to be a relevant indicator for measuring trends in performance and its ability to generate funds to service its debt and to meet its future working capital and capital expenditure requirements. Adjusted EBITDA is not a generally accepted earnings measure and should not be considered in isolation or as an alternative to net income (loss), cash flows or other measures of performance prepared in accordance with IFRS.
SOURCE: Seven Aces Limited