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Multimedia Games – MGAM – Authorizes New $40 million Share Repurchase Program

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Nasdaq: MGAM) reported operating results for its fiscal 2012 fourth quarter and full year ended September 30, 2012, as summarized below. In addition, MGAM provided fiscal 2013 guidance for several financial metrics, including diluted EPS of $0.60-$0.65, which represents a year-over-year increase of approximately 12%-21% over fiscal 2012 pro-forma diluted EPS when applying a 38% tax rate for fiscal 2012.

  • 1,059 New Revenue Units Deployed in Fourth Quarter Including 538 Sold Units and a 521 Unit Increase in the Installed Base, Including a 101 Unit Increase in Premium Participation Games
  • Fiscal 2012 Revenue Rises 22.2% to a Record $156.2 Million;
    Diluted EPS of $0.96, Inclusive of $0.09 Net Benefit
  • Authorizes New $40 million Share Repurchase Program

Patrick Ramsey, President and Chief Executive Officer of Multimedia Games, commented, “Multimedia’s fourth quarter and full year 2012 results reflect continued success in developing high performing gaming products and further progress with expanding our total addressable market. Highlights from the fiscal 2012 fourth quarter include a 5% quarterly sequential and 14% year-over-year increase in our domestic installed base, strong quarterly unit sales in a record 16 states and a doubling of our installed base of premium participation High Rise Games® to 198 units. As a result, we generated another period of strong financial performance marked by year over year operating income, EBITDA and net income growth, each of which outpaced the 16% revenue growth achieved in the quarter.

MGAM – Summary of Fiscal 2012 Fourth Quarter and Full Year Operating Results

Multimedia Games’ fiscal 2012 fourth quarter revenue rose 15.8%, or $5.7 million, to $41.4 million, compared to revenue of $35.7 million in the fiscal 2011 fourth quarter. Fiscal 2012 fourth quarter revenue included approximately $29.6 million from gaming operations and approximately $11.4 million from gaming equipment and system sales, compared with $25.5 million in revenue from gaming operations and $9.9 million from gaming equipment and system sales in the year-ago period.

Gaming operations revenue in the fiscal 2012 fourth quarter grew 16.3% to $29.6 million, reflecting continued strong growth in the Company’s installed base of participation units and in the revenue per day performance. During the quarter, the Company grew its base of participation units by 521 units or approximately 5.1% on a quarterly sequential basis, with growth coming from all domestic markets including Oklahoma, California, Louisiana, Mississippi, and Michigan. Multimedia Games’ domestic installed base grew by 1,291 units, or 13.8%, year over year to 10,670 units. Included in the year-end participation base were 198 High Rise premium participation games deployed outside of Oklahoma, an increase of 101 units from the fiscal third-quarter end installed base.

Revenues from the Company’s New York Lottery business totaled $4.2 million for the quarter, an increase of 51% over the prior-year period. For the full fiscal year, revenues for the New York Lottery totaled $15.6 million, an increase of 66% over the prior-year revenues of $9.4 million. The increase in revenues for the fiscal fourth quarter and for the fiscal year were primarily driven by the opening of Resorts World New York in October 2011. With the one-year anniversary of the opening of Resorts World New York having occurred in October 2012, the Company expects the New York Lottery business will grow at a more measured pace in fiscal 2013.

About Multimedia Games Holding Company, Inc. – MGAM

Through its wholly owned subsidiary, Multimedia Games Holding Company, Inc. (MGAM) develops and distributes gaming technology.

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edliston
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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