Financial Statements Filed Further to Change in Financial Year End (From February 28th to December 31st)
TORONTO, ON / ACCESSWIRE / May 1, 2019 / Seven Aces Limited (formerly Quantum International Income Corp.) (the “Corporation” or “Aces”) (TSX-V: ACES) is pleased to announce the filing of its financial results for the ten month period ending December 31, 2018. For more information, please see the consolidated financial statements of the Corporation for the ten month period ended December 31, 2018 and the related management’s discussion and analysis, which are available electronically on SEDAR (www.sedar.com) under Aces’ issuer profile at. All figures are in U.S. dollars unless otherwise noted. These financial statements are being filed further to the change in financial year-end from February 28th to December 31st announced by the Corporation on January 14, 2019.
“2018 has been an important year on many strategic fronts” said Manu K. Sekhri, Chief Executive Officer of Aces. “We lowered our cost of debt, increased our credit facility to $100 million, purchased an additional 9% interest in Lucky Bucks, LLC, closed two acquisitions and Jamie Boyden was appointed to the COAM advisory board”.
Highlights – Ten Month period Ended December 31, 2018 (1)
- Generated gaming revenues of approximately $59.7 million for 10 month period end, compared to $51.5 million for the 12 months ended February 28, 2018; representing an increase of approximately 16% (approximately 39% on an annualized basis).
- Generated Adjusted EBITDA of $22.7 million for the 10 month period, compared to $19.1 million for the 12 months ended February 28, 2018; representing an increase of approximately 19% (approximately 43% on an annualized basis).
- Generated positive cash flow from operations of approximately $14.0 million for the 10 month period, compared to $8.2 million for the 12 months ended February 28, 2018.
- Basic and diluted loss per share for continuing operations was $0.082 for the 10 month period, compared to a loss per share of $0.12 for the 12 months ended February 28, 2018.
- For the ten months ended December 31, 2018, the Corporation closed two strategic acquisitions for a total purchase price of approximately $9.4 million.
- In April 2018, the Corporation closed a $75 million multi draw credit facility, which resulted in annual interest savings of over US$5 million. In November 2018, the Corporation finalized an amendment to the multi-draw credit facility at Lucky Bucks, LLC to increase the aggregate principal amount available from US$75 million to US$100 million.
- 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.
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; and the ability of the Corporation to execute upon a consolidation strategy in the Georgia gaming market.
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
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