PokerTek Reports Fourth Quarter and Full Year 2011 Financial Results
Strong Annual Results Driven by Revenue Growth, Margin Expansion and Expense Reduction; First Year of POSITIVE EBITDAS Results in Company History
(firmenpresse) - MATTHEWS, NC -- (Marketwire) -- 03/13/12 -- PokerTek, Inc. (NASDAQ: PTEK)
PokerTek, Inc. (NASDAQ: PTEK) today reported financial results for the fourth quarter and full year ended December 31, 2011.
Mark Roberson, Chief Executive Officer and Chief Financial Officer, commented, "Operating results for 2011 strengthened significantly as we increased penetration in our target markets, expanded our gross margins and continued to focus on reducing expenses. For the quarter, results from continuing operations improved as contribution from our target markets and reductions in our operating expenses offset the removal of games in Mexico where we await regulatory clarification.
"Entering 2012, we are focused on executing our growth strategy. PokerPro continues to have a dominant position in electronic poker and we are well positioned to accelerate growth in the United States, Europe, Canada and several other markets. Initial installations of ProCore, which expands our product line to include blackjack and other house-banked games, are performing exceptionally. We are expanding our cruise ship footprint and initiating placements in land-based markets. We expect the first quarter of 2012 to generate positive cash flow and reflect improved operating results."
Annual revenue increased 10% to $6.5 million in 2011 compared to $5.9 million in 2010 as growth in the United States, Europe and other international markets was partially offset by a reduction in Mexico where we removed games in September due to changes in the regulatory environment. Fourth quarter revenue decreased 16% to $1.3 million in 2011 compared to $1.6 million in 2010 due primarily to Mexico. Revenue comparisons were also affected by changes in mix as sales of systems and equipment increased to $1.5 million from $760 thousand on an annual basis and decreased to $200 thousand from $300 thousand on a quarterly basis. Revenues from license and services fee declined by $170 thousand for the full year and $160 thousand for the quarter as reductions from Mexico were offset by increased licensing and service revenues from other markets. Excluding Mexico, total revenue increased 21% on an annual basis and 7% on a quarterly basis due to growth in the United States, Europe, and other international markets.
Gross profit increased 18% to $4.6 million for the full year 2011 from $3.9 million in 2010. Gross profit margin increased to 70.1% from 65.6% on an annual basis. On a quarterly basis, gross profit decreased 16% to $0.9 million in 2011 from $1.1 million in 2010 on lower revenue. Gross profit margin increased to 70.2% in 2011 from 69.7% in 2010 on a quarterly basis. The increase in gross profit margin is primarily due to a combination of changes in revenue mix, improved asset utilization and lower product costs and depreciation. Gross profit margin contribution is also considerably higher in other markets than in Mexico.
For the year, operating expenses declined 7% to $6.1 million in 2011 from $6.5 million in 2010. On a quarterly basis, operating expenses declined 14% to $1.3 million in 2011 from $1.5 million in 2010. The reduction in operating expense is primarily due to lower selling, general and administrative expenses.
Net loss from continuing operations improved 42% to $1.6 million in 2011 from $2.8 million in 2010 on an annual basis. Net loss from continuing operations improved 6% to $0.4 million in from $0.5 million in 2010 on a quarterly basis. On a per common share basis, net loss from continuing operations improved 50% to $0.24 from $0.48 for the year and improved 14% to $0.06 from $0.07 for the quarter.
EBITDAS, a non-GAAP financial measure (described below), was positive $456,000 in 2011 compared to negative $126,000 in 2010 on an annual basis. EBTIDAS was negative $45,000 for the fourth quarter for 2011, compared to a positive EBITDAS of $71,000 for the fourth quarter of 2010.
Cash used in operating activities from continuing operations was $882,000 for 2011, compared to $634,000 for 2010. We used more cash operating activities during 2011 than in 2010 as cash from improved profitability was offset by investments in inventory, reductions in current liabilities and reductions in deferred revenue.
As of December 31, 2011, the Company's cash balance was $0.6 million and total debt was $0.7 million.
Gaming positions deployed worldwide totaled 2,028 of December 31, 2011 comprised of 1,944 PokerPro and 84 ProCore gaming positions. As of December 31, 2010, 2,514 gaming positions were deployed comprised entirely of PokerPro gaming positions. Excluding Mexico, gaming positions increased by 10% from December 2010 to December 2011. The increase in gaming positions resulted from net increased placements of PokerPro and ProCore in our target markets, including United States, Europe and other international markets.
A conference call and webcast will be held on Tuesday, March 13, 2012 at 11:00 am EDT, for management to discuss the Company's fourth-quarter 2011 performance. Interested parties may listen to and participate in the conference call by dialing 866.510.0711 (U.S./Canada) or +1 617.597.5379 (Other) and entering passcode 54414640. A live webcast of the conference call will be available through a link on our website, , under the heading "Investors." For those unable to participate in the live call, an archived replay will be made available on our website. A replay of the conference call will also be available approximately two hours after the conclusion of the call for approximately one week by dialing 888.286.8010 (U.S./Canada) or +1 617.801.6888 (Other) and entering passcode 30088845.
PokerTek, Inc. prepares its consolidated financial statements in accordance with United States generally accepted accounting principles ("GAAP"). In addition to disclosing financial results prepared in accordance with GAAP, the Company discloses information regarding EBITDAS, which differs from the term EBITDA as it is commonly used. In addition to adjusting net income (loss) from continuing operations to exclude taxes, interest, and depreciation and amortization, EBITDAS also excludes noncash charges, certain non-recurring charges and share-based compensation expense. EBITDA and EBITDAS are not measures of performance defined in accordance with GAAP. However, EBITDAS is used internally in planning and evaluating the Company's operating performance. Accordingly, management believes that disclosure of this metric offers investors, bankers and other stakeholders an additional view of the Company's operations that, when coupled with the GAAP results, provides a more complete understanding of the Company's financial results.
EBITDAS should not be considered as an alternative to net loss or to net cash used in operating activities as a measure of operating results or of liquidity. It may not be comparable to similarly titled measures used by other companies, and it excludes financial information that some may consider important in evaluating the Company's performance. A reconciliation of GAAP net loss from continuing operations to EBITDAS is included in the accompanying financial schedules.
The Company recently announced it will restate its financial statements for each of the first three quarters of 2011. Management is making these changes to revise its previous conclusions regarding the application of Accounting Standards Update 2009-14 "Software (Topic 985), Certain Revenue Arrangements That Include Software Elements" and Accounting Standards Update 2009-13 "Revenue Recognition (Topic 605), Multiple-Deliverable Revenue Arrangements" to several customer contracts entered into during the first nine months of 2011 which involved the sale of hardware accompanied by embedded software and related services. The financial statements included in Form 10-Qs previously filed for the interim periods ended March 31, 2011, June 30, 2011 and September 30, 2011 will be restated. This restatement did not affect any audited prior year periods.
On a year-to date basis, the effect of the restatement from the results that were included in the Company's September 30, 2011 Form 10-Q was an increase to previously reported revenue of approximately $260 thousand and a decrease to previously reported net loss of approximately $158 thousand for the nine months ended September 30, 2011.
On a quarterly basis, the effect was an increase to previously reported revenue of approximately $282 thousand and a decrease to previously reported net loss of approximately $187 thousand for the three months ended March 31, 2011; a decrease to previously reported revenue of approximately $78 thousand and an increase to previously reported net loss of approximately $51 thousand for the three months ended June 30, 2011; and an increase to previously reported revenue of approximately $56 thousand and a decrease to previously reported net loss of approximately $22 thousand for the three months ended September 30, 2011.
The quantification of the effect on the quarterly financial statements is subject to continuing analysis and review by management and it is possible these estimates may change before considered final. The restatement of the quarterly financial results will be made in connection with the filing of the Company's 2011 Form 10-K in March 2012.
PokerTek, Inc. (NASDAQ: PTEK) () is a licensed gaming company headquartered in Matthews, NC that develops and distributes electronic table games solutions for the gaming industry. The Company's products are installed worldwide, and include PokerPro and Blackjack Pro. For more information, visit: .
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are made in accordance with the Private Securities Litigation Reform Act of 1995. The forward-looking statements herein include, but are not limited to, the expected adoption of our gaming systems by casinos and other customers, and the expected acceptance of our gaming systems by players. Our actual results may differ materially from those implied in these forward-looking statements as a result of many factors, including, but not limited to, the impact of global macroeconomic and credit conditions on our business and the business of our suppliers and customers, overall industry environment, customer acceptance of our products, delay in the introduction of new products, further approvals of regulatory authorities, adverse court rulings, production and/or quality control problems, the denial, suspension or revocation of permits or licenses by regulatory or governmental authorities, termination or non-renewal of customer contracts, competitive pressures, and our financial condition, including our ability to maintain sufficient liquidity to operate our business. These and other risks and uncertainties are described in more detail in our most recent annual report on Form 10-K and other reports filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made. We undertake no obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur, except as required by applicable laws, and you are urged to review and consider disclosures that we make in the reports that we file with the Securities and Exchange Commission that discuss other factors germane to our business.
Contact:
Mark Roberson
CEO and CFO
PokerTek, Inc.
704.849.0860, x101
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Datum: 13.03.2012 - 13:00 Uhr
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