Hammonton, New Jersey - November 14, 2017 --- AG&E Holdings Inc. (OTCQB - AGNU), whose wholly-owned subsidiary, American Gaming & Electronics, Inc., is one of the largest supply companies in the gaming industry, announced financial results today for the quarter ended September 30, 2017.
Third Quarter Financial Highlights
- Revenues were $3.4 million, up $2.1 million from the comparable prior year period
- Net loss reduced to $(0.4) million, which is $0.2 million less than the prior year
- Year-to date net loss reduced to $(1.1) million which is $1.1 million less than prior year
Net sales for the third quarter of 2017 totaled $3.4 million compared to $1.3 million in the third quarter of 2016. The increase in revenue of $2.1 million is primarily attributed to the acquisition of Advanced Gaming Associates LLC, or AGA in late 2016.
For the third quarter, AG&E reported a net loss of $(0.4) million, or $(0.02) per share which included intangible amortization of $54,000 associated with the acquisition of AGA. For the third quarter of 2016 AG&E reported a net loss of $(0.6) million, or $(0.05) per share. This represents an increase in net income of $0.2 million compared to the comparable quarter in the prior year.
For the nine-month period ended September 30, 2017, AG&E reported revenue of $9.8 million compared to $4.6 million in the same nine-month period of 2016. The increase in revenue of $5.2 million is primarily attributed to the acquisition of AGA in late 2016.
AG&E reported a net loss of $(1.1) million or $(0.07) per share for the nine-months ended September 30, 2017 which included transaction related costs of $50,000 and intangible amortization associated with the acquisition of AGA of $0.2 million. AG&E reported a net loss of $(2.1 million), or $(0.18) per share, which included transaction related costs of $(0.5) million for the nine-month period ended September 30, 2016.
"We are pleased to announce that along with our revenue growth of 168% to $3.4 million in the third quarter, we are continuing to show improvements in our bottom line as compared to 2016," said Anthony Tomasello, CEO and President. "Although we are showing a net loss of $(0.4) million for the third quarter, this is an improvement of $0.2 million when compared to third quarter 2016. As well, we are showing over a $1.1 million improvement when comparing our loss of $(1.1) million in the nine months ended September 30, 2017 to the same period in 2016.
Mr. Tomasello continued, "We continue to pursue exciting new product offerings to add to our revenue growth."
About AG&E Holdings Inc.
AG&E Holdings Inc. is one of the largest suppliers of gaming parts, electronic components and technical labor, both domestically and internationally. AG&E is strategically located in Las Vegas, New Jersey, Florida and Illinois and its distribution chain reaches the Caribbean and Puerto Rico, Canada, and Eastern and Western Europe. AG&E also serves as the national warranty center for a major supplier of bill acceptors in the industry. It provides repair service for all types of monitors and bill validators and sells a wide array of products detailed on its web site http://www.agegaming.com.
This press release contains forward-looking statements within the meaning of the federal securities laws. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for such forward-looking statements. The words "believe", "expect", "anticipate", "estimate", "will", and other similar statements of expectation identify forward-looking statements. Those statements include statements regarding the intent, belief or expectations of the Company and its management. Readers are cautioned that the forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, and that actual results could differ materially from those expressed in any forward-looking statement. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, but are not limited to, development of competing technologies, availability of adequate credit, interruption or loss of supply from key suppliers, increased competition, changes in economic conditions, loss of key employees, the regulatory process and regulatory and legislative changes affecting the gaming industry. AG&E Holdings Inc. assumes no obligation to update the information contained in this release to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.
Financial Table on Following Page
AG&E Holdings Inc
Consolidated Statements of Operations (Unaudited)
Three Months and Nine Months Ended September 30, 2017 and 2016
| Three Months Ended |
| Nine Months Ended|
|Cost of sales||2,459||918||6,920||3,363|
|Selling & administrative expenses||1,254||840||3,784||2,936|
|Transaction related costs||0||94||50||496|
|Other expense (income):|
|Loss before income tax||$||(387)||$||(584)||$||(1,111)||$||(2,139)|
|Income tax expense||0||1||1||2|
|Basic and Diluted net loss per share:||$||(0.02)||$||(0.05)||$||(0.07)||$||(0.18)|
|Basic and diluted average common shares outstanding||16,953,176||11,649,360||16,953,176||11,649,360|