EX-99.1 2 vending_8kex99-1.txt EXHIBIT 99.01 VENDINGDATA(TM) CORPORATION Contact: Steven J. Blad or Yvonne L. Zappulla Chief Executive Officer Managing Director VendingData(TM) Corporation Wall Street Investor Relations Corp. 702-733-7195 845-680-0300 investorrelations@vendingdata.com Yvonne@WallStreetIR.com
VENDINGDATA(TM) CORPORATION REPORTS SECOND QUARTER 2004 FINANCIAL RESULTS COMPANY REPORTS REVENUE OF $ 2.06 MILLION, UP FROM $ 1.29 MILLION IN PRIOR QUARTER LAS VEGAS, NEVADA- (PRNewswire)-August 9, 2004-VendingData(TM) Corporation (AMEX: VNX), a manufacturer and distributor of products and services for the gaming industry designed to increase security, productivity and profitability of casino operations, today reported financial results for its second quarter ended June 30, 2004. The Company reported revenue of $2.06 million compared to $1.29 million for the first quarter of 2004 and $1.92 million for the second quarter of 2003. Revenues from Deck Checker(TM) units rose 196 percent over the first quarter of 2004 and sales of Shuffler units grew by 30 percent over the quarter, while SecureDrop(R) revenues remained flat. The Company reported a net loss applicable to common stockholders for the second quarter of $(1.09) million or $(0.06) per share versus the guidance of $(0.07) to $(0.08) the Company previously provided. This also compares to a first quarter 2004 net loss of $(1.47) million or $(0.09) per share and a net loss of $(1.63) million or $(0.21) per share for the second quarter of 2003. VendingData's(TM) gross margin increased to 48 percent during the second quarter compared to 39 percent in the previous quarter. The Company expects its gross margin to continue to improve, as all future revenues will be generated by inventory produced entirely in China where the cost of production is significantly lower. During the second quarter 2004, approximately 60 percent of products sold were manufactured outside of China. The Company's operating expenses for the second quarter were $1.8 million, virtually flat with the first quarter level, while revenues grew by more than 60 percent. Cash and equivalents on June 30, 2004 were $2.4 million compared to $11.5 million on December 31, 2003 with total liabilities decreasing from $9.9 million at December 31, 2003 to $5.45 million at June 30, 2004. The long-term portion of the Company's debt totaled $1.1 million at June 30, 2004. Interest expense in the quarter totaled $232,000 down from $706,000 in the quarter ending June 30, 2003. Steven J. Blad, VendingData's(TM) CEO, commented, "During the second quarter we sold substantially all of our non-China produced inventory. Going forward, we expect margins to continue to improve from the low-cost profile of our Xiaolan City plant. Additionally, we have transitioned greater responsibilities to China, increased our headcount and still managed to keep our overall operating expense virtually flat for the second quarter versus the prior quarter." Mr. Blad continued, "It has become very clear to us during the quarter that the Deck Checker(TM) has captured the industry's attention and has the potential to become a blockbuster product. We are hopeful that our other two products will have the same degree of success during the second half of the year; as we begin to aggressively market our new shuffler line manufactured in China and resume SecureDrop(R) installations. CONFERENCE CALL --------------- CONFERENCE CALL DETAILS: DATE/TIME: MONDAY, AUGUST 9, 2004--4:30 P.M. (ET) TELEPHONE NUMBER: 800-901-5213 INTERNATIONAL DIAL-IN NUMBER: 617-786-2962 PARTICIPANT PASS CODE: 15920613 It is recommended that participants phone-in at least 10 minutes before the call is scheduled to begin. The conference call can also be accessed on the Internet through CCBN at www.fulldisclosure.com. A replay of the conference call in its entirety will be available approximately one hour after its completion for 7 days by dialing 888-286-8010 (U.S.), 617-801-6888 (International) and entering the pass code 64586146. ABOUT VENDINGDATA(TM) CORPORATION VendingData(TM) Corporation is a Las Vegas-based developer, manufacturer and distributor of products for the gaming industry including the SecureDrop(R) System, Deck Checker(TM) and Random Ejection Shuffler(TM) line. The Company's products are currently installed in casinos throughout the United States, including Caesars Palace, Circus Circus, Harrah's Entertainment, Luxor, Oneida Bingo & Casino and the Venetian. International customers include casinos in Argentina, China, Columbia, Korea, Malaysia, Peru, United Kingdom, and Uruguay. Visit the VendingData Web site at http://www.vendingdata.com. This release contains forward-looking statements. Such statements reflect and are subject to risks and uncertainties that could cause actual results to differ materially from expectations. Factors that could cause actual results to differ materially from expectations include, but are not limited to, the following the success of the transition of our manufacturing and assembly to China, changes in the level of consumer or commercial acceptance of the Company's existing products and new products as introduced; competitive advances; acceleration and/or deceleration of various product development and roll out schedules; higher than expected manufacturing, service, selling, administrative, product development and/or roll out costs; current and future litigation; regulatory and jurisdictional issues involving VendingData(TM) Corporation or its products specifically, and for the gaming industry in general; general and casino industry economic conditions; the financial health of the Company's casino and distributor customers both nationally and internationally; and the risks and factors described from time to time in the Company's reports filed with the Securities and Exchange Commission, including, but not limited to the company's Form 10-QSB for the quarter ended March 31 and June 30, 2004, and, the Company's Annual Report on form 10-KSB for the year ended December 31, 2003. # # # VENDINGDATA CORPORATION STATEMENTS OF OPERATIONS (UNAUDITED)
THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, ----------------------------- ----------------------------- 2004 2003 2004 2003 ------------- ------------- ------------- ------------- REVENUES: Sales $ 1,877,656 $ 1,619,055 $ 2,870,710 $ 3,223,980 Rental 161,110 300,430 372,173 630,743 Other 20,762 12 109,535 132 ------------- ------------- ------------- ------------- 2,059,528 1,919,497 3,352,418 3,854,855 ------------- ------------- ------------- ------------- OPERATING EXPENSES: Cost of sales 1,068,888 887,082 1,849,625 2,134,286 Selling, general and administrative 1,451,912 1,732,033 2,877,946 3,064,524 Research and development 392,807 228,476 671,560 372,860 ------------- ------------- ------------- ------------- 2,913,607 2,847,591 5,399,131 5,571,670 ------------- ------------- ------------- ------------- Loss from operations (854,079) (928,094) (2,046,713) (1,716,815) ------------- ------------- ------------- ------------- Interest expense, unrelated parties 231,479 556,095 494,101 1,053,771 Interest expense, related parties 540 149,572 15,063 309,393 Gain on disposition of assets -- -- (567) -- ------------- ------------- ------------- ------------- Total interest expense, net 232,019 705,667 508,597 1,363,164 ------------- ------------- ------------- ------------- Net loss $ (1,086,098) $ (1,633,761) $ (2,555,310) $ (3,079,979) ============= ============= ============= ============= Basic and Diluted loss per share $ (0.06) $ (0.21) $ (0.15) $ (0.40) ============= ============= ============= ============= Weighted average shares outstanding 17,187,798 7,646,430 17,187,798 7,636,185 ============= ============= ============= =============
VENDINGDATA CORPORATION BALANCE SHEETS
JUNE 30, DECEMBER 31, 2004 2003 ------------- ------------- ASSETS (UNAUDITED) CURRENT ASSETS: Cash and cash equivalents ...................................................... $ 2,407,419 $ 11,526,664 Current portion of accounts receivable, trade, net of allowance for uncollectables of $124,561 and $125,530 ....................................... 3,535,365 2,354,054 Due from affiliate ............................................................. 18,407 31,802 Other receivables .............................................................. 67,133 29,836 Inventories .................................................................... 5,569,258 4,150,414 Prepaid expenses ............................................................... 331,882 52,028 ------------- ------------- 11,929,464 18,144,798 Equipment rented to customers, net of accumulated depreciation of $441,894 and $316,245 ................................................................... 523,350 608,555 Property and equipment, net of accumulated depreciation of $2,060,740 and $1,859,206 ..................................................................... 998,270 1,063,951 Intangible assets, net of accumulated amortization of $360,081 and $288,203 ...... 1,208,051 1,282,088 Due from affiliate - non current ................................................. 118,800 118,800 Accounts receivable, trade, net of current portion, less unamortized discount .... 1,623,926 1,140,984 Deferred expenses ................................................................ 444,825 250,697 Deposits ......................................................................... 1,138,278 1,284,827 Other assets ..................................................................... -- 265,478 ------------- ------------- $ 17,984,964 $ 24,160,178 ============= ============= LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Current portion of leases payable .............................................. $ 1,962,174 $ 2,237,073 Accounts payable ............................................................... 930,399 1,727,460 Accrued expenses ............................................................... 578,374 824,307 Deferred revenues, current portion ............................................. 250,360 171,875 Short-term debt ................................................................ 238,250 270,743 Current portion of convertible debt ............................................ -- 2,368,077 Customer deposits .............................................................. 198,560 178,805 ------------- ------------- 4,158,117 7,778,340 Deferred revenues, net of current portion ...................................... 276,045 219,890 Leases payable, net of current portion ......................................... 1,011,966 1,916,723 ------------- ------------- 5,446,128 9,914,953 STOCKHOLDERS' EQUITY: Preferred stock, $.001 par value, 10,000,000 shares authorized, no shares issued and outstanding ........................................................ -- -- Common stock, $.001 par value, 25,000,000 shares authorized, 17,187,799 and 16,765,580 shares issued and outstanding .................................. 17,188 16,766 Additional paid-in capital ....................................................... 59,659,307 58,810,806 Deficit .......................................................................... (47,137,659) (44,582,347) ------------- ------------- Total stockholders' equity ..................................................... 12,538,836 14,245,225 ------------- ------------- Total liabilities and stockholders' equity ..................................... $ 17,948,964 $ 24,160,178 ============= =============