EX-99 2 a05-2591_1ex99.htm EX-99

Exhibit 99

 

FOR IMMEDIATE RELEASE

 

Investor and Media Contact: Robert L. Saxton

Alliance Gaming

(702) 270-7600

 

ALLIANCE GAMING REPORTS SECOND QUARTER REVENUES OF $113.7 MILLION

 

Reports net loss of $(0.15) per share, including write-downs and other charges of $(0.14) per share

 

Las Vegas, NV, February 1, 2005 - Alliance Gaming Corporation (NYSE: AGI) today announced its results for its second fiscal quarter ending December 31, 2004. Second quarter net loss from continuing operations totaled $(7.5) million, or $(0.15) per diluted share, which includes a write-down of certain inventory and other assets and a bank amendment charge, together totaling $11.7 million (or $0.14 per share, net of tax). Revenues for the quarter totaled $113.7 million. For the comparable prior year quarter ended December 31, 2003, the Company reported income from continuing operations of $14.2 million or $0.28 per diluted share on revenues of $108.6 million.

 

Consolidated results for the December 31, 2004 quarter include:

 

•                  Revenues from continuing operations of $113.7 million, an increase of 4.7% from $108.6 million in the prior year quarter.

 

•                  Operating loss from continuing operations of $(7.7) million, compared to operating income of $27.5 million in the prior year quarter.

 

•                  EBITDA from continuing operations of $16.0 million, compared to EBITDA of $34.0 million in the prior year quarter.

 

•                  Inventory and other asset write-downs of $11.1 million for certain discontinued products, used gaming devices and related ancillary assets, which has been included in cost of goods sold.

 

Earnings before interest, taxes, depreciation, amortization, refinancing charges, severance charge, stock-based compensation and inventory and asset write-downs (EBITDA) is not Generally Accepted Accounting Principles (GAAP) measurement. EBITDA may not be comparable to similarly titled measure reported by other companies. A reconciliation of EBITDA to GAAP net income (loss) from continuing operations is attached to this press release.

 

“We are on track with our new product and operational initiatives,” said Richard Haddrill, President and CEO, “we are further building on our portfolio of leading technologies by putting the right strategy, people and processes in place to ensure a successful long-term future” he added.

 

1


 

Liquidity and Capital Expenditures:

 

•                  Cash flows from operations, as defined under GAAP, totaled $7.3 million for the quarter ended December 31, 2004, and $(8.2) million for the six months ended December 31, 2004.

 

•                  As of December 31, 2004, cash and cash equivalents totaled $28.0 million, which included approximately $2.7 million held for operational purposes in vaults, cages and change banks and $10.4 million held in jackpot reserve accounts.

 

•                  In December 2004, the Company agreed to a $40.0 million buy-out of the contingent consideration portion of the purchase price paid for Sierra Design Group.  The Company made a one-time $12.0 million cash payment, and delivered a $28.0 million unsecured promissory note, payable over five years with interest at LIBOR +2%.  The additional purchase consideration was recorded as goodwill on the balance sheet.

 

•                  In December 2004, the Company amended its senior loan agreement.  The amendment provides for an increase in the maximum allowable leverage ratio (currently 4.25x), a reduction in the revolver from $125 million to $75 million which is currently unborrowed, an increase in the term loan interest rate to LIBOR + 3.00%. The fee incurred for the amendment totaled approximately $1.0 million, which has been capitalized and will be amortized over the life of the amended loan agreement, and the Company recorded a pre-tax charge of $0.6 million to write-off a portion of the previously deferred financing costs.  The Company is in compliance with the bank covenants.

 

•                  For the quarter ended December 31, 2004, consolidated capital expenditures, including costs to produce proprietary games, totaled $12.3 million, compared to $13.2 million for the prior year quarter. The current period capital expenditures were driven by the continued deployment of wide-area progressive and daily-fee games.

 

•                  Net interest expense for continuing operations for the current quarter totaled $3.4 million compared to $3.8 million in the prior year period due to lower borrowings outstanding during the current period.

 

•                  During the current quarter the Company completed the sale of its interest in the Louisiana route subsidiary (VSI), and received approximately $2.0 million in cash, resulting in a gain of $0.8 million which is included in discontinued operations.

 

Guidance:

 

Exclusive of unusual charges, the Company expects to return to profitability in both the third and fourth quarters of fiscal year 2005.

 

******

 

The Company will hold its conference call on Tuesday, February 1, 2005 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). Participants may access the call by dialing (913) 981-5542 and using participant passcode 312742. The Company will also broadcast the conference call over the Internet. Interested parties are asked to log on to the call at www.alliancegaming.com using the Investor Relations tab 10 minutes prior to the start of the call.

 

2


 

Supplemental Business Unit Detail

 

The following chart summarizes the financial information for the Bally Gaming and Systems business unit (dollars in millions):

 

 

 

Three Months Ended
December 31,

 

Six Months Ended
December 31,

 

 

 

2004

 

2003

 

2004

 

2003

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

Game sales

 

$

46.1

 

$

49.6

 

$

97.5

 

92.3

 

Gaming operations

 

30.6

 

16.0

 

63.9

 

31.8

 

System sales

 

24.2

 

30.7

 

43.6

 

60.7

 

Total

 

100.9

 

96.3

 

205.0

 

184.8

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

47.7

 

57.5

 

100.8

 

112.8

 

 

 

 

 

 

 

 

 

 

 

Selling, general & administrative

 

33.2

 

15.5

 

69.4

 

38.6

 

Research and development

 

10.4

 

9.4

 

22.1

 

15.4

 

Depreciation & amortization

 

10.9

 

5.4

 

20.6

 

10.2

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

(6.8

)

$

27.2

 

$

(11.3

)

$

48.6

 

 

 

 

 

 

 

 

 

 

 

Summary operating statistics:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Margin %

 

 

 

 

 

 

 

 

 

Games

 

9

%

47

%

17

%

46

%

Gaming operations

 

80

%

71

%

77

%

73

%

Systems

 

78

%

74

%

80

%

77

%

 

 

 

 

 

 

 

 

 

 

New gaming devices sold

 

3,123

 

4,359

 

5,863

 

7,689

 

OEM units sold

 

34

 

242

 

1,954

 

2,105

 

New unit ASP (excluding OEM)

 

$

10,682

 

$

9,050

 

$

10,547

 

$

8,782

 

 

 

 

 

 

 

 

 

 

 

Systems revenue detail (in millions):

 

 

 

 

 

 

 

 

 

Hardware and software sales

 

$

11.7

 

$

20.0

 

$

20.2

 

$

41.7

 

Maintenance and service revenues

 

12.5

 

10.7

 

23.4

 

19.0

 

Total Systems revenues

 

$

24.2

 

$

30.7

 

$

43.6

 

$

60.7

 

 

 

 

 

 

 

 

 

 

 

GMU installed base

 

281,000

 

244,000

 

 

 

 

 

Casino management systems base

 

220

 

199

 

 

 

 

 

System managed TITO games

 

109,000

 

44,000

 

 

 

 

 

 

Recurring revenue game data:

 

 

 

As of December 31st:

 

 

 

 

 

Installed base:

 

 

 

 

 

 

 

 

 

WAP games

 

1,746

 

1,840

 

 

 

 

 

Daily-fee games

 

8,768

 

3,103

 

 

 

 

 

Total

 

10,514

 

4,943

 

 

 

 

 

Centrally determined link count

 

17,725

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of September 30th :

 

 

 

 

 

Installed base:

 

 

 

 

 

 

 

 

 

WAP games

 

1,825

 

1,985

 

 

 

 

 

Daily-fee games

 

8,259

 

2,995

 

 

 

 

 

Total

 

10,084

 

4,980

 

 

 

 

 

Centrally determined link count

 

17,193

 

—

 

 

 

 

 

 

3


 

Revenues from game sales decreased 7.0% over the prior year’s quarter resulting from a 28.4% decrease in new unit sales offset by an 18% increase in the average new-unit selling price to $10,682 (excluding OEM games). The increase in the average selling price reflects the sale of higher priced Class II and centrally determined games.

 

Game sales gross margin decreased to 9.0% from 46.9% in the prior year quarter primarily resulting from an $11.1 million inventory write-down on discontinued products used gaming devices and ancillary assets.  The gross margin for the current quarter excluding this charge was 33.0%.

 

Gaming Operations revenues increased 91.5% to $30.6 million compared to the prior year’s quarter. The gross placements for all WAP and daily-fee games totaled 1,480 units; returns totaled 1,050 units, resulting in a net increase of 430 units of installed base games on a sequential basis as of December 31, 2004 compared to September 30, 2004.  The casino-owned central determination link count increased 532 units primarily due to unit placements in Oklahoma and Washington.  Gaming operations gross margin increased to 80.3% from 71.4% in the prior year quarter as a result of a higher mix of daily fee and decline in the frequency of WAP jackpots awarded during the current quarter.

 

Bally Systems revenues decreased 21.3% from the prior year quarter and increased 25% on a sequential basis compared to the quarter ended September 30, 2004.  The recurring hardware and software maintenance revenues continued to increase due to the larger installed base of game monitoring units and eTicket sites, which currently stands at 281,000 and in 220 casinos world-wide managing 109,000 TITO games.  Bally Systems gross margin increased to 77.9% compared to 74.3% in the prior year period reflecting the higher proportion of high margin software maintenance and services revenues.

 

Selling, general and administrative costs increased to $33.2 million compared to $15.5 million in the prior year quarter.  This increase reflects the inclusion of Class II and centrally determined gaming operations.  Selling, general and administrative costs decreased on a sequential basis compared to the September 30, 2004 quarter by approximately $3.0 million or 8.4%.  The recurring expenses have been reduced in the quarter ended December 31, 2004 in the areas of consulting, legal, and payroll partially as a result of the staff reductions which occurred late in the quarter ended September 30, 2004.  Additional staff reductions in the March 2005 quarter are intended to further this expense reduction effort.

 

Research and development expenses increased 9.7% to $10.4 million compared to the prior year quarter. Research and development costs declined on a sequential basis compared to the September 30, 2004 quarter by $1.4 million as a result of the consolidation of certain development projects.

 

Depreciation and amortization expense increased to $10.9 million compared to $5.4 million.  This increase reflects the higher base of WAP and daily-fee games and the amortization of the purchased intangible assets. On a sequential basis depreciation and amortization increased $1.2 million for the current quarter compared to the quarter ended September 30, 2004 due to the increased base of installed daily-fee games.

 

4


 

Casino Operations

 

The following chart summarizes the financial information for the Rainbow Casino in Vicksburg, Mississippi (Dollars in millions):

 

 

 

Three Months Ended
December 31,

 

Six Months Ended
December 31,

 

 

 

2004

 

2003

 

2004

 

2003

 

 

 

 

 

 

 

 

 

 

 

Rainbow Casino

 

 

 

 

 

 

 

 

 

Revenues

 

$

12.8

 

$

12.3

 

$

25.6

 

$

25.1

 

Operating Income

 

4.1

 

3.8

 

7.9

 

7.8

 

 

 

 

 

 

 

 

 

 

 

Average No. of Gaming Devices

 

930

 

910

 

930

 

930

 

Average No. of Table Games

 

12

 

12

 

12

 

12

 

 

Rainbow Casino reported revenues and operating income increases of 4% and 7%, respectively compared to the prior year quarter. EBITDA increased 9% to $4.9 million and the EBITDA margin increased 200 basis points to 38.2%.  When compared to the total Vicksburg gaming market, Rainbow’s gaming revenues grew 5.3% over the same period in the previous year while the overall market gained 4.9%.  For the period, slot revenue grew 2.5% and slot win per day grew 1% to $143 per day, while table game revenues increased 13.2% and table win per day also grew 13.2% to $872, as compared to prior year quarter.  Table game revenue grew twice the rate of the market partially as a result of Rainbow installing the Mindplay table management systems early in the quarter, utilizing its player management tools.

 

Discontinued Operations

 

During the current quarter the Company completed the sale of its interest in VSI, and received approximately $2.0 million in cash.  The Company recorded a gain of $0.8 million on the sale which is included in discontinued operations on the statement of operations.

 

 * * * *

 

5


 

FORWARD LOOKING STATMENTS

 

The disclosures herein include statements that are “forward looking” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended, and are subject to the safe harbor created thereby.  Such forward looking information involves important risks and uncertainties that could significantly affect results in the future and, accordingly, such results may differ from those expressed in any forward looking statements made by or on behalf of the Company.  Future operating results may be adversely affected as a result of a number of factors including the impact of competition, uncertainties concerning such matters as the Company’s ability to service debt, product development, customer financing, sales to non-traditional gaming markets, foreign operations, dependence on key personnel, strict regulation by gaming authorities, the outcome of pending litigation matters including the pending securities class actions, gaming taxes and value added taxes, and other factors described in the Company’s filings with the Securities and Exchange Commission, including but not limited to the Company’s most recent reports on Form 10-K and 10-Q.

 

Alliance Gaming Corporation is a diversified gaming company headquartered in Las Vegas, Nevada.  The Company is engaged in the design, manufacture, operation and distribution of advanced gaming devices and systems worldwide and operates the Rainbow Casino in Vicksburg, Mississippi. Additional information about the Company can be found on the Alliance Gaming web site at: www.alliancegaming.com.

 

(Tables Follow)

 

6


 

ALLIANCE GAMING CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In 000’s, except per share amounts)

 

 

 

Three Months Ended
December 31,

 

Six Months Ended
December 31,

 

 

 

2004

 

2003

 

2004

 

2003

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

Gaming equipment & systems

 

$

100,933

 

$

96,319

 

$

205,010

 

$

184,787

 

Casino operations

 

12,769

 

12,312

 

25,605

 

25,067

 

 

 

113,702

 

108,631

 

230,615

 

209,854

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

Cost of gaming equipment & systems

 

53,337

 

38,780

 

104,173

 

72,017

 

Cost of casino operations

 

4,589

 

4,884

 

9,391

 

9,887

 

Selling, general & administrative

 

41,051

 

21,548

 

86,141

 

50,613

 

Research & development costs

 

10,358

 

9,440

 

22,130

 

15,403

 

Depreciation & amortization

 

12,020

 

6,445

 

22,861

 

12,467

 

 

 

121,355

 

81,097

 

244,696

 

160,387

 

Operating income (loss)

 

(7,653

)

27,534

 

(14,081

)

49,467

 

 

 

 

 

 

 

 

 

 

 

Other income (expense)

 

 

 

 

 

 

 

 

 

Interest income

 

318

 

83

 

798

 

126

 

Interest expense

 

(3,750

)

(3,869

)

(7,712

)

(9,598

)

Minority interest

 

(1,145

)

(541

)

(1,644

)

(1,027

)

Refinancing / bank amendment charges

 

(564

)

—

 

(564

)

(12,293

)

Other, net

 

375

 

(545

)

528

 

(899

)

Income (loss) from continuing operations before income taxes

 

(12,419

)

22,662

 

(22,675

)

25,776

 

Income tax expense (benefit)

 

(4,879

)

8,444

 

(8,730

)

9,710

 

Income (loss) from continuing operations

 

(7,540

)

14,218

 

(13,945

)

16,066

 

Income (loss) from discontinued operations

 

15

 

4,526

 

(4,376

)

8,706

 

Net income (loss)

 

$

(7,525

)

$

18,744

 

$

(18,321

)

$

24,772

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

(0.15

)

$

0.29

 

$

(0.27

)

$

0.32

 

Discontinued operations

 

—

 

0.09

 

(0.09

)

0.18

 

Total

 

$

(0.15

)

$

0.38

 

$

(0.36

)

$

0.50

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings (loss) per share

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

(0.15

)

$

0.28

 

$

(0.27

)

$

0.32

 

Discontinued operations

 

—

 

0.09

 

(0.09

)

0.17

 

Total

 

$

(0.15

)

$

0.37

 

$

(0.36

)

$

0.49

 

 

 

 

 

 

 

 

 

 

 

Weighted average diluted common and common share equivalents outstanding

 

50,988

 

50,930

 

50,988

 

50,814

 

 

7


 

ALLIANCE GAMING CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In 000’s)

 

 

 

As of

 

 

 

December 31,

 

June 30,

 

 

 

2004

 

2004

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

27,964

 

$

172,726

 

Accounts and notes receivable, net of allowances for doubtful accounts of $14,399 and $9,722

 

103,601

 

129,779

 

Inventories, net

 

72,462

 

61,135

 

Deferred tax assets, net

 

19,982

 

20,054

 

Other current assets

 

19,580

 

12,420

 

 

 

243,589

 

396,114

 

Long-term investments (restricted)

 

8,542

 

2,528

 

Long-term and lease receivables, net

 

21,383

 

18,132

 

Leased gaming equipment, net of accumulated depreciation of $44,030 and $31,105

 

44,273

 

46,634

 

Property, plant and equipment, net of accumulated depreciation of $30,614 and $23,127

 

76,654

 

75,838

 

Goodwill, net

 

177,961

 

136,989

 

Intangible assets, net of accumulated amortization of $14,969 and $12,489

 

59,474

 

63,623

 

Assets of discontinued operations held for sale

 

—

 

4,442

 

Other assets, net

 

15,286

 

6,354

 

 

 

$

647,162

 

$

750,654

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

30,478

 

$

37,515

 

Income taxes payable

 

—

 

7,233

 

Accrued liabilities

 

60,991

 

51,469

 

Jackpot liabilities

 

10,076

 

12,075

 

Current maturities of long-term debt

 

5,040

 

5,866

 

Liabilities of discontinued operations held for sale

 

—

 

4,337

 

 

 

106,585

 

118,495

 

Long-term debt, net of current maturities

 

348,540

 

423,089

 

Deferred tax liabilities, Minority Interest and Other Liabilities

 

8,238

 

8,267

 

Total liabilities

 

463,363

 

549,851

 

Stockholders’ equity

 

183,799

 

200,803

 

 

 

$

647,162

 

$

750,654

 

 

8


 

ALLIANCE GAMING CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 (In 000’s)

 

 

 

Six Months Ended

 

 

 

December 31,

 

 

 

2004

 

2003

 

Continuing Operations

 

 

 

 

 

Net income (loss)

 

$

(18,321

)

$

24,772

 

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

 

 

 

 

 

(Income) loss from discontinued operations

 

4,376

 

(8,706

)

Depreciation and amortization

 

22,861

 

12,467

 

Refinancing / bank amendment charges

 

564

 

12,293

 

Deferred income taxes

 

(687

)

10,433

 

Provision for losses on receivables

 

5,154

 

526

 

Inventory and other discontinued asset write-downs

 

14,088

 

—

 

Other

 

(11,605

)

(1,099

)

Change in operating assets and liabilities, net of effects of business acquired:

 

 

 

 

 

Accounts and notes receivable

 

17,138

 

(2,019

)

Inventories

 

(17,456

)

(2,493

)

Other current assets

 

(4,336

)

(1,023

)

Accounts payable

 

(7,169

)

(2,072

)

Accrued liabilities and jackpot liabilities

 

(12,853

)

(2,924

)

Net cash provided by (used in) operating activities of continuing Operations

 

(8,246

)

40,155

 

Cash flows from investing activities of continuing operations:

 

 

 

 

 

Advances of notes receivable due from Sierra Design Group

 

—

 

(61,025

)

Additions to property, plant and equipment

 

(5,531

)

(3,815

)

Additions to leased gaming equipment

 

(18,183

)

(15,957

)

Additions to other long-term assets

 

(1,521

)

(10,414

)

Acquisitions, net of cash acquired

 

(12, 000

)

(3,879

)

Proceeds from sale of net assets of discontinued operations

 

1,911

 

16,500

 

Net cash used in investing activities of continuing operations

 

(35,324

)

(78,590

)

Cash flows from financing activities of continuing operations:

 

 

 

 

 

Capitalized debt issuance costs

 

(1,038

)

(6,954

)

Premium paid on early redemption of debt

 

—

 

(5,399

)

Proceeds from the issuance of long-term debt

 

—

 

350,000

 

Net change in revolving credit facility

 

—

 

70,000

 

Payoff of debt due to sale of net assets of discontinued operations

 

(101,618

)

(337,625

)

Reduction of long-term debt

 

(2,050

)

(1,349

)

Re-purchase of treasury shares

 

(164

)

—

 

Proceeds from exercise of stock options and warrants

 

1,487

 

2,907

 

Net cash (used in) provided by financing activities of continuing Operations

 

(103,383

)

71,580

 

 

 

 

 

 

 

Effect of exchange rates changes on cash

 

487

 

130

 

 

 

 

 

 

 

Discontinued operations

 

 

 

 

 

Cash provided by discontinued operations

 

1,704

 

95

 

Cash and cash equivalents:

 

 

 

 

 

Increase (decrease) for the period

 

(144,762

)

33,370

 

Balance, beginning of period

 

172,726

 

38,884

 

Balance, end of period

 

$

27,964

 

$

72,254

 

 

9


 

ALLIANCE GAMING CORPORATION

Other Supplemental Information

 

Reconciliation of EBITDA to net income (loss) from continuing operations:

 

The following table reconciles earnings before interest, taxes, depreciation, amortization, refinancing charges, severance charge, stock-based compensation and inventory write-down charge  (EBITDA) to the Company’s net income (loss) from continuing operations (in 000’s):

 

 

 

Three Months Ended
December 31,

 

Six Months Ended
December 31

 

 

 

2004

 

2003

 

2004

 

2003

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

$

(7,540

)

$

14,218

 

$

(13,945

)

$

16,066

 

Income taxes

 

(4,879

)

8,444

 

(8,730

)

9,710

 

Other expense, net

 

770

 

1,086

 

1,116

 

1,926

 

Interest expense, net

 

3,432

 

3,786

 

6,914

 

9,472

 

Stock-based compensation

 

542

 

—

 

542

 

—

 

Inventory and other asset write-downs

 

11,088

 

—

 

14,088

 

—

 

Refinancing charge

 

564

 

—

 

564

 

12,293

 

Severance charge

 

—

 

—

 

1,435

 

—

 

Depreciation and amortization

 

12,020

 

6,445

 

22,861

 

12,467

 

EBITDA from continuing operations

 

$

15,997

 

$

33,979

 

$

24,845

 

$

61,934

 

 

EBITDA is not a Generally Accepted Accounting Principles (GAAP) measurement. EBITDA may not be comparable to similarly titled measures reported by other companies.

 

We believe that the analysis of EBITDA, which is not a GAAP based financial measurement, is a useful adjunct to operating income, net income, cash flows and other GAAP-based measures.  EBITDA is a common measure of performance in the gaming industry but may not be comparable to similarly titled measures reported by other companies. We disclose EBITDA primarily because it is a performance measure used by management in evaluating the performance of our business units. Additionally, EBITDA is utilized as a performance measure in covenants for our bank credit agreement.  Although inventory and asset write-downs are normal and customary, they are not included in the EBITDA definition in our bank credit agreement.

 

This non-GAAP information should not be considered as an alternative to any measure of performance as promulgated under accounting principles generally accepted in the United States, such as operating income, net income or net cash provided by operating activities.

 

The following tables reconcile operating income (loss) by business segment to EBITDA:

 

For the quarter ended December 31, 2004 from continuing operations (in 000’s):

 

 

 

Operating
Income
(loss)

 

Depreciation
and
Amortization

 

Severance &
Stock-based
Compensation

 

Inventory
and Asset
Write-downs

 

EBITDA

 

Bally Gaming & Systems

 

$

(6,840

)

$

10,892

 

$

—

 

$

11,088

 

$

15,140

 

Rainbow Casino

 

4,082

 

798

 

—

 

—

 

4,880

 

Corporate Expenses

 

(4,895

)

330

 

542

 

—

 

(4,023

)

 

 

$

(7,653

)

$

12,020

 

$

542

 

$

11,088

 

$

15,997

 

 

10


 

For the quarter ended December 31, 2003 from continuing operations (in 000’s):

 

 

 

Operating
Income
(loss)

 

Depreciation
and
Amortization

 

Severance &
Stock-based
Compensation

 

Inventory
and Asset
Write-downs

 

EBITDA

 

Bally Gaming & Systems

 

$

27,217

 

$

5,389

 

$

—

 

$

—

 

$

32,606

 

Rainbow Casino

 

3,814

 

683

 

—

 

—

 

4,497

 

Corporate Expenses

 

(3,497

)

373

 

—

 

—

 

(3,124

)

 

 

$

27,534

 

$

6,445

 

$

—

 

$

—

 

$

 33,979

 

 

For the six months ended December 31, 2004 from continuing operations (in 000’s):

 

 

 

Operating
Income
(loss)

 

Depreciation
and
Amortization

 

Severance &
Stock-based
Compensation

 

Inventory
and Asset
Write-downs

 

EBITDA

 

Bally Gaming & Systems

 

$

(11,327

)

$

20,621

 

$

—

 

$

14,088

 

$

23,382

 

Rainbow Casino

 

7,878

 

1,587

 

—

 

—

 

9,465

 

Corporate Expenses

 

(10,632

)

653

 

1,977

 

—

 

(8,002

)

 

 

$

(14,081

)

$

22,861

 

$

1,977

 

$

14,088

 

$

24,845

 

 

For the six months ended December 31, 2003 from continuing operations (in 000’s):

 

 

 

Operating
Income
(loss)

 

Depreciation
and
Amortization

 

Severance &
Stock-based
Compensation

 

Inventory
and Asset
Write-downs

 

EBITDA

 

Bally Gaming & Systems

 

$

48,575

 

$

10,217

 

$

—

 

$

—

 

$

58,792

 

Rainbow Casino

 

7,828

 

1,371

 

—

 

—

 

9,199

 

Corporate Expenses

 

(6,936

)

879

 

—

 

—

 

(6,057

)

 

 

$

49,467

 

$

12,467

 

$

—

 

$

—

 

$

61,934

 

 

11