NYX Gaming Group Limited Reports Fourth Quarter and Year-End Financial Results
Full-year revenue up 46% to $27M; Full-year Adjusted EBITDA $6.1M up 43%
LAS VEGAS, April 16, 2015 /PRNewswire/ - NYX Gaming Group Limited (TSXV:NYX) ("NYX Gaming Group" or "Company") today announced its financial and operating results for the fourth quarter and year ended December 31, 2014. All amounts expressed are in Canadian dollars unless otherwise noted.
Year-End 2014 Highlights
- Revenue of $27.3 million, an increase of 46%, compared with $18.7 million in 2013.
- Gross Profit of $24.1 million, an increase of 49%, compared with $16.2 million in 2013.
- Adjusted EBITDA of $6.1 million, an increase of 43%, compared to $4.3 million in 2013.
- Net loss of $7.0 million compared to $1.9 million in 2013, largely as a result of $6.6 million in acquisition, restructuring and public listing expenses
- Basic and diluted loss per share was $0.25 compared to a loss of $0.07 in 2013.
Fourth Quarter 2014 Highlights
- Revenue of $8.6 million
- Gross Profit of $7.5 million
- Adjusted EBITDA of $0.6 million including the results of Ongame
- Net loss of $8.3 million
- Basic and diluted loss per share of $0.30
- Following the acquisition of Ongame Networks Ltd., NYX Gaming Group completed its initial public offering and secondary offering at $3.50 per share for total gross proceeds of $20.0 million to NYX Gaming Group and $29.5 million to certain venture capital funds advised by Verdane Capital Advisors for an aggregate of $49.5 million.
- Subsequent events to quarter-end:
- On April 9, 2015, NYX Gaming Group entered into a share purchase agreement to acquire the entire issued share capital of Amaya (Alberta) Inc. (formerly Chartwell Technology Inc.) ("Chartwell") and Cryptologic Limited ("CryptoLogic") for $150 million.
"It is with great pleasure that we release our first quarterly financial results as a public company. Our expertise in the gaming industry combined with our proven acquisition and integration strategy positions us well for future growth," said Matt Davey, Chief Executive Officer. "We are pleased with our success to date and remain committed to driving shareholder value."
"Our 46% increase in revenue and 49% increase in gross profit demonstrates the strength and scalability of our business. We continue to benefit from recurring revenue received from royalties and licensing fees which represents over 80% of our total revenue," said Arthur Hamilton, Chief Financial Officer. "Our cash flow generation remains solid, and we look forward to continuing building on our strong balance sheet and maintaining financial flexibility."
| Summary of Results |
||||||||
| 000's, except per |
3 months |
3 months |
% |
12 months |
12 months |
% |
||
| Revenue |
$8,569 |
$6,349 |
35% |
$27,278 |
$18,705 |
46% |
||
| Gross Profit |
$7,508 |
$5,338 |
41% |
$24,082 |
$16,213 |
49% |
||
| Gross Margin (%) |
87.6% |
84.1% |
4% |
88.3% |
86.7% |
2% |
||
| Adjusted EBITDA(a) |
$567 |
$2,655 |
(79%) |
$6,092 |
$4,270 |
43% |
||
| Net Income (Loss) |
($8,317) |
$1,093 |
-- |
($7,006) |
($1,926) |
-- |
||
| Earnings (loss) per share (basic) |
($0.30) |
$0.04 |
-- |
($0.25) |
($0.07) |
-- |
||
| Earnings (loss) per share (diluted) |
($0.30) |
$0.04 |
-- |
($0.25) |
($0.07) |
-- |
||
| (a) |
3 months and full year Adjusted EBITDA excludes, share-based compensation, derivative value adjustment, gains and losses and acquisition and restructuring cost and initial public offering expenses of $3.9 million and $2.6 million, respectively. |
|||||||
Q4 2014 and Year-End 2014 Operating and Financial Results
Revenue. Revenue is derived from income due to royalty/license fees, professional services and social gaming. Revenue generated for the year ended December 31, 2014 was $27.3 million, a 46% increase from $18.7 million for the same period one year ago. In Q4 2014, revenue increased by 35% to $8.6 million from $6.3 million in Q4 2013. The increase in revenue was mainly attributable to the growth in new customers, as well as the existing customer base, the introduction of new games and revenue related to the acquisition of Ongame.
Gross Profit. Gross profit, which is revenue less cost of sales, for the year ended December 31, 2014 was $24.1 million an increase of 49% from $16.2 million one year ago. In Q4 2014, gross profit grew 41% to $7.5 million from $5.3 million in Q4 2013. The increase in gross profit is a result of better gaming revenue mix among NYX-owned content compared to third-party licensed content.
Net Loss. Net loss, which is revenue less all expenses, (including non-cash fair value adjustments to derivatives, acquisition, and initial public offering expenses), for the year ended December 31, 2014 was $7.0 million compared to $1.9 million for the same period one year ago. In Q4 2014, the net loss was $8.3 million compared with a net income of $1.1 million in Q4 2013. The higher net loss was driven by acquisition and restructuring-related costs, costs relating to the initial public offering and losses from both our social products and the Ongame acquisition.
Adjusted EBITDA. Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization is a non-IFRS measure and for the year ended December 31, 2014, Adjusted EBITDA was $6.1 million, an increase of 43% from $4.3 million one year ago. In Q4 2014, EBITDA was $0.6 million compared to $2.7 million in Q4 2013. Fiscal 2014 results were negatively impacted by the Ongame acquisition and losses from our social products.
Financial Position as of December 31, 2014
- Cash and cash equivalents of $28.1 million
- Total assets of $68.4 million
- Total liabilities of $31.0 million
- Total borrowings of $9.5 million net of the discount on the convertible debt
- Total stockholders' equity of $37.4 million
Financial Statements and Management's Discussion and Analysis
NYX Gaming Group's audited consolidated financial statements, notes thereto and Management's Discussion and Analysis for the three month period and year ended December 31, 2014 will be available on SEDAR at www.sedar.com. Additional information relating to NYX Gaming Group and its business may also be found on SEDAR at www.sedar.com.
Fiscal 2014 and Fourth Quarter Conference Call Details
NYX Gaming Group Limited will host a conference call on Thursday, April 16, 2015 at 8:30 a.m. ET to discuss its financial results for the fourth quarter and year-end for fiscal 2014. To access the conference call by telephone, please dial 647-427-7450 or 1-888-231-8191. We recommend callers to dial-in 15 minutes prior to the beginning of the call to ensure participation. A taped rebroadcast will be available to listeners until 23:59 ET on Thursday, April 23, 2015. To access the rebroadcast, please dial 416-849-0833 or 1-855-859-2056 and enter passcode 8963356, followed by the number sign.
About NYX Gaming Group Limited
NYX Gaming Group is headquartered in Las Vegas with development out of Stockholm and Sydney. The group provides market leading content and technology to some of the largest lotteries, casinos and gaming operators across the globe. Through its recent acquisition of Ongame Network Ltd., a real money poker provider since 2001, NYX Gaming Group now offers a B2B poker network in both Europe and the United States. NYX Poker compliments our suite of casino, bingo and lottery games that players can enjoy on desktop, web and mobile. NYX Gaming Group Limited is listed on the Toronto TSX Venture Exchange (TSX-V:NYX).
Caution Regarding Forward-Looking Statements and Non-IFRS Financial Measures
Certain statements included herein, including those that express management's expectations or estimates of our future performance, constitute "forward-looking statements" within the meaning of applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "potential" or the negative of these terms or other similar expressions. Forward looking statements are based on certain assumptions regarding the Company's expected growth, results of operations, performance, industry trends and growth opportunities. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies that could cause actual results to differ materially from those expressed or implied in such statements. Investors are cautioned not to put undue reliance on forward looking statements. Applicable risks and uncertainties include, but are not limited to: credit, market, currency, operational, liquidity and funding risks, including changes in economic conditions, interest rates or tax rates, the impact of government regulation on the on-line gaming industry and the risk that such regulation is subject to change, competition from other providers of online gaming services, the possibility that the Company be unable to successfully integrate the B2B Business as described herein, the risks associated with international and foreign operations, the impact of consolidations in the online gaming industry and the other risks identified under the heading "Risk Factors" in the Company's final long form prospectus dated December 18, 2014, as filed on SEDAR at www.sedar.com, and in other filings that NYX Gaming Group may make with applicable securities authorities in the future. The forward-looking statements contained herein reflect NYX Gaming Group's current views with respect to future events, and except as required by law, NYX Gaming Group does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events, or otherwise.
This release contains Non-IFRS financial measures and are noted where used. These financial measures are used by many investors to compare companies and management believes they are important measures in evaluating NYX Gaming Group. However, they are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS. Therefore, they may not be comparable to similar measures presented by other issuers. Investors are cautioned that such measures should not be construed as alternatives to comparable IFRS measures determined in accordance with IFRS.
Neither the 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 release.
SOURCE NYX Gaming Group Ltd.
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