“Our gaming operations business continues to be a source of strength for Multimedia Games, as our installed base grew by 1,004 units year over year and by 415 units on a quarterly sequential basis to reach 13,167 total units. Our higher-yielding premium participation games continue to achieve notable success, with the installed base of our premium games growing by 118 units in the quarter to reach 1,288 total units, or approximately 10% of our total installed base. To date, the Company’s growth in this key segment of the slot floor has been driven by a modest number of product offerings, including our High Rise Series™ of games. At the Global Gaming Expo industry trade show in Las Vegas in late September, we will feature three new and distinct platforms for our premium participation product portfolio: our Platinum MPX™ cabinet and games featuring an interactive sound chair with Earthquake Shakers™ and custom surround sound; the Skyline™ top box and its dedicated series of three-reel mechanical reel games; and, the eight foot tall Texan HDX™ premium super-sized cabinet, which can showcase any video theme from our library of over 100 games. Each of these new platforms is scheduled to be available by the end of calendar 2014 and is expected to help the Company further penetrate this exciting market.”
Ramsey concluded, “We believe our third quarter results again demonstrate the Company’s ability to create games that excite players and deliver value to operators, and we remain focused on further growing our overall share of North American slot floors. Our new premium participation products are expected to drive further growth in our installed base and win per day going forward and represent a key piece of our long-term strategy. We are also pursuing initiatives that will enable us to deliver high levels of player satisfaction and generate continued top- and bottom-line growth, including investments in new product development and in our installed base as well as the completion of the PokerTek transaction.”
|
Summary of Fiscal 2014 Third Quarter Operating Results |
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| $ millions except unit, margin and per-share data |
Three Months Ended
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| 2014 | 2013 | ||||||||||
| Revenue | |||||||||||
| Total revenue | $ | 50.3 | $ | 48.1 | |||||||
| Gaming operations | $ | 38.0 | $ | 34.3 | |||||||
| Gaming equipment and system sales | $ | 12.1 | $ | 13.4 | |||||||
| Sales of units | 11.0 | 12.4 | |||||||||
| Parts and equipment | 1.1 | 1.0 | |||||||||
| Other | $ | 0.1 | $ | 0.3 | |||||||
| Revenue Metrics | |||||||||||
| Gaming operations | |||||||||||
| Quarter-end installed base | 13,167 | 12,163 | |||||||||
| Quarter-end premium units installed outside Oklahoma | 1,288 | 713 | |||||||||
| Approximate daily win per unit | $ | 28.70 | $ | 27.34 | |||||||
| Gaming equipment and system sales | |||||||||||
| Units sold | 616 | 647 | |||||||||
| Average selling price | $ | 17,796 | $ | 19,193 | |||||||
| Operating Expenses | |||||||||||
| Total operating costs and expenses | $ | 37.7 | $ | 34.1 | |||||||
| Cost of goods sold | 9.6 | 9.2 | |||||||||
| Gaming operations gross margin | 90.0 | % | 89.2 | % | |||||||
| Gaming equipment and system sales gross margin | 51.5 | % | 59.4 | % | |||||||
| Selling, general & administrative | 12.7 | 12.0 | |||||||||
| Research and development | 4.3 | 4.1 | |||||||||
| Amortization & depreciation | 11.1 | 8.9 | |||||||||
| Operating income | $ | 12.5 | $ | 14.0 | |||||||
| Operating margin | 24.9 | % | 29.1 | % | |||||||
| Effective income tax rate | 38.4 | % | 38.7 | % | |||||||
| Net income | $ | 7.6 | $ | 8.4 | |||||||
| Earnings per diluted share | $ | 0.25 | $ | 0.28 | |||||||
| Adjusted earnings per diluted share | $ | 0.26 | $ | 0.28 | |||||||
