Chicago, Illinois - March 9, 2016 --- AG&E Holdings Inc. (NYSE MKT: WGA), a parts distributor to the casino and gaming markets, announced financial results today for the fourth quarter and full year 2015, ended December 31, 2015.
AG&E Holdings' revenue for the fourth quarter of 2015 totaled $1.7 million compared to $3.4 million in the fourth quarter of 2014. The decline in revenue was impacted by the Company's exit from the VLT business in Illinois in the second quarter of 2015. Loss from continuing operations for the quarter was $(435,000) compared to a loss from continuing operations of $(63,000) in the fourth quarter of 2014.
For the fourth quarter ended December 31, 2015, the Company reported a net loss of $(435,000), or $(0.04) per diluted share for the total Company, compared to net income of $110,000, or $0.01 per diluted share, for the fourth quarter of 2014, which included earnings from discontinued operations of $173,000.
For the full year, AG&E Holdings' reported revenue of $13.9 million compared to $21.9 million in full year 2014. The decline in revenue was impacted by the Company's exit from the VLT business in Illinois in the second quarter of 2015. Loss from continuing operations for the 12 months was $(587,000) compared to a loss of $(2.4 million) for full year 2014. During the third quarter of 2015 the Company paid a one-time special dividend, accounted for as a non-taxable return of capital to investors of $0.45 per share, or approximately $5.3 million.
The Company reported a net loss of $(499,000), or $(0.04) per diluted share for the full year, which included earnings from discontinued operations of $88,000, compared to a net loss in full year 2014 of $(5.5 million), or $(0.47) per diluted share, which included a loss from discontinued operations of $(3.1 million).
Strategic Review
The Board of Directors and management of AG&E Holdings Inc. are continuing to review strategic options with its financial advisor, Innovation Capital, with the goal of maximizing shareholder value. While there can be no assurance that a transaction of any sort may occur, management and the Company's Board of Directors are dedicated to seriously considering any realistic transaction that will accrue to the benefit of the Company's shareholders.
About AG&E Holdings Inc.
AG&E Holdings Inc. ("AGE"), is a leading parts distributor to the casino and gaming markets. It sells parts and services to more than 700 casinos in North America with offices in Las Vegas, Nevada; Miami, Florida; and McCook, Illinois.
Safe Harbor
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, 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. For additional investor information, please contact Joe Diaz of Lytham Partners at (602) 889-9700.
AG&E HOLDINGS INC.
Condensed Consolidated Statements of Earnings (unaudited)
Three Months and Twelve Months Ended December 30, 2015 and 2014
Three Months Ended Dec 31, Twelve Months Ended Dec 31,
2015 2014 2015 2014
Net sales $ 1,677,000 3,411,000 13,880,000 21,924,000
Cost of sales 1,231,000 2,714,000 10,471,000 17,672,000
Gross margin 446,000 697,000 3,409,000 4,252,000
Selling & administrative expenses 877,000 776,000 3,991,000 4,819,000
Goodwill Impairment - - - 1,329,000
Operating loss (431,000) (79,000) (582,000) (1,896,000)
Interest expense - (16,000) - (29,000)
Other Income, net (1,000) - (3,000) (18,000)
Income Tax expense 5,000 - 8,000 539,000
Loss from continuing operations $ (435,000) $ (63,000) $ (587,000) $ (2,446,000)
Discontinued operations:
(Loss) earnings from discontinued operations - 173,000 88,000 (916,000)
Loss on sale of assets - - - (2,145,000)
Discontinued operations, net of income taxes - 173,000 88,000 (3,061,000)
Net loss $ (435,000) $ 110,000 $ (499,000) $ (5,507,000)
Basic earnings per share:
Continuing operations $ (0.04) $ - $ (0.05) $ (0.21)
Discontinued operations $ - $ 0.01 $ 0.01 $ (0.26)
Net loss per share $ (0.04) $ 0.01 $ (0.04) $ (0.47)
Diluted earnings per share:
Continuing operations $ (0.04) $ - $ (0.05) $ (0.21)
Discontinued operations $ - $ 0.01 $ 0.01 $ (0.26)
Net loss per share $ (0.04) $ 0.01 $ (0.04) $ (0.47)
Basic average common shares
outstanding 11,668,188 11,690,929 11,675,674 11,738,867
Diluted average common shares
outstanding 11,668,188 11,690,929 11,675,674 11,738,867
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Wells-Gardner Electronics Corporation via Globenewswire
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