Chicago, Illinois - August 4, 2016 --- AG&E Holdings Inc. (NYSE MKT: WGA), a parts distributor to the casino and gaming markets, announced financial results today for the second quarter of 2016, ended June 30, 2016.
AG&E Holdings' revenue for the second quarter of 2016 totaled $1.4 million compared to $5.4 million in the second quarter of 2015. The decline in revenue was impacted by the Company's exit from the VGT business in Illinois in the second quarter of 2015. Loss from continuing operations for the quarter was $(837,000) compared to earnings from continuing operations of $177,000 in the second quarter of 2015.
Financial results for the quarter were impacted by transaction costs associated with the negotiation of the proposed merger agreement of AG&E Holdings and Advanced Gaming Associates, LLC, and the expiration of the McCook, Illinois facility lease. Those expenses accounted for more than half of the impact, with other corporate overhead expenses accounting for almost all of the remaining impact.
For the second quarter ended June 30, 2016, the Company reported a net loss of $(837,000), or $(0.07) per diluted share, compared to net income of $191,000, or $0.02 per diluted share, for the second quarter of 2015, which included earnings from discontinued operations of $14,000.
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 Burr Ridge, IL.
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 Six Months Ended June 30, 2016 and 2015 | ||||||||||||
| Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||
| Net sales | $ | 1,402,000 | $ | 5,443,000 | $ | 3,351,000 | $ | 10,048,000 | ||||
| Cost of sales | 968,000 | 4,138,000 | 2,446,000 | 7,722,000 | ||||||||
| Gross margin | 434,000 | 1,305,000 | 905,000 | 2,326,000 | ||||||||
| Selling & administrative expenses | 1,305,000 | 1,130,000 | 2,498,000 | 2,141,000 | ||||||||
| Operating (loss) earnings | (871,000) | 175,000 | (1,593,000) | 185,000 | ||||||||
| Other income, net | (34,000) | (2,000) | (38,000) | (1,000) | ||||||||
| Income tax expense | 1,000 | 4,000 | ||||||||||
| (Loss) earnings from continuing operations | $ | (837,000) | $ | 177,000 | $ | (1,556,000) | $ | 182,000 | ||||
| Discontinued Operations: | ||||||||||||
| Earnings from discontinued operations | 0 | 14,000 | 0 | 88,000 | ||||||||
| Discontinued operations, net of income taxes | 0 | 14,000 | 0 | 88,000 | ||||||||
| Net (loss) earnings | $ | (837,000) | $ | 191,000 | $ | (1,556,000) | $ | 270,000 | ||||
| Basic and Diluted earnings per share: | ||||||||||||
| Continuing operations | $ | (0.07) | $ | 0.02 | $ | (0.13) | $ | 0.02 | ||||
| Discontinued operations | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | ||||
| Net (loss) income per share | $ | (0.07) | $ | 0.02 | $ | (0.13) | $ | 0.02 | ||||
| Basic and diluted average common shares outstanding | 11,649,360 | 11,680,395 | 11,649,360 | 11,680,395 | ||||||||
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: AG&E Holdings Inc. via Globenewswire
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