Chicago, Illinois - November 14, 2016 --- AG&E Holdings Inc. (NYSE MKT: WGA), a parts distributor to the casino and gaming markets, announced financial results today for the third quarter of 2016, ended September 30, 2016.
AG&E Holdings' revenue for the third quarter of 2016 totaled $1.3 million compared to $2.2 million in the third quarter of 2015. The decline was due to lower distribution parts sales in three product lines for the quarter compared to a year ago. Loss from continuing operations for the quarter was $(585,000) compared to a loss from continuing operations of $(334,000) in the third quarter of 2015.
Financial results for the quarter were also impacted by transaction costs associated with the proposed merger AG&E Holdings and Advanced Gaming Associates, LLC; higher temporary staff costs and costs related to the expiration of the McCook, Illinois facility lease. Those expenses accounted for more than two thirds of the impact, with distribution parts sales results accounting for the remainder.
For the third quarter ended September 30, 2016, the Company reported a net loss of $(585,000), or $(0.05) per diluted share, compared to net loss of $(334,000), or $(0.03) per diluted share, for the third quarter of 2015.
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.
| AG&E HOLDINGS INC. | ||||||||||||
| Condensed Consolidated Statements of Earnings (unaudited) | ||||||||||||
| Three Months and Nine Months Ended September 30, 2016 and 2015 | ||||||||||||
| Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||
| Net sales | $ | 1,267,000 | $ | 2,155,000 | $ | 4,618,000 | $ | 12,203,000 | ||||
| Cost of sales | 918,000 | 1,517,000 | 3,363,000 | 9,240,000 | ||||||||
| Gross margin | 349,000 | 638,000 | 1,255,000 | 2,963,000 | ||||||||
| Selling & administrative expenses | 934,000 | 973,000 | 3,432,000 | 3,114,000 | ||||||||
| Operating loss | (585,000) | (335,000) | (2,177,000) | (151,000) | ||||||||
| Other income, net | (1,000) | (1,000) | (38,000) | (3,000) | ||||||||
| Income tax expense | 1,000 | 0 | 2,000 | 4,000 | ||||||||
| Loss from continuing operations | $ | (585,000) | $ | (334,000) | $ | (2,141,000) | $ | (152,000) | ||||
| Discontinued Operations: | ||||||||||||
| Earnings from discontinued operations | 0 | 0 | 0 | 88,000 | ||||||||
| Discontinued operations, net of income taxes | 0 | 0 | 0 | 88,000 | ||||||||
| Net loss | $ | (585,000) | $ | (334,000) | $ | (2,141,000) | $ | (64,000) | ||||
| Basic and Diluted earnings per share: | ||||||||||||
| Continuing operations | $ | (0.05) | $ | (0.03) | $ | (0.18) | $ | (0.01) | ||||
| Discontinued operations | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | ||||
| Net loss per share | $ | (0.05) | $ | (0.03) | $ | (0.18) | $ | (0.01) | ||||
| Basic and diluted average common shares outstanding | 11,649,360 | 11,673,873 | 11,649,360 | 11,678,197 | ||||||||
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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