(Toronto: May 30, 2019) Seven Aces Limited (formerly Quantum International Income Corp.) (the "Company" or "Aces") (TSXV: ACES) is pleased to announce the filing of its financial results for the first quarter of fiscal 2019. The Company recently changed its fiscal year end date from February 28th to December 31st. For more information, please see the condensed interim consolidated financial statements of the Company for the first quarter ended March 31, 2019 and the related management's discussion and analysis, which are available electronically on SEDAR under Aces' issuer profile at www.sedar.com. All figures are in U.S. dollars unless otherwise noted.
“In addition to being nominated to our second consecutive TSX Venture 50 award, operationally our first quarter has been a strong start to the year with three acquisitions closed and a record reported Revenue and Adjusted EBITDA" said Manu K. Sekhri, Chief Executive Officer of Aces. "We have also purchased over one million shares as part of our NCIB at attractive prices which is accretive to all shareholders”.
Highlights – Quarter Ended March 31, 2019 (1)
• Completed three acquisitions that totaled thirteen (13) location contracts – six (6) from Goldstar Amusement LLC., three (3) from A&R Entertainment Inc and four (4) from Universal Games LLC – for a combined purchase price of $4.53 million.
• Generated gaming revenues of approximately $20.1 million for the quarter ended March 31, 2019, compared to $16.4 million for the quarter ended February 28, 2018; representing an increase of 23% (2).
• Generated Adjusted EBITDA of $8.3 million for the quarter ended March 31, 2019, compared to $4.8 million for the quarter ended February 28, 2018; representing an increase of 73% (2).
• Generated positive cash flow from operations of approximately $4.8 million for the quarter ended March 31, 2019, compared to $5.4 million for the quarter ended February 28, 2018(2). Prior to non-cash changes to operating working capital the Company generated $5.9 million for the quarter ended March 31, 2019, compared to $3.0 million for quarter ended February 28, 2018(2).
• Net profit of approximately $3.8 million for the quarter ended March 31, 2019, compared to a net loss of approximately $2.9 million for the quarter ended February 28, 2018(2).
• Basic and diluted earnings per share for continuing operations was $0.031 and $0.026 respectively for the quarter ended March 31, 2019, compared to a loss per share of $0.041 for the quarter ended February 28, 2018(2).
• On February 21, 2019, the Corporation was recognized in the 2019 TSX Venture 50TM for the second consecutive year.
(1) These reported figures are based on consolidated results and do not reflect the impact of the non-controlling interest.
(2) The quarterly results are not directly comparable with last fiscal year due to change in year end from February 28th to December 31st.
Normal Course Issuer Bid
The Corporation also announces that as at May 28, 2019 it has repurchased 1,004,500 common shares under its normal course issuer bid (“NCIB”) at an average price of $0.7861. The Corporation received approval from the Exchange to commence the NCIB on February 19, 2019 as announced in the press release on February 15, 2019.
About Seven Aces Limited
Seven Aces Limited (formerly known as Quantum International Income Corp.) is a gaming company, with a vision of building a diversified portfolio of world class gaming operations. The Corporation looks to enhance shareholder value by growing organically and through acquisitions. Currently, the Corporation is the largest route operator of skill-based gaming machines in the State of Georgia, United States of America.
More information on ACES is available at www.sevenaces.com.
|For further information please contact Seven Aces:
Vice President, Corporate Affairs
Tel. (416) 569-3292
Tel. (416) 477-3411
Neither 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.
Cautionary Statement Regarding Forward-Looking Information
This release contains certain information which, as presented, constitutes “forward-looking information” within the meaning of applicable Canadian securities laws. Forward-looking information involves statements that relate to future events and often addresses expected future business and financial performance, containing words such as “expect” and “intend”, statements that an action or event “may” or “will” be taken or occur, or other similar expressions. These statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of the Corporation to control or predict, and which may cause Quantum’s actual results, performance or achievements to be materially different from those expressed or implied thereby, including, but not limited to, risks related to the inability by Quantum to complete the Acquisition, as well as other factors discussed in the Corporation’s annual information form dated July 23, 2015, (the “Annual Information Form”) which is available on SEDAR under Quantum’s profile at www.sedar.com. Forward-looking information is developed based on assumptions about such risks, uncertainties and other factors set out herein, in the Annual Information Form, and as otherwise disclosed from time to time on SEDAR under Quantum’s profile at www.sedar.com.
Unless otherwise specified in this release, information contained in this release is current as of the date of this release. Unless otherwise specified, all dollar amounts herein refer to Canadian dollars. The Corporation undertakes no obligation to update forward-looking statements except as may be required by applicable Canadian securities laws. Readers are cautioned against attributing undue certainty to forward-looking statements.