(Quarterly revenue up 368%: Closed three acquisitions)
(Toronto: January 30, 2018) Quantum International Income Corp. (the "Corporation" or "Quantum") (TSXV: QIC) is pleased to announce that it has released its financial results for the third quarter of fiscal 2018. For more information, please see the condensed interim consolidated financial statements of the Corporation for the three and nine months ended November 30, 2017 and the related management's discussion and analysis, which are available electronically on SEDAR under Quantum's issuer profile at www.sedar.com. All figures are in U.S. dollars unless otherwise noted.
"2017 has been a transformative year for Quantum," said Manu K. Sekhri, Chief Executive Officer of Quantum. "We have had great success acquiring businesses in the Georgia gaming market, which in turn has led to significant growth in our cash flows. We are continuing to aggressively pursue our consolidation strategy in the Georgia gaming market, and we are looking forward to the upcoming year, as we are well-positioned to continue delivering sustainable growth to our shareholders."
Highlights – Three Months Ended November 30, 2017 (1)
• Revenue for the three months ended November 30, 2017 was approximately $14 million, compared to revenue of $3 million in the same period last year, representing revenue growth of approximately 368%.
• Generated positive cash flow from operations of approximately $2.1 million for the three months ended November 30, 2017.
Part of this comparative period pre-dates Quantum's acquisition of its 51% interest in Lucky Bucks, LLC (the "Lucky Bucks Acquisition"). The Corporation completed the Lucky Bucks Acquisition without having to issue any equity, other than (i) $3 million in common shares of the Corporation issued to the vendor of the business as partial consideration for the Lucky Bucks Acquisition, and (ii) $1.5 million in common shares of the Corporation issued to Quantum's lead lender in connection with the Lucky Bucks Acquisition (which shares were included in the transaction at the insistence of the lead lender).
Highlights – Nine Months Ended November 30, 2017
• Generated gaming revenues of approximately $35 million, representing an 11-fold increase compared to revenues of approximately $3 million in the same period last year.
• Generated positive cash flow from operations of approximately $3.95 million, compared to negative cash flow from operations of approximately $1.7 million in the same period last year.
• Working capital of approximately $2.39 million, compared to a working capital deficit of approximately $3.8 million as at February 28, 2017.
• Closed seven acquisitions with a total purchase price of approximately $32 million in the preceding nine months: o five acquisitions were digital, skilled-based gaming terminal operators with a total purchase price of approximately $26.65 million; and o acquired certain assets from two digital, skilled-based gaming terminal operators for a total purchase price of approximately $5.42 million.
• Presence in the State of Georgia more than doubled from 150 locations as at March 1, 2017 to 333 locations as at November 30, 2017, which resulted in our number of gaming machines increasing from 791 gaming machines to 1,621 gaming machines during the same period.
• Net loss of approximately $1.62 million for the nine months ended November 30, 2017, compared to a net loss of approximately $4.28 million for the 2016-17 fiscal year.
• Basic and diluted loss per share was $0.081, compared to a loss per share of $0.155 in the same period last year.
About Quantum International Income Corp.
The Corporation seeks opportunities to acquire and grow businesses in order to generate stable distributions for its shareholders, along with capital appreciation. The Corporation seeks to acquire operating businesses with a proven track record, an opportunity for growth and whose management wishes to continue to operate the business going forward. The Corporation’s investment approach is to grow through the acquisition of “platform” businesses that are consistent with its business strategy and acquisition criteria and then to continue to build revenues and earnings within these businesses. Potential acquisition targets may be private or public companies in a variety of industries. Acquisition of all or a majority of the ownership of each such business is preferred. Value will be created by seeking out high growth, high margin opportunities where the acquired businesses can maintain and develop the deep knowledge, expertise and understanding of their customers’ needs required to deliver superior service and command higher pricing and margins than the competition.
More information on Quantum is available at www.quantumincomecorp.com.
|For further information please contact Quantum:
Tel. (416) 477-3419
Tel. (416) 477-3411
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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.