Big jump in American Wagering quarterly profit

May 23, 2006 5:17 AM

Installation of the new T-3 wagering terminals in many of the Nevada race and sports books helped American Wagering boost its net income by more than 157% during the fiscal quarter that ended on April 30.

With the addition of activity at the recently acquired Sturgeon’s Inn & Casino, the company saw its total revenues increase to $4.44 million, a jump of 34% over last year. Net income was $767,814 as compared to $298,400 in the comparable quarter of 2005.

Vic Salerno, company CEO and president, said he was particularly pleased with the growth in revenue, net income and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) indicating "that we are continuing to make strong and solid progress toward our strategic goals."

Gaming Partners

First quarter revenues increased 49% helping boost net income to $2.1 million, a 314% jump from the comparable period of 2005, according to a report released by Gaming Partners International Corporation (GPIC).

Diluted earnings per share rose to $0.25, outdistancing the $0.06 per diluted share reported for last year’s first quarter.

The Las Vegas-based manufacturer and supplier of casino table game equipment said revenues for the period that ended on March 31 were $18.3 million compared to the $12.3 million reported last year.

In announcing the quarterly results, Gerard Charlier, president and CEO, said, "Our robust sales increase was driven by strength across the company’s geographic markets including the U.S., Europe and Asia. Both of our principal operating subsidiaries recorded high revenues for the quarter."

Also noted was the backlog of production orders that are expected to be filled during the calendar year. These amounted to $17.7 million for the operations in France and $4.2 million in the U.S.

In a separate announcement, the company said that it had received an order from Macau Galaxy Group for more than 285,000 RFID plaques to be supplied to the company’s flagship casino, the Starworld Casino.

Ameristar Casinos

Ameristar Casinos Inc. (ASCA), one of the early unsuccessful bidders for Aztar Corporation (AZR), reported a sharp drop in profit for the first quarter of fiscal 2006.

Revenues during the period climbed 9% to $310 million, from last year’s $284 million but the quarterly profit was only $2.6 million or $0.05 per share compared to last year’s profit of $19.2 million or $0.34 per share.

Also, the company revised its guidance for the remainder of 2006 downward from the previous $1.06 per share to an expected $0.86 to $0.92 per share.

The company said the first quarter profit decline was due to the loss from the early retirement of debt and to costs related to stock options.

WMS Industries

Reflecting continued growth in operating results, WMS Industries Inc. (WMS) reported net income of $9.2 million or $0.26 per share compared to $7.2 million or $0.21 per diluted share for the third quarter of its fiscal year.

The per share earnings included a $0.04 per share charge that resulted from share-based payments in the company’s stock option plan.

Total revenues for the three months that ended on March 31 increased 3% to $110.7 million that resulted from an 18% increase in product sales revenue and an increase of $2.1 million in used games revenue.