Mikohn Gaming Inc. (MIKN) cost reduction strategies implemented in the third quarter were the impetus for improved results in the fourth quarter, according to company officials.
For the period that ended on Dec. 31, 2002, the company reported net income of $0.1 million, or $0.01 a share compared to the fourth quarter of 2001 when the net loss was $10.2 million or $0.60 a share.
These cost reduction strategies, said John Garner, chief financial officer, "will continue to benefit us in the future. We are pleased with our cash position of approximately $16.3 million at Dec. 31, 2002. We expect to see benefits from our slot machines and table game service outsourcing agreement with Aristocrat in the second half of 2003, and anticipate additional cost savings on a full-year basis of approximately $2 million."
For the full year, the company reported a net loss of $27.9 million or $2.95 per share, compared with a net loss of $9.7 million, or $0.83 per share. Included in the 2002 net loss were $28 million in charges attributed to the company’s restructuring initiatives. The 2001 net loss included a charge of $3.1 million for the early retirement of debt and $9.7 million for certain asset write-offs.
Despite a challenging fourth quarter, Century Casinos Inc. (CNTY) reported net earnings of $3.079 million or $0.23 a share for the year ended Dec. 31, 2002. This compared favorably with net earnings of $2.455 million or $0.18 a share for the year ended Dec. 31, 2001.
During the fourth quarter, however, the company said it had net earnings of $598,000 or $0.04 per share compared to $726,000 or $0.05 per share a year earlier.
Part of the write-offs in the fourth quarter were related to their Johannesburg project totaling $399,000. In the previous quarter, the write-offs amounted to $1.123 million.
Declining revenue resulted in a net loss for the third quarter of fiscal 2003 for International Lottery & Totalizator Systems Inc. (ITSI).
The company reported revenues of $4.6 million compared to last year’s $5.8 million for the quarter. This left the company with a net loss of $300,000 or $0.02 a share. In 2002, the company had net income of $900,000 or $0.07 a share.
Commenting on the fiscal third quarter, company President Mark Michalko said, "To a large degree, the quarterly and year-to-date results reflect the fact that while overall expenses for the year have remained relatively flat with the comparable periods of a year ago, our contract revenue has been somewhat lower. This is largely a timing issue, as we had a backlog of $14.5 million at the end of the third quarter."