GameTech International Inc. (GMTC, Financial) filed Quarterly Report for the period ended 2012-01-29.
Gametech Intl has a market cap of $1 million; its shares were traded at around $0.07 .
We generate revenue by placing electronic bingo systems in bingo halls under contracts based on (1) a fixed fee per use per session; (2) a fixed weekly fee per terminal; or (3) infrequently a percentage of the revenue generated by each terminal. Revenue growth for our Bingo systems is affected by player acceptance of electronic bingo as an addition or an alternative to paper bingo. Additionally, our revenue growth is dependent on our ability to expand operations into new markets and our ability to increase our market share in our current markets. Fixed-based bingo terminals generate greater revenue per terminal than portable bingo terminals, but also require a greater initial capital investment. For the 2012 13-week period presented, approximately 76.5% of our bingo revenues were generated from our portable bingo systems as opposed to fixed-based bingo units, compared to 78.2% in the comparable prior year period. Based on historical seasonality, fiscal first quarter bingo revenue is the second highest quarter.
Our VLT business generates revenue from the sale of VLT's (new and used), software conversion kits, content fees, license fees, participation fees, parts, and services. For the 2012 and 2011 13-week periods presented, 67.9% and 98.5%, respectively, of our VLT business sales were derived from the sale of new and used equipment, conversion kits, and parts. Increasing market share, replacement of outdated equipment in existing markets and expanding product placement into new markets drive revenue growth.
As of December 28, 2011, after giving effect to an unscheduled principal payment of $1.5 million on December 9, 2011, and the application of the net cash proceeds of $6.125 million from the sale of the corporate headquarters, the outstanding balance and interest rate under the credit facility was approximately $16.6 million and 9.79%. Principal and interest of approximately $9.7 million under the credit facility from June 30, 2011 to June 30, 2012, (inclusive of approximately $8.8 million of principal and interest already paid) is required for us to remain compliant with the covenants of the credit facility. We expect to make the required additional principal payments of $0.9 million under the credit facility through June 30, 2012. In addition, in order to extend the maturity date of the credit facility, the Company must also have (i) an adjusted cash flow leverage ratio of less that 3 to 1 as of April 30, 2012 and (ii) consolidated operating profit (as defined in the agreement) for the twelve-month period ending April 30, 2012 of at least $3.7 million. Should the Company not meet these requirements for extending the maturity date of the credit facility, it will seek a modification of the terms and/or other remedies that are available to it. Assuming the maturity date is extended to June 30, 2013, the Company will be required to pay approximately $4.5 million of principal and interest during the year ending June 30, 2013 plus a final principal payment of $12.2 million on June 30, 2013.
As of December 28, 2011, after giving effect to an unscheduled principal payment of $1.5 million on December 9, 2011, and the application of the net cash proceeds of $6.125 million from the sale of the corporate headquarters, the outstanding balance and interest rate under the credit facility was approximately $16.6 million and 9.79%. Principal and interest of approximately $9.7 million under the credit facility from June 30, 2011 to June 30, 2012, (inclusive of approximately $8.8 million of principal and interest already paid) is required for us to remain compliant with the covenants of the credit facility. We expect to make the required additional principal payments of $0.9 million under the credit facility through June 30, 2012. In addition, in order to extend the maturity date of the credit facility, the Company must also have (i) an adjusted cash flow leverage ratio of less that 3 to 1 as of April 30, 2012 and (ii) consolidated operating profit (as defined in the agreement) for the twelve-month period ending April 30, 2012 of at least $3.7 million. Should the Company not meet these requirements for extending the maturity date of the credit facility, it will seek a modification of the terms and/or other remedies that are available to it. Assuming the maturity date is extended to June 30, 2013, the Company will be required to pay approximately $4.5 million of principal and interest during the year ending June 30, 2013 plus a final principal payment of $12.2 million on June 30, 2013.
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Gametech Intl has a market cap of $1 million; its shares were traded at around $0.07 .
Highlight of Business Operations:
We are a domestic and international gaming technology company dedicated to the development and manufacturing of gaming entertainment products and systems. We hold a significant position in the North American bingo market with our interactive electronic bingo systems, portable and fixed-based gaming units, and complete hall management modules (our Bingo Segment). We also hold a significant position in select North American VLT markets, primarily Montana, Louisiana, and South Dakota, where we offer video lottery terminals and related gaming equipment and software (our VLT Segment). Historically, we have generated over 90% of our revenues domestically. For the 2012 and 2011 13-week periods presented, 60.6% and 64.7% respectively, of our net revenue came from our Bingo segment.We generate revenue by placing electronic bingo systems in bingo halls under contracts based on (1) a fixed fee per use per session; (2) a fixed weekly fee per terminal; or (3) infrequently a percentage of the revenue generated by each terminal. Revenue growth for our Bingo systems is affected by player acceptance of electronic bingo as an addition or an alternative to paper bingo. Additionally, our revenue growth is dependent on our ability to expand operations into new markets and our ability to increase our market share in our current markets. Fixed-based bingo terminals generate greater revenue per terminal than portable bingo terminals, but also require a greater initial capital investment. For the 2012 13-week period presented, approximately 76.5% of our bingo revenues were generated from our portable bingo systems as opposed to fixed-based bingo units, compared to 78.2% in the comparable prior year period. Based on historical seasonality, fiscal first quarter bingo revenue is the second highest quarter.
Our VLT business generates revenue from the sale of VLT's (new and used), software conversion kits, content fees, license fees, participation fees, parts, and services. For the 2012 and 2011 13-week periods presented, 67.9% and 98.5%, respectively, of our VLT business sales were derived from the sale of new and used equipment, conversion kits, and parts. Increasing market share, replacement of outdated equipment in existing markets and expanding product placement into new markets drive revenue growth.
As of December 28, 2011, after giving effect to an unscheduled principal payment of $1.5 million on December 9, 2011, and the application of the net cash proceeds of $6.125 million from the sale of the corporate headquarters, the outstanding balance and interest rate under the credit facility was approximately $16.6 million and 9.79%. Principal and interest of approximately $9.7 million under the credit facility from June 30, 2011 to June 30, 2012, (inclusive of approximately $8.8 million of principal and interest already paid) is required for us to remain compliant with the covenants of the credit facility. We expect to make the required additional principal payments of $0.9 million under the credit facility through June 30, 2012. In addition, in order to extend the maturity date of the credit facility, the Company must also have (i) an adjusted cash flow leverage ratio of less that 3 to 1 as of April 30, 2012 and (ii) consolidated operating profit (as defined in the agreement) for the twelve-month period ending April 30, 2012 of at least $3.7 million. Should the Company not meet these requirements for extending the maturity date of the credit facility, it will seek a modification of the terms and/or other remedies that are available to it. Assuming the maturity date is extended to June 30, 2013, the Company will be required to pay approximately $4.5 million of principal and interest during the year ending June 30, 2013 plus a final principal payment of $12.2 million on June 30, 2013.
As of December 28, 2011, after giving effect to an unscheduled principal payment of $1.5 million on December 9, 2011, and the application of the net cash proceeds of $6.125 million from the sale of the corporate headquarters, the outstanding balance and interest rate under the credit facility was approximately $16.6 million and 9.79%. Principal and interest of approximately $9.7 million under the credit facility from June 30, 2011 to June 30, 2012, (inclusive of approximately $8.8 million of principal and interest already paid) is required for us to remain compliant with the covenants of the credit facility. We expect to make the required additional principal payments of $0.9 million under the credit facility through June 30, 2012. In addition, in order to extend the maturity date of the credit facility, the Company must also have (i) an adjusted cash flow leverage ratio of less that 3 to 1 as of April 30, 2012 and (ii) consolidated operating profit (as defined in the agreement) for the twelve-month period ending April 30, 2012 of at least $3.7 million. Should the Company not meet these requirements for extending the maturity date of the credit facility, it will seek a modification of the terms and/or other remedies that are available to it. Assuming the maturity date is extended to June 30, 2013, the Company will be required to pay approximately $4.5 million of principal and interest during the year ending June 30, 2013 plus a final principal payment of $12.2 million on June 30, 2013.
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