Revenue of $58.5
million, up 7.7% year-over-year, and Adjusted EBITDA margin
of 29.8%
LAS VEGAS, NV, Nov. 14, 2017 /CNW/ - NYX Gaming Group
Limited (TSXV:NYX) ("NYX", the "Company" or "NYX
Gaming Group") today announced its financial and operating
results for the third quarter ended September 30, 2017. All amounts expressed are in
Canadian dollars unless otherwise noted.
"We delivered solid revenue and adjusted EBITDA growth in the
third quarter along with improved adjusted EBITDA margin from the
second quarter of 2017 and the third quarter of the prior year,"
said Matt Davey, CEO of NYX Gaming
Group. "The value our customers see in our proven gaming platform
and business is clear, and as a management team we'll continue to
act to maximize value in a way that is in the best interests of NYX
and its shareholders."
Third Quarter 2017 Highlights
- Revenue of $58.5 million, or
growth of 7.7% year-over-year;
- Royalty and license revenue of $35.8
million, or growth of 35.2% year-over-year;
- Adjusted EBITDA of $17.4 million,
an increase of 20.2% over the prior year period;
- Adjusted EBITDA margin of 29.8% compared to 26.7% for the prior
year period;
- Net cash provided by operating activities of $34.3 million for the nine months ended
September 30, 2017 compared to net
cash provided by operating activities of $17.8 million for the prior year period;
- Signed 18 new agreements for the Open Platform System and Open
Gaming System;
- Launched OGS content across 12 new client sites; and
- As of September 30, 2017, held
development commitments with 40 customers that have not yet
launched.
Adjusted EBITDA
To supplement the Company's condensed consolidated financial
statements presented in accordance with IFRS, the Company uses
Adjusted EBITDA, a measure they believe is appropriate to provide
meaningful comparison with, and to enhance an overall understanding
of, their past financial performance and prospects for the future.
The Company believes Adjusted EBITDA provides useful information to
both management and investors by excluding specific expenses and
gains that they believe are not indicative of their core operating
results. Further, Adjusted EBITDA is a measure of operating
performance used by management, as well as industry analysts, to
evaluate operations and operating performance and is widely used in
the technology and gaming industry. The presentation of this
additional information is not meant to be considered in isolation
or as a substitute for measures of financial performance prepared
in accordance with IFRS. In addition, other companies in NYX Gaming
Group's industry may calculate Adjusted EBITDA differently than the
Company does. A reconciliation of net income (loss) to Adjusted
EBITDA is provided in the table below.
The Company defines "Adjusted EBITDA" as net income
(loss) before interest and other non-operating income (expense),
income taxes, depreciation and amortization, impairment charges,
share-based payments, gains and losses on the revaluing of
contingent consideration and derivatives, foreign exchange gains
and losses, acquisition and restructuring costs, and other gains
and losses.
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
CAD$ (in
000s)
|
2017
|
|
2016
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(10,941)
|
|
$
|
41,350
|
|
$
|
(29,483)
|
|
$
|
(4,330)
|
|
Net tax expense
(benefit)
|
1,765
|
|
(2,705)
|
|
|
5,352
|
|
(3,189)
|
Income (loss)
before tax
|
(9,176)
|
|
38,645
|
|
|
(24,131)
|
|
(7,519)
|
|
Depreciation and
amortization
|
9,060
|
|
8,565
|
|
|
26,155
|
|
19,288
|
|
Interest expense,
net
|
10,629
|
|
7,523
|
|
|
32,736
|
|
16,951
|
EBITDA
|
10,513
|
|
54,733
|
|
|
34,760
|
|
28,720
|
|
Impairment of
intangibles
|
—
|
|
—
|
|
|
—
|
|
6,651
|
|
Acquisition and
restructuring costs
|
4,032
|
|
694
|
|
|
6,674
|
|
16,813
|
|
Foreign exchange
gain
|
(2,136)
|
|
(39)
|
|
|
(1,901)
|
|
(516)
|
|
Fair value adjustment
to derivatives
|
350
|
|
(41,737)
|
|
|
4,095
|
|
(47,004)
|
|
Loss on exchange of
debt
|
5,691
|
|
—
|
|
|
5,691
|
|
23,856
|
|
Revaluing contingent
consideration
|
(1,637)
|
|
—
|
|
|
(1,637)
|
|
(9,444)
|
|
Share-based
payments
|
443
|
|
796
|
|
|
2,297
|
|
1,268
|
|
Other income,
net
|
178
|
|
53
|
|
|
1,793
|
|
9,470
|
Adjusted
EBITDA
|
$
|
17,434
|
|
$
|
14,500
|
|
$
|
51,772
|
|
$
|
29,814
|
Financial Statements and Management's Discussion and
Analysis
NYX Gaming Group's interim condensed consolidated financial
statements, notes thereto and Management's Discussion and Analysis
for the nine months ended September 30,
2017 will be available on SEDAR at www.sedar.com. Additional
information relating to NYX Gaming Group and its business may also
be found on SEDAR and the Company's website at
www.nyxgaminggroup.com.
Disclaimer
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.
Caution Regarding Forward-Looking Statements and Non-IFRS
Financial Measures
Certain statements included herein, including those that express
management's expectations or estimates of the Company's future
performance, constitute "forward-looking statements" within the
meaning of applicable securities laws. Any statements that are
contained in this news release that are not statements of
historical fact may be deemed to be forward-looking statements.
Forward-looking statements are often identified by terms such as
"may", "will", "would", "should", "could", "expects", "plans",
"anticipates", "believes", "intends", "trends", "estimates",
"likely", "predicts", "potential", or, in each case, their negative
or other variations of these words or other comparable terminology,
are intended to identify forward-looking statements.
Forward-looking statements are based on certain assumptions
regarding the Company's expected growth, results of operations,
performance, industry trends and growth opportunities.
Forward-looking statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by
management at this time, are inherently subject to significant
business, economic and competitive risks, uncertainties and
contingencies that could cause actual results to differ materially
from those expressed or implied in such statements. Because of the
factors described herein, investors are cautioned not to put undue
reliance on forward-looking statements, whether as a result of new
information, future events or changes. Applicable risks and
uncertainties include, but are not limited to: credit, market,
currency, operational, liquidity and funding risks, including
changes in economic conditions, interest rates or tax rates, the
impact of government regulation on the online gaming industry and
the risk that such regulation is subject to change, competition
from other providers of online gaming services, the possibility
that the Company may be unable to successfully integrate the
acquired businesses, the risks associated with international and
foreign operations, the impact of consolidations in the online
gaming industry, the risks relating to the pending transaction with
Scientific Games Corporation ("Scientific Games"), including, the
possibility that the closing conditions to the contemplated
transaction may not be satisfied or there is a delay in closing the
transaction or the occurrence of any event that could give rise to
termination of the Arrangement Agreement, and the other risks
identified under the heading "Risk Factors" in the Company's final
long form prospectus dated December 18,
2014 and final short form prospectuses dated July 9, 2015 and July 14,
2016, each as filed on SEDAR at www.sedar.com, and in other
filings that NYX Gaming Group may make with applicable securities
authorities in the future. The forward-looking statements contained
herein reflect NYX Gaming Group's current views with respect to
future events, and except as required by law, NYX Gaming Group does
not intend, and undertakes no obligation, to update any
forward-looking statements to reflect, in particular, new
information or future events, or otherwise.
This press release contains certain non-IFRS financial measures
and are noted where used. These measures are provided as additional
information to complement those IFRS measures by providing further
understanding of our results of operations used by many investors
to compare companies and management believes they are important
measures in evaluating NYX Gaming Group. However, they are not
recognized measures under IFRS and do not have a standardized
meaning prescribed by IFRS. Therefore, they may not be comparable
to similar measures presented by other issuers. Investors are
cautioned that such measures should not be construed as
alternatives to comparable IFRS measures determined in accordance
with IFRS.
About NYX Gaming Group
NYX Gaming Group Limited (TSXV: NYX) is a leading digital gaming
provider, headquartered in Las
Vegas, USA, with a staff of
more than 1,000 employees globally, including more than 600
engineers.
NYX delivers value by adhering to the highest standards of
customer service, probity and responsibility. It has one of the
broadest distribution bases in the industry, with more than 200
unique customers.
The award-winning NYX OGS™ (Open Gaming System), which allows
licensees to leverage the best-of-breed, multi-vendor casino
content from around the world, is acknowledged to be the industry's
market-leading gaming offering. From its own studios and a broad
partner network of the most innovative third party suppliers, NYX
offers customers the widest portfolio of content available, with
access to more than 2,000 game titles, via OGS™.
In addition, NYX's award winning sports betting division OpenBet
is utilized and trusted by leading sports book operators, with its
scale and performance world-renowned. In 2016, the OpenBet
Sportsbook processed more than two billion bets and broke new
records at the 2017 Grand National, where it processed 68,000 peak
bets-per-minute.
NYX Gaming Group Limited is listed on the TSX Venture Exchange
under the symbol TSXV: NYX. For more information about the Company,
including press releases, links to SEDAR filings and other
financial information, please visit the Company's investor
relations website at: www.nyxgaminggroup.com/investors.
SOURCE NYX Gaming Group Limited