Autotote Announces Second Fiscal Quarter of 2000 and Six Months Results; Net Income Improves over 300% for the Quarter.Business Editors NEW YORK--(BUSINESS WIRE)--May 19, 2000 AUTOTOTE CORPORATION (AMEX AMEX See: American Stock Exchange :TTE TTE Telecommunications Terminal Equipment TTE Transthoracic Echocardiography TTE Transthoracic Echocardiogram TTE Trustee TTE TCL-Thomson Electronics TTE To the Extreme (band) TTE The Tourism Expert ) today announced second fiscal quarter results for the quarter ended April 30, 2000. In the second quarter of fiscal 2000, revenue was $51.1 million compared to $53.1 million in the second quarter of fiscal 1999, a decrease of 4%. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
For the first six months of fiscal 2000, Autotote's revenue was $100.6 million compared to $98.7 million in the first six months of fiscal 1999, an increase of 2%. EBITDA increased 24% to $22.1 million from $17.8 million in the prior period. Autotote's net income increased to $2.8 million in the first six months of fiscal 2000 from a loss of $1.9 million in the comparable period in fiscal 1999. Fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of increased to $0.07 in the first 6 months of fiscal 2000 from a loss of $0.05 in the first six months of fiscal 1999. Lorne Weil, Chairman and Chief Executive Officer, commented, "Our financial results continued strong in the second quarter. Revenue was up nicely in our service businesses, and, excluding the effect of a significant one-time sale last year to the Montana lottery The Montana Lottery is run by the state of Montana. It is a member of the Multi-State Lottery Association (MUSL). Montana offers several of its games, including Powerball, Hot Lotto, and Wild Card 2. In Montana, the minimum age to purchase a lottery ticket is 18. , overall company revenue grew as well. The earnings improvement was similarly well balanced: about 75% of the EBITDA growth came from service businesses and the remainder from equipment sales. We saw particularly encouraging earnings improvements in our Connecticut OTB OTB abbr. off-track betting OTB n abbr (US) (= off-track betting) → apuestas hechas fuera del hipódromo OTB n abbr (US) (= off-track betting , which on May 6th, Kentucky Derby Kentucky Derby One of the classic U.S. Thoroughbred horse races. It was established in 1875 and run annually on the first Saturday in May at Churchill Downs track in Louisville, Ky. With the Preakness and the Belmont Stakes, it makes up U.S. racing's coveted Triple Crown. Day, experienced the highest one-day handle in its history; and Germany, where the integration of our on-track, off-track and satellite operations is proceeding smoothly. "There was a lot of important development activity taking place in the second quarter as well. Response by retailers to the rollout of our German OTBs has been strong, and the recruiting of agent locations is well ahead of expectations. During the quarter we began marketing our 'business-to-business' Internet wagering product in the US and Europe and have received a very positive reaction. As the quarter ended, we began to expand the market for our own 'business-to-consumer' On the Wire(TM) account wagering business through our Connecticut OTB from 13 states to over 30. We also extended our totalisator totalizator, totalisator a computer-driven, machine-operated betting system which eliminates the bookmaker in the betting industry which surrounds horse and dog racing. Called also parimutuel. agreement with the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Racing Association which will begin using our new Eclipse(TM) central system this fall. "Lastly, and of course most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , we announced today the acquisition of Scientific Games and the $100 million investment in Autotote by Olivetti. As discussed in a separate press release, we believe these two developments will have a significant impact on the company's strategic posture and the outlook for the future is extremely positive." Autotote and Scientific Games will be hosting a conference call for investors and the media today at 11:00 A.M. ET. To access the call within the U.S. dial 888-243-1119 and for international callers dial 212-993-0201. AUTOTOTE CORPORATION provides computerized wagering equipment, computer software, facilities management The management of a user's computer installation by an outside organization. All operations including systems, programming and the datacenter can be performed by the facilities management organization on the user's premises. and satellite broadcast services for on-track, off-track and inter-track wagering, lotteries and legalized sports betting Sports betting is the general activity of predicting sports results by making a wager on the outcome of a sporting event. Perhaps more so than other forms of gambling, the legality and general acceptance of sports betting varies from nation to nation. facilities. Autotote's systems are in use in the United States, Europe, Canada, Mexico, Latin America, Barbados, New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. and the Far East. This press release includes statements which may constitute forward-looking statements made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provision of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. This information may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. For certain information regarding these risks and uncertainties, reference is made to the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ending October 31, 1999.
AUTOTOTE CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
(In Thousands, Except Per Share Amounts)
Three Months Ended Six Months Ended
April 30, April 30,
---------------------- ----------------------
2000 1999 2000 1999
---------- ---------- ---------- ----------
Operating revenues:
Services $ 38,285 36,496 $ 74,618 70,725
Sales 12,776 16,583 26,008 28,006
---------- ---------- ---------- ----------
51,061 53,079 100,626 98,731
---------- ---------- ---------- ----------
Operating expenses
(exclusive of
depreciation and
amortization shown
below):
Services 24,447 23,730 48,927 46,893
Sales 8,357 12,718 16,353 20,874
---------- ---------- ---------- ----------
32,804 36,448 65,280 67,767
---------- ---------- ---------- ----------
Total gross
profit 18,257 16,631 35,346 30,964
Selling, general
and administrative
expenses 6,254 6,425 13,247 13,213
Depreciation and
amortization 5,142 5,278 10,652 11,011
---------- ---------- ---------- ----------
Operating
profit 6,861 4,928 11,447 6,740
Interest expense 4,186 4,039 8,183 8,109
Other expense 126 256 183 301
---------- ---------- ---------- ----------
4,312 4,295 8,366 8,410
---------- ---------- ---------- ----------
Income (loss)
before income
tax expense 2,549 633 3,081 (1,670)
Income tax expense 243 61 311 192
---------- ---------- ---------- ----------
Net income (loss) $ 2,306 572 $ 2,770 (1,862)
========== ========== ========== ==========
Net income (loss)
per basic share $ 0.06 0.02 $ 0.08 (0.05)
========== ========== ========== ==========
Net income (loss)
per diluted share $ 0.06 0.02 $ 0.07 (0.05)
========== ========== ========== ==========
Weighted average
number of shares
used in per share
calculation:
Basic shares 36,622 36,032 36,504 36,027
========== ========== ========== ==========
Diluted shares 41,878 37,371 41,112 36,027
========== ========== ========== ==========
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