Autotote announces fourth quarter, year-end results.

NEW YORK--(BUSINESS WIRE)--December 21, 1995--AUTOTOTE CORPORATION [NASDAQ/NMS:TOTE] today announced financial results for the fourth quarter and year ended October 31, 1995.

Operating revenues for the fourth quarter were $46.2 million, 12.2% over the year-earlier period. Continuing the trend of the first three quarters of fiscal 1995, recurring service revenues from wagering systems increased by 34.7%, to $36.1 million, in the fourth quarter. The increase came from improved operations in the Company's core business segments -- Connecticut off-track betting; North American simulcasting, aided by a first quarter fiscal 1995 acquisition; and North American pari-mutuel -- as well as the strategic acquisition of a French pari-mutuel company, also in first quarter fiscal 1995. The improvement in recurring revenues was partially offset by a decline of 29.8%, to $10.1 million, in equipment and other sales, principally international.

The Company's fourth quarter operating loss of $2.0 million compared favorably with an operating loss of $16.2 million, which included $11.2 million of restructuring, asset adjustment and other unusual charges, in the year-earlier period. The net loss for the fourth quarter was $5.8 million, or $0.20 per share on 29.2 million shares outstanding, compared to a net loss of $16.6 million, or $0.58 per share on 28.4 million shares outstanding, in the year-earlier period.

A. Lorne Weil, Chairman and CEO, said, "We are pleased with the improvement in operating performance as the full impact of our cost structure is now being felt. In the fourth quarter of fiscal 1995, gross margins were up to 37.5%, compared to 22.2% in the fourth quarter of fiscal 1994. Further, SG&A expense decreased to 20.2% of revenues in the fourth quarter of fiscal 1995 from 23.5% of revenues in the fourth quarter of fiscal 1994. EBITDA was $8 million in the fourth quarter of fiscal 1995 vs. an adjusted $3.2 million in the fourth quarter of fiscal 1994. As the continued increases in recurring revenues indicate, Autotote's core businesses in North America are improving and are well-positioned for growth. And we believe that the international equipment sales segment has stabilized."

Operating revenues of $153.2 million for the fiscal year ended October 31, 1995 increased 2.8%, compared to the year-earlier period, with recurring service revenues up 34.1%, to $132.3 million from $98.6 million. Improved operating performance from core business segments, European lottery operations and acquisition-related revenues more than offset a 58.5% decline, to $20.9 million, in equipment and other sales, principally international.

The Company's fiscal 1995 operating loss of $31.3 million compared to an operating loss of $13.9 million in the year-earlier period. The net loss for fiscal 1995 was $49.9 million, or $1.72 per share on 29.0 million shares outstanding, compared to a net loss of $22.2 million, or $0.79 per share on 28.2 million shares outstanding, in the year-earlier period, which included an extraordinary charge of $4.2 million for the write-off of deferred financing costs.

As previously reported, the fiscal 1995 net loss included one-time charges in the third quarter of $22.8 million, substantially resulting from the Company's restructuring, which included the closure of two facilities and a reduction in personnel, in addition to bank credit agreement fees, and certain valuation adjustments. Fiscal 1995 results were also impacted by: a $10.0 million, or 39.5%, increase in depreciation and amortization primarily resulting from strategic acquisitions and capital additions in core North American business segments; a $10.0 million increase in interest expense; and $11.2 million in increased selling, general and administrative costs resulting from strategic acquisitions and increased spending for market development, legal and other professional fees. Reflecting the impact of the cuts in overhead made during fiscal 1995, sales, general and administrative expenses were down in the fourth quarter, both in total amount and as a percentage of sales.

As previously announced, the Company anticipates that it will renegotiate its senior credit facility by the end of the first quarter fiscal 1996, January 31, the date through which current waivers are in effect.

EDITOR'S NOTE: AUTOTOTE CORPORATION designs and manufactures computerized wagering equipment and provides facilities management for use on racetracks, off-track wagering, lotteries and legalized sports betting facilities. Autotote's systems are in use in the United States, Europe, Central and South America, Canada, Mexico and the Far East. -0-

                   AUTOTOTE CORPORATION AND SUBSIDIARIES
                   Consolidated Statements of Operations
                    FOR THE YEAR ENDING OCTOBER 31, 1995
                  (In Thousands, Except Per Share Amounts)

                                  1995                     1994
Operating Revenues
   Wagering systems        $   132,260               $   98,592
   Wagering equipment and
     other sales                20,924                   50,458
                               153,184                  149,050

Operating Expenses (exclusive
  of depreciation and
  amortization shown below):
  Wagering systems              78,569                   61,158
  Inventory, equipment and
    contract adjustments             -                    3,939
  Strike Expenses                    -                    2,842
  Wagering equipment and
    other sales                 15,661                   35,753
                                94,230                  103,692
   Total gross profit           58,954                   45,368

Selling, general and
  administrative expenses       36,540                   25,298
Restructuring                   11,601                    3,839
Write-off of investments
  and other                      6,640                    4,737
Depreciation and amortization   35,463                   25,415
   Operating income (loss)     (31,290)                 (13,934)
Other (income) deductions
   Interest expense             16,362                    6,408
Other (income) expense            (436)                    (952)
                                15,926                    5,456

Earnings (loss) before
  incomes taxes (benefit) and
  extraordinary item           (47,216)                 (19,390)
Income taxes (benefit)           2,673                    1,462

Net earnings (loss) before
  extraordinary item           (49,889)                 (17,928)

Extraordinary item
  (Write-off of financing
  fees and expenses)                 -                    4,222

   Net loss                    (49,889)                 (22,150)

Earnings (loss) per common
  share:
   Primary earnings (loss)
     before extraordinary item   (1.72)                   (0.64)
   Extraordinary item
   (Write-off of financing
    fees and expenses)               -                    (0.15)
Earnings (loss) per common share (1.72)                   (0.79)

Weighted average number of
  common shares outstanding
  (primary)                     28,965                   28,174

Fully diluted earnings (loss)
  per common share before
  extraordinary item             (1.72)                   (0.64)

Extraordinary item
 (Write-off of financing
  fees and expenses)                 -                    (0.15)

Fully diluted earnings (loss)
  per common share               (1.72)                   (0.79)

Weighted average number
  of common shares outstanding
  (fully diluted)               28,965                   28,174

                   AUTOTOTE CORPORATION AND SUBSIDIARIES
                   Consolidated Statements of Operations
                  FOR THE QUARTER ENDING OCTOBER 31, 1995
                  (In Thousands, Except Per Share Amounts)

                              1995                     1994
Operating Revenues
  Wagering systems        $  36,131                $  26,823
  Wagering equipment
    and other sales          10,082                   14,356
                             46,213                   41,179

Operating Expenses
  (exclusive of depreciation
   and amortization shown
   below):
    Wagering systems         22,392                   16,646
    Inventory, equipment
      and contract
      adjustments                 -                      866
    Strike Expenses               -                    2,842
    Wagering equipment and
      other sales             6,471                   11,675
                             28,863                   32,029

   Total gross profit        17,350                    9,150

Selling, general and
  administrative expenses     9,314                    9,693
Restructuring                     -                    3,839
Write-off of investments
  and other                       -                    3,656
Depreciation and
  amortization               10,040                    8,201
   Operating income (loss)   (2,004)                 (16,239)

Other (income) deductions
   Interest expense           3,656                    1,771
Other (income) expense         (577)                    (343)
                              3,079                    1,428

Earnings (loss) before
  incomes taxes (benefit)    (5,083)                 (17,667)

Income taxes (benefit)          671                   (1,103)

Net loss                     (5,754)                 (16,564)

Earnings (loss) per
  common share                (0.20)                   (0.58)

Weighted average number of
  common shares outstanding
  (primary)                  29,201                   28,434

CONTACT: Gregory W. Miller

The Miller Company

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