Cash Systems, Inc. Announces First Quarter 2008 Financial Results.LAS VEGAS Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. -- Cash Systems, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CKNN), a provider of cash access solutions for the gaming industry, today announced first quarter 2008 financial results. First quarter 2008 highlights include: * A multi-year contract extension with Choctaw Choctaw (chŏk`tô), Native North Americans whose language belongs to the Muskogean branch of the Hokan-Siouan linguistic stock (see Native American languages). Nation of Oklahoma Oklahoma (ōkləhō`mə), state in SW United States. It is bordered by Missouri and Arkansas (E); Texas, partially across the Red R. (S, W); New Mexico, across the narrow edge of the Oklahoma Panhandle (W); and Colorado and Kansas (N). for its Choctaw Casinos A list of casinos. Antigua and Barbuda
1 Card game played with a full deck by two to four players. Its origins are obscure though it probably traces back to the Italian game of Scopa. location where Cash Systems will provide its casinopc for cash advance services, ecash checking and full service booth operation. * A Letter of Intent to provide Cash Systems powercash product to American Gaming Group LLC's first casino project. * powercash compatibility with the Bally bally Adjective, adv Brit old-fashioned, slang extreme or extremely: a bally nuisance, he's too bally charming for his own good Adj. 1. Technologies, Inc.'s (NYSE NYSE See: New York Stock Exchange : BYI) new iVIEW(TM) Display Manager (DM)(TM). * A new multi-year contract to provide its full line of cash access services including all-in-1atm services, casinopc for cash advance services, and ecash checking at Gold River Casino. * A new multi-year contract with The Wildwood Wildwood, city (1990 pop. 4,484), Cape May co., SE N.J., on an island off Cape May; settled 1882, inc. as a city 1911. It has large commercial fisheries and is a popular summer seaside resort with many vintage motels and other buildings from the 1940s–60s. Casino where Cash Systems will provide its full line of cash access services including all-in-1atm, casinopc for cash advance services, and ecash checking. Subsequent to the end of the first quarter of 2008 the Company also announced: * A new multi-year contract with Fantasy Springs Resort Casino, to provide casinopc for cash advance services, all-in-1atm services, ecash checking services for check guarantee and full service booth operation, in addition to powercash. First Quarter Financial Results Revenue for the first quarter was $27.1 million, an increase of 8%, compared to $25.2 million in the first quarter of 2007. The Company reported a loss from operations of ($864,031) in the first quarter of 2008 compared to loss from operations of ($268,021) in the prior year period. Net loss was ($4.6 million), or ($0.25) per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to net loss of ($1.4 million) or ($0.08) per diluted share, in the first quarter of 2007. Michael Rumbolz, President and Chief Executive Officer of Cash Systems, Inc. stated, "We continue to see progress and positive customer feedback from our product offerings and we continue to make progress on powercash. We remain focused on providing outstanding service to our clients." Second Amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. and Restated Notes and Warrants On March 14, 2008, the Company entered into a Second Amendment and Exchange Agreement with respect to its outstanding senior secured convertible notes. The Second Amended and Restated Notes differ from the First Amended and Restated Notes in certain material respects, including, without limitation, (i) the aggregate principal amount was increased from $22.0 million to $24.2 million, (ii) the conversion price was reduced from $8.00 per share to $2.51 per share, (iii) the aggregate amount that the note holders may require the Company to redeem redeem v. to buy back, as when an owner who had mortgaged his/her real property pays off the debt. The term also refers to paying the amount due and all charges after a foreclosure (due to failure to make payments when due) has begun. , and the aggregate amount that the Company may elect to redeem, on October 10, 2008 was increased from $8 million to $12.1 million, (iv) and the financial covenants based on Consolidated Total Debt to 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 were eliminated and the financial covenants based on Consolidated Revenue and Consolidated EBITDA were modified to apply starting with the quarter ending March 31, 2009. The Second Amended and Restated Warrants to purchase common stock differ from the First Amended and Restated Warrants in certain material respects, including, without limitation, the exercise price was reduced from $7.38 per share to $2.49 per share. As a result of the note holder's failure to reduce the conversion price of the Second Amended and Restated Notes and the exercise price of the Second Amended and Restated Warrants to 120% of the arithmetic average of the weighted average price of the Company's common stock for each day during the period commencing on March 18, 2008 and ending on April 15, 2008, the conversion price of the Second Amended and Restated Notes continues to be $2.51 per share and the exercise price of the Second Amended and Restated Warrants continues to be $2.49 per share. Strategic Alternatives The Company previously announced that its Board of Directors decided to explore strategic alternatives to maximize shareholder value. This process is ongoing. There can be no assurances that this process will result in any specific transaction. The Company does not intend to disclose developments regarding its exploration of strategic alternatives unless and until the Board of Directors approve a definitive transaction. Earnings Conference Call The Company will conduct a conference call to discuss its first quarter 2008 financial results on Monday, May 12, 2008 at 5:00 p.m. ET. A webcast of the call will be available by visiting the investor relations Investor relations The process by which the corporation communicates with its investors. section of the company's website at http://www.cashsystemsinc.com/ir. The call can also be accessed live over the phone by dialing 888-208-1427 or for international callers by dialing 913-312-1398. A replay of the call will be available one hour after the call and can be accessed by dialing 888-203-1112 or 719-457-0820 for international callers; the pin number is 6643217. The replay will be available from May 12, 2008 through May 19, 2008. About Cash Systems, Inc. Cash Systems, Inc., located in Las Vegas, with additional offices in San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. and Minneapolis, is a provider of cash-access and related services to the retail and gaming industries. Cash Systems' products include its proprietary cash advance systems, ATMs and check cashing solutions. Please visit http://www.cashsystemsinc.com for more information. This press release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , including the Company's beliefs about its business prospects and future results of operations. These statements involve risks and uncertainties. Among the important additional factors that could cause actual results to differ materially from those forward-looking statements are risks associated with the overall economic environment, the successful execution of the Company's plan of operation, changes in the Company's anticipated earnings, continuation of current contracts, gaming and other applicable regulations, and other factors detailed in the Company's filings with the Securities and Exchange Commission, including its most recent Forms 10K and 10Q. In addition, the factors underlying Company forecasts are dynamic and subject to change and therefore those forecasts speak only as of the date they are given. The Company does not undertake to update any forecasts that it may make available to the investing public. [TABLE OMITTED] [TABLE OMITTED] |
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