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 SAN DIEGO, Aug. 12 /PRNewswire/ -- Lottery Enterprises, Inc. (NASDAQ: LOTO) manufacturer and marketer of vending terminals for the retail sale of instant-winner lottery tickets, today reported results for the second quarter and six months ended June 30, 1993. The company completed an initial public offering of 3,025,000 common shares on June 25, 1993.
 "As projected, the second quarter produced a small loss, reflecting the business cycle of the company's primary customers, state governments, whose fiscal years end June 30. Most states experience a shortage of operating funds during May and June and postpone their purchases," Robert Burr, president and chief executive officer, said.
 Second quarter loss was $61,000, or one cent per share on 4,500,000 shares outstanding, compared with a loss in the comparable year-ago quarter of $460,000, or 15 cents per share on 3,213,000 shares outstanding. Revenues for the three months rose to $3,223,000 from $1,655,000 in the second quarter a year ago.
 Net income for the six months rose to $528,000, or 12 cents per share on 4,524,000 shares outstanding, from a loss of $943,000, or 29 cents per share on 3,213,000 shares outstanding, in the fiscal 1992 first half. Six-month revenues climbed to $9,658,000 from $2,600,000 in the prior year's period.
 "Revenues for the six months benefited from delivery or installation of more than 1,800 Instant Ticket Retailer vending machines, and increased revenues from service contracts," he added.
 "Since the close of the first half, we have signed a contract to supply Pennsylvania with up to 1,000 Instant Ticket Retailer (ITR) vending machines and have so far installed 180 machines. In addition, New York State accepted our bid to provide up to 1,000 ITR vending machines and related services," Burr noted. Lottery Enterprises previously signed contracts and provides terminals and service to California, Virginia, Delaware, Vermont, Colorado, Missouri, Washington, Pennsylvania and Ontario.
 "We also delivered the first six units of our new DCR(TM) debit card vending machines during the second quarter," Burr said. The DCR-2000 is designed to be sold in markets where pay phones are operated by debit cards, which are issued in various denominations by phone companies and may be dispensed from as many as eight bins in the company's machines.
 "We are highly optimistic about the future as an increasing number of the 37 states involved in lottery operations are asking us to bid on contracts to provide them with our unique equipment. In addition, six foreign countries are currently testing our ITR's," Burr noted.
 Financial Highlights (Unaudited)
 Periods ended Three months Six months
 June 30 1993 1992 1993 1992
 Revenues $3,223,000 $1,655,000 $9,658,000 $2,600,000
 Net income (loss) (61,000) (460,000) 528,000 (943,000)
 Net income (loss)
 per common share (.01) (.15) (.12) (.29)
 Weighted average
 shares outstanding 4,500,000 3,213,000 4,524,000 3,213,000
 Summary Balance Sheet
 Pro Forma (A)
 6/30/93 6/30/93
 Cash and equivalents $ 479,000 $19,134,000
 Total current assets 5,952,000 24,607,000
 Total current liabilities 10,421,000 4,592,000
 Long-term debt 415,000 415,000
 Total shareholders'
 equity (deficit) (2,176,000) 21,608,000
 (A) -- In July 1993, the company received approximately $24.5 million in net proceeds from its June 25, 1993 initial public offering. Some of the proceeds were used to retire debt. The pro forma balance sheet reflects these transactions as if they took place as of June 30, 1993.
 -0- 8/12/93
 /CONTACT: Roy Gayhart of Lottery Enterprises, 619-569-5266/

CO: Lottery Enterprises, Inc. ST: California IN: SU: ERN

TS-MP -- NY039 -- 2129 08/12/93 12:49 EDT
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Publication:PR Newswire
Date:Aug 12, 1993

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