Elixir Gaming Technologies Reports 3Q Results

Elixir Gaming Technologies, a technology and solutions provider to the Pan-Asian gaming industry, reported operating results for the third quarter ended September 30, and reviewed recent corporate progress.

In a release dated November 10, the company stated:

- Consolidated adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, and non-cash charges) was $0.3 million for the third quarter of 2009.

- Total net revenue from gaming machines on participation for the third quarter 2009 was $1.8 million, an increase of 5 percent on a quarterly sequential basis reflecting solid performance at NagaWorld and despite the challenges from severe adverse weather in the Philippines.

- Average consolidated win per unit per day (WUD) for the third quarter 2009 was $86, a decrease of 9 percent on a quarterly sequential basis due to severe adverse weather conditions in the Philippines and the ramp up of additional machine placements at NagaWorld during the quarter. Average consolidated WUD for the month of October improved to $92.

- As of October 31, total installed units in operation were 1,286 in eight venues, comprised of seven venues in the Philippines with a total of 902 installed units and one venue in Cambodia with a total of 384 installed units.

- Continued progress on initiatives to reduce recurring operating costs with third quarter 2009 cash SG&A expense down 20 percent from the prior quarter and 61 percent from the year-ago period.

- $4.7 million in cash as of September 30, after an advance payment of $5.84 million paid to NagaWorld under the previously announced additional machine placement arrangement.

- Chairman and Chief Executive Officer, Clarence Chung, extends employment contract through 2012.

Clarence Chung said, "I am pleased to report that Elixir Gaming posted solid financial results for our third quarter period with the achievement of quarterly sequential participation revenue growth from record second quarter 2009 levels and the second consecutive quarter of positive adjusted EBITDA since our new business model was enacted in September 2007. This performance was a direct reflection of our accomplishments over the last 12 months to restructure our operations and streamline our cost structure and, importantly, was achieved despite challenges due to severe weather conditions in one of our markets during the quarter. With solid momentum in our core gaming participation operations, the successful refocusing of our operations and execution of our cost reduction initiatives, and improved financial flexibility, Elixir Gaming is better positioned to capitalize on selected expansion opportunities and grow shareholder value."

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