Revenues up 120% in Q1 of FY2019 compared to same period in FY2018
(Toronto: July 31, 2018) Quantum International Income Corp. (the "Corporation" or "Quantum") (TSXV: QIC) is pleased to announce the filing of its Q1 financial results for the 2019 fiscal year. For more information, please see the interim consolidated financial statements of the Corporation for the first quarter ended May 31, 2018 and the related management's discussion and analysis, which are available electronically on SEDAR under Quantum's issuer profile at www.sedar.com. All figures are in U.S. dollars unless otherwise noted. "This quarter marks the first reporting period to capture all of our acquisitions and, as a result, we more than doubled our revenues and tripled our adjusted EBITDA." said Manu K. Sekhri, Chief Executive Officer of Quantum. He added "With the additional purchase of 9% in our operating business almost complete and other consolidation opportunities within reach, we feel optimistic about our future growth."Highlights – Quarter Ended May 31, 2018
• Generated gaming revenues of approximately $19.3 million, representing a 120% increase compared to revenues of approximately $8.8 million for the same period in the prior year.
• Generated Adjusted EBITDA of $8.0 million for Q1 2019, compared to $2.7 million for Q1 2018; representing an increase of ~200%.
• Generated positive cash flow from operations of approximately $2.7 million, compared to $0.2 million in the same period last year.
• Net loss of approximately $4.0 million for the quarter ended May 31, 2018, compared to a net loss of approximately $0.4 million for the same period in the prior year; largely attributable to non-cash and extraordinary items.
• Basic and diluted loss per share was $0.05, compared to a loss per share of $0.03 in the same period last year.
• Working capital of ~$5.1 million, compared to $1.4 million as at February 28, 2018.
• In April 2018, closed a $75 million multi-draw credit facility with Goldman Sachs Specialty Lending Group, L.P., which translates to interest savings of over $5 million per year and bolsters the growth by acquisition strategy in Georgia, U.S.
The Corporation is also pleased to announce, further to its news release of June 29, 2019, that Quantum and its wholly-owned subsidiary, Southern Star Gaming, LLC, are close to completing their previously announced acquisition of an additional 9% of the membership interest in Lucky Bucks, LLC ("Lucky Bucks") in exchange for cash consideration of $6 million (the "Additional Lucky Bucks Interest Acquisition"). As a result of the Additional Lucky Bucks Interest Acquisition, Quantum will increase its indirect ownership interest in Lucky Bucks from 51% to 60%, with a corresponding decrease in the ownership interest of Lucky Bucks Ventures, Inc. in Lucky Bucks from 49% to 40%. The cash consideration of $6 million includes a $2.35 million unsecured non-interest bearing promissory note due and payable by Quantum Gaming Corp. to Lucky Bucks Ventures, Inc. in tranches no later than December 31, 2018.
Subject to obtaining the required regulatory approvals, Quantum expects to close the Additional Lucky Bucks Interest Acquisition by the end of this week.
About Quantum International Income Corp.
The Corporation seeks opportunities to acquire and grow businesses in order to generate stable distributions for its shareholders, along with capital appreciation. The Corporation seeks to acquire operating businesses with a proven track record, an opportunity for growth and whose management wishes to continue to operate the business going forward. The Corporation’s investment approach is to grow through the acquisition of “platform” businesses that are consistent with its business strategy and acquisition criteria and then to continue to build revenues and earnings within these businesses. Potential acquisition targets may be private or public companies in a variety of industries. Acquisition of all or a majority of the ownership of each such business is preferred. Value will be created by seeking out high growth, high margin opportunities where the acquired businesses can maintain and develop the deep knowledge, expertise and understanding of their customers’ needs required to deliver superior service and command higher pricing and margins than the competition.
More information on Quantum is available at www.quantumincomecorp.com.
|For further information please contact Quantum:
Vice President, Corporate Affairs
Tel. (416) 569-3292
Tel. (416) 477-3411
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Cautionary Statement Regarding Forward-Looking Information
This release contains certain information which, as presented, constitutes “forward-looking information” within the meaning of applicable Canadian securities laws. Forward-looking information involves statements that relate to future events and often addresses expected future business and financial performance, containing words such as “expect” and “intend”, statements that an action or event “may” or “will” be taken or occur, or other similar expressions. These statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of the Corporation to control or predict, and which may cause Quantum’s actual results, performance or achievements to be materially different from those expressed or implied thereby, including, but not limited to, risks related to the inability by Quantum to complete the Acquisition, as well as other factors discussed in the Corporation’s annual information form dated July 23, 2015, (the “Annual Information Form”) which is available on SEDAR under Quantum’s profile at www.sedar.com. Forward-looking information is developed based on assumptions about such risks, uncertainties and other factors set out herein, in the Annual Information Form, and as otherwise disclosed from time to time on SEDAR under Quantum’s profile at www.sedar.com.
Unless otherwise specified in this release, information contained in this release is current as of the date of this release. Unless otherwise specified, all dollar amounts herein refer to Canadian dollars. The Corporation undertakes no obligation to update forward-looking statements except as may be required by applicable Canadian securities laws. Readers are cautioned against attributing undue certainty to forward-looking statements.