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In an August 13 release, Elixir reported that highlights of the report include:
- Consolidated adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, and non-cash charges) was $1.5 million for the second quarter of 2009.
- Average win per unit per day (WUD) for the second quarter 2009 was $95, an increase of 53 percent on a quarterly sequential basis. Average WUD for the Philippines and Cambodia was $58 and $197, respectively, up 2 percent and 156 percent on a quarterly sequential basis.
- Total net revenue from machines on participation for the second quarter 2009 was $1.7 million, an increase of 184 percent on a quarterly sequential basis reflecting at Premier Club at NagaWorld, a full quarter contribution from the Company's operations at Premier Club, and steady WUD improvements from our Philippines operations.
- Consolidated revenue for the second quarter of 2009 included $3.0 million from an RFID gaming chip order to the new City of Dreams casino in Macau.
- Continued progress on initiatives to reduce recurring operating costs with second quarter 2009 cash SG&A expense down 30 percent from the prior quarter and 55 percent from the year-ago period.
- Settlement of two legacy legal suits, which resulted in a total gain of $2.4 million in the second quarter of 2009.
- $9.5 million in cash as of June 30.
- As of August 11, total installed units in operation were 1,216 in eight venues, comprised of seven venues in the Philippines with a total of 976 installed units (includes 135 machines in one venue still in a soft open phase) and one venue in Cambodia with a total of 240 installed units.
- In July, amended note terms with Elixir International (ELI) to defer principal and interest payments until July 2010 providing immediate cash flow benefits to Elixir Gaming and improved financial flexibility.
Clarence Chung, Chairman and CEO of Elixir Gaming, said, "Elixir Gaming has successfully restructured its operations and streamlined its cost structure. The results are beginning to be reflected in our financial performance with the achievement of record quarterly results for both consolidated and core gaming machine participation revenue and consolidated adjusted EBITDA since our new business model was first effected in September 2007. With solid momentum in our core gaming participation operations, the successful refocusing of our operations and execution of our cost reduction initiatives, and greatly improved financial flexibility due to the recently announced forbearance terms of our note due to ELI, Elixir Gaming is better positioned to capitalize on selected expansion opportunities, realize the benefits from the inherent leverage in our business model, and grow shareholder value."
Consolidated average WUD for the second quarter 2009 was $95, up 53 percent from the first quarter 2009 and up 228 percent from the prior-year period. The improvement was primarily driven by performance at the Premier Club at NagaWorld in Cambodia as well as steady gains in average WUD in the Philippines operations.
Average WUD for the quarter for Premier Club at NagaWorld, the Company's sole venue in operation in Cambodia, was $197, up 156 percent from $77 in the first quarter of 2009. Since the company's initial machine placements at Premier Club at the end of January 2009, Elixir Gaming has experienced aggressive growth in average WUD. In May, June, and third quarter to date, the company has achieved average WUD in excess of $200 on a stable average operating machine base of 240 units.
In the Philippines, Elixir Gaming continued to generate modest improvements in average WUD during the second quarter 2009. Average WUD increased to $58, up 2 percent from $57 in the first quarter 2009 and up 61 percent from $36 in the prior-year period. The tempered quarterly sequential growth rate reflects normal seasonal weakness in the summer months. Seasonality along with severe rainstorms in the metro Manila area in the Philippines in recent weeks have resulted in some softness to the Company's WUD in the first half of the third quarter of 2009. Further, given the recent and upcoming planned growth in the installed machine base, which is primarily focused on the opening of new venues, and the typical WUD ramp-up period associated with new venues, these new installations may have a near-term negative impact on the average WUD as their operations scale up.
Elixir Gaming said its second quarter 2009 total revenues were $5.8 million compared to $1.8 million in the first quarter of 2009 and $3.3 million for the second quarter of 2008. The second quarter of 2009 revenue included a $3.0 million RFID gaming chip order to the new City of Dreams casino in Macau. Revenue from gaming machines on participation was $1.7 million in the second quarter of 2009 compared to revenue of $0.9 million in the first quarter of 2009 and $0.8 million in the second quarter of 2008. Revenue from gaming machines on participation was impacted in the quarter by the WUD growth at Premier Club at NagaWorld, a full quarter of contribution from the Company's operations at Premier Club at NagaWorld, and steady improvement in average WUD at the Company's Philippine venues.
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