WELLS-GARDNER REPORTS FIRST QUARTER EARNINGS IMPROVED BY OVER $440,000
Sales Increased by 14.2 Percent
Chicago, Illinois, May 2, 2012---- Wells-Gardner Electronics Corporation (NYSE Amex: WGA) announced net sales in the first quarter ending March 31, 2012 were $12.3 million, an increase of 14.2 percent from $10.8 million in the first quarter 2011. The Company reported net earnings for the first quarter 2012 of $202,000 or $0.02 per share compared to a net loss of $(240,000) or $(0.02) per share for the same period in 2011. The first quarter 2012 results included non-recurring charges of $139,000 of operating expenses related to the Illinois Video Gaming business, which is not expected to generate revenue before the third quarter 2012. The first quarter 2011 results included non-recurring charges of $342,000 made up of $200,000 for two litigation cases and $142,000 of operating expenses related to the Illinois Video Gaming business.
"We are optimistic that revenue improvement throughout the gaming sector reflects an improvement in the global gaming environment," said Anthony Spier, Wells-Gardner's Chairman and Chief Executive Officer. "Gross margins were flat at 17.7 percent while operating expenses declined by $178,000 due primarily to a reduction in litigation expenses."
"The balance sheet continues to be a strategic strength with a decline of over $800,000 in debt to $540,000 at March 31, 2012 compared to $1.4 million at March 31, 2011. We are continuing tight fiscal controls and the Company's debt equity ratio is now 3 percent."
We are projecting sales in fiscal 2012 of between $60 million and $70 million based on our prediction that the Illinois Video Gaming business will begin in the third quarter 2012. This compares to sales of $42.9 million in fiscal 2011. The Illinois Gaming Board and the central server provider Scientific Games Corporation have jointly announced that they expect the first installations in early August 2012. In addition the Company is developing several new proprietary products that we expect will contribute to improved sales and margins in 2012. We will continue to aggressively control costs and inventory levels.
Founded in 1925, Wells-Gardner Electronics Corporation is a distributor and manufacturer of color video monitors and other related distribution products for a variety of markets including, but not limited to, gaming machine manufacturers, casinos, coin-operated video game manufacturers and other display integrators. The Company has most of its LCDs manufactured in Mainland China. In addition, the Company's American Gaming & Electronics, Inc. subsidiary ("AGE"), a leading parts distributor to the gaming markets, sells parts and services to over 700 casinos in North America with offices in Nevada, New Jersey, Florida and Illinois. AGE is also a licensed distributor of video gaming terminals in Illinois.
This press release contains forward-looking statements within the meaning of the federal securities laws. Those statements include statements regarding the intent, belief or expectations of the Company and its management. Readers are cautioned that the forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, and that actual results could differ materially from those expressed in any forward-looking statement. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, but are not limited to, development of competing technologies, availability of adequate credit, interruption or loss of supply from key suppliers, increased competition, the regulatory process and regulatory and legislative changes affecting the gaming industry. Wells-Gardner assumes no obligation to update the information contained in this release to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events. For additional investor information, please contact Jim Brace - Wells Gardner at (708) 290-2120 or Alan Woinski - Gaming USA Corporation at (201) 599-8484.
| WELLS-GARDNER ELECTRONICS CORPORATION |
| Condensed Consolidated Statements of Earnings (unaudited) |
| Three Months Ended March 31, 2012 and 2011 |
| || |
| || Three Months Ended March 31, |
| || 2012 || || 2011 |
| Net sales || $ 12,343,000 || || $ 10,807,000 |
| Cost of sales || 10,158,000 || || 8,890,000 |
| Gross margin || 2,185,000 || || 1,917,000 |
| Engineering, selling & administrative expenses || 1,951,000 || || 2,129,000 |
| Operating Earnings || 234,000 || || (212,000) |
| Interest expense || 30,000 || || 29,000 |
| Other expense, net || - || || - |
| Income Tax expense || 2,000 || || (1,000) |
| Net Earnings || $ 202,000 || || $ (240,000) |
| || || || |
| Earnings per share: || || || |
| Basic earnings per share || $ 0.02 || || $ (0.02) |
| Diluted earnings per share || $ 0.02 || || $ (0.02) |
| || || || |
| Basic average common shares outstanding || 11,625,314 || || 11,562,715 |
| Diluted average common shares outstanding || 11,629,916 || || 11,571,434 |
| || || || |
WELLS-GARDNER ELECTRONICS TO REPORT FIRST QUARTER 2012 RESULTS AND HOST CONFERENCE CALL AND WEBCAST
Chicago, Illinois, April 27, 2012 - Wells-Gardner Electronics Corporation (NYSE Amex: WGA) announced today that it will release its first quarter 2012 financial results on Wednesday, May 2, 2012 just before the market opens and will host a conference call and webcast at 11:00 AM Eastern Time on Wednesday, May 2, 2012. Both the call and webcast are open to the general public.
The conference call domestic dial in number is 866-804-6925 and the pass code is 64215360. Questions will be taken only from participants on the conference call. The teleconference will be webcast by Thomson/CCBN on the Company's website at www.wellsgardner.com under the investor relations section. The conference call will be available via replay for 30 days beginning late Wednesday, May 2, 2012. The replay call in number is 888-286-8010 and the pass code is 89759504.
Founded in 1925, Wells-Gardner Electronics Corporation is a distributor and manufacturer of color video monitors and other related distribution products for a variety of markets including, but not limited to, gaming machine manufacturers, casinos, coin-operated video game manufacturers and other display integrators. The Company has most of its LCDs monitors manufactured in Mainland China. In addition, the Company's American Gaming & Electronics, Inc. subsidiary ("AGE"), a leading parts distributor to the gaming markets, sells parts and services to over 700 casinos in North America with offices in Nevada, New Jersey, Florida and Illinois. AGE is planning to enter the Illinois Video Lottery market as a distributor.