|TNA.V Earns $630K In Q3, $2 Million Over 9 Months. DD Below:|
Evergreen Gaming Corporation Q3 Results (Ending September 30th 2017)
All Information Can Be Found On SEDAR – www.sedar.com
Previous Closing Price: $0.14
Common Shares: 124,716,865
Insider/Institutional Holdings: 95,967,855 or 77.51%
Retail Shares Available: 28,749,010 or 22.49%
Financial Results (All Numbers In USD)
Property, Plant & Equipment: $10,531,011
Game Licenses: $60,667
Accounts Receivable: $37,196
Other Assets: $224,477
Cash, restricted: $2,758,138
Total Assets: $26,871,601 USD
Deferred Tax Liabilities: $348,000
Notes Payable: $6,573,585
Other Payables: $5,460,159
Notes Payable: $393,858
Total Liabilities: $12,775,602 USD
3 Month Results USD
Net Income: $627,304
9 Month Results USD
Net Income: $2,012,248
9 Month Revenue convert into CAD and Earnings Per Share
USD-CAD-1.27 as of November 16th 2017
$2,012,248 X 1.27 = $2,555,554.90 CAD
$2,555,554.90 / 124,716,865(common shares) = $0.0205 over 9 months
14. SUBSEQUENT EVENTS
The company has entered into an agreement to sell the real property where Palace Tukwila was located for $1,950,000. The buyer has made a $50,000 earnest money deposit and the sale is supposed to close on or before November 30, 2017. The company has mortgages on the property with balances of $1,054,956 as of September 30, 2017 which would be paid in full if the sale is completed. The book value of the property being sold is $1,434,184 as of September 30, 2017.
**NOTE** - Tukwila was closed February 4th and has not generated any revenue since then. This will reduce liabilities substantially and give the company additional operating capital.
TNA.V MD&A Highlights
Overall Performance Current quarter compared to prior year
Net revenue for the quarter ended September 30, 2017 was $8,554,697, an increase of $108,190 compared to the same period in the prior year. Gaming dollars dropped were 11.3% higher than the prior year quarter but that increase was offset by a lower hold percentage of 1.8%. The income from operations was $1,042,536 compared to $971,941 in the prior year quarter. This increase was due to the increase in net revenues partially offset by an increase in operating expenses of $37,595. The labor and benefit expenses increased due to an increase in the minimum wage, but that increase would have been even higher except for the closing of Palace Tukwila on February 4, 2017.
Net income before taxes was $967,761 compared to $836,569 in the same quarter of 2016, a $131,192 increase. The increase was due to the higher income from operations and lower finance costs due to paying off outstanding indebtedness.
Working capital at September 30, 2017 was $2,778,315 compared to working capital of $1,744,546 at December 31, 2016. With sustained healthy revenues and ongoing game protection and expense controls, management expects continued profitable operations sufficient to exceed the cash demands necessary for the company to meet its future obligations.
The Company’s assets at September 30, 2017 totaled $26,871,601 compared to total liabilities of $12,775,602. At December 31, 2016, total assets were $23,922,129 compared to total liabilities of $11,838,378.
The Company’s cash at September 30, 2017 was $8,202,648, compared to $4,563,587 at December 31, 2016. These amounts include “Restricted Cash” balances of $2,758,138 and $914,071 respectively. “Restricted Cash” balances are jackpot funds held for prizes being offered at the casinos. Cash provided by operating activities for the quarter ended September 30, 2017 was $1,615,226 compared to $471,994 for the quarter ended September 30, 2016.
Additional Information Can Be Found On SEDAR
| Reply to Jimjones1972 - Msg #6032 - 10/30/2017 13:14|
Nice article from Simply Wallstreet. Looking forward to seeing TNA's Q3 results end of November and by then their $2 million Tukwila property sale (currently pending) should be completed. I am estimating that the company will earn at least $500,000 US profit. Their Q3 is always a bit slower and I am being very conservative on the earnings, especially after making over $1 million USD last quarter. Their Q1 profit $377,000 net income but that was also hurt by Tukwila still in operation at the time.
Evergreen Gaming Corporation (TSXV:TNA)
Evergreen Gaming Corporation engages in the gaming operations in the United States. Evergreen Gaming is run by CEO Dawn Mangano. With the company’s market capitalisation at CAD CA$17.95M, we can put it in the small-cap group
TNA’s shares are currently trading at -22% beneath its true level of $0.17, at a price tag of $0.14, based on my discounted cash flow model. This mismatch signals an opportunity to buy TNA shares at a discount. In addition to this, TNA’s PE ratio stands at 7.2x compared to its hotels, restaurants and leisure peer level of 19.4x, indicating that relative to its comparable company group, we can invest in TNA at a lower price. TNA is also in good financial health, with short-term assets covering liabilities in the near future as well as in the long run. It’s debt-to-equity ratio of 52% has been diminishing for the past few years demonstrating TNA’s ability to pay down its debt.