Multimedia Games Holding Company (MGAM), a developer and distributes gaming technology, has reported a 9.67 percent decline in profit for the quarter ended Jun. 30, 2014. The company earned $7.63 million or $0.25 a share in the third-quarter compared with $8.45 million or $0.28 a share a year ago. Adjusted earnings per share came in at $0.26, when analysts expected $0.31.
Revenue during the third-quarter grew 4.50 percent to $50.27 million from $48.10 million in the last year period.
The company posted operating income of $12.52 million, compared with $13.98 million in the previous year period.
''Our 2014 fiscal third quarter financial results are in-line with our previously stated expectations and highlight the company's ability to introduce differentiated games that are helping us to further grow our presence on casino slot floors despite the challenging North American gaming environment,'' said Patrick Ramsey, chief executive officer of Multimedia Games.
The company expects to generate revenue of $217.0 to $223.0 million for the full year. It expects to generate EBITDA, a non-GAAP financial measure, of $110.0-$114.5 million.
Cash Flow
Multimedia Games Holding Company has generated cash of $68.21 million from operating activities during the nine month period, up 13.23 percent or $7.97 million when compared with the last year period. The company has generated 40.70 cents of operating cash flow in every sales dollar for the nine month period, down from 43.35 cents in the same period last year.
The company has spent $33.34 million cash to meet investing activities during the nine month period, as against cash outgo of $44.07 million in the last year period. It has made net capital expenditure of $35.32 million during the nine month period, which was lower by 18.29 percent or $7.91 million, from a year ago.
The company's free cash flow accounted for 48.22 percent of operating cash flow for the nine month period, compared with 28.24 percent in the last year period.
The company has spent $8.20 million from financing activities during the nine month period, as against cash inflow of $2.56 million in the last year period. It has made net repayment of $2.78 million debt during the nine month period. It has spent net of $10.95 million on repurchase of common stocks.
As on Jun. 30, 2014, the company's cash balance stood at $129.31 million, up 39.82 percent or $36.83 million from Jun. 30, 2013.
Working Capital
Multimedia Games Holding Company has witnessed an increase in the working capital over the last one year. The company's working capital stood at $153.91 million as at Jun. 30, 2014, up $53.47 million or 53.24 percent from $100.44 million on Jun. 30, 2013. It registered an increase in current ratio to 6.02 as at Jun. 30, 2014 from 3.51 on Jun. 30, 2013.
Debt Position
Multimedia Games Holding Company has witnessed a decline in the total debt over the last one year. As on Jun. 30, 2014, total debt stood at $26.82 million, down 12.12 percent or $3.70 million, from Jun. 30, 2013. The company's total debt was 8.84 percent of total assets as on Jun. 30, 2014, compared with 11.65 percent on Jun. 30, 2013.
Interest coverage ratio, which determines how easily a company can pay interest expenses on outstanding debt, has improved to 56.15 from 50.45 in the same period last year.
Shares of the company declined $1.88 or 6.33 percent to settle at $27.81 on Tuesday.
