SOURCE: Gaming Nation Inc.

Gaming Nation Inc.

August 23, 2016 16:05 ET

Gaming Nation Inc. Announces Q2 2016 Financial Results: Strong Growth in 50/50 and Sports Intelligence

TORONTO, ON--(Marketwired - August 23, 2016) - Gaming Nation Inc. (TSX VENTURE: FAN) ("Gaming Nation" or the "Company") today announced its financial and operational results for the second quarter ending June 30, 2016. Consolidated financial statements and Management Discussion & Analysis for the quarter ending June 30, 2016 can be found on SEDAR (www.sedar.com). All amounts are reported in Canadian dollars unless otherwise noted.

Gaming Nation is pleased to report that through its subsidiary 5050 Central they have reached agreements with 24 new 5050 Central clients, including the NBA's Golden State Warriors, MLB's San Francisco Giants and Los Angeles Dodgers as well as the NCAA's University of Oregon. Gaming Nation was also successful in resigning the Bridgestone Invitational PGA Tour event and the Saskatchewan Roughriders. In addition, efforts to further penetrate the NCAA market were bolstered during Q2 with the announcement of an exclusive agreement with JMI Sports to spearhead the growth of 5050 Central's platform within the U.S. college sports market.

Fantasy Guru and Pick Nation have also demonstrated strong growth, despite the "off-season" nature of both the businesses. The Company recently completed substantially all of its technology upgrades for both Fantasy Guru and Pick Nation subscribers including a complete redesign of its web platforms and rebuilding of its content management system, providing responsive design suitable for all devices. Fantasy Guru also recently announced the extension of its existing business with the launch of DFS Guru Elite, providing subscription based content and analytic data for daily fantasy sports participants in all major daily fantasy sports segments.

"We are very proud of the progress that we have made with Gaming Nation during the past quarter. Q2 marks another quarter dedicated to working towards key milestones to increase revenues and profitability in each business segment," says CEO Scott Secord.

The Q2/2016 operating results ending June 30, 2016 of Gaming Nation include operations from the following reportable segments: electronic 50/50 draws platform through 5050 Central Ltd and 5050 Central Delaware Inc. (collectively "5050 Central"), fantasy sports platform through Fantasy Feud Inc. ("Fantasy Feud") and sports Intelligence Information though Guru Fantasy Reports, Inc. ("Fantasy Guru") and Stevo Design, Inc. ("Pick Nation").

Q2 2016 Financial Summary

  • Consolidated revenue was $2.47 million for the quarter and $4.96 million on a YTD basis.
  • Adjusted EBITDA was $(0.34) million for the quarter and $(0.44) million on a YTD basis.
  • Net loss was $(2.26) million for the quarter and $(4.17) million on a YTD basis.
  • Working capital as of June 30, 2016 was $10.4 million.
  • 5050 raffle pot sizes increase to $23.7 million in the quarter and $44.9 Million on a YTD basis.

Financial Position as of June 30, 2016

  • Cash of $10.4m
  • Total assets of $70.0m
  • Total liabilities of $8.5m
  • Total stockholders' equity of $61.6m

Conference Call Details

Gaming Nation will host an analyst/shareholder conference call on Wednesday, August 24, 2016 at 8:00 a.m. ET to discuss its financial and operational results of Q2 2016. Scott Secord, CEO, and Blair McGibbon, CFO, will chair the call.

To access the conference call dial (416)-340-2217 or (888)-789-9572 using the passcode 8383267. Please connect approximately 15 minutes prior to the beginning of the call to ensure participation. A question and answer session for analysts will follow management's presentation.

About Gaming Nation Inc.

Gaming Nation Inc. (TSX VENTURE: FAN) provides technology and information platforms to the sports and entertainment industry. The Company's platforms include 5050 Central, an electronic real-time raffle system, daily fantasy games through Fantasy Feud and sports information websites Fantasy Guru and Pick Nation.

For more information visit, www.gamingnationinc.com

Forward-Looking Statements

This news release contains certain forward-looking statements that reflect current views with respect to future events such as Gaming Nation outlook for future performance. Any such statements are subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from those projected in those forward-looking statements. Forward-looking statements involve risks and uncertainties and undue reliance should not be placed on such statements. Certain material factors or assumptions are implied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements.

Factors that could cause actual results or events to differ materially from current expectations, among other things, include risks related to market factors, and other factors discussed in materials filed with applicable securities regulatory authorities, including without limitation, matters discussed under Risk Factors and Uncertainties in the Company's Management's Discussion and Analysis for period ending June 30, 2016, available on www.sedar.com or that may be filed from time to time in the future. The forward-looking statements contained herein reflect Gaming Nation's current views with respect to future events, and except as required by law, Gaming Nation does not intend and undertakes no obligation to update any forward-looking statement to reflect, in particular, new information or future events or otherwise.

This release contains some measures that do not conform to IFRS, including Adjusted EBITDA. These measures are defined in the Gaming Nation Inc. Management Discussion & Analysis for Q2 2016 earnings results. These financial measures are used by many investors to compare companies, and Management believes that they are important measures in evaluating Gaming Nation. However, they are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS. Therefore, it may not be comparable to similar measures presented by other issuers. Investors are cautioned that such measures should not be construed as alternatives to comparable IFRS measures determined in accordance with IFRS.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Contact Information:
    Scott Secord
    CEO
    416-479-3873

    Joann Head
    Director of Investor Relations
    647-962-9600