The Intertain Group Limited
TSX : IT

The Intertain Group Limited

November 20, 2014 19:00 ET

Intertain Announces Warrant Exercise by Officers and Directors and Provides Correction to 2014 Third Quarter Financial Results

TORONTO, ONTARIO--(Marketwired - Nov. 20, 2014) - The Intertain Group Limited ("Intertain" or the "Company") (TSX:IT) proudly announces today that in further support of Intertain's acquisition strategy going forward, both senior management and the members of the Board have exercised all Intertain warrants held.

The Company also provides correction to its press release titled "Intertain Group Limited Announces 2014 Third Quarter Financial Results Adjusted EBITDA up 50% Over Q2" which was distributed on November 12, 2014. Interest accretion was inadvertently added back twice to calculate adjusted EBITDA figures in the Q3 MD&A and the error, which is deemed to be immaterial, was overlooked both by management and Intertain's auditors reviewing the MD&A. There are no resulting corrections to either the financial statements or adjusted net income per share.

The table below, headed "Financial Highlights" has been revised to provide corrected amounts for the Company's "Adjusted EBITDA", "Basic adjusted EBITDA per share" and the "Diluted adjusted EBITDA per share" and such corrected amounts are underlined. In addition, the descriptive note (1) concerning Adjusted EBITDA has been revised to delete reference to "interest accretion".

The table below, headed "EBITDA Reconciliation" has been revised to (i) delete the line item for "Interest accretion" in its entirety, and (ii) provide corrected amounts for the Company's "Adjusted EBITDA" and such corrected amounts are underlined.

Financial Highlights:

Q3 F14 Q2 F14 9 months
ended
Sept 30,
2014
6 months
ended
June 30,
2014
$ $ $ $
Adjusted EBITDA (1) 6,444,375 4,242,258 12,675,946 6,231,571
Adjusted net income (2) 5,510,505 3,625,972 10,629,538 5,124,780
Basic adjusted EBITDA per share $ 0.37 $ 0.31 $ 0.81 $ 0.47
Diluted adjusted EBITDA per share $ 0.30 $ 0.29 $ 0.72 $ 0.43
Basic adjusted net income per share $ 0.31 $ 0.27 $ 0.68 $ 0.38
Diluted adjusted net income per share $ 0.26 $ 0.25 $ 0.62 $ 0.36
(1) Adjusted EBITDA, as defined by the Company means net income before financing costs (net of interest income), income taxes, amortization, stock-based compensation, loss on FX Forward, and acquisition related costs. Adjusted EBITDA is a non-IFRS measure. Reconciliation to net income is included in this release.
(2) Adjusted net income as defined by the Company means net income before interest accretion, amortization of intangible assets resulting from purchase price allocation following acquisitions, stock based compensation, loss on FX Forward. Adjusted net income is a non-IFRS measure.

EBITDA Reconciliation:

Q3 2014 Q2 2014 9 months ended
Sept 30, 2014
6 months ended
June 30, 2014
Net income (loss) for the period (11,759,397 ) (836,856 ) (13,782,964 ) (3,357,034 )
Financing costs, net 1,502,479 728,940 2,848,097 1,345,618
Taxes (65,331 ) 235,539 292,064 357,395
Stock-based compensation 288,973 291,360 862,635 573,663
Amortization 9,023,040 1,064,776 10,643,908 1,620,067
EBITDA (1,010,236 ) 1,483,759 863,740 539,709
Loss on FX forward 891,031 1,334,268 891,031 1,334,268
Acquisition related costs 6,563,580 1,424,231 10,921,175 4,357,594
Adjusted EBITDA 6,444,375 4,242,258 12,675,946 6,231,571

About The Intertain Group Limited

Intertain is an online gaming company that provides entertainment to a global consumer base. Intertain currently offers casino, bingo and poker games to its customers using the InterCasino, InterPoker, Costa and other brands. The InterCasino and InterPoker gaming platform is supplied by Amaya Gaming Group Inc. and its bingo offering operates off of the Dragonfish platform, a leading bingo software service provided by 888 Holdings plc.

Disclaimer in Regards to Forward-Looking Statements

Certain statements included herein, including those that express management's expectations or estimates of our future performance constitute "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to put undue reliance on forward-looking statements. Except as required by law, the Company does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events. Additional information identifying risks and uncertainties is contained in Intertain's filings with the Canadian securities regulators, available at www.sedar.com.

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