AG&E HOLDINGS INC 
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Q2 Revenue UP 9.6%; YTD Revenue UP 27.5%
YTD Net Earnings $580,000 vs. $77,000
Chicago, Illinois - August 7, 2013 --- Wells-Gardner Electronics Corporation (NYSE MKT: WGA) announced financial results today for the second quarter of 2013, ended June 30, 2013.
Highlights for the second quarter and the first six months of 2013 included:
Net sales increased 9.6 percent to $14.1 million compared to $12.8 million in the second quarter of 2012; for the six months net sales increased 27.5 percent to $32.1 million versus the comparable period last year.
Sales to the gaming industry increased 18 percent and 37 percent respectively for the second quarter of 2013 and the first half of 2012, primarily driven by the sale of VGT units in the state of Illinois.
Net income for the second quarter was $31,000, or $0.00 per diluted share, compared to a net loss of $(126,000), or $(0.01) per diluted share in the second quarter of 2012. For the six months net income was $580,000, or $0.05 per diluted share, versus net income of $77,000, or $0.01 per diluted share in the first half of 2012.
VGT backlog at June 30, 2013 was $22.0 million.
Long-term debt decreased 73 percent to $984,000 from $3.7 million at December 31, 2012.
Free cash flow generated by the Company was approximately $500,000 for the second quarter and over $2 million for the first six months of 2013.
Anthony Spier, chairman and chief executive officer of Wells-Gardner, said, "The results of the second quarter of 2013 are in line with expectations for full year revenue growth. The Illinois VGT business continues to be very steady. During the quarter we reported having received VGT orders aggregating approximately $40 million since the inception of the Illinois VGT program. The issuance of new licenses by the Illinois Gaming Board to eligible establishments throughout the state continues at a rate of approximately 600 per quarter, and we expect that rate to continue going forward."
Mr. Spier continued, "Our base business continued to be impacted in the second quarter as the ongoing delay in the replacement cycle at existing casinos and gaming establishments throughout the U.S. continues. While it is impossible to know when the replacement cycle starts up again, we do know that the need to refresh the gaming experience is vitally important to keep consumers coming back. We are well positioned to benefit when the replacement cycle takes hold."
"The financial underpinnings of the Company continue to be strong. We continue to pay down debt and operate our business from internally generated cash flow. For the quarter we generated positive cash flow of approximately $500,000 and $2.0 million for the first half of the year. In addition, inventory levels are very manageable and we continue to maintain tight fiscal controls throughout the Company. In that regard, we initiated a number of changes during the second quarter in our engineering department with an eye toward improving efficiencies. We expect to realize operating efficiencies commencing in the upcoming fourth quarter. All told, we expect to generate double-digit revenue growth for the full year and increased net earnings." Mr. Spier concluded.
Outlook
Based on its best estimates and information available at this time, management believes full year 2013 net sales will increase in a range of 21 percent to 27 percent, or between $62 million and $65 million, compared to $51.1 million in full year 2012 with a meaningful percentage increase in net earnings versus 2012.
Conference Call
The Company will host a conference call and webcast at 11:00 AM Eastern Time on Wednesday, August 7, 2013. Both the call and webcast are open to the general public.
The conference call domestic dial-in number is 877-261-8990 and the pass code is 35412331. 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 8, 2013. The replay call in number is 888-843-7419 and the pass code is 35412331.
About Wells-Gardner Electronics Corporation
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's American Gaming & Electronics, Inc. subsidiary ("AGE"), a leading parts distributor to the gaming markets, sells parts and services to more than 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. For additional investor information, please contact Jim Brace - Wells-Gardner at (708) 290-2120 or Joseph Diaz, Managing Partner, Lytham Partners, LLC, (602) 889-9660.
Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements within the meaning of the federal securities laws. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for such forward-looking statements. The words, "believe," "project," "expect," "anticipate," "estimate," "will" and other similar statements of expectation identify forward-looking statements. 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.
| WELLS-GARDNER ELECTRONICS CORPORATION | ||||||||
| Condensed Consolidated Statements of Earnings (unaudited) | ||||||||
| Three Months and Six Months Ended June 30, 2013 and 2012 | ||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||
| 2013 | 2012 | 2013 | 2012 | |||||
| Net sales | $ | 14,075,000 | $ | 12,843,000 | $ | 32,106,000 | $ | 25,186,000 |
| Cost of sales | 11,819,000 | 10,541,000 | 26,891,000 | 20,699,000 | ||||
| Gross margin | 2,256,000 | 2,302,000 | 5,215,000 | 4,487,000 | ||||
| Engineering, selling & administrative expenses | 2,214,000 | 2,380,000 | 4,587,000 | 4,331,000 | ||||
| Operating Earnings (Loss) | 42,000 | (78,000) | 628,000 | 156,000 | ||||
| Interest expense | 9,000 | 30,000 | 45,000 | 60,000 | ||||
| Other expense, net | - | (1,000) | 1,000 | (1,000) | ||||
| Income Tax expense | 2,000 | 19,000 | 2,000 | 20,000 | ||||
| Net Earnings (loss) | $ | 31,000 | $ | (126,000) | $ | 580,000 | $ | 77,000 |
| Earnings per share: | ||||||||
| Basic earnings per share | $ | 0.00 | $ | (0.01) | $ | 0.05 | $ | 0.01 |
| Diluted earnings per share | $ | 0.00 | $ | (0.01) | $ | 0.05 | $ | 0.01 |
| Basic average common shares outstanding | 11,725,944 | 11,663,898 | 11,709,446 | 11,644,501 | ||||
| Diluted average common shares outstanding | 11,728,018 | 11,666,670 | 11,711,689 | 11,648,171 | ||||
| . | ||||||||
HUG#1721569
Management to Host Conference Call and Webcast at 11:00AM Eastern Time on Wednesday, August 7, 2013
Chicago, Illinois, August 1, 2013 - Wells-Gardner Electronics Corporation (NYSE MKT: WGA) announced today that it will release its second quarter and first half 2013 financial results on Wednesday, August 7, 2013 just before the market opens and will host a conference call and webcast at 11:00 AM Eastern Time on Wednesday, August 7, 2013. Both the call and webcast are open to the general public.
The conference call domestic dial in number is 877-261-8990 and the pass code is 35412331. 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, August 7, 2013. The replay call in number is 888-843-7419 and the pass code is 35412331.
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's American Gaming & Electronics, Inc. subsidiary ("AGE"), a leading parts distributor to the gaming markets, sells parts and services to more than 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. For additional investor information, please contact Jim Brace-Wells Gardner at (708) 290-2120 or Joseph Diaz, Managing Partner, Lytham Partners, LLC, 602-889-9660.
HUG#1720707
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