Mr. James Kim reports

POYDRAS GAMING FINANCE CORP. ANNOUNCES 2015 FOURTH QUARTER AND FULL-YEAR FINANCIAL RESULTS

Poydras Gaming Finance Corp. has released financial results for the fourth quarter and full year ended Dec. 31, 2015 (all amounts are stated in U.S. dollars unless otherwise indicated).

Financial highlights:

• Achieves record revenue and adjusted earnings before interest, taxes, depreciation and amortization with strong quarter-over-quarter and year-over-year growth;
• Company on track to achieve 2016 adjusted EBITDA target of $10.0-million;
• Installed base grows more than 700 per cent over the prior-year period, postsuccessful integration.

Fourth quarter 2015 highlights and financial results:

• Revenue grew to $3,525,411, representing an increase of 15 per cent from $3,067,616 in third quarter 2015 and an increase of 547 per cent compared with $545,098 in fourth quarter 2014;
• Adjusted EBITDA of $2,080,520, a 32.5-per-cent increase from $1,570,625 in third quarter 2014 and compared with an adjusted EBITDA loss of $164,739 in fourth quarter 2014;
• Net loss of $981,101 compared with a net income of $1,103,411 in third quarter 2015 and a net loss of $1,394,003 in fourth quarter 2014;
• On Dec. 9, 2015, Poydras closed a $3.5-million loan financing with PDS Gaming Corp. to increase working capital and finance additional growth;
• Revenue- and interest-generating machines in operation at quarter-end were approximately 2,428, compared with 2,300 at the end of third quarter 2015.

Full-year 2015 highlights and financial results:

• A 400-per-cent growth in revenue to $8,159,580 in 2015 compared with $1,631,014 in 2014;
• Adjusted EBITDA of $3,562,736, the company's first year of positive adjusted EBITDA;
• Net loss of $2,912,195 compared with a net loss of $12,096,526 in 2014;
• On Feb. 25, 2015, the company entered into a long-term gaming machine placement agreement with the Tonkawa Tribe of Indians of Oklahoma to provide 600 Class 3 gaming machines under a six-year and 11-month contract;
• On July 20, 2015, the company completed the acquisition of a 100-per-cent equity interest in the Integrity companies, a leading provider of slot machines to Native American-owned casinos in Oklahoma and Texas; Integrity companies have approximately 1,600 machines under participation leases with 22 casinos;
• Completed a total of $9,769,098 in equity financings in 2015; funds from financing were used to finance the company's machine placement with the Tonkawa Tribe of Oklahoma and acquisition of the Integrity companies, as well as for general working capital purposes;
• Subsequent to Dec. 31, 2015, the board of directors approved a one-for-10 share capital consolidation, which is expected to take place on May 2, 2016.

"Two thousand fifteen was our first full year as a public company and was significantly transformational: We closed on the acquisition of the Integrity companies, added a 600-machine placement with the Tonkawa Tribe of Indians of Oklahoma and grew our overall machine deployments to approximately 2,400 from 287 at the end of 2014," said Peter Macy, chief executive officer of Poydras Gaming. "Our strong growth trajectory built in the last two quarters of the year will continue into 2016, as our results for the first quarter and onwards will fully reflect the 150 machines placed with the Cheyenne & Arapaho tribes of Oklahoma at their new Lucky Star Hammon facility. We are expecting FY 16 adjusted EBITDA to approach $10.0-million from our existing machine deployments, with further upside potential as we place additional machines."

Fourth quarter and full-year 2015 financial results

The increase in revenue was mainly due to generating leasing revenue from an average of 1,330 gaming machines in 2015 as compared with an average of 212 gaming machines in 2014. The increase in the number of machines is mainly due to the acquisition of Integrity companies on July 20, 2015, with its interest in approximately 1,600 revenue-generating machines. The company also generated revenues from bingo sales of $1,300,829 (2014: nil).

For the 12 months ended Dec. 31, 2015, the company's revenue increased to $8,159,580, representing growth of 400 per cent compared with 2014. For the fourth quarter of 2015, revenue grew to $3,525,411, representing an increase of 15 per cent from $3,067,616 in third quarter 2015 and 547 per cent compared with $545,098 in fourth quarter 2014.

The company's leasing revenue grew to $6,858,751 in 2015, a 321-per-cent increase over 2014. For the fourth quarter of 2015, leasing revenue was $2,751,650, a 405-per-cent increase over $545,098 in fourth quarter 2014. Additional revenue was received from bingo sales of $773,761 in fourth quarter 2015, compared with nil in fourth quarter 2014.

The company's adjusted EBITDA was $3,562,736 in 2015, the company's first year of positive adjusted EBITDA. For the fourth quarter of 2015, adjusted EBITDA was $2,080,520, compared with a loss of $164,739 in fourth quarter 2014. The increase in adjusted EBITDA is the result of the increase of revenue generated as a result of the acquisition of Integrity companies, increased revenue from additional machines placed at Tonkawa Casinos and new revenue generated from bingo sales, offset by legal, audit and consulting fees incurred in connection with the acquisition of the Integrity companies.

The fourth quarter of 2015 and full-year 2015 results include the consolidated accounts of PGFC, Platform 9 Corp., Poydras Gaming LLC, Windy Hill Capital LLC and Poydras Street Finance II LLC for the full quarter and year. The accounts of U.S. subsidiaries Aurora Gaming, Integrity Gaming and Kansas are consolidated from their date of acquisition on July 20, 2015.

Machine deployments

Since the completion of its reverse takeover transaction on May 9, 2014, Poydras has increased the number of its revenue- and interest-generating gaming machines from 217 to approximately 2,428 as at Dec. 31, 2015.

Conference call

The company will hold a conference call to discuss the results for its fourth quarter and year ended Dec. 31, 2015. The call will be hosted by Mr. Macy, chief executive officer, and Adam Kniec, chief financial officer, on May 2, 2016, at 11 a.m. PDT (2 p.m. EDT), and followed by a question-and-answer period. All interested parties are invited to participate.

Conference call details:

Date:  May 2, 2016

Time:  11 a.m. Pacific Time/2 p.m. Eastern Time

Dial-in numbers:

North America toll-free dial-in number:  1-888-231-8191

For Toronto:  647-427-7450

For Vancouver:  778-371-9827

Conference ID:  96015627

Taped replay:  1-855-859-2056, available until 12 a.m. EDT on May 9, 2016

Reference No.:  96015627

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