Global Cash Access Holdings Inc., a Las Vegas-based provider of various cash access products for the gaming industry, has announced its financial results for the fourth quarter of 2014.
As previously reported, GCA finalized the deal for the acquisition of gaming manufacturer and distributor Multimedia Games Holding Co. Inc. for the sum of $1.12 billion back on December 19, 2014.
Yesterday, Ram V. Chary, president and CEO of GCA, shared with media that their purchase has complemented the company’s product offering in an excellent manner. Thus, GCA is able to provide its customers with an even wider selection of solutions that would help them increase their profits.
The parent company pointed in its financial statement that all results for Q4 2014 include the revenues generated by Multimedia Games during the 13 days of its operations.
Revenue for the three-month period ended December 31, 2014 amounted to $152.1 million, an 8% increase as compared to the sum of $140.5 million that was posted in Q4 2013. Multimedia Games contributed a total of $7.4 million to the overall turnover.
Adjusted EBITDA increased 40% to reach $24 million for the last three months of 2014. By comparison, the amount of $17.1 million was reported for the same period of 2013. The rise was partially attributed to the $4 million generated by Multimedia Games.
Operating income totaled $400,000, as compared to $11.2 million posted in Q4 2013.
Net loss was $0.09 per diluted share. By comparison, diluted earnings per share amounted to $0.08 back in the three-month period ended December 31, 2014.
Randy Taylor, executive vice president and chief financial officer of GCA, said that since the acquisition of Multimedia Games, the company has been focused on incorporating its subsidiary’s operations into its own. He also explained that GCA managed to eliminate about $11 million from their entire cost structure.
Mr. Taylor added that the company will keep on deploying cash, so as to be able to reduce leverage. He is optimistic that GCA will manage to reach its target of $24 million in cost synergies by the end of fiscal year 2015.
The company also predicted that this year, its EBITDA might reach between $218 million and $228 million. The assumptions were based on a single-digit increase in Payments business revenue, a double-digit increase in Games business revenue, double-digit rise in cost for research and development activities, related to the Games business, etc.
