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Microcap & Penny Stocks : TNA.V - Evergreen Gaming Corporation (Casino & Restaurant)

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From: JRod774/30/2017 6:52:19 PM
   of 19
 



TNA.V Year End Results (Audited)

Price: $0.135
Common Shares: 124,716,865
Insider/Institutional Holdings: 95,967,855 or 77.51% (Shown in the October 2016 Information Circular on Sedar). All information below can be found on www.sedar.com

Financials(USD)

ASSETS
Cash: $3,649,516
Property, Plant & Equipment: $10,735,045
Goodwill: $6,435,481
Trademarks: $1,185,000
Game Licenses: $68,467
Deferred Tax: $234,000
Deposits: $10,551
Inventories: $166,814
Accounts Receivable: $173,331
Tax Receivable: $425,022
Other Assets: $158,831
Cash(Restricted): $914,071
Total Assets: $23,922,129USD - Last year total assets were $19,613,905USD
Asset gain over the year - $4,308,224USD

LIABILITIES
Deferred Tax: $348,000
Notes Payable: $6,872,471
Notes Payable(related parties): $874,868
Other Payables: $3,202,279
Note Payable(current): $377,893
Note Payable Related Parties(current): $162,867
Total Liabilities: $11,838,378 - Last year total liabilities were $9,439,562
Liability gain over the year - $2,398,816

Growth over 2016: $1,909,408USD

Year End Date -“ Sales - Net Income
2014 - $30,555,757 - $2,720,669 - $0.02c EPS - Not converted into CAD yet
2015 - $33,338,543 - $3,933,883 - $0.03c EPS - Not converted into CAD yet
2016 - $33,326,624 - $1,909,408 - $0.015c EPS - Not converted into CAD yet
Total net income added over 3 years: $8,563,960 or $0.07c cash - Not converted into CAD yet
- Revenue maintained year over year, but due to some corporate structural changes, net income was lower.

Q1 2017 results will be out end of May 2017.

MD&A Highlights

The Company recorded year to date net revenues of $33,326,624 compared to $33,338,543 for the year 2015. Year to date income from operations was $3,229,778, down from $4,316,691 in 2015. Additional marketing costs of more than $500,000 were incurred due to increased cash giveaway events and other promotional programs. Higher labor costs were incurred as a result of game protection and customer service initiatives that have been designed to counter decreases in the table game drop. In addition, 2016 was the first year in which the Affordable Care Act required the company to spend an additional $175,000 on health care premiums for employees. The company did save almost $400,000 by amending the Michels management agreement, in which the Company hired Michels management personnel in return for deeply cutting the management fees payable to Michels.




Working capital at December 31, 2016 was $1,744,546 compared to working capital of $1,769,385 at December 31, 2015. With sustained healthy revenues and ongoing game protection and expense controls, management expects continued profitable operations sufficient to exceed the cash demands necessary for the company to meet its future obligations.




The Company's assets at December 31, 2016 totaled $23,922,129 compared to total liabilities of $11,838,378. At December 31, 2015, total assets were $19,613,905 compared to total liabilities of $9,439,562. These changes reflect the $4.5 million Lakewood property acquisition.




Casino revenues for the quarter ended December 31, 2016 were $8,096,128, a decrease of $323,523 compared to the same period in the prior year. Gaming dollars dropped were 5% lower than the same period last year in spite of a 26% increase in Baccarat dollars dropped at Riverside Casino, which had another excellent quarter with revenues 14% over the same quarter 2015. Fourth quarter income from operations at the Riverside was $374,861 compared to $359,478 in 2015.  Offsetting that was Chips Casino Lakewood, where revenue was down 27% from the previous year, as their Baccarat hold percentage was half of what its target rate is and gaming dollars dropped decreased 29%. The decrease in Baccarat hold percentage is the result of the Company having to match competitors in the area who were increasing their giveaway and match play promotions.




During the fourth quarter Chips Casino recorded a loss from operations of $129,406, which was still far below the positive earnings of $170,002 recorded the same quarter a year ago. Â The Palace Casino Lakewood had an excellent hold percentage of 24% which was three points above the fourth quarter 2015, but due to a 14.5% decrease in gaming dollars dropped at the tables, revenues were flat over same quarter last year. In spite of that, and due to careful labor cost controls, The Palace shows an operating profit of $147,017 in the fourth quarter compared to $120,566 the prior year. Goldies Casino also had positive income from operations despite a revenue deficit of $314,377 compared to last year, due largely to an almost 9% decrease in the gaming drop. The Palace Casino Tukwila opened full gaming operations in mid-June, but its transition to a full service casino has not produced the hoped for results. Marketing strategies were revised through the fourth quarter, focusing on table game promotions and food and beverage offerings, which were intended to drive business specifically to that casino. Labor costs there were high in order to fully staff the casino. With the Riverside and two competing casinos across the street and next door, the Company was hoping to capitalize on the gaming customer hub in Tukwila and produce a monthly profit by the end of the year, but it did not.



The Company recorded year to date net revenues of $33,326,624 compared to $33,338,543 for the year 2015. Year to date income from operations was $3,229,778, down from $4,316,691 in 2015. Additional marketing costs of more than $500,000 were incurred due to increased cash giveaway events and other promotional programs. Higher labor costs were incurred as a result of game protection and customer service initiatives that have been designed to counter decreases in the table game drop. In addition, 2016 was the first year in which the Affordable Care Act required the company to spend an additional $175,000 on health care premiums for employees. The company did save almost $400,000 by amending the Michels management agreement, in which the Company hired Michels management personnel in return for deeply cutting the management fees payable to Michels.




The Company continues to have access to the $1.2 million line of credit available to Tacoma Casino LLC, and Pete's Flying Aces, Inc. from the vendor of the companies, Michels Development. As of April 28, 2017 this balance is $0.




The Palace Tukwila initially started business in November 2014 as a poker only cardroom. The Company changed business plans for this property in June 2016 and upon receiving its full house bank gaming license, replaced poker with table games and thereafter operated as a full casino. The Company invested approximately $875,000 in the second half of 2016 with the expectation that there was still room for another cardroom in Tukwila. On February 4, 2017, however, the Company closed the doors, determining that the market niche that had been identified for this cardroom could not be realized.




As a result of the closing of the Palace Tukwila, the Company has offered the property located at 14027 Interurban Ave S. in Tukwila, WA for sale or lease.

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