TORONTO, ONTARIO–(Marketwired – May 15, 2014) – The Intertain Group Limited (“Intertain” or the “Company”) (TSX:IT) today announced its financial results for the three months ended March 31, 2014. All amounts are stated in Canadian dollars unless otherwise noted.
|For the three months ended March 31:||2014||2013|
|Adjusted EBITDA (1)||(936,298||)||–|
|Adjusted Earnings (2)||1,997,031||–|
|Basic and diluted Adjusted Earnings per share||0.15||–|
|(1)||Adjusted EBITDA, as defined by the Company means earnings before interest and financing costs (net of interest income), income taxes, amortization, and stock-based compensation. Adjusted EBITDA is a non-IFRS measure.|
|(2)||Adjusted Earnings as defined by the Company means EBITDA, as defined above, adjusted for acquisition related costs. Adjusted Earnings is a non-IFRS measure.|
On February 11, 2014, the Company (formerly Aumento Capital II Corporation) completed its acquisition of Goldstar Acquistionco Inc. (“Goldstar”) through an amalgamation (the “Amalgamation”) between Goldstar and 2399274 Ontario Inc., a wholly-owned subsidiary of the Company, to form an amalgamated company named “Intertain Holdings Inc.”, which became a wholly-owned subsidiary of the Company. The Amalgamation constituted the Company’s Qualifying Transaction (as such term is defined in the policies of the TSX Venture Exchange (the “TSXV”)). The TSXV approved the Qualifying Transaction of the Company and the Toronto Stock Exchange (“TSX”) approved the listing of the common shares of the Company, which commenced trading on the TSX under the symbol “IT” on February 18, 2014, at which time the Company’s common shares were delisted from the TSXV.
Prior to closing of the Qualifying Transaction, Goldstar completed a private placement of 11,625,000 unit subscription receipts and 17,500 convertible debenture subscription receipts for net proceeds of approximately $61 million.
On February 11, 2014, contemporaneous with completion of the Amalgamation, Goldstar acquired all of the issued and outstanding common shares of WagerLogic Malta Holding Ltd, the parent Company of CryptoLogic Operations Limited (“CryptoLogic”) which operates an online casino under the brand “InterCasino”, from a subsidiary of Amaya Gaming Group Inc. (“Amaya”). Goldstar completed the transaction at a purchase price of $70 million, less working capital adjustments, which consisted of a cash payment of $60 million and the issuance of a $10 million vendor take-back in the form of a promissory note.
“The results to date are in line with expectations given our recent acquisition of InterCasino and the initial stages of our growth strategy. In the months ahead we look forward to taking the next steps on our roadmap for long term growth and profitability,” said Stan Dunford, Chairman of Intertain.
“We are currently executing on our deliverables in order to position the “Inter” brands for long term shareholder value. I am happy that our going public transaction is behind us and we can focus now on the execution of our strategy,” said John FitzGerald, CEO of Intertain.
Q1 2014 EBITDA and Adjusted Earnings Reconciliation:
|Net loss and comprehensive income for the period||(1,962,008||)||–|
|Income tax expense||121,856||–|
|Finance costs, net of interest income||616,678||–|
|Acquisition related costs||2,933,329||–|
2014 First Quarter Financial Statements and Management’s Discussion and Analysis
The financial statements, notes to the financial statements and Management’s Discussion and Analysis for the three month period ended March 31, 2014, will be available on the SEDAR website at www.sedar.com.
About The Intertain Group Limited
Intertain is focused on the acquisition of online gaming entertainment and its current operations consist entirely of its ownership of InterCasino, an online casino owned and operated by CryptoLogic, a Maltase based Company and wholly owned subsidiary of Intertain.
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 The Intertain Group Limited’s filings with the Canadian securities regulators, available at www.sedar.com.