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Wells-Gardner Corp.'s 2013 Revenue Is Up 13.3%; VLT Sales Soar

Posted On: 3/3/2014

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TAGS: video lottery terminal, Illinois video lottery, VLT market, Wells-Gardner Electronics Corp., Wells-Gardner 2013 financial report, amusement business, gaming industry, VGT market, video gaming terminals, Anthony Spier, American Gaming & Electronics Inc., video monitors

CHICAGO -- Wells-Gardner Electronics Corp. said its net sales for 2013 increased to $57.9 million, or 13.3%, compared with $51.1 million in 2012. Video lottery terminal sales in the fourth quarter were $6.4 million and $21.6 million for the full year, compared to $4.4 million and $6.6 million, respectively, for the fourth quarter and full year 2012.

WGE's full-year income was $651,000, or $0.06 per diluted share, compared with net income of $164,000, or $0.01 per diluted share, in 2012; an increase of 397%. Long-term debt totaled $1.6 million, compared with $3.7 million at Dec. 31, 2012. Free cash flow generated by the company was approximately $1.8 million for the year.

"Revenue for the year of $57.9 million was in line with our prior guidance," said WGE chairman and chief executive Anthony Spier. "[Record] VLT sales for the quarter were positively impacted by delivering orders that were delayed in the previous quarter. Demand for VLT units continued to be strong throughout the entire year despite the delay of orders in the third quarter."

Spier also reported that WGE experienced 3% growth in its parts business to the gaming industry last year.

Based on its best estimates and information available at this time, WGE management believes the company's full-year 2014 net sales will be between $53 million and $57 million, compared with $57.9 million in 2013, with the first quarter of 2014 expected to be the "most challenging quarter of the year."

Founded in 1925, Wells-Gardner Electronics Corp. is a distributor and manufacturer of color video monitors and other related distribution products for a variety of markets including manufacturers of gaming machines and coin-op videogames, and other display integrators. The company's American Gaming & Electronics Inc. subsidiary is a parts distributor to more than 700 casinos in North America, and has offices in Nevada, New Jersey, Florida and Illinois. AGE is also a licensed distributor of video gaming terminals in Illinois.