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TNA.V - Evergreen Gaming Corp.(Casino's)



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By mrduediligence

Posted: Wednesday Aug 26 5:47:34PM 2015

Another profitable quarter here. Company had a net income of over $1 million USD and books are still getting better. Not much for sale but I see the price growing. Easy double from last year but I see it breaking well over 10c by year end. EPS will be much higher than last year. Don't own it anymore but US based casinos is a great industry to be in right now. Plus all books are in US dollars, so the conversion is a bonus for Canadian shareholders.


By mrduediligence

Posted: Monday Dec 1 4:55:19PM 2014

TNA.V Earns $2.115 million US in 9 months 

Financials below, ending September 30th 2014:

Cash: $2.43 million

Total Assets: $18.213 Million

Total Debt: $12.578 million

Common Shares: 136 Million (MINUS 11.25 million due to recent news about a settlement)

New Common Share Amount: 124.75 million

Revenue breakdown per quarter in 2014: 

Q1 - $7.53 million - Net Income - $557K
Q2 - $7.34 million - Net Income - $558K
Q3 - $7.88 million - Net Income - $856K

Basic earnings after 9 months: $0.02c EPS
Diluted earnings after 9 months: $0.02c EPS (Both mentioned like this in financials)

MD&A has not been released just yet. This could be delayed due to TNA.V switching auditors recently. But regardless, the numbers show a stronger growth pattern and this stock is severely undervalued. I expect TNA to have a solid Q4 as well and close with 2.5c 2014 earnings. Stock should be trading no less than 10 times this number. Especially since insiders owns over 80% of the stock. 


By mrduediligence

Posted: Friday Nov 21 5:46:51PM 2014

Evergreen settles litigation, to cancel 11.25 mm shares

2014-11-21 17:08 MT - News Release

An anonymous director reports

RETURN OF 11,250,000 SHARES TO TREASURY

Evergreen Gaming Corp. has provided the following update. The company previously announced, on Oct. 17, 2012, the commencement of litigation proceedings with a former employee related to the severance of that employee and issues related to the company's involvement with the Wizards Casino. That litigation has now been settled, which settlement included the return to the company of 11.25 million common shares originally issued in connection with the Wizards Casino transaction. Those shares will be cancelled and returned to the company's treasury.

© 2014 Canjex Publishing Ltd. All rights reserved.

 

Some good news on a Friday. Plus their Q3 results are out next week which should be another profitable quarter!


By mrduediligence

Posted: Wednesday Aug 27 11:13:21AM 2014

TNA Q2 Financial and MD&A Highlights as of June 30th 2014:

 

Price: $0.035

Shares Outstanding: 135,058,865

Insider Holdings: 113 million or 83.7% of the O/S.

 

Assets

Current Assets: $3,000,263

Cash potion: $1,731,911

Non-Current Assets: $14,622,676

Total Assets: $17,622,939

 

Liabilities

Current Liabilities(Payables): $3,512,270

Non Current(Payables): $9,331,841

**Liabilities might seem high, but the fact that TNA does not have any sort of bank debt

or loan means payables can be more flexible. Most are due to insiders anyway, which means that the insiders won’t sacrifice their share position to get paid. Therefore it is somewhat secure.

 

After 3 months

Revenues: $7,342,893

Income: $699,150

Net Income: $557,716

(Last year’s net income):$355,278

 

After 6 months

Revenues: $14,874,115

Income:$1,259,037 – $0.009c EPS

(Last year’s net income): $892,520

 

TNA has just about matched total earnings from last year, only off by $100,000 net income. This means TNA will easily surpass $0.01ceps for 2014 and could even get

To  $0.02c eps. At a 10 times multiple, the stock shouldn’t be trading for less than 20

Cents.

 

MD&A Highlights

 

Revenues for the quarter endedJune 30, 2014increased 2.3% over the same period in the prior year. Gaming dollars dropped at the tables declined by 4.3%, mostly due to decreases in Baccarat. The revenues increase is attributable primarily to a spike in the Baccarat net win percentage. Operating  expenses, specifically labor cost, increased over the prior year due to the annual rise of the minimum  wage and additional related payroll taxes. Marketing programs accounted for a $105,000 increase in expenses in the quarter, including a $50,000 Baccarat tournament and the inception of cash redemption programs allowing customers to turn their points earned while gaming into cash. Cash redemption has proven to put almost 100% of cash redeemed for points back on the gaming tables.

Income from operations for the quarter was $699,150, compared to $597,661 the same quarter in 2013.

 

Net income for the quarter endedJune 30, 2014before taxes was $557,716 compared to $454,970 for the same period last year. Year to date as ofJune 30, 2014, the Company’s net income before taxes is $1,259,037 compared to  $1,135,963 for the prior year, attributable primarily to increased revenues of $322,692 over 2013.

*** last year TNA paid $243k in deferred taxes so minus that from the $1.135mil

 

The Company’s assets atJune 30, 2014totaled $17,622,939 compared to total liabilities of  $12,844,113. AtDecember 31, 2013, total assets were $15,870,890 compared to total liabilities of  $12,351,098. The increases reflect improvements in cash and the acquisition of real estate for  $1,410,455 in both land and buildings and the corresponding debt.

 

The Company’s cash atJune 30, 2014was $2,619,734, compared to $2,180,580 atDecember 31, 2013. These amounts include “Restricted Cash” balances of $887,823 and $809,066 respectively. “Restricted Cash” balances are jackpot funds held for prizes being offered at the casinos and compensating balances held by the bank in restricted accounts for cash guarantee purposes. Cash generated from operations for the six months endedJune 30, 2014was $1,356,021 compared to $1,629,059 in the prior year. The difference consists of income taxes accrued during 2013 but not in 2014 due to loss carryforward credits available for 2014

 

Historically, the Company’s sources of funding have been debt and equity financing and cash flow from operations. As ofJune 30, 2014, the Company had arm’s length debt of $5,990,706, the majority of which is related to mortgages and capital leases. Related party debt totaled $4,156,110 which is due to Michels Development and consists of a note from Goldies Shoreline Casino totaling $3,003,114 and the Chips/Palace line of credit totaling $1,152,996.

 

AtJune 30, 2014, the Company had cash of $2,619,734 and working capital of $(512,009). The Company has made significant payments on its outstanding liabilities in 2014. In June 2014, the Company transferred $585,274 in accrued management fees to the line of credit which had been reduced by payments of $431,681. As ofAugust 25, 2014, the balance is $998,495.In addition, the Company has retired all loans due for gaming taxes, and an additional note 6 months in advance of its due date.

 

The Company is actively looking to refinance its related party debt, in order to pay off Michels Development. The Company will then be in a position to cancel the management contract which should save the Company approximately $600,000 per year.

 

Proposed Transactions

The Company intends to establish poker operations in the newly acquired premises across the street from the Riverside Casino inTukwila,Washington. This casino will open approximately October 1 and will offer up to 10 poker tables along with the restaurant and lounge. This is designed to complement theRiversideand will be the only poker room in the City ofTukwila. The Company anticipates spending approximately $250,000 to renovate and open this card room, which includes some remodeling and furniture upgrades. The Company has already reserved the funds necessary to finance these expansion activities.

 

The acquisition of the Chips and Palace Casino land and buildings inLakewood,WAis planned in 2014, which will improve the equity position of the Company as well as income from operations.

 

Other

Due to changes in the healthcare laws in theUnited States, the Company expects to be required to make available health insurance to all employees working 30 hours per week or more beginning in 2015. Executive officers of the company are working closely with the management company during 2013 to minimize the impact of the new law. Early estimates project additional costs of the healthcare law to the Company are expected to be $400,000 to $600,000 beginning in 2015.

 

 


By Bobwins

Posted: Wednesday Jul 2 8:37:30AM 2014

took a look at TNA.v.  It does appear undervalued but there are some concerns.  Obviously if you got some .015 shares, you are smiling and happy.  I see some possible headwinds in the short to medium term.  Q2 should be good but Q3 is their weak qtr coming up.  So I don't think you can annualize eps X 4.  More like X3 and hope Q3 is ok.  Looking into 2015, company says mandated healthcare for 30+hr employees will raise costs between 400 to 600K.  That cuts your profit in half for 2015 and makes your projected 2015 eps more like .006.  

If you already have shares below .05, this is a nice find.  I think Q2 will be about the same as 2013 and add another 500K.  The increased profit in Q1 was attributed to increased win percentage at the Riverside.  That's not likely to continue so could see a reversal sometime in 2014 or maybe one of the other casinos also has a good streak.  

I will watch TNA.v.  Buying after Q3, which I expect to be weak, may be a good short term opportunity because Q4 is a strong qtr for them.  Opening the card room may drag down the qtr it opens due to higher upfront costs and the time it takes to establish profitable operations.  Longer term, it should be a good addition.

 


By mrduediligence

Posted: Friday Jun 27 2:48:40PM 2014

Evergreen is in the business of overseeing the gaming operations of its principal U.S. subsidiary, Washington Gaming, Inc.  WGI, through its subsidiary corporations, operates four Washington State casinos: the Riverside Casino in Tukwila, Goldies Casino in Shoreline and Chips and Palace Casinos in Lakewood. These are mini-casinos (or house-banked card rooms) which offer to persons of legal age a variety of games of chance at which the player may win or lose money, a business commonly referred to as “gaming”. The Company also operates restaurants in each casino, as required by state law. The casinos and restaurants are open 20 hours a day two days a week, and 24 hours a day five days a week.

 

After earning $0.01c eps in 2013 and $0.004c eps in Q1 2014, stock should be trading between 8-10c at the moment. Financial and MD&A highlights below.

 

TNA.V - $0.04c

Shares Outstanding - 135,058,865

Insider Holdings:

Current Director Holdings - 41,172,060

Major Shareholders

Janet Buzzard - 2013 Purchase - 43,475,822

Thomas Marvin - 2013 last buy - 22,136,455

Cory Coyle - 2011 last buy - 11,250,000

Faoro Rick - 2011 last buy - 11,496,122

Total insider holdings - 129,530,459 or 95% of the O/S.

 

Website - http://www.evergreengaming.com/

 

Last year TNA did $26,489,255 in revenue with total net income of $1,344,683

or $0.01c eps. Stock should of been trading around 8-10 cents when that came out.

Now Q1 2014 TNA is on track to beat last year's earnings.

 

 

Financials as per last quarter Q1 ending March 31, 2014

 

Assets:

Cash - $1,869,793

Property, Plant & Equipment - $6,927,606

Goodwill  - $6,435,481

Trademarks - $1,185,000

Game Licenses - $97,933

Deposits - $58,164

Inventories - $130,173

Accounts Receivable - $73,239

Other current assets - $123,782

Cash(Restricted) - $947,708

Total Assets - $17,848,879

Liabilities:

Payables - $13,772,252

 

$17,848,879 - $13,722,252 = $4,126,627 in net assets or $0.03c a share.

 

The nice thing about only having payables is that TNA has the cash flow and ability to pay everything off. We are in no danger any lenders or bank loans whatsoever. Plus with such heavy insider ownership, odds are the company will have to sell itself in order for the insiders to get out. Also, all the debt is held by the large insiders, so they would rather see the stock succeed and get paid instead of falter and lose on all those shares.

 

Q1 Revenue - $7,531,221

Q1 Expenses - $6,673,410

Net income after tax/other items - $556,836 or $0.004c eps. At this rate TNA will beat last year's earnings of $0.01c eps and could earn anywhere from $0.015c-0.02c eps.

 

 

Level 2

 

 

Orders/Shares

Price

Price

Shares/Orders

 

 

 

 

 

0.04

120000 / 3

 

 

1 / 70000

0.025

0.05

20000 / 1

 

 

4 / 1230000

0.02

0.275

449000 / 0

 

 

1 / 60000

0.015

--

-- / --

 

 

12 / 475000

0.01

--

-- / --

 

 

6 / 925000

0.005

--

-- / --

 

 

 

MD&A Highlights

 

Revenues for the quarter ended March 31, 2014 increased 2.2% over the same period in the prior year. Gaming funds dropped at the tables were flat for table games, but Baccarat dollars declined by 16.7%. The revenues increase is attributable primarily to a spike in the Baccarat net win percentage at the Riverside almost double that of the prior year. Chips and Palace Casinos revenues were unchanged from the prior year, but Goldies Casino did not maintain or increase their net win percentages which, along with decreased gaming drop numbers, resulted in an 8% decrease in gaming revenue.

 

The Company’s debt picture continues to improve in 2014 and balances owed to cities for 2011 gaming taxes now have only three monthly payments remaining. The Company anticipates retiring other obligations before they become due. The company is also working to refinance certain other notes to achieve more efficient operations.

 

The Company’s assets at March 31, 2014 totaled $17,848,879 compared to total liabilities of $13,772,252. At December 31, 2013, total assets were $15,870,890 compared to total liabilities of $12,351,098. The increases reflect improvements in cash and the acquisition of real estate for $1,410,455 in both land and buildings and the corresponding notes.

 

The Company’s cash at March 31, 2014 was $2,817,501, compared to $2,180,580 at December 31, 2013. These amounts include “Restricted Cash” balances of $947,708 and $809,066 respectively. “Restricted Cash” balances are jackpot funds held for prizes being offered at the casinos and compensating balances held by the bank in restricted accounts for cash guarantee purposes. Cash generated from operations for the quarter ended March 31, 2014 was $971,583 compared to $991,610 in the prior year.

 

Casino net revenues in the first quarter of 2014 were $7,529,421 compared to $7,125,829 for the prior quarter ended December 31, again due to the increase in the gaming net win percentage referred to above. Operating expenses were lower than the prior quarter by $178,920. The company wrote off approximately $78,000 in NSF checks in November 2013 that have been referred to collection, which explains a good portion of the difference. The remainder reflects the efforts of company-wide cost controls and purchasing programs. Income from casino operations was $1,010,697 compared to

$428,185 in the fourth quarter.

 

Proposed Transactions

 

The Company intends to establish card room operations in the newly acquired premises across the street from the Riverside Casino in Tukwila, Washington. This casino will offer poker along with the restaurant, and lounge. This is designed to complement the Riverside and will be the only poker room in the city of Tukwila. The Company anticipates spending approximately $250,000 to open this card room, which includes some remodeling and furniture upgrades. The Company expects to be able to adequately finance these expansion activities from income and cash flow from operations.

 

The acquisition of the Chips and Palace Casino land and buildings in Lakewood, WA is planned in 2014, which will improve the equity position of the Company as well as income from operations. 

 


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