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TNA.V - Evergreen Gaming Corporation (Casino & Restaurant)



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By mrduediligence

Posted: Thursday Nov 16 10:23:26AM 2017

Evergreen Gaming Corporation Q3 Results (Ending September 30th 2017)
All Information Can Be Found On SEDAR – www.sedar.com

Previous Closing Price: $0.14
Common Shares: 124,716,865
Insider/Institutional Holdings: 95,967,855 or 77.51%
Retail Shares Available: 28,749,010 or 22.49%

Financial Results (All Numbers In USD)

ASSETS
Property, Plant & Equipment: $10,531,011
Goodwill: $6,435,481
Trademarks: $1,185,000
Game Licenses: $60,667
Deposits: $27,110
Inventories: $168,011
Accounts Receivable: $37,196
Other Assets: $224,477
Cash, restricted: $2,758,138
Cash: $5,444,510
Total Assets: $26,871,601 USD

LIABILITIES
Deferred Tax Liabilities: $348,000
Notes Payable: $6,573,585
Other Payables: $5,460,159
Notes Payable: $393,858
Total Liabilities: $12,775,602 USD

3 Month Results USD
Revenue: $8,554,697
Net Income: $627,304

9 Month Results USD
Revenue: $26,196,124
Net Income: $2,012,248

9 Month Revenue convert into CAD and Earnings Per Share
USD-CAD-1.27 as of November 16th 2017
$2,012,248 X 1.27 = $2,555,554.90 CAD
$2,555,554.90 / 124,716,865(common shares) = $0.0205 over 9 months

14. SUBSEQUENT EVENTS
The company has entered into an agreement to sell the real property where Palace Tukwila was located for $1,950,000. The buyer has made a $50,000 earnest money deposit and the sale is supposed to close on or before November 30, 2017. The company has mortgages on the property with balances of $1,054,956 as of September 30, 2017 which would be paid in full if the sale is completed. The book value of the property being sold is $1,434,184 as of September 30, 2017.

**NOTE** - Tukwila was closed February 4th and has not generated any revenue since then. This will reduce liabilities substantially and give the company additional operating capital.

TNA.V MD&A Highlights


Overall Performance Current quarter compared to prior year


Net revenue for the quarter ended September 30, 2017 was $8,554,697, an increase of $108,190 compared to the same period in the prior year. Gaming dollars dropped were 11.3% higher than the prior year quarter but that increase was offset by a lower hold percentage of 1.8%. The income from operations was $1,042,536 compared to $971,941 in the prior year quarter. This increase was due to the increase in net revenues partially offset by an increase in operating expenses of $37,595. The labor and benefit expenses increased due to an increase in the minimum wage, but that increase would have been even higher except for the closing of Palace Tukwila on February 4, 2017.

Net income before taxes was $967,761 compared to $836,569 in the same quarter of 2016, a $131,192 increase. The increase was due to the higher income from operations and lower finance costs due to paying off outstanding indebtedness.

Working capital at September 30, 2017 was $2,778,315 compared to working capital of $1,744,546 at December 31, 2016. 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 September 30, 2017 totaled $26,871,601 compared to total liabilities of $12,775,602. At December 31, 2016, total assets were $23,922,129 compared to total liabilities of $11,838,378.

The Company’s cash at September 30, 2017 was $8,202,648, compared to $4,563,587 at December 31, 2016. These amounts include “Restricted Cash” balances of $2,758,138 and $914,071 respectively. “Restricted Cash” balances are jackpot funds held for prizes being offered at the casinos. Cash provided by operating activities for the quarter ended September 30, 2017 was $1,615,226 compared to $471,994 for the quarter ended September 30, 2016.


Additional Information Can Be Found On SEDAR


By mrduediligence

Posted: Monday Oct 30 10:16:16AM 2017

Nice article from Simply Wallstreet. Looking forward to seeing TNA's Q3 results end of November and by then their $2 million Tukwila property sale (currently pending) should be completed. I am estimating that the company will earn at least $500,000 US profit. Their Q3 is always a bit slower and I am being very conservative on the earnings, especially after making over $1 million USD last quarter. Their Q1 profit $377,000 net income but that was also hurt by Tukwila still in operation at the time.


https://simplywall.st/news/2017/10/29/evergreen-gaming-and-other-great-cheap-stocks/

Evergreen Gaming Corporation (TSXV:TNA)
Evergreen Gaming Corporation engages in the gaming operations in the United States. Evergreen Gaming is run by CEO Dawn Mangano. With the company’s market capitalisation at CAD CA$17.95M, we can put it in the small-cap group


TNA’s shares are currently trading at -22% beneath its true level of $0.17, at a price tag of $0.14, based on my discounted cash flow model. This mismatch signals an opportunity to buy TNA shares at a discount. In addition to this, TNA’s PE ratio stands at 7.2x compared to its hotels, restaurants and leisure peer level of 19.4x, indicating that relative to its comparable company group, we can invest in TNA at a lower price. TNA is also in good financial health, with short-term assets covering liabilities in the near future as well as in the long run. It’s debt-to-equity ratio of 52% has been diminishing for the past few years demonstrating TNA’s ability to pay down its debt.


By mrduediligence

Posted: Saturday Oct 21 7:40:22AM 2017

Informa tion cir cular  will be  comin g out in a  few weeks as per SEDAR. AGM date is early December and it looks like their getting all the paperwork and insider holdings done. Steven Michels bought another 70,000 shares privately end of August and didn't report it until now. See below:

https://www.insidertracking.com/company?menu_tickersearch=TNA%2ACA%20%7C%7C%20Evergreen%20Gaming


Oct 20/17 Aug 28/13  Michels, Steven  Control or Direction  Common Shares11 - Acquisition carried out privately 70,000


Date: October 12, 2017 510 Burrard St, 3rd Floor Vancouver BC, V6C 3B9 www.computershare.com To: All Canadian Securities Regulatory Authorities Subject: EVERGREEN GAMING CORPORATION Dear Sir/Madam: We advise of the following with respect to the upcoming Meeting of Security Holders for the subject Issuer: Meeting Type : Annual General Meeting Record Date for Notice of Meeting : November 09, 2017 Record Date for Voting (if applicable) : November 09, 2017 Beneficial Ownership Determination Date : November 09, 2017 Meeting Date : December 13, 2017 Meeting Location (if available) : Surrey, BC Issuer sending proxy related materials directly to NOBO: Yes Issuer paying for delivery to OBO: No Notice and Access (NAA) Requirements: NAA for Beneficial Holders No NAA for Registered Holders No Voting Security Details: Description CUSIP Number ISIN COMMON 30024G103 CA30024G1037


By mrduediligence

Posted: Tuesday Oct 17 12:42:21PM 2017

Washington State Card Room & Casino Statistics Sheet

 

**Note** - As per WSGC website, due to staffing shortages, Q4 2016 is the most recent statistics from card rooms that they have.

 

At the end of 2016 there were 65 card room casinos in the state of Washington. Dawn Mangano joined Evergreen Gaming Corporation in June 2017.

 

TNA Casinos – Riverside, Palace, Goldies, Chips,

Dawn Mangano Prior Casinos – Macau, Caribbean(Casino & Card Room)

 

Statistics Link: http://www.wsgc.wa.gov/docs/statistics/cardroom-gross/2016-4.pdf

 

Out of 65, this is where TNA’s and Dawn’s casinos ranked:

 

Dawn’s Prior Casinos:

Macau Casino - #3 of 65

Caribbean Casino - #8 of 65

Caribbean Card Room - #42 of 65

 

Evergreen Gaming Casinos:

Riverside Casino - #6 of 65

Goldies Casino - #11 of 65

Palace Casino - #16 of 65

Chips Casino - #23 of 65

 

What this shows is Dawn Mangano was able to run casinos quite well and out of the 65 listed on the sheet, two of them placed under 10. Compared to Evergreen Gaming which only had one placed under 10. Three quarters have gone by and things could be different, but I believe Dawn will play a huge role in Evergreen Gaming’s growth.


Another important note since some individuals have been worried about online gambling being a hindrance to Evergreen’s growth:

 

Internet Gambling Prohibited In Washington: http://www.wsgc.wa.gov/publications/brochures/5-165-internet-gambling-brochure.pdf


By mrduediligence

Posted: Friday Oct 6 7:30:00AM 2017

For those that can't see the chart properly, here is a link to an image of the chart: http://photobucket.com/gallery/user/JonnyR991/media/bWVkaWFJZDoxMzExMjE2NDk=/?ref=


By mrduediligence

Posted: Thursday Oct 5 6:29:06PM 2017

TNA.V Financial Comparison Chart 2012-2017

Year Revenue($USD) Profit/Loss $USD) Assets ($USD) Liabilities ($USD) Asset/Debt Ratio
2012 $25,958,829 -$445,775 $15,736,142 $13,561,034 1.16
2013 $28,341,631 $1,344,683 $15,870,890 $12,351,098 1.28
2014 $30,555,757 $2,720,669 $18,143,126 $11,902,666 1.52
2015 $33,338,543 $3,933,883 $19,613,905 $9,439,562 2.08
2016 $33,326,624 $1,909,408 $23,922,129 $11,838,378 2.02
2017 (Q1/Q2) $17,641,426 $1,384,946 $25,495,384 $12,026,687 2.12
   
Notes: 1) 2017 Revenue Higher Than 2016 Revenue Over 6 Months
  2) 124,716,865 Common Shares With 77.51% Insider Held
  3) Tukwila Casino Closed February 2017, Currently Pending Sale For $2 Million USD

By mrduediligence

Posted: Thursday Sep 7 7:13:07PM 2017

Below is a complete list of all Casino & Gaming based companies that exist on all three Canadian exchanges (TSX/Venture/CSE). It is a small sector and there are some great buys. But it gives a clear picture of where TNA is trading based on it's peers. 


Symbol – Common Shares – Last Price – Last Quarter Profit/(Loss) – EPS(last Quarter)


GC.T – 60.8M - $34.09 - $26.7 Mil CAD Profit - $0.43c


GH.T – 27.7M - $9.94 - $4.2 Mil CAD Profit - $0.16c


ITX.T – 19.5M - $11.73 – ($210 Mil CAD Loss) – No Earnings


NYX.V – 108M - $1.13 – ($21 Mil CAD Loss) – No Earnings


IGG.T – 20M - $2.49 - $266K USD Profit – Takeover At $2.50 Currently


LOTO.C – 63.5M - $0.375 – ($6.9 Mil CAD Loss) – No Earnings


JP.V – 337M - $0.05 – ($804K CAD Loss) – No Earnings


TNA.V – 124.7M - $0.13 - $1.05 Mil USD Profit – $0.01c eps when converted to CAD


PYD.V – 35M – $0.30 - ($1.38 Mil USD Loss) – No Earnings


CNS.V – 81.9M – $0.02 - ($187K CAD Loss) – No Earnings


-  Numbers Are Based On Most Recent Quarters Announced
-  Filter From Stockwatch Was Used – www.stockwatch.com
-  Financial Numbers Taken From Sedar – www.sedar.com
-  Additional Information Can Be Found On Sedar


By mrduediligence

Posted: Wednesday Aug 16 6:08:29AM 2017

Evergreen Gaming Corporation Q2 Results(Ending June 30th 2017)
All Information Can Be Found On SEDAR – www.sedar.com

Price: $0.12
Common Shares: 124,716,865
Insider/Institutional Holdings: 95,967,855 or 77.51%
Retail Shares Available: 28,749,010 or 22.49%

Financials + MD&A – All in US Dollars

Financials

ASSETS - USD
Cash: $4,499,410
Restricted Cash: $2,283,216
Other Assets: $176,317
Accounts Receivable: $116,259
Inventory: $176,643
Deposits: $10,551
Game License: $63,267
Trademarks: $1,185,000
Goodwill: $6,435,481
Property & Equipment: $10,549,240
TOTAL ASSETS: $25,495,384

LIABILITIES – USD
Notes Payable(Mortgages): $6,673,081
Trade Payables: $4,616,249
Notes Payable: $389,357
Deferred Tax: $348,000
TOTAL LIABILITIES: $12,026,687

Asset/Debt Ratio: 2.12:1

Note: Pending Sale of Tukwila Casino For $2 million USD - http://www.sterlingrealestate.idxbroker.com/idx/details/listing/b259/583212/14027-Interurban-Ave-S-Tukwila-WA-98168

Quarterly Sales Results

Year - Sales - Net Income – EPS (Earnings Per Share)
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
2017(Q1) - $8,229,974 - $337,347 - $0.003c EPS – Not converted into CAD yet
2017(Q2) - $8,513,288 - $1,047,878 - $0.008c EPS – Not converted into CAD yet

MD&A Highlights

Evergreen is in the business of overseeing the gaming operations of its principal U.S. subsidiary, Washington Gaming, Inc. (“WGI”).


Net revenue for the quarter ended June 30, 2017 was $9,411,453, an increase of $1,025,705 compared to the same period in the prior year. Gaming dollars dropped were 5% higher than the prior year quarter and the hold percentage increased .7%. The income from operations was $1,654,640 compared to $1,134,414 in the prior year quarter. This increase was due to the increase in net revenues offset by an increase in operating expenses of $505,479. The labor and benefit expenses increased due to an increase in the minimum wage and marketing expenses increased to generate more revenue.

Net income before taxes was $1,564,515 compared to $1,003,841 in the same quarter of 2016, a $560,674 increase. The increase was due to the higher income from operations and lower finance costs due to paying off outstanding indebtedness.

Working capital at June 30, 2017 was $2,246,239 compared to working capital of $1,744,546 at December 31, 2016. 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 June 30, 2017 totaled $25,495,384 compared to total liabilities of $12,026,687. At December 31, 2016, total assets were $23,922,129 compared to total liabilities of $11,838,378.

The Company’s cash at June 30, 2017 was $6,782,626, compared to $4,563,587 at December 31, 2016. These amounts include “Restricted Cash” balances of $2,283,216 and $914,071 respectively. “Restricted Cash” balances are jackpot funds held for prizes being offered at the casinos. Cash provided by operating activities for the quarter ended June 30, 2017 was $2,212,808 compared to $892,469 for the quarter ended June 30, 2016.

The operating results for the quarter ending June 30, 2017 showed a substantial improvement from the quarter ending March 31, 2017. Net revenues increased to $9,411,453 compared to $8,229,974 in the prior quarter. This increase was attributable to an 11% increase in gaming dollars dropped and a .6% increase in the hold percentage. Income from operations increased to $1,654,640 in the second quarter compared to $609,385 in the prior quarter. This was due to the increase in net revenues offset by a $136,224 increase in operating expenses. This was primarily due to an increase in gaming taxes as a result of additional gaming revenue.

Historically, the Company’s sources of funding have been debt and equity financing and cash flow from operations. As of June 30, 2017, the Company had arm’s length debt of $7,062,438, all related to mortgages, including the acquisition of the Lakewood property. Related party debt totalling $832,553 which was owed to Michels Development for the note from Goldies in Shoreline was paid in full in the second quarter.

At June 30, 2017, the Company had cash of $6,782,626 and net working capital of $2,246,239. Total debt payments of $926,451 were made during the second quarter. The monthly debt service cash requirement is just under $58,000.


By mrduediligence

Posted: Friday Jul 28 10:49:56AM 2017

Evergreen Gaming appoints Mangano president, CEO

 
2017-07-28 10:54 MT - News Release

 

Mr. Len Libin reports

NEW PRESIDENT AND CEO

Evergreen Gaming Corp. has appointed Dawn M. Mangano as its new president and chief executive officer. Len Libin filled this position on an interim basis after accepting Monty Harmon's resignation. Mr. Libin will continue in his duties and position as chairman of the board going forward.

Ms. Mangano comes to Evergreen from the Casino Caribbean/Macau Casino cardroom group consisting of five locations in Washington. She spent the last 14 years holding positions in both finance and operations with a broad base of experience including all facets of cardroom management. Ms. Mangano was instrumental in that group's growth with responsibilities including acquisition, construction, licensing, customer development and profitability of the restaurants and casinos. Continuing education through University of Nevada, Las Vegas, and certifications have kept her current in marketing and table game protection. Throughout her time in the industry, Ms. Mangano has gained experience in government regulatory agency relations and political involvement at the state and local levels. Prior to entering the cardroom industry, Ms. Mangano owned and operated an accounting business primarily focused on construction and professional business clients.

© 2017 Canjex Publishing Ltd. All rights reserved.


By mrduediligence

Posted: Thursday Jun 15 1:12:01PM 2017

TNA's Tukwila property status has gone from "For Sale" to "Pending" which could mean a deal was reached. 

The casino was listed for $2 million USD and TNA bought it for $1.4 million USD back in 2014. 
http://properties.tellusre.com/idx/details/listing/b259/583212/14027-Interurban-Ave-S-Tukwila-WA-98168


By mrduediligence

Posted: Thursday Jun 1 4:02:37PM 2017

Evergreen Gaming CEO Libin now has 23.23% stake

 
2017-06-01 16:41 MT - News Release

 

Mr. Len Libin reports

ACQUISITION OF EVERGREEN GAMING CORPORATION SHARES

Leonard Libin has made a number of transactions privately amongst himself and his joint actors, all of whom are family members, wholly owned corporations and trusts beneficially owned by family members, with respect to common shares of Evergreen Gaming Corp. of 8200 Tacoma Mall Blvd., Lakewood, Wash., 98499. The Acquiror last filed an early warning report dated October 31, 2006, in which the number of common shares of Issuer reported to be beneficially owned by the Acquiror totalled 32,172,060 common shares. The Issuer owns 908,000 common shares out of the 124,716,865 common shares issued, and hence the 32,172,060 common shares last reported represent approximately 25.99% of the currently outstanding common shares of the Issuer (25.80% of the issued). There has been no change in the number of common shares of the Issuer owned by the Acquiror and his joint actors since the date of the last filed report. However, as a result of transfers amongst the Acquiror, entities through which the Acquiror beneficially owns common shares of the Issuer, and the Acquiror's joint actors, the Acquiror has transferred beneficial ownership of 3,416,374 common shares of the Issuer, representing 2.76% of the outstanding common shares of the Issuer (2.74% of the issued) to his joint actors. As a result, the Acquiror, personally and indirectly through wholly owned corporations and trusts in which he has a beneficial interest, now has beneficial ownership of 28,755,686 common shares of the Issuer, representing 23.23% of the outstanding common shares of the Issuer (23.10% of the issued), and his joint actors have beneficial ownership of 3,416,374 common shares, representing 2.76% of the outstanding common shares of the Issuer (2.74% of the issued). Details of the dates, consideration paid and received, and other particulars of the Transactions are contained in the early warning report referred to hereafter, which has been filed on SEDAR.

The purpose of the Acquiror and his joint actors in conducting the Transactions was to reorganize the holdings of common shares of the Issuer amongst them to settle inter-party debt and for tax and estate planning purposes.

The common shares of the Issuer held by the Acquiror and his joint actors will be held for investment purposes. The Acquiror and his joint actors may, depending on market and other conditions, further increase, or decrease, their beneficial ownership of the Issuer's securities, whether in the open market, by privately negotiated agreements or otherwise, subject to a number of factors, including general market conditions and other available investment and business opportunities. The Acquiror and his joint actors have no present intention of acquiring or disposing of any additional common shares of the Issuer, other than potential future transfers amongst them.

In conducting the Transactions, the Acquiror does not concede that an exemption from the requirements in securities legislation applicable to formal bids was required. However, if such an exemption was required, the Acquiror and his joint actors claim reliance for each of the Transactions on the exemption provided by section 4.2 of National Instrument 62-104.

This press release is issued pursuant to National Instrument 62-104, which also requires a report to be filed with the B.C. Securities Commission and the Alberta Securities Commission containing additional information with respect to the Transaction (the "Report"). To obtain a copy of the Report or for further information concerning this announcement, please contact Len Libin, CEO of Evergreen, at (425) 282-4172.

© 2017 Canjex Publishing Ltd. All rights reserved.
 
 


By mrduediligence

Posted: Thursday Jun 1 3:25:08PM 2017

Evergreen Gaming shareholder Michels acquires shares

 
2017-06-01 15:53 MT - News Release

 

Mr. Len Libin reports

ACQUISITION OF EVERGREEN GAMING CORPORATION SHARES

Evergreen Gaming Corp. shareholder Steven Michels on June 1, 2017, through his wholly owned private company Michels Development LLC (MDL), acquired in a private transaction beneficial ownership of seven million common shares of Evergreen Gaming of 8200 Tacoma Mall Blvd., Lakewood, Wash., 98499. The seven million common shares were acquired in exchange for the forgiveness by MDL of $1,440,425 in interest that would have otherwise been payable in connection with a debt obligation owed to MDL. As a result, the seven million common shares were acquired at the effective rate of 20.6 cents per common share. The issuer owns 908,000 common shares out of the 124,716,865 common shares issued, and hence the seven million common shares acquired represent approximately 5.7 per cent of the outstanding common shares of the issuer (5.6 per cent of the issued). Prior to the transaction, the acquiror had control over, but not ownership of, the same seven million common shares acquired. Accordingly, while the acquiror's ownership interest in common shares of the issuer has increased by seven million common shares, the number of shares over which he has control, but not ownership, has decreased by the same number and percentage.

Immediately prior to the transaction, the acquiror had ownership of 11 million common shares of the issuer representing approximately 8.9 per cent of the outstanding common shares of the issuer (8.8 per cent of the issued). Immediately following the transaction, the acquiror had beneficial ownership of 18 million common shares of the issuer representing approximately 14.5 per cent of the outstanding common shares of the issuer (14.4 per cent of the issued).

Immediately prior to the transaction, the acquiror had control over, but not ownership of, 35,747,626 common shares of the issuer representing approximately 28.9 per cent of the outstanding common shares of the issuer (28.7 per cent of the issued). Immediately following the transaction, the acquiror had control over, but not ownership of, 28,747,626 common shares of the issuer representing approximately 23.2 per cent of the outstanding common shares of the issuer (23.1 per cent of the issued).

The acquiror's purpose in acquiring the seven million common shares was to increase his percentage shareholding in the issuer and to receive value for an interest obligation owned to his wholly owned company. The acquiror's common shares of the issuer will be held for investment purposes. The acquiror may, depending on market and other conditions, further increase, or decrease, his beneficial ownership of the issuer's securities, whether in the open market, by privately negotiated agreements or otherwise, subject to a number of factors, including general market conditions and other available investment and business opportunities. The acquiror has no present intention of acquiring or disposing of any additional common shares of the issuer.

This press release is issued pursuant to National Instrument 62-104, which also requires a report to be filed with the B.C. Securities Commission and the Alberta Securities Commission containing additional information with respect to the transaction. To obtain a copy of the report or for further information concerning this announcement, please contact Len Libin, chief executive officer of Evergreen, at 425-282-4172.

© 2017 Canjex Publishing Ltd. All rights reserved.


By mrduediligence

Posted: Friday May 26 6:31:50AM 2017

Price: $0.095
Common Shares: 124,716,865
Insider/Institutional Holdings: 95,967,855 or 77.51% 
All information can be found at www.sedar.com

 

Financials (All numbers are in US Dollars)

 

ASSETS
Cash: $4,073,545 
Property, Plant & Equipment: $10,632,512
Goodwill: $6,435,481
Trademarks: $1,185,000
Game Licenses: $65,867
Deposits: $10,551
Inventories: $175,498
Accounts Receivable: $97,561
Tax Receivable: $163,850
Other Assets: $142,623
Cash(Restricted): $1,441,333
Total Assets: $24,423,821

 

LIABILITIES 
Deferred Tax: $348,000
Notes Payable: $6,772,440
Notes Payable(related parties): $652,656
Other Payables: $3,665,833
Note Payable(current): $383,897
Note Payable Related Parties(current): $179,897
Total Liabilities: $12,002,723

 

Year - 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
2017(Q1) - $8,229,974 - $337,347 - $0.003c EPS – Not converted into CAD yet

 

**Note** - Q1 2017 showed a slightly lower profit because Tukwila casino was still operating until February. As well, the prior expense of CEO Monty Harmon was part of this quarter. On top of this all, a new mandatory wage increase was implemented due to Washington law which added $200,000 in additional G&A expenses. Q2 2017 should look better with Tukwila completely closed, Monty removed and management making additional cuts.

 

MD&A Highlights – Full MD&A Can be found at www.Sedar.com

 

Overall Performance

 

Net revenue for the quarter ended March 31, 2017 was $8,229,974, a decrease of $29,496 compared to the same period in the prior year. Gaming dollars dropped were 5% lower than the prior year quarter but that decrease was almost entirely offset by an increase in the hold percentage. The income from operations was $609,385 compared to $992,326 in the prior year quarter. This decrease was primarily due to an increase of labour and benefit expense of $282,178. The labour and benefit expenses increased due to an increase in the minimum wage and additional labour expenses at the Palace Casino Tukwila. The minimum wage increased from $9.47 to $11.00/hourly effective January 1, 2017. The Palace Casino Tukwila opened full gaming operations in mid-June 2016. Labour costs there were high in order to fully staff the casino. Due to the disappointing operating results, Palace Casino Tukwila was closed February 4, 2017.

 

Net income before taxes was $538,789 compared to $833,048 in the same quarter of 2016, a $294,259 decrease. The majority of this decrease came from additional labour and benefit expenses.

 

Working capital at March 31, 2017 was $1,864,783 compared to working capital of $1,744,546 at December 31, 2016. 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 it’s future obligations.

 

The company’s assets at March 31, 2017, totalled $24,423,821 compared to liabilities of $12,002,723. At December 31, 2016, total assets were $23,922,129 compared to total liabilities of $11,838,378.

 

The company’s cash at March 31, 2017 was $5,514,878 compared to $4,563,587 at December 31, 2016. These amounts include “Restricted Cash” balances of $1,441,333 and $914,071 respectively. “Restricted Cash” balances are jackpot funds held for prizes being offered at the casinos. Cash provided by operating activities for the quarter ended March 31, 2017 was $1,250,501 compared to $1,043,234 for the quarter ended March 31, 2016.

 

Liquidity and Capital Resources

 

Historically, the companies sources of funding have been debt and equity financing and cash flow from operations. As of March 31, 2017, the company had arm’s length debt of $7,156,337, all related to mortgages, including the acquisition of the Lakewood property. Related party debt totalled $832,553 which is owed to Michels Development for the note from Goldies in Shoreline.

 

On June 1 2015, the company amended the Goldies Casino related party note with Michels Development. The revision, effective June 1 2015, extended the due date from April 15, 2016 to May 31, 2018; changed the monthly payment from $16,000 to a minimum of $20,000 and increased the interest rate from 5% to 8%. The note was paid in full on May 19, 2017.

 

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 May 25, 2017 this balance is $0.

 

Transactions Subsequent to End of Quarter

 

The Goldies Casino note payable to Michels Development was paid in full on May 19, 2017

 

**Additional Note**

 

The Tukwila property is still listed for sale at $2 million USD. The company has a book price of this asset at $1.4 million USD and was purchased in 2014.

 

http://sterlingrealestate.idxco.com/idx/3780/details.php?idxID=666&listingID=583212

 

 

 

 


By mrduediligence

Posted: Monday May 15 3:15:46PM 2017

Evergreen Gaming appoints Libin CEO, Wisner CFO

 
2017-05-15 15:57 MT - News Release

 

Mr. Leonard Libin reports

CHANGES TO SENIOR MANAGEMENT

Evergreen Gaming Corp. has appointed a chief executive officer and a chief financial officer. Leonard (Len) Libin has assumed the position of CEO, taking over from Monty Harmon, who has led Evergreen for the last five years but has left for personal reasons. Mr. Libin has been active in the gaming industry for over 40 years, including his ownership interest in the Edgewater Casino in Vancouver, B.C. He has served as a director of Evergreen for the past 10 years, and also serves as chairman of the board.

Dennis Wisner has been appointed to the position of CFO of the company. Mr. Wisner served as the CFO of Little Creek Casino in Shelton, Wash., from 1995 to 2005 and the CFO of Michels Development LLC from 2006 to 2010. Michels Development is a private company wholly owned by Steve Michels, a director of the company, which provides management services to the company through Michels Management Services LLC, a wholly owned subsidiary. From 2011 to date, Mr. Wisner has served as the director of operational finance for Evergreen.

© 2017 Canjex Publishing Ltd. All rights reserved.


By mrduediligence

Posted: Sunday Apr 30 3:48:55PM 2017

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.   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.
http://sterlingrealestate.idxco.com/idx/3780/details.php?idxID=666&listingID=583212


By mrduediligence

Posted: Friday Apr 21 8:31:37PM 2017

Thanks, actually I got into TNA when it was 1.5c, back in 2014 and they had just finished restructuring. Sold that same year at 5-6 cents a share and after looking at their financials three years later, I couldn't believe it was only trading at twice for what I sold it for. Since they added around $8 million US ($10.8 million CAD or $0.09c a share) in cash and it just keeps growing on a quarterly basis.

Honestly, I'm not too concerned because management is taking steps to reduce their G&A costs to offset the additional expense. The company already makes between $600,000 to $800,000 net income per quarter and in 2017 each quarter will cost an additional $250K for added wage expenses, so still positive cash flow coming in. Now if management does make some cuts, this keeps things flowing nice and smooth.

See below, their last news release:

Evergreen refinances mortgage for $3.25-million

 
2017-02-10 17:26 MT - News Release

 

An anonymous director reports

RIVERSIDE CASINO REFINANCES MORTGAGE

Evergreen Gaming Corp., through its subsidiary 14040 Gaming LLC, has refinanced the 2006 loans for the acquisition of the Riverside Casino Inc. and the associated real estate located at 14060 Interurban Ave. South, Tukwila, Wash. The original mortgage and loans, payable to the previous owners, were set to mature in 2020 and carried an interest rate of 6 per cent.

The company has refinanced the mortgage through Banner Bank for $3.25-million. The 10-year note carries a 3.85-per-cent interest rate for the first three years. The rate will be adjusted after that, based on the bullet rate for the three-year federal home loan bank fixed-rate advances (the index), which will only change every three years. That rate is currently calculated to be 4.47 per cent. The loan is secured by a deed of trust on the real property in favour of the lender, along with the assignment of rents. The loan will mature Dec. 1, 2026.

Change to Washington State minimum hourly wage

In November, 2016, voters in the state of Washington voters passed Initiative 1433. Effective Jan. 1, 2017, the initiative raises the hourly minimum wage for all workers in Washington State each January for the next four years. The present minimum wage will increase from $9.47 to $11 in January, 2017, and to $11.50 in 2018, $12 in 2019 and $13.50 per hour in the year 2020. The increases to the minimum wage will also impact hourly wage rates for employees with greater experience and responsibility. The cumulative effect on wages, including payroll taxes, over the four-year period, is projected to be $800,000, $1.1-million, $1.4-million and $2.4-million, respectively.

Management believes the company will make adjustments and increase revenues during this four-year period so as to remain profitable. Casinos are able to increase food and drink prices, but that same luxury does not exist with the company's primary revenue source, the gaming tables. Therefore, the company will commit to increasing its customer base through strategic use of marketing dollars. The company is continually reviewing all labour processes to optimize staffing needs based on customer counts. In addition, the company will seek reductions in gaming and other tax rates from local jurisdictions as a means to ease the impact of increases to minimum wage. Other changes in state laws and regulations will also be reviewed for opportunities to reduce costs or increase revenues.

Closure of unprofitable card room in Tukwila

The company announces the closure of the Palace Tukwila card room. After years of trying to establish the Palace card room in Tukwila, the company has come to the conclusion the Tukwila market is saturated and cannot support another card room. Factors contributing to the closure included the recent increase to the state minimum wage and a lack of experienced dealers willing to work for a start-up location.

The employees and assets of the business operation will be deployed for use at other business locations owned by the company. The board will be meeting later in the month to discuss optional uses for the land and building, which are owned by the company.

© 2017 Canjex Publishing Ltd. All rights reserved.


By Bobwins

Posted: Friday Apr 21 11:26:30AM 2017

Congrats on this pick.  I think it's doubled since you started posting about it.  I live in Washington so go by some of their casinos near Seattle.  I read the latest financials and it seems like the upcoming increases in minimum wages are going to have a pretty negative impact on their bottom line.  The first increase has already happened but wages are scheduled to go up each year for several years.  Labor is a pretty big part of their expenses and I don't see how they are going to offset that magnitude of expenses.  What's your take on those upcoming wages increases and the impact on the P&L?


By mrduediligence

Posted: Monday Mar 27 10:11:47AM 2017

TNA.V Due Diligence Report – Recent Financials & MD&A Highlights

Price: $0.115
Common Shares: 124,716,865
Insider Holdings:   95,967,855 or 77.51% (Shown in the October 2016 Information Circular on Sedar)
TNA itself owns 908,000 shares(as per info circular) and there are other old insiders/institutions too

Year End Results will be released end of April 2017, below is company Q3 results. All assets are in US dollars. Given their last news release, TNA’s four casinos/restaurants should keep the profitable quarters going forward even with the upcoming changes.

Financials(USD)

ASSETS
Cash: $3,680,299
Property, Plant & Equipment: $10,899,957
Goodwill: $6,435,481
Trademarks: $1,185,000
Game Licenses: $71,067
Deferred Tax: $234,000
Deposits: $13,354
Inventories: $164,438
Accounts Receivable: $54,586
Other Assets: $185,215
Cash(Restricted): $661,200
Total Assets: $23,584,597 (Q3 2015 Total Assets - $19,101,737)

LIABILITIES *NOTE* TNA’s liabilities are numerous payables, nothing else. These have been condensed
Current Payables: $3,391,674
Non Current Payables: $7,900,565
Total Liabilities: $11,292,239 (Q3 2015 Total Liabilities - $10,014,609)

Revenue Breakdown per quarter
Date – Sales – Net Income
2014(YE) - $30,555,757 - $2,720,669 - $0.02c EPS
2015(YE) - $33,338,543 - $3,933,883 - $0.03c EPS
2016(9M) - $25,091,725 - $2,118,015 - $0.02c EPS
- We still have Q4 to add to 2016, but the company keep putting out large quarterly profits

MD&A Highlights

Evergreen is in the business of overseeing the gaming operations of its principal U.S. subsidiary, Washington Gaming, Inc. (“WGI”). WGI, through its subsidiary corporations, operates five casinos in Washington State: The Riverside Casino in Tukwila, Palace 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.

Casino revenues for the quarter ended September 30, 2016 were $8,446,507, an increase of $95,140 compared to the same period in the prior year. Gaming dollars dropped were 10% higher than the same period last year, largely due to an increase in Baccarat dollars dropped at Riverside Casino, which had another excellent quarter with revenues 27% over the same quarter 2015. Offsetting that was Chips Casino Lakewood, where revenue was down 24% from the previous year, as their Baccarat hold percentage was half of what its target rate is and gaming dollars dropped decreased 11%. 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 third quarter Chips Casino recorded income from operations of $257,700, and although still far below the $705,168 recorded the same time period a year ago, is a significant improvement over prior quarters. The Company has placed a new general manager in Lakewood who is retraining staff and reviewing all operational procedures. The Palace Casino Lakewood has an excellent hold percentage, driving revenues up 8.9% over same quarter last year. Goldies Casino also had positive income from operations despite a revenue deficit of $351,355 compared to last year, due largely to a two point drop in the Baccarat hold percentage. The Palace Casino Tukwila is partway through its transition to a full service casino. Gaming tables are being added, food and beverage offerings revised and marketing plans are underway to drive business there in the coming months.

Working capital at September 30, 2016 was $1,354,064, compared to working capital of $1,769,385 at December 31, 2015. The first quarter down payment of $1,575,000 for the acquisition of the Lakewood property contributed to the change in working capital. 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 September 30, 2016 totaled $23,584,597 compared to total liabilities of $11,292,239. At December 31, 2015, total assets were $19,597,155 compared to total liabilities of $9,422,812. These changes reflect the $4.5 million Lakewood property acquisition.

The Company’s cash at September 30, 2016 was $4,341,499, compared to $4,615,021 at December 31, 2015. These amounts include “Restricted Cash” balances of $661,200 and $517,942 respectively. “Restricted Cash” balances are jackpot funds held for prizes being offered at the casinos. Cash provided by operating activities as of the quarter ended September 30, 2016 was $2,407,697 compared to $2,840,355 as of the quarter ended September 30, 2015.

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 November 29, 2016, this balance is $0.

Due to changes in the healthcare laws in the United States, the Company has made available health insurance to all employees working 30 hours per week or more beginning in 2015. Executive officers of the company have worked closely with the management company during 2016 to minimize the impact of the new law. The incremental cost of providing insurance to those qualified employees was just under $175,000. The State of Washington voters passed the minimum wage initiative on the ballot in November 2016. The initiative raises the hourly minimum wage for all workers in Washington State over the next 4 years. The present minimum wage will increase from $9.47 in 2016 to $11.00 in January 2017, $11.50 in 2018, $12.00 in 2019 and $13.50/hour in the year 2020. The increases to the minimum wage will also impact hourly wage rates for employees with greater experience and responsibility. The cumulative effect on wages, including payroll taxes over the four year period is projected to be $1,394,000, $2,041,000, $2,690,000, and $4,327,000 respectively.

Insider Holdings Breakdown
Name of Shareholder Number of Shares Percentage of Outstanding
Steve Michels 46,817,626(1) 37.81%
Leonard Libin 30,172,060 24.37%
Tom Marvin 18,978,196(2) 15.33%

Most Recent News Release:

Evergreen refinances mortgage for $3.25-million

2017-02-10 17:26 MT - News Release

An anonymous director reports

RIVERSIDE CASINO REFINANCES MORTGAGE

Evergreen Gaming Corp., through its subsidiary 14040 Gaming LLC, has refinanced the 2006 loans for the acquisition of the Riverside Casino Inc. and the associated real estate located at 14060 Interurban Ave. South, Tukwila, Wash. The original mortgage and loans, payable to the previous owners, were set to mature in 2020 and carried an interest rate of 6 per cent.

The company has refinanced the mortgage through Banner Bank for $3.25-million. The 10-year note carries a 3.85-per-cent interest rate for the first three years. The rate will be adjusted after that, based on the bullet rate for the three-year federal home loan bank fixed-rate advances (the index), which will only change every three years. That rate is currently calculated to be 4.47 per cent. The loan is secured by a deed of trust on the real property in favour of the lender, along with the assignment of rents. The loan will mature Dec. 1, 2026.

Change to Washington State minimum hourly wage

In November, 2016, voters in the state of Washington voters passed Initiative 1433. Effective Jan. 1, 2017, the initiative raises the hourly minimum wage for all workers in Washington State each January for the next four years. The present minimum wage will increase from $9.47 to $11 in January, 2017, and to $11.50 in 2018, $12 in 2019 and $13.50 per hour in the year 2020. The increases to the minimum wage will also impact hourly wage rates for employees with greater experience and responsibility. The cumulative effect on wages, including payroll taxes, over the four-year period, is projected to be $800,000, $1.1-million, $1.4-million and $2.4-million, respectively.

Management believes the company will make adjustments and increase revenues during this four-year period so as to remain profitable. Casinos are able to increase food and drink prices, but that same luxury does not exist with the company's primary revenue source, the gaming tables. Therefore, the company will commit to increasing its customer base through strategic use of marketing dollars. The company is continually reviewing all labour processes to optimize staffing needs based on customer counts. In addition, the company will seek reductions in gaming and other tax rates from local jurisdictions as a means to ease the impact of increases to minimum wage. Other changes in state laws and regulations will also be reviewed for opportunities to reduce costs or increase revenues.

Closure of unprofitable card room in Tukwila

The company announces the closure of the Palace Tukwila card room. After years of trying to establish the Palace card room in Tukwila, the company has come to the conclusion the Tukwila market is saturated and cannot support another card room. Factors contributing to the closure included the recent increase to the state minimum wage and a lack of experienced dealers willing to work for a start-up location.

The employees and assets of the business operation will be deployed for use at other business locations owned by the company. The board will be meeting later in the month to discuss optional uses for the land and building, which are owned by the company.

© 2017 Canjex Publishing Ltd. All rights reserved.


 





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We are pleased to publish the PowerPoint presentations from The Small-Cap Conferences that were held in Calgary on March 30, 2016 and in Vancouver on May 3, 2016.

We encourage investors to review the presentations and contact the companies with any further questions.

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