| $2.72 Million Jackpot Continues To Break Records
In First Ever Multi-State Video Lottery!
IOWA, USA (May 10, 2007) -- (Ca$hola) Ca$hola, the first
ever multi-state progressive video lottery game to be offered among U.S.
states, continues its record-breaking pace with a jackpot of over $2.72 million
that will keep growing until won. The Ca$hola jackpot
has not been won since January 1, 2007. The previous highest jackpot
payout was $2,143,008 won last October 2006 at Mountaineer Park in West
Virginia. Ca$hola’s jackpot is based on a thirty-year annuity and
can also be taken as a cash option payment. Sales of
the popular game began in July 2006 at venues located in the video lottery
states of Delaware, Rhode Island, and West Virginia. Ca$hola features a shared
prize pool that creates the progressive jackpot game that can be won by players
in all three states.
Ca$hola is the first and
only game to tie together video lottery
terminals (VLT’s) from different manufacturers and different central
computer systems located in different jurisdictions. While each of the
three participating states have operated progressive jackpot games at a single
location and also at multiple locations within their respective jurisdictions,
the $2.72 million jackpot (thirty-year annuity payout) is the largest ever
offered in these jurisdictions. “The big jackpots Ca$hola
generates remain exciting to our players,” says
Gerry Aubin,
Rhode Island Lottery Director and Chairman
of the three state group known as the Multi-State Wide Area Progressive (MWAP).
“These large progressive jackpots, as generated by our multi-state
efforts, are what our players want and we are happy we can offer
them.” Ca$hola’s jackpots start at
$165,000 and will grow to an expected average jackpot of nearly $1 million won
about once a month, and reaching $2 million or more at times. The game
can be played in nickel, or quarter denominations, to be determined by each
jurisdiction. There are currently 221 machines throughout the three states that
can be played for winning the jackpot. To comply with
local laws and rules, each participating machine offers two components of the
game, the base game with odds and payouts unique to each jurisdiction, and the
common progressive jackpot game available to all players. To qualify for
a progressive jackpot win, players must use the max bet option - a $2.25
play. The odds of winning the jackpot are one in seven million.
Ca$hola can be played in Delaware at Dover Downs, Dover;
Midway Slots & Simulcast, Harrington; and Delaware Park Race Track &
Slots, Wilmington. In Rhode Island the game is available at Twin River,
Lincoln; and at Newport Grand, Newport. West Virginia offers Ca$hola at
Charles Town Gaming, Charles Town; Tri-State Race Track & Gaming Center,
Charleston; Wheeling Island Race Track & Gaming Center, Wheeling Island;
and at Mountaineer Park Race Track, Chester. For
information about the Ca$hola game visit www.casholagame.com
CONTACT: Wayne Dolezal, Multi-State Lottery Association,
Phone: 515.453.1412.
BETTING: Italy, INTRALOT Italia Beats All and
Starts the First Sports Corner Won By the Tender
ROME, Italy (May 10, 2007) --
INTRALOT, one of the main international
dealers and the one which outperformed best the tender (remember that INTRALOT
awarded 416 shops and 164 sports corners, 9 horse shops in addition to the
accession to the telematic rights for the horse-racing and the sports game),
beat all the dealers starting, at the end of April, the first sports corner in
Italy. Passed the tests, the first bet has been already placed at the INTRALOT
corner in Rome. Well the Greek giant, which is working in Italy by the INTRALOT
Italia brand, has given an account of reliability and strength.
INTRALOT Italia top
management is very pleased with the starting of the first sports corner:
“We wanted to come out on top for launching the new points”
said Enea Ruzzettu, INTRALOT Italia chief executive, “and we made
it.” In fact, we have a vast organization and among our goals
there’s that of bearing out the reliability and the solidity for which we
are known all over the world.” Our company has been the first to
launch a point awarded by the tender, this gives an idea of our desire for
being in operation as soon as possible and I think that for the beginning of
the new football season, we’ll have a functional network for almost
80%.” “I want to stress,”
Ruzzettu states, “that like INTRALOT Italia we are flinging the door
open for dealers who would decide to entrust a big company as we are with
running their business in a clear and professional manner. Further, the network
starting is a very important signal for all our dealers who have chosen one of
the leading market company.” FOR INFORMATION:
INTRALOT Italia Press Office: Agicos Via del Viminale, 43, 00184 Rome,
Italy. CONTACT: Simonetta Bonanni, phone +390648930250, fax +39064741084,
mobile +393465022135.
Tennessee Education Lottery Corporation Contracts
with Smartplay
| Advertisement |
 |
SOUTHAMPTON, New Jersey,
USA (May 4, 2007) -- Via competitive bid process, New Jersey based
Smartplay has been awarded a contract by
Tennessee Education Lottery Corporation
(TELC) to provide its Origin™ digital draw system. The Origin,
previously acquired by lotteries in Arizona, New Mexico, Ohio and Washington
State, can conduct all drawing operations and/or raffle events.
The Tennessee contract also includes the Origin Video
Server (OVS), to be installed in six television studios. The OVS met RFP
demands for simultaneous distribution of drawing presentations statewide,
securely and economically. Smartplay is now five for five in domestic bid opportunities
for digital draw systems, since the Origin’s introduction in 03.
The firm is also under contract with TELC and
Virginia Lottery to perform raffle drawings, and has completed raffle drawings
in New Jersey, New York and Ohio. SOURCE:
Smartplay International, Inc.
CONTACT: Linda Turner, VP Sales +1 609 859
1133, Email: linda@smartplay.com
Scientific
Games' TrackPlay™ Powers Churchill Downs' TwinSpires Internet and
Telephone Wagering Services NEW
YORK, USA (May 2, 2007) -- Scientific
Games (Nasdaq: SGMS) is providing an Internet wagering platform, telephone
betting technology and associated tote services for the new advance deposit
wagering service ("ADW") TwinSpires (www.twinspires.com), operated by
Churchill Downs Technology Initiatives Company, a wholly owned subsidiary of
Churchill Downs Incorporated (Nasdaq: CHDN).
Launched today, TwinSpires
uses the Scientific Games Racing TrackPlay™ wagering system, and its data
will flow through the Scientific Games Quantum Data Centers. The TrackPlay
wagering system and Scientific Games' associated technologies and services have
been designed and engineered to fully comply with all applicable laws,
including laws regarding ADW and Internet and telephone pari-mutuel wagering on
horse racing. "With almost 90 percent of racing
handle now being wagered off-track, much of the future growth of racing lies in
the application of Internet wagering tools. I can't think of a better way to
introduce the new TwinsSpires account- wagering site than with the world's most
famous race - the Kentucky Derby," said Lorne Weil, Chairman and CEO of
Scientific Games. Churchill Downs 2007 spring racing
season is highlighted by the Grade I Kentucky Derby Presented by Yum! Brands on
May 5 and the Kentucky Oaks on May 4. Customers can get detailed information
about the many services offered and sign up for their own accounts at
www.twinspires.com or by calling 1-877-SPIRES1. "We
have completed the testing of the TwinSpires site and have been delighted with
results we have obtained using the Scientific Games Racing TrackPlay and
Quantum systems," said Vernon Niven, executive vice president of technology
initiatives for Churchill Downs Incorporated and president of TwinSpires.
"Scientific Games Racing was the clear choice to provide our Internet
solution, and, in cooperation with our TwinSpires team, brought our system
online in record time."
About Scientific
Games Scientific Games Corporation is the
leading integrated supplier of instant tickets, systems and services to
lotteries worldwide, a leading supplier of fixed odds betting terminals and
systems, Amusement and Skill with Prize betting terminals, interactive sports
betting terminals and systems, and wagering systems and services to pari-mutuel
operators. It is also a licensed pari-mutuel gaming operator in Connecticut,
Maine and the Netherlands and is a leading supplier of prepaid phone cards to
telephone companies. Scientific Games' customers are in the United States and
more than 60 other countries. For more information about Scientific Games,
please visit our web site at: www.scientificgames.com. About Churchill Downs Incorporated
Churchill Downs Incorporated ("Churchill Downs"),
headquartered in Louisville, Ky., owns and operates world-renowned horse racing
venues throughout the United States. Churchill Downs' four racetracks in
Florida, Illinois, Kentucky and Louisiana host many of North America's most
prestigious races, including the Kentucky Derby and Kentucky Oaks, Arlington
Million, Princess Rooney Handicap and Louisiana Derby. Churchill Downs
racetracks have hosted seven Breeders' Cup World Championships. Churchill Downs
also owns off- track betting facilities and has interests in various advance
deposit wagering, television production, telecommunications and racing services
companies, including a 50-percent interest in the national cable and satellite
network HorseRacing TV™, that support the Company's network of
simulcasting and racing operations. Churchill Downs trades on the NASDAQ Global
Select Market under the symbol CHDN and can be found on the Internet at
www.churchilldownsincorporated.com.
Company Contact: Investor Relations, Scientific Games
Corporation, 212-754-2233. SOURCE: Scientific
Games.
Lottery Commissioner Receives MLBA Award
LANSING, Michigan, USA (May 7, 2007) - Lottery
Commissioner Gary Peters will be
honoured with the Michigan Licensed Beverage Association's 2007 President's
Award at an event in Lansing Friday.
Peters, who has been
Lottery commissioner since April 2003, will be recognized for his contributions
to the MLBA, including overseeing the establishment of Club Games in taverns,
bars and restaurants. Club Games include Club Keno, Pull Tabs and Lucky
Streak. The launch of Club Keno has been a phenomenal success
and today generates nearly $500 million in annual revenues.
"Since the program's launch in 2003, many MLBA members
have benefited greatly from the unique expansion opportunity Club Keno and Pull
Tabs have provided their businesses," said Cathy Pavick, executive director
of the MLBA. "The Club Games program not only benefits members through
direct sales of Lottery products, but also enhances their traditional business
by offering their patrons an exciting new form of entertainment."
The MLBA President's Award is given annually to recognize
the recipient's hard work and accomplishments in promoting Michigan's
hospitality industry. The award showcases those whose efforts over the
years have enhanced business opportunities and the economic standing of MLBA
members. The Michigan Licensed Beverage Association is
a not-for-profit corporation created in 1939 by liquor licensees in the state
of Michigan with the purpose of mutual improvement, protection, and benefit,
therefore promoting the moral, social and intellectual advancement of the
liquor licensees of the state of Michigan. For more information on the
association and its activities, visit the MLBA Web site at
www.mlba.org. SOURCE: Michigan Lottery.
CONTACT: Andi Brancato (517)
335-5648. 
The Kentucky
Lottery Reaches $10 Billion In Sales And $6 Billion In Prizes
Landmark LOUISVILLE, Kentucky, USA
(May 7, 2007) -- Kentucky Lottery sales
started in April, 1989 with a $1 and a $2 scratch-off ticket. Now, some 18
years and more than a thousand games later, a pair of major milestones have
been achieved - $10 billion in sales with $6 billion in prizes paid.
Scratch-off tickets have comprised the majority of sales,
with $5.1 billion spent on a variety of tickets. Online games such as Pick 3,
Lotto Kentucky and Powerball were responsible
for $4.5 billion of the total, with pulltab ticket sales responsible for the
remaining $400 million.
| Advertisement |
 |
The first full fiscal year
of lottery sales (1990) saw a total of $197.7 million in tickets sold. Slow and
steady growth over nearly each of the past 18 years helped the KLC realize $742
million in sales last year, a 275% increase. “This modest and steady growth has helped the
Kentucky Lottery become a valuable resource to the Commonwealth,” said
the Kentucky Lottery’s President and CEO
Arch Gleason. “When you
consider how the landscape has changed since 1989, with everything from
riverboat casinos at our border to losing between 12% to 15% of our sales when
the Tennessee Lottery came into
existence, hitting a pair of major milestones like these shows the tremendous
amount of support our games and our mission enjoy.”
Players have seen $6 billion of these dollars returned in
the form of prizes. The largest single prize - $89.3 million - came as the
result of a Powerball jackpot won by Kent Miller of Madison, TN. The highest
amount of prizes paid in a fiscal year occurred in 2005, when players won
$457.7 million out of $707.3 million in tickets sold (or 65% of sales).
Of the $10 billion in sales, more than $2.6 billion has
been returned to the Commonwealth. Most of the revenue - $1.4 billion -
went to the state’s General Fund. A great majority of revenue in the
General Fund is spent on education in Kentucky. The
1998 session of the General Assembly marked a historic change in how Lottery
proceeds are distributed, one which will reverberate for generations to come
across our state. Legislators decided to invest all proceeds into
Kentucky’s most valuable resource – our young people. A seven-year
plan was developed to shift Lottery dividends to scholarship programs
benefiting the Commonwealth’s high school students.
All Kentucky Lottery proceeds are now directed to these
programs, which include the popular merit-based Kentucky Educational Excellence
Scholarships (KEES) and the need-based College Access Program and Kentucky
Tuition Grants. Since the start of these programs through FY ‘06, a little
more than $817 million has gone to pay for need-based and merit-based
scholarships over the past five years. This has provided more than 708,000
financial awards to Kentucky high school students. How has this helped? According to the Kentucky Higher
Education Assistance Authority (who administers the lottery-funded scholarship
and grant programs), prior to 1999 the number of students attending college in
Kentucky had remained flat for several years.
However, since the start of
the KLC-funded scholarship and grant programs, college attendance in the
Commonwealth has jumped 28%. “Fewer students are leaving the state to
attend college as well, which to me shows how these scholarship and grant
programs are helping keep some of our best and brightest right here at
home,” said Gleason. In 1998, legislation was
passed that directed a portion of Lottery proceeds to promote literacy in the
Commonwealth. Kentucky’s “Read to Achieve” program receives the
first $3 million in lottery proceeds each year, with a total of $21 million
going to these programs since inception. Kentucky
Lottery retailers have received more than $614 million in sales commissions
since inception. The Kentucky Lottery has earned $2.6
billion for the Commonwealth since 1989. KLC dividends pay for college
scholarships, grants and literacy programs. Visit www.kheaa.com to find out
more about grants and scholarships paid for by the KLC.
For More Information
CONTACT: Chip Polston, Jennifer
Cunningham or Sara Westerman, (502) 560-1675. SOURCE:
Kentucky Lottery Corp.
Change in the management board of Tipp24
AG HAMBURG, Germany (May 8, 2007)
-- Marc Peters, co-founder and longstanding member of the
Tipp24 AG management board, is leaving the
management board at his own request on 30. June 2007. This move has been prepared carefully together with the other
members of the management board – Jens Schumann and Dr Hans Cornehl –
and the supervisory board. It is being made at a time when Tipp24 AG’s
business is very stable, with a positive economic outlook and sound regulatory
prospects. The areas for which Mr. Peters has been responsible are being passed
on to his colleague Jens Schumann, who founded the company with him.
After making a substantial
contribution to the establishment and growth of Tipp24 AG for seven years, Marc
Peters considers that his role as a founder member of the management board of
the company is now over. Tipp24 AG is an international company with a stock
market listing today. Marc Peters is more interested in the entrepreneurial
establishment of new business models than in the management of a company of
this size. He plans to devote himself to this area in future with an investment
company of his own. The remaining members of the
management board – Jens Schumann and Dr Hans Cornehl – and the
supervisory board thank Marc Peters for his tremendous commitment to the
company since it was founded in September 1999. About Tipp24 AG (www.tipp24-ag.de) Tipp24 was established in 1999 and is now the market leader
for lottery products in the Internet on the basis of billings. The company has
succeeded in achieving impressive growth rates right from the start. Almost all
state lottery products are supplied. It only takes a few mouse clicks to buy a
lottery ticket round the clock, quickly and anonymously. The ticket receipt is
kept safely, winners are notified about their prizes automatically by text
message and e-mail and prizes are credited automatically. No extra charge is
made for this service. Subsidiaries of Tipp24 (www.tipp24.de) are Ventura24 in Spain (www.ventura24.es) and Puntogioco24 (www.puntogioco24.it) in Italy. Tipp24 has
been listed in the Prime Standard at Frankfurt Stock Exchange since October
2005. For more information CONTACT: Andrea Fratini,
Phone: +49 (040) 32 55 33 - 660 Fax: +49 (040) 32 55
33 – 77, Email: presse@tipp24.de. SOURCE: Tipp24 AG.
Florida Lottery Secretary Appoints New Director of
Product Development TALLAHASSEE,
Florida, USA (May 9, 2007) -- Florida Lottery Secretary
Leo DiBenigno today announced the
appointment of Vicki Munroe as director of product development, a newly created
position. Munroe began her new role on May 1. She previously served
as the Florida Lottery’s product manager for On-line games.
“Vicki’s many years with the Florida Lottery make her a natural
choice, and I am confident she will be a tremendous help as we finalize our
2007-08 product strategy,” said DiBenigno. “We are
working on some big plans as we approach the Florida Lottery’s
20th anniversary, and Vicki is as excited as I am to get
started.”
| Advertisement |
 |
As director of product
development, Munroe oversees the development and management of all Lottery
games. Her first task is to merge the Lottery’s On-line and
Scratch-Off games into one product development team. “I am very
excited to have more involvement in our Scratch-Off games,” Munroe
said. “The Secretary has expressed his vision for the future of
Florida Lottery games, and we agree our focus will be on bringing fresh ideas
to current games, as well as the development of new products.”
A graduate of Florida State University, Munroe began her
career by running an advertising agency in Tallahassee. After five years,
she signed on as consumer promotions manager for the launch of the Florida
Lottery in 1988. Munroe was subsequently promoted to product manager for
On-line games in 1991. Soon thereafter, LaFleur’s Lottery
World Symposium awarded her the Best All-Star Online Product Manager
award. As product manager for On-line games, she studied, designed and
directed new games and promotions offered by the
Florida Lottery. The longevity and
growth of these games serve as a true testament of Munroe’s commitment to
providing quality entertainment to Florida Lottery players.
Munroe recently received industry accolades for her
management of the Florida Lottery’s Holiday MILLIONAIRE RAFFLE. The
game set an industry record last year by selling out in just 11 days.
CONTACT: Jacqueline Barreiros, (850) 487-7727.
Pollard
Banknote Announces First Quarter Financial Results
WINNIPEG, Canada (May 9, 2007) - Pollard Banknote Income
Fund (TSX Symbol PBL.UN) (the “Fund”) today released the financial
results of the Fund and Pollard Holdings Limited Partnership (“Pollard
LP”) for the three months ended March 31, 2007.
| HIGHLIGHTS |
Quarter ended
March 31, 2007 |
|
Sales(1)
|
$ 42.1 million |
| EBITDA(1) |
$ 6.4 million |
| Net Income(1) |
$ 3.4 million |
| Distributable Cash(1) |
$ 4.9 million |
| Distributions(1) |
$ 5.6 million |
| Distributable cash per unit(1)
|
$ 0.2095 |
| Distributions per unit(2) |
$ 0.2376 |
| Payout ratio(3) |
113.4% |
- Sales, EBITDA, net income,
distributable cash, distributions and distributable cash per unit are for
Pollard LP for the three months ended March 31, 2007.
- Distributions per unit are for
the Fund for the three months ended March 31, 2007.
- Payout ratio is calculated as
distributions per unit divided by distributable cash per unit.
“The first quarter
of 2007 witnessed a number of important milestones for Pollard,”
stated Co-Chief Executive Officer John Pollard. “The market for instant
tickets shows strong growth and this trend is expected to continue. We are
currently undertaking a number of important manufacturing initiatives including
the implementation of a fully automated finishing line. Licensed properties and
Lottery Management Services also continue to grow in
significance.” “Although the
financial results are lower relative to last year, much of the reduced volumes
are related to timing differences in customer order patterns, and we must
remember that Q1 2006 was a record quarter. Our book of orders has increased
and expected volume for the second quarter and the remainder of Fiscal 2007 is
expected to recover to the levels achieved during Fiscal 2006. We are very
pleased with the progress in a number of initiatives and look forward to strong
results over the next months.”
THE FUND Consolidated Statement of Net Income and Unitholders' Equity
Three months ended March 31, 2007
(in thousands of dollars, except for
unit amounts
| Share of income of Pollard Holdings Limited
Partnership |
$477 |
| Administrative xpenses |
(74) |
| Net income for the period |
403 |
| Opening Unitholder’s
equity |
58,219 |
|
Distributions
|
(1,494) |
| Closing Unitholders' equity
|
$57,128 |
| Basic and diluted earnings per
unit |
$0.06 |
| Number of Fund Units
outstanding March 31, 2007 |
6,285,700 |
The Fund commenced business operations on August 5, 2005,
and earnings from the Fund’s investment in Pollard LP have been accounted
for using the equity method of accounting. Under this method, the Fund’s
share of earnings of Pollard LP, adjusted for the amortization of certain
intangible assets arising from the use of purchase accounting and certain
administrative expenses, is reflected in the statement of income of the Fund.
The results of operations of the Fund are dependent on the performance of
Pollard LP. The Fund has declared the following
distributions totaling $0.2376 per unit during the three months ended March 31,
2007.
| Period covered |
Date of record
|
Payment Date
|
Per unit amount
|
| January |
January 31 |
February 15 |
$0.0792 |
| February |
February 28 |
March 15 |
$0.0792 |
| March |
March 30 |
April 16 |
$0.0792 |
POLLARD LP Pollard LP is
one of the leading providers of products and services to lottery and charitable
gaming industries throughout the world. Management believes Pollard LP is the
largest provider of instant-win scratch tickets based in Canada and the second
largest producer of instant tickets in the world. SELECTED
FINANCIAL INFORMATION (millions of dollars)
| |
Three months
ended
March 31, 2007 |
Three months
ended
March 31, 2006 |
| Sales |
$42.1 |
$48.2 |
| Cost of Sales |
33.0 |
37.2 |
| Gross Profit |
9.1 |
11.0 |
| Gross Profit as a % of sales
|
21.6% |
22.8% |
| Selling and Administration
Expenses |
4.9 |
4.8 |
| Expenses as a % of sales |
11.6% |
9.9% |
| EBITDA |
6.4 |
8.1 |
| EBITDA as a % of sales |
15.2% |
16.8% |
| |
March 31, 2007 |
December 31, 2006 |
| Total Assets |
$88.6 |
$104.7 |
| Total Long Term Liabilities
|
$49.4 |
$49.8 |
The previous selected financial and operating information
has been derived from, and should be read in conjunction with, the unaudited
interim consolidated financial statements of Pollard LP.
Results of Operations - Three months ended March 31, 2007
Sales During the three months ended March 31, 2007, Pollard LP achieved sales
of $42.1 million, compared to $48.2 million in the three months ended March 31,
2006. Factors impacting the $6.1 million sales difference were:
Weakening of the Canadian dollar
During the three months ended March 31, 2007, Pollard LP
generated approximately 72% of its revenue in U.S dollars including a
significant portion of international sales which are priced in U.S. dollars.
During the first quarter of 2007 the actual Canadian dollar value versus the
U.S dollar was converted at $1.1784, compared to $1.1487 during the first
quarter of 2006. This 2.6% change in value resulted in an approximate increase
of $0.8 million in revenue. Decreased sales
volume The volume of sales generated during the
first quarter of 2007 was lower than the comparable three months of 2006.
Overall instant ticket and related services volumes for the first quarter of
2007 were lower by approximately 19.9% compared to the first quarter of 2006
due to a large sale of pouched instant tickets in the first quarter of 2006
which is not being re-ordered until later in 2007, as well as the impact of the
timing of certain other instant ticket orders from current customers. The
volumes of pull-tab tickets decreased by approximately 10.8% and bingo paper
volumes decreased by approximately 3%. Vending machine sales remained constant.
The first quarter of 2006 represented a record for sales volumes.
Sales in the licensed properties line continue to increase
relative to 2006 as new licensed properties were added to the portfolio which
resulted in increased sales. Cost of sales and
gross profit Cost of sales was $33.0 million in
the first quarter of 2007 compared to $37.2 million in the first quarter of
2006 reflecting the lower sales in 2007. Gross profit decreased from
$11.0 million in the first quarter of 2006 to $9.1 million in the first quarter
of 2007. The gross profit margin decreased to 21.6% from 22.8% in the first
quarter of 2006, reflective of the lower production volumes.
Selling and administration expenses
Selling and administration expenses were $4.9 million in
the first quarter of 2007 similar to $4.8 million in the first quarter of
2006. Total selling and administration expenses as a percentage of sales
increased to 11.6% from 9.9% in the first quarter of 2006 due to lower
sales. For Fiscal 2006 the total selling and administration expenses as a
percentage of sales was 10.9%. EBITDA
EBITDA was $6.4 million in the first quarter of 2007,
compared to $8.1 million in the first quarter of 2006. EBITDA margins were
15.2% in the first quarter of 2007 compared to 16.8% in the first quarter of
2006. Net income Net income
decreased by $0.9 million to $3.4 million in the first quarter of 2007 from
$4.3 million in the first quarter of 2006. Distributable cash and distributable cash per unit
Pollard LP generated $4.9 million in distributable cash,
or $0.2095 per unit for the first quarter of 2007. This fell short of the
target of $0.2376 as established in the final prospectus of the Fund dated July
27, 2005. The decrease in distributable cash over the target is due primarily
to lower sales volumes. Use of Non-GAAP Financial
Measures Reference to “EBITDA” is to
earnings before interest, income taxes, amortization,
unrealized foreign exchange gains and losses, mark-to-market gains and losses
on foreign exchange contracts and long term incentive plan expense. Reference
to “Distributable Cash” is to cash available for distribution to
Unitholders. Management views Distributable Cash as an operating performance
measure, as it is a measure generally used by Canadian income funds as an
indicator of financial performance. Distributable Cash is important as it
summarizes the funds available for distribution to Unitholders. As the Fund and
Pollard LP will distribute substantially all of its cash on an ongoing basis
and since EBITDA is a metric used by many investors to compare issuers on the
basis of the ability to generate cash from operations, management believes
that, in addition to Net Income, EBITDA, and Distributable Cash are useful
supplementary measures. EBITDA, Distributable Cash, Maintenance Capital
Expenditures and Growth Capital Expenditures are not measures recognized under
GAAP and do not have standardized meanings prescribed by GAAP. Therefore, these
measures may not be comparable to similar measures presented by other entities.
Investors are cautioned that EBITDA should not be construed as an alternative
to net income or loss determined in accordance with GAAP as indicators of the
Fund’s and Pollard LP’s performance or to cash flows from operating,
investing and financing activities as measures of liquidity and cash flows.
Outlook
The outlook for the rest of
Fiscal 2007 remains positive, with sales, production and Distributable Cash
expected to return to levels achieved in 2006. We expect to see overall growth
in our current core group of lottery customers, notwithstanding
quarter-to-quarter variations in order patterns. The instant ticket
market is growing at a healthy rate, particularly in North America, and this
trend shows no sign of abating. After considering allowable extensions,
we have no major contracts that expire in 2007. A number of key contract wins
in 2006 will have a greater impact on our volumes and results during 2007,
including the start up of the new ten-year Ontario Lottery and Gaming
Corporation (OLG) instant ticket contract and the full transition of the
Maryland Lottery instant ticket and distribution contract to Pollard. We will
bid aggressively on our competitors’ contracts, which expire during the
upcoming year. As evidenced in Q1 2007, licensed properties are
increasingly important to our product offerings. A number of new properties
have been or will soon be announced to the lottery industry and will help lever
our revenue and margins in this product line. Coupled with other Pollard
proprietary products such as Scratch FX™ and Fusion® products, these
products provide us a unique avenue for additional value added sales.
We anticipate increased manufacturing efficiencies in
Fiscal 2007 from a number of current initiatives. Our finishing and packaging
automation project is scheduled to go live by the third quarter and will allow
us to reduce costs as well as increase our throughput. Overall volumes in the charitable gaming market, including
pull tabs and bingo paper, remain very consistent with prior years. We gained
significant market share increases during the first half of 2006 and we are
focused on retaining these higher levels throughout 2007.
We are monitoring the status of the Tax Fairness Plan. As
legislation and regulations are enacted, we will develop specific strategic
responses at that time. It is anticipated that the introduction of additional
taxation under these proposals will not apply to the Pollard Banknote Income
Fund until 2011. We believe that our credit facilities and cash flow from
operations will be sufficient to allow us to meet our ongoing requirements for
capital expenditures, working capital and distributions to Unitholders at
existing business levels. For further information:
John Pollard, Co-Chief Executive Officer, Telephone: (204) 474-2323 ext 204,
Facsimile: (204) 453-1375; Gordon Pollard, Co-Chief Executive Officer,
Telephone: (204) 474-2323 ext 211, Facsimile: (204) 453-1375; Rob Rose, Chief
Financial Officer, Telephone: (204) 474-2323 ext 250, Facsimile: (204)
453-1375
Time Running Out To Play State's Latest Lottery Game; Super Raffle
Tickets Half Gone! LANSING,
Michigan, USA (May 8, 2007) -- In just one day, over half of the 250,000 Super
Raffle tickets available have been purchased! Tickets went on sale Monday
at 6 am and as of early Tuesday, over 126,000 have been sold.
With just under 125,000
tickets remaining tickets could sell out as early as today.
"Players who want a Super Raffle ticket should get out
there and grab one today!" said Lottery Commissioner
Gary Peters. Super Raffle is the first of its kind in Michigan or any
other state. The $50 ticket has two top prizes of $2 million, 25 prizes
of $100,000 and 4,500 prizes of $500! Not only does
the game have great prizes, but since only 250,000 tickets will be sold, the
odds of winning are the best yet! Super Raffle tickets are on sale at all
Lottery retailers. Although the Super Raffle is
expected to be a success, it will not take the place of Millionaire
Raffle. The next Millionaire Raffle game is expected to be launched in
the fall. The Super Raffle drawing will be conducted
on June 18 and the two $2 million winning numbers will be displayed during the
Lottery's drawing broadcast that evening. Players will be able to check
all winning numbers at the Lottery's Web site on
www.michigan.gov/lottery, at
Lottery retailers or at Lottery regional offices throughout the state.
For additional information, please visit the Lottery's Web
site at: www.michigan.gov/lottery.
SOURCE: Michigan Lottery. CONTACT: Andi Brancato (517)
335-5648. 
|
