Bally reports record quarterly revenue

Diluted earnings per share was USD 0.54 for the three months ended December 31, 2013. Second quarter fiscal 2014 results include 37 days of operations from SHFL entertainment.

“Our second quarter fiscal 2014 was transformative in many respects,” said Ramesh Srinivasan, the company’s President and Chief Executive Officer. “We successfully closed the acquisition of SHFL ahead of schedule and the ongoing integration process is moving forward smoothly. We have integrated our sales, services and product development teams while simultaneously continuing to execute well on our core businesses as evidenced in our second quarter results. Customer response across the globe to the integration, including the combined product roadmaps, has been positive. While more work remains to be done, we are off to a terrific start and are tracking ahead of our synergy targets. We believe that Bally is now well-positioned to continue industry-leading innovation and growth.”

“Revenues that are recurring in nature set a quarterly record and accounted for approximately 51 percent of total revenue during the quarter,” said Neil Davidson, the Company’s Chief Financial Officer. “As we make progress on the integration process and continue to identify incremental synergy opportunities, we now expect cost synergies to be at least $40 million on an annualized run-rate basis by the end of calendar 2014. Now that the acquisition has closed, we are thoughtfully allocating free cash flow towards the repayment of our debt with a goal of achieving a leverage ratio of approximately 3.0 times within the next two years. In fact, we have already paid down us$ 58 million of debt since the acquisition closed.”