EXHIBIT 99.01
VENDINGDATA(TM)
CORPORATION LOGO
Contact: John Spina or Yvonne L. Zappulla
Chief Financial Officer Managing Director
VendingData(TM) Corporation Wall Street Investor Relations Corp.
702-733-7195 845-680-0300
spina@vendingdata.com Yvonne@WallStreetIR.com
VENDINGDATA(TM) CORPORATION REPORTS FIRST QUARTER 2004 FINANCIAL RESULTS
COMPANY REPORTS REVENUE OF $1.3 MILLION, UP FROM $390,000 IN PRIOR QUARTER
LAS VEGAS, NEVADA- (PRNewswire)-May 13, 2004-VendingData(TM) Corporation (AMEX:
VNX), a manufacturer and distributor of products for the gaming industry that
are intended to increase customers' security, productivity and profitability,
today reported revenues for the first quarter ended March 31, 2004 of $1.3
million compared to $390,000 for the fourth quarter of 2003 and $1.9 million for
the first quarter of 2003. Revenues for the quarter consisted of, in part,
SecureDrop(R) sales of $196,000; shuffler sales of $303,000; shuffler rentals of
$154,000; Deck Checker(TM) sales of $494,000; and Deck Checker(TM) rentals of
$57,000.
The Company reported a quarterly net loss applicable to common stockholders of
$(1.47) million or $(0.09) per share for the first quarter of 2004. This
compares to a fourth quarter 2003 loss of $(3.4) million or $(0.36) per share
and a loss of $(1.4) million or $(0.19) per share for the first quarter of 2003.
Interest expense in the quarter totaled $277,000 compared to $769,000 for the
fourth quarter 2003, due to the retirement of $20.3 million of debt completed in
February 2004.
VendingData's(TM) gross margin during the first quarter averaged 39.6 percent,
which represents a 960 basis point improvement over the first quarter 2003
average and a dramatic step forward from the negative 55 percent gross margin
realized during fourth quarter 2003. The Company expects its gross margin will
improve further due to its decision to manufacture products in China and as it
works through the remainder of its higher cost inventory, which did not have the
cost advantage of being manufactured in China.
The Company's operating expenditures for the first quarter were reduced by
$600,000 over the previous quarter to $1.7 million as selling, general and
administrative costs (SG&A) normalized. Fourth quarter SG&A included
extraordinary expenses related to the debt private placement, the public
offering of common stock, legal expenses associated with the Shuffle Master
lawsuit, and costs of transitioning the Company's manufacturing to China.
Cash and equivalents on March 31, 2004 were $5.8 million compared to $11.5
million on December 31, 2003. Total liabilities have decreased from $9.9 million
at December 31, 2003 to $6.0 million at March 31, 2004 primarily due to the
retirement of convertible debt through a combination of cash payments and
conversion to common stock. The Company's current ratio is a solid 3.1 to 1.
Steven J. Blad, VendingData's(TM) CEO, commented, "During the quarter we
completed our manufacturing transition to China and we are beginning to benefit
from the cost improvements. As we work through the remainder of our non-China
produced inventory, transition additional responsibilities to China and begin
shipping our two new products in the second half of the year, we anticipate
continued material improvements to our overall margins."
QUARTER HIGHLIGHTS AND RECENT DEVELOPMENTS
VENDINGDATA(TM) SHARES APPROVED FOR TRADING ON THE AMERICAN STOCK EXCHANGE
Effective May 4, 2004, VendingData(TM) shares began trading on the American
Exchange under the stock symbol VNX, which coincided with the discontinuance of
the quotation of its shares on the OTC Bulletin Board. Kellogg Capital Group,
LLC has been selected as the specialist assigned to VNX.
ON MARCH 29, VENDINGDATA(TM) SIGNED A CONTRACT WITH TCS ACES FOR 15 DECK
CHECKERS(TM) Twelve Deck Checker(TM) units are scheduled to be installed in
eight different Sociedade de Turismo e Diversoes de Macau ("STDM") (The Macau
Gaming Company) properties in Macau, China beginning in May 2004. The Company
also announced that it has signed an agreement for its SecureDrop(R) product in
Vietnam, marking its entry into that country.
EFFECTIVE FEBRUARY 17, 2004 H. MICHAEL JAHNKE ASSUMES THE POSITION OF CHIEF
OPERATING OFFICER OF VENDINGDATA(TM) CORPORATION Mr. Jahnke has spent the past
15 years in senior operating positions of leading-edge technology companies. He
most recently served as vice president of operations, corporate secretary and
(acting) CFO for WireCACHE, Inc., a designer and builder of application
accelerator network appliances; vice president of sales and marketing for Fios,
Inc., a leading provider of electronic discovery services to the legal
community; and, vice president of worldwide sales operations for Sequent
Computer Systems, a worldwide leader in large-scale multiprocessor open systems
enterprise solutions.
VENDINGDATA(TM) TO INSTALL FIVE POKERONE(TM) SHUFFLERS FOR FIELD TRIAL IN MACAU,
CHINA. TWO RANDOM EJECTION SHUFFLERS(TM) HAVE BEEN INSTALLED IN STDM'S LISBOA
CASINO ON FEBRUARY 20, 2004 VendingData(TM) signed a field trial contract that
provides for a direct sale option with Sociedade de Turismo e Diversoes DE Macau
(STDM) - The Macau Gaming Company founded by Stanley Ho in 1962 - to install
five PokerOne(TM) units in the poker pit OF the Pharaoh Palace Casino.
Installation due to begin in May 2004. In addition, VendingData(TM) installed
two Random EjectioN Shufflers(TM) in the baccarat card pit of the Crystal Palace
at the Lisboa Casino, the flagship property of STDM
VENDINGDATA(TM) CORPORATION'S DECK CHECKER(TM) RECEIVED PRODUCT APPROVAL FROM
THE WASHINGTON STATE GAMING COMMISSION In February 2004, Deck Checker(TM)
received product approval from the Washington State Gaming Commission.
VendingData(TM) hAS already received purchase orders from 22 of approximately 50
potential targeted casinos in the state of Washington.
VENDINGDATA(TM) CORPORATION AWARDED OFFICIAL LICENSES TO OPERATE IN CHINA AS AN
INDEPENDENT ENTERPRISE VendingData(TM) was awarded the Registration Certificate
of Foreign Enterprises for Permanent Office and Manufacturing in China with the
authorization to establish a permanent office in China as an enterprise with
foreign investment, business licenses, and certificate of taxation
registrations, most of which have effective durations of 11 to 14 years. The
certification process involved applications for six licenses in Guangdong
province and local Chinese government authorities, including the Director
General of State Administration for Industry and Commerce of the People's
Republic of China.
VENDINGDATA(TM) CORPORATION RETIRES $20.3 MILLION OF DEBT
As a result of the debt reduction completed in February 2004, the Company's
interest expense will decline in excess of $500,000 per quarter.
CONFERENCE CALL
- ---------------
Conference Call Details:
DATE/TIME: THURSDAY, MAY 13, 2004 AT 4:30 P.M. (EST)
TELEPHONE NUMBER: 800-901-5231 (US)
617-786-2961 (INTERNATIONAL)
PARTICIPANT PASS CODE: 46068128
It is recommended that participants phone-in at least 10 minutes before the call
is scheduled to begin. The conference call can also be accessed on the Internet
through CCBN at www.fulldisclosure.com. A replay of the conference call in its
entirety will be available approximately one hour after its completion for 7
days by dialing 888-286-8010 (U.S.), 617-801-6888 (International) and entering
the pass code 94192366.
ABOUT VENDINGDATA(TM) CORPORATION
VendingData(TM) Corporation is a Las Vegas-based developer,
manufacturer and distributor of products for the gamiNG industry
including the SecureDrop(R) System, Deck Checker(TM) and Random
Ejection Shuffler(TM) line. The CoMPANY's products are currently
installed in casinos throughout the United States, including Caesars
Palace, Circus Circus, Harrah's Entertainment, Luxor, Oneida Bingo &
Casino and the Venetian. International customers include casinos in
Argentina, China, Columbia, Korea, Malaysia, Peru, United Kingdom,
and Uruguay. Visit the VendingData Web site at
http://www.vendingdata.com.
This release contains forward-looking statements. Such statements reflect and
are subject to risks and uncertainties that could cause actual results to differ
materially from expectations. Factors that could cause actual results to differ
materially from expectations include, but are not limited to, the following the
success of the transition of our manufacturing and assembly to China, changes in
the level of consumer or commercial acceptance of the Company's existing
products and new products as introduced; competitive advances; acceleration
and/or deceleration of various product development and roll out schedules;
higher than expected manufacturing, service, selling, administrative, product
development and/or roll out costs; current and/or unanticipated future
litigation; regulatory and jurisdictional issues involving VendingData(TM)
Corporation or its products specifically, and for the gaming industry in
general; general and casino industry economic conditions; the financial health
of the Company's casino and distributor customers both nationally and
internationally; and the risks and factors described from time to time in the
Company's reports filed with the Securities and Exchange Commission, including,
but not limited to the company's Form 10-QSB for the quarter ended September 30,
2003, and, the Company's Annual Report on form 10-KSB for the year ended
December 31, 2003.
# # #
VENDINGDATA CORPORATION
STATEMENTS OF OPERATIONS
(UNAUDITED)
THREE MONTHS ENDED
MARCH 31, THREE MONTHS
----------------------------- DECEMBER 31,
2004 2003 2003
------------- ------------- -------------
Sales ....................................... $ 993,054 $ 1,575,086 $ 203,332
Rental ...................................... 211,063 331,803 175,983
Other ....................................... 88,773 28,469 10,597
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1,292,890 1,935,358 389,912
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OPERATING EXPENSES:
Cost of sales ............................... 780,737 1,355,646 604,996
Selling, general and administrative ......... 1,426,034 1,082,444 2,004,074
Research and development .................... 278,753 285,989 300,788
------------- ------------- -------------
2,485,524 2,724,079 2,909,858
------------- ------------- -------------
Loss from operations
.. ........................................... (1,192,634) (788,7221) (2,519,946)
Interest expense, unrelated parties ......... 262,622 497,676 652,561
Interest expense, related parties ........... 14,523 159,821 116,183
------------- ------------- -------------
(Gain) Loss on disposition of assets .... ... (567) -- 141,460
------------- ------------- -------------
Total interest expense, net ........... 276,578 657,497 910,204
------------- ------------- -------------
Net loss.................................... $ (1,469,212) $ (1,446,218) $ (3,430,150)
============= ============= =============
Basic loss per share........................ $ (0.09) $ (0.19) $ (0.36)
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Weighted average shares outstanding ......... 17,105,700 7,625,814 9,547,291
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VENDINGDATA CORPORATION
BALANCE SHEET
MARCH 31, DECEMBER 31,
2004 2003
(UNAUDITED)
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 5,830,540 $ 11,526,664
Current portion of accounts receivable, trade, net of
allowance for uncollectables of $125,530 and $125,530 2,426,102 2,354,054
Due from affiliate 31,802 31,802
Other receivables 137,867 29,836
Inventories 4,768,942 4,150,414
Prepaid expenses 80,202 52,028
------------ ------------
Total Current Assets 13,275,455 18,144,798
Equipment rented to customers, net of accumulated
deprediation of 378,467 and $316,245 551,263 608,555
Property & equipment, net of accumulated depreciation
of $1,977,416 and $1,859,206 1,017,029 1,063,951
Intangible assets, net of accumulated amortization of
$327,272 and $288,203 1,242,354 1,282,088
Due from affiliate 118,800 118,800
Accounts receivable, trade, net of current portion,
less unamortized discount 1,329,296 1,140,984
Deferred expenses 225,232 250,697
Deposits 1,599,731 1,284,827
Other assets 236,026 265,478
------------ ------------
$ 19,595,186 $ 24,160,178
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LIABILITIES AND STOCKHOLDERS' EQUITY DEFICIENCY
Current liabilities:
Leases payable, current portion $ 2,069,470 $ 2,237,073
Accounts payable 1,086,905 1,727,460
Accrued expenses 138,182 135,859
Accrued wages 174,782 343,697
Accrued interest 158,597 344,751
Deferred revenues, current portion 216,480 171,875
Short-term debt 236,350 270,743
Convertible debt, current portion -- 2,368,077
Customer deposits 181,400 178,805
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Total current liabilities 4,262,166 7,778,340
Deferred revenues, net of current portion 227,370 219,890
Convertible debt, net of current portion -- --
Leases payable, net of current portion 1,480,716 1,916,723
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5,970,252 9,914,953
Stockholders' equity deficiency:
Preferred stock, $.001 par value, 10,000,000 shares authorized,
no shares issued and outstanding -- --
Common stock, $.001 par value, 25,000,000 shares authorized,
16,765,580 and 16,765,580 shares issued and outstanding 17,188 16,766
Additional paid-in capital 59,659,307 58,810,806
Deficit (46,051,561) (44,582,347)
------------ ------------
Total stockholders' equity deficiency 13,624,934 14,245,225
------------ ------------
Total liabilities and stockholders' equity deficiency $ 19,595,186 $ 24,160,178
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