Seven Aces Limited Announces Financial Results for the First Quarter Ended March 31, 2020

TORONTO, ON / ACCESSWIRE / June 1, 2020 / Seven Aces Limited (the "Company" or "Aces") (TSXV:ACES)(OTC PINK:ACEXF) is pleased to announce the filing of its financial results for the first quarter of fiscal 2020. For more information, please see the condensed interim consolidated financial statements of the Company for the first quarter ended March 31, 2020 and the related management's discussion and analysis, which are available electronically on SEDAR (www.sedar.com) under Aces' issuer profile at. All figures are in U.S. dollars unless otherwise noted.

"Our Company took a significant step forward in Q1" said Manu K. Sekhri, Chief Executive Officer of Aces. "We completed the most significant acquisition since the initial investment of the Company in Lucky Bucks, LLC and we brought to a conclusion a successful process to refinance our credit facility on much more attractive terms. When one time items related to these two events are stripped out, we believe that what remains illustrates an impressive performance of the Company's business in Q1. What is likely even more significant is the resilience to the COVID-19 pandemic exemplified by our Q2 results. This is a trend that we have seen continue into April and May, with April revenue coming in just below, and May revenue coming in significantly above pre-COVID budgeted numbers."

Highlights – Quarter Ended March 31, 2020 (1)

Generated gaming revenues of approximately $23.8 million for quarter ended March 31, 2020, compared to $20.1 million for the quarter ended March 31, 2019; representing an increase of approximately 18%.
Generated Adjusted EBITDA of $9.4 million for the quarter ended March 31, 2020, compared to $8.3 million for the quarter ended March 31, 2019; representing an increase of approximately 13%.
Generated positive cash flow from operations of approximately $6.8 million for the quarter ended March 31, 2020, compared to $4.8 million for the quarter ended March 31, 2019.
For the quarter ended March 31, 2020, the Corporation closed six acquisitions for a total purchase price of approximately $43.4 million.
The Company's subsidiary, Lucky Bucks, LLC entered into a new $165MM credit facility with a syndicate of lenders. Lucky Bucks, LLC fully drew down on the term loan facility, delayed draw term loan and partially drew down on the revolving credit facility to refinance its previous credit facility and fund the Shivbhaki, Inc ("Game Vendor") acquisition.

Note:

(1)

These reported figures are based on consolidated results and do not reflect the impact of the non-controlling interest.

About Seven Aces Limited

Seven Aces Limited is a gaming company, with a vision of building a diversified portfolio of world class gaming operations. The Company looks to enhance shareholder value by growing organically and through acquisitions. Currently, the Company is the largest route operator of skill-based gaming machines in the State of Georgia, United States of America.

For more information about ACES is available online at www.sevenaces.com.

For further information please contact:

Ryan Bouskill
Chief Financial Officer
Tel. (647) 228-8668
ryan@sevenaces.com

Stephanie Lippa
Office Manager
Tel. (416) 477-3411
stephanie@sevenaces.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Cautionary Statement Regarding Forward-Looking Information

This news release may contain forward-looking statements or "forward-looking information" within the meaning of applicable Canadian securities laws ("forward-looking statements"). Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.

All forward-looking statements reflect the Company's beliefs and assumptions based on information available at the time the statements were made. Actual results or events may differ from those predicted in these forward-looking statements. All of the Company's forward-looking statements are qualified by the assumptions that are stated or inherent in such forward-looking statements, including the assumptions listed below. Although the Company believes that these assumptions are reasonable, this list is not exhaustive of factors that may affect any of the forward-looking statements. The key assumptions that have been made in connection with the forward-looking statements include the following: the digital gaming terminals being fully-licensed by the Georgia Lottery Corporation; the continuation of the Company's acquisition strategy in the Georgia gaming market; the growing footprint of Lucky Bucks in the Georgia gaming market; generating value for the shareholders of the Company; the regulatory regime governing the business of Lucky Bucks in Georgia; the exchange rate between the U.S. dollar and Canadian dollar; the ability to grow the business and deliver returns for shareholders; the availability of high growth and high margin opportunities; continuing to add high performing locations; and the execution of the Company's business strategy and acquisition pipeline.

Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the Company's ability to continuing to execute a growth strategy through acquisitions and the Company's ability to generate higher margins and significant growth in cash flows. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise, except in accordance with applicable securities laws.

Non-IFRS Financial Measures

Statements in this news release make reference to Adjusted EBITDA, which is a non-IFRS (as defined herein) financial measure that the Company believes is appropriate to provide meaningful comparison with, and to enhance an overall understanding of, the Company's past financial performance and prospects for the future. The Company believes that Adjusted EBITDA provides useful information to both management and investors by excluding specific expenses and items that management believe are not indicative of Aces' core operating results. Adjusted EBITDA is a financial measure that does not have a standardized meaning under International Financial Reporting Standards ("IFRS"). Adjusted EBITDA is defined as earnings before financing costs, income taxes, depreciation, amortization of property and equipment and intangible assets, stock-based compensation, foreign exchange, impairment, gain/loss on settlement of accounts payable, financing income, business acquisition costs, warrant fair value adjustment and derivative asset fair value adjustment. As there is no standardized method of calculating Adjusted EBITDA, it may not be directly comparable with similarly titled measures used by other companies. The Company considers Adjusted EBITDA to be a relevant indicator for measuring trends in performance and its ability to generate funds to service its debt and to meet its future working capital and capital expenditure requirements. Adjusted EBITDA is not a generally accepted earnings measure and should not be considered in isolation or as an alternative to net income (loss), cash flows or other measures of performance prepared in accordance with IFRS.

SOURCE: Seven Aces Limited

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