Acquisition deadline extended

Tuesday, Nov. 18, 2003 | 10:42 a.m.

PDS Gaming Corp. has extended until April 15 a letter of intent relating to a buyout offer by top management.

A special committee of the company's board of directors consisting of its independent directors and the management group continue to negotiate toward a definitive agreement, the Las Vegas company said today.

In February, top management announced a $98 million plan to buy up outstanding shares of PDS stock. A shareholder filed suit to block the deal but voluntarily dismissed it a few months ago in response to the company's motion to dismiss the suit, PDS said.

The public markets haven't given the company the access to capital it had hoped for, company executives said.

Separately, PDS reported an increase in earnings for the third quarter ended Sept. 30.

The company earned $187,000 or 5 cents per share compared to a net loss of $324,000 or 9 cents per share for the same quarter of last year.

The prior year's quarter included a $348,000 loss from discontinued operations or 10 cents per share.

Revenue from continuing operations was $14.3 million compared to $7.3 million a year ago.

PDS primarily finances and leases gaming equipment to operators nationwide. It bought Rocky's Sports Pub and Grill in Reno last year.

Operating lease rentals increased to $7.8 million from $4 million. The company completed $31.2 million in originations during the quarter compared to $7.5 million a year ago. Revenue from equipment sales and sales-type leases increased to $2.7 million from $672,000 a year ago primarily due to higher sales of equipment coming off lease.