Las Vegas firms report results

Wednesday, March 31, 2004 | 11:06 a.m.

Las Vegas-based slot lessor PDS Gaming Corp. announced Tuesday it earned $659,000 in 2003, reversing its $4.4 million loss in 2002. Quarterly results were not broken out.

PDS also noted in its annual report that its three top executives extended a deal they have to take the company private until April 15.

The executives announced in February 2003 they had signed a letter of intent to buy the 69 percent of PDS shares they didn't already control for a cash payment per share of $1.25 plus future cash payments of an additional $1.50.

On Feb. 6 the company announced the executives had secured a $5.5 million commitment to finance the buyout.

The company reported a 12.2 percent year-over-year revenue jump, to $45.2 million from $40.3 million, fueled largely by operating lease rental revenue, which more than doubled to $28.2 million from $13.7 million.

Fee income almost quadrupled, to $4.4 million from $1.1 million, while equipment sales and sales-type lease revenue dropped by 63.9 percent, to $6.8 million from $18.9 million.

On the expense side, the cost of PDS' equipment sales and sales-type leases also dropped, to $6.4 million from $17.3 million. Depreciation costs more than doubled on its operating leases, to $19.6 million from $9.4 million.

PDS' interest expense jumped to $10.7 million in 2003 from $7.8 million in 2002.

Meanwhile, Las Vegas-based gaming products manufacturer and supplier Paul-Son Gaming Corp. announced results Tuesday for its year and quarter ended Dec. 31.

Annual net income was $1.2 million, or 16 cents per share, reversing a 2002 loss of $2.2 million, or 42 cents per share.

Quarterly net income was $1.3 million, or 18 cents per share, compared with a loss of $1 million or 14 cents a share in the 2002 fourth quarter.