Pollard Banknote

Pollard Banknote

POLLARD BANKNOTE ANNOUNCES STRONG Q4 AND ANNUAL FINANCIAL RESULTS FOR 2013


WINNIPEG, Manitoba, March 5, 2014 /CNW/ – Pollard Banknote Limited (TSX: PBL) (Pollard Banknote) today released its financial results for the three months and year ended December 31, 2013.  

“We are very pleased with our financial results for both the 4th quarter and for all of 2013,” commented Co-Chief Executive Officer John Pollard.  “The final quarter of the year continued the trend of strong sales volumes and revenue that we have experienced throughout the year.”   

“We recorded record sales volumes for 2013 and significant increases in our licensed games product line.  Our sales volumes were up approximately 8% and our average selling prices were consistent with 2012.   Sales of our licensed games products were up significantly and sales of our digital applications, while small in absolute value, began gaining traction in 2013.” 

“Our revenue increased by $22.5 million, or 13%, a tremendous accomplishment reflective of our strong team of employees and our unique approach to the industry. It also reflects a recognition in the marketplace of the ability of Pollard to assist lotteries in maximizing funds they can generate for their various good causes.  We gained a number of key new contracts in 2013 and continue to see success in this area in 2014.  More importantly we have seen a number of situations of increased share of work for Pollard with lotteries which have multiple suppliers.  All of these factors look to continue into 2014.” 

“Throughout 2013 we made a number of investments and upgrades to our business, particularly in adding key staff resources in the marketing and technical areas, in order to lay the foundation to grow our business.  The impact of these investments in the short term has been to limit the growth of margins relative to the growth in our revenue line.  However, we are confident that these investments will allow us to generate increasing margins and profits in the future.”  

“The instant ticket industry remains very strong.  Lotteries continue to grow their traditional paper based instant ticket products lines while at the same time quickly developing opportunities to provide their gaming products on the internet.  We are very excited about our new contract to provide the iLottery internet based product offering for the Michigan Lottery and are looking forward to expanding this product line.” 

“We continue to be very optimistic looking ahead to 2014, both for the opportunities developing within our industry, and our ability to take advantage of these opportunities to grow the business and profitability of Pollard.”

About Pollard Banknote Limited
Pollard Banknote Limited is one of the world’s leading full-service lottery vendors and is a major supplier to North America’s charitable gaming industry. The company manufactures instant lottery tickets and provides related programming, design, and marketing support. As well, Pollard Banknote manufactures pull tab tickets and bingo paper, and supplies lottery management services (including warehousing and distribution). Established in 1907, Pollard Banknote is owned approximately 73.5% by the Pollard family and 26.5% by public shareholders and currently serves more than 50 lotteries worldwide, including some of the largest and most respected lotteries in the United States, Canada, Europe, Asia, and Central and South America.

Forward-looking Statements
Certain statements in this press release may constitute “forward-looking” statements and information which involve known and unknown risks, uncertainties, and other factors which may cause actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. When used in this document, such statements include such words as “may,” “will,” “expect,” “believe,” “plan,” and other similar terminology. These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this document. There should not be an expectation that such information will in all circumstances be updated, supplemented, or revised whether as a result of new information, changing circumstances, future events, or otherwise.

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FOR MORE INFORMATION, CONTACT:

Doug Pollard (dpollard@pbl.ca)
Co-Chief Executive Officer
Phone: (204) 474-2323
Fax: (204) 453-1375

John Pollard (jpollard@pbl.ca)
Co-Chief Executive Officer
Phone: (204) 474-2323
Fax: (204) 453-1375

Rob Rose(rrose@pbl.ca)
Chief Financial Officer
Phone: (204) 474-2323
Fax: (204) 453-1375