HUNTINGTON BEACH, Calif., Aug. 29 /PRNewswire-FirstCall/ -- PGMI, Inc. -- (BULLETIN BOARD: PGMI) announces that construction is underway at a second new pachinko location this year. This store is also expected to open in the 4th calendar quarter of 2006 and will add over 500 new machines to PGMI's operating inventory. This location is in the Ibaragi prefectures. With the new construction, PGMI will have 15 operating locations by the end of the 2006 calendar year.
Shinichi Kanemoto, the president of PGMI, Inc. said, "In addition to the recently announced construction of location number 14 we have begun construction of location number 15. This is a continuation of the implementation of PGMI's expansion plan and the program of developing modern and relevant facilities to enhance patron loyalty. We will continue to leverage our expertise and capitalize on new development opportunities for the expansion of our operations in Japan. We are entering a very exciting time for the pachinko industry in Japan and we will look for every opportunity to enhance shareholder value. Modernization and consolidation will continue to favor experienced and larger operators like PGMI. We look forward to the continued growth of PGMI as a major provider of gaming entertainment."
PGMI is a provider of pachinko gaming entertainment in Japan. The Company traces its origin to its founder Gakushin Kanemoto's pachinko business in 1951. It later incorporated in Japan as Marugin Co., Ltd in 1972. The management team brings many decades of experience in the pachinko industry to PGMI. Currently the company operates 13 locations in Japan. PGMI's fiscal year ended on June 30th and the year end 10-KSB filing is being prepared.
The results from the most recent filing for the quarter ended March 31, 2006 showed an increase in gross patron wagers of $400,307 to $47,743,167 when compared to the same quarter of the previous year. Gaming revenues for the quarter decreased slightly by $12,130 to $6,536,236 due to the Company policy of enhancing payout at newly opened locations to attract new patrons. Food, beverage and other sales increased to help boost the total revenue to $7,019,686 for the quarter. Net Income before taxes was $398,363 even after the Company booked non-cash expenses, such as depreciation and the early retirement and write off of pachinko machines totaling $3,132,740. This reduced the reported net income to $161,858 after a provision for $236,505 for income taxes. This is an increase of $1,037,288 in net income when compared with the same quarter of the previous year. Actual cash on hand increased to $12,138,789. During the 9 months ended March 31, 2006 the Company incurred a $1,451,161 expense as part of the construction of new locations. During the course of the quarter the Company increased the number of Pachinko machines in operation by 11.6% to 4,796 machines in its 13 locations. Total shareholder equity at the end of the quarter was $7,457,960, an increase of 1.8% during the quarter.
"Additional information on the pachinko industry and on PGMI's place in the largest leisure market in Japan is now available online. Market News First (http://www.mn1.com/) Analyst Mike Willingham has focused his attention on PGMI, Inc. Look for interviews along with a stock analyst report on PGMI in by logging onto http://www.mn1.com/," Darrell Fox with PGMI investor relations said.
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "estimate", "possible" and "seeking" and similar expressions identify forward-looking statements, which speak only as to the date the statement was made. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted, or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to the effect of government regulation, competition and other material risks.
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