|
| NASDAQ National Market |
: |
SLOT |
| 2001 Fiscal Year Revenue and Equity
Income (pro forma)* |
: |
$502 million |
| CEO and President |
: |
T.J. Matthews |
| Chief Operating Officer-Gaming
Operations |
: |
Joe Murphy |
| Chief Operating Officer-Gaming
Systems |
: |
Christer Roman |
| Chief Financial Officer |
: |
Geoff Sage |
| General Counsel |
: |
David D. Johnson |
| Number of Employees (worldwide) |
: |
2,350 |
| Corporate Headquarters |
: |
Las Vegas, NV |
Anchor Gaming is a diversified technology company with operations
around the world. Through its subsidiaries and partnerships with IGT
and the Pala Band of Mission Indians, Anchor Gaming is associated
with an annualized revenue base of more than $1 billion. The Company
operates in three complementary business segments: gaming machines,
gaming operations and gaming systems.
The gaming machine segment develops and places unique proprietary
games in third party casinos in exchange for a recurring revenue
stream.
The gaming operations segment operates a Native American casino
near San Diego, two casinos in Colorado, and manages a
gaming-machine route in Nevada.
The gaming systems segment provides equipment, and related
services to on-line lotteries, video lotteries, and pari-mutuel
organizations.
In Fiscal 2001, Anchor Gaming reported pro forma revenue and
equity income of $502 million, a 6% increase from Fiscal 2000; pro
forma EBITDA** increased 17% to $206 million; and earnings per share
before one-time charges increased 31% to $3.64 per share.
In July 2001, Anchor Gaming and IGT announced a definitive merger
agreement in which Anchor Gaming would become a subsidiary of IGT.
Efforts are being made by both companies to complete the merger by
January 31, 2002.
*Revenue and equity income excludes the
operations of Sunland Park Racetrack and Casino that was sold
December 8, 2000.
**EBITDA is
defined as earnings (excluding Sunland) before interest, taxes,
depreciation, amortization, stock-based compensation expense and
one-time charges.
 The business philosophy in our Gaming Machines segment is
simple: the Company places unique slot machines in third party
casinos, at no initial cost to the casinos, in exchange for a
recurring revenue stream. These games have consistently out-earned
house average performance by two to four times, depending on the
jurisdiction and denomination.
Anchor Gaming's total installed base of games reached more than
19,600 units at June 30, 2001, a growth of almost 4,300 games during
the 12-month period.
Anchor Gaming's strategic 50-50 joint venture with IGThas been in
place since 1996. The joint venture also places slot machines in
casinos in exchange for a recurring revenue stream, primarily on
wide area progressive platforms.
 At June 30, 2001 there were more than 16,000 games in the
joint venture, including 1,700 I Dream of Jeannie™ games, which were
first introduced in October 2000. The joint venture's most
successful games are the traditional spinning reel Wheel of Fortune®
and video Wheel of Fortune®, which combined account for more than
11,500 machine placements at June 30, 2001.
In April 2001, Anchor Gaming and IGT strengthened the joint
venture with a new Memorandum of Understanding. Also, the companies
agreed to co-develop seven new wheel based theme games within the
joint venture. Two of the games - American Bandstand® and Elvira® -
Mistress of the Dark™ - should be available for placement in casinos
during Fiscal 2002.
Anchor Gaming markets certain patent rights for cashless gaming
owned by Anchor Gaming, IGT, MGM-Mirage, and Bally. Most of the
major gaming equipment manufacturers have agreed to licenses for
these cashless gaming patents.
Anchor Gaming owns and operates two casinos in
Colorado, is part of a management team for a Native American casino
near San Diego, and manages a  slot
route operation in Nevada.
The Colorado Central Station Casino, located in
Black Hawk, serves the greater Denver area where more than 2 million
people live. Anchor Gaming believes the 750 machines at the Central
Station are among the highest win per unit  generating machines in the state.
The Colorado Grande Casino, located in Cripple Creek,
primarily serves the Colorado Springs market. The Grande has more
than 200 slot machines.
The Pala Casino in northern San Diego County -
located on land owned by the Pala Band of Mission Indians - opened
in April 2001 and is the closest gaming facility to more than
700,000 adults. The casino has 2,000 machines and 50 table games.
The Nevada Route Operation is among the largest in the
state with approximately 1,000 machines. Anchor Gaming has a
contract through 2010 with the Smith's Food and Drug Centers
throughout the Silver State.
In our Gaming Systems segment, subsidiaries of Anchor Gaming
provide complete wagering systems for on-line lotteries, video
lotteries and the pari-mutuel wagering industry.
 AWI develops and operates computer based
on-line lottery systems and related equipment. AWI is the second
largest domestic on-line lottery provider with contracts in eight
states - Delaware, Florida, Indiana, Maryland, Minnesota,
Pennsylvania, South Dakota and West Virginia. AWI also has customers
in seven foreign countries.
 VLC is a leading developer of gaming machine
central control and monitoring systems and provides gaming machines
to government jurisdictions in the United States, Canada, Australia
and Iceland.
In the pari-mutuel wagering business, United Tote
is the second-largest provider domestically of wagering systems and
related products. United Tote provides services to more than 120
racetracks and off-track betting parlors throughout North America.
Anchor Gaming's operating subsidiaries have customers in the
United States, Canada, Australia, Europe, South America, South
Africa, Asia, and the West Indies. With more than 140 gaming and
wagering licenses worldwide, Anchor Gaming markets its products in
nearly every legal gaming and wagering jurisdiction. As the most
diversified company in the gaming industry, Anchor Gaming's asset
base enables the Company to find new opportunities for growth as
gaming expands regardless of the form it takes, be it casinos,
lotteries or pari-mutuel wagering facilities.
As a concerned corporate citizen, Anchor Gaming advocates
responsible gaming. The Company's comprehensive responsible gaming
program includes employee and customer education. Anchor Gaming also
supports the National Council on Problem Gaming and has partnerships
with the treatment community.
Corporate Headquarters
Anchor Gaming
815 Pilot
Road, Suite G
Las Vegas, NV 89119 USA
Phone: 702-896-7568 Fax: 702-896-6221
E-Mail: info@anchorgaming.com
www.anchorgaming.com
Investor contact: Geoff Sage, CFO
Media contact: Howard Stutz, Corporate Communications Manager
| 
