"We are fortunate to be well positioned as a leader in the lottery industry, an industry that remains vibrant and growing," said, Co-Chief Executive Officer Doug Pollard . "Our lottery partners continue to evolve and look at new opportunities to grow their customer base, allowing Pollard the opportunity to grow simultaneously.
WINNIPEG , March 13, 2017 /CNW/ - Pollard Banknote Limited (PBL.TO) ("Pollard") today released its financial results for the three months and year ended December 31, 2016 , recording very strong revenue and net income in the fourth quarter and 2016.
"We are extremely proud of our financial results for the 2016 fiscal year and particularly the impressive results in the fourth quarter," commented Co-Chief Executive Officer John Pollard . "During the year we accomplished a number of key objectives in our strategic plan for growing our core business and expanding our value proposition for the lottery industry."
"In the fourth quarter we achieved record results in revenue of over $65 million and high pre-tax income of over $5.6 million . These quarterly results reflect the positive trend of impressive growth in sales of value-added proprietary products, including robust sales of our Scratch FX® premium products, increasing volumes and steady improvement in our manufacturing efficiencies, including improved performance of our recently installed new press."
"For a second consecutive year we attained record annual revenue levels due largely to continuing demand for our main product of instant tickets. Solid growth in our Michigan iLottery business, higher sales in our lottery management services, digital products and licensed games business, and a higher mix of valued added options as part of our instant ticket sales were also all factors driving higher revenue. Overall volumes increased slightly during the course of 2016, with noticeably higher volume amounts through the fourth quarter, which have continued into the first quarter of 2017."
"Our manufacturing focus during this past year has been the ramp-up of our new Tresu press in our Ypsilanti facility. As expected with such a large project the production efficiencies and related cost improvements have taken time to be realized and we still have some way to go to achieve our ultimate goals. However, we saw steady improvements throughout 2016, as partially evidenced in our fourth quarter results, and are very encouraged for 2017. Our capacity, and actual production volume, has increased steadily throughout the year which has allowed us to meet the increasing demand for our instant tickets. We are very pleased with both the quality and levels of volume that are now being produced from this facility and look forward to growing this capability in 2017."
"During 2016 Pollard continued to generate significant free cash flow which was used to invest in higher levels of working capital to support our growth. Our charitable games operation also had a very good year, developing new pull-tab products such as event tickets and expanding their vending machine business through an important contract with the Iowa Lottery."
"We are fortunate to be well positioned as a leader in the lottery industry, an industry that remains vibrant and growing," added Co-Chief Executive Officer Doug Pollard . "Our lottery partners continue to evolve and look at new opportunities to grow their customer base, allowing Pollard the opportunity to grow simultaneously. During the first quarter of 2017, we launched our first players' loyalty solution with the Kansas Lottery featuring our PlayOn®technology platform. The success of our iLottery program with the Michigan Lottery leads the industry and provides a great calling card for our full line of digital lottery products. At the same time our core business, providing instant tickets, remains very strong, with healthy consumer demand leading lotteries to expand their instant ticket product lines. All of our focus is on levering our expertise in understanding the ultimate consumer to assist lotteries in maximizing their funds raised for good causes."
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