Iao Kun Group announces revisions to Q2 results to include $21.5M provision
Iao Kun Group Holding Company announced that after a further assessment by management of the collectability of markers receivable as of June 30, 2016, the company believes there are approximately $21.5M in markers receivable at an elevated risk of collectability. Accordingly, the company is revising its unaudited financial results for the three and six months ended June 30, 2016 to include a non-cash $21.5M provision for doubtful accounts. As a result of the revision, net loss for the second quarter of 2016 is now reported to be $125.8 million, or $1.99 net loss per share, compared to net loss of $23.8M, or 38c net loss per share, for the same period of 2015. The net loss in the second quarter of 2016 also includes a one-time $97.3M impairment of intangible assets, while during the second quarter of 2015, IKGH incurred a one-time $17.8M impairment of goodwill. Previously, net loss for the second quarter of 2016 was reported to be $104.4M, or $1.65 net loss per share. There is no change to non-GAAP loss, defined as operating loss before amortization of intangible assets, impairment of goodwill and intangible assets, provision for doubtful accounts and the change in fair value of contingent consideration related to the acquisitions of King's Gaming, Bao Li Gaming and Oriental VIP Room, for the three and six months ended June 30, 2016.