AG&E Holdings Inc. Reports Third Quarter 2014 Financial Results

Chicago, Illinois - November 13, 2014 --- AG&E Holdings Inc. (NYSE MKT: WGA), a leading parts distributor to the casino and gaming markets, announced financial results today for the third quarter of 2014, ended September 30, 2014.

During the quarter the Company sold its LCD (liquid crystal display) business, which included the "Wells-Gardner" name, to HT Precision Technologies U.S., Inc., a Delaware corporation and wholly owned subsidiary of Taiwan-based HT Precision Technologies, Inc. (HTP). Total transaction related expenses, including, write-offs, impairment charges and other non-cash adjustments totaled $5.9 million.

The financial results of AG&E Holdings for the third quarter of 2014 reflect the operating results of AG&E Holdings distribution businesses, discontinued operations for the divested LCD business in addition to the aforementioned transaction costs and other adjustments. Previous year third quarter and nine-month comparable results are presented on a pro-forma basis to reflect the changes in reporting structure in those prior year periods.

AG&E Holdings revenue for the third quarter of 2014 totaled $5.3 million, which was flat compared to $5.3 million in the third quarter of 2013. The Company reported a net loss of ($5.9 million), or $(0.50) per diluted share, which included write-offs, impairment charges, transaction costs, other non-cash adjustments, and operating losses from discontinued operations. In the comparable quarter of 2013 the Company reported a net loss of ($40,000), or $(0.00) per diluted share.

For the nine-month period of 2014, revenue totaled $18.5 million, a decline of 7% compared to $19.9 million for the nine-month period of 2013. The Company reported a net loss of ($5.6 million), or $(0.48) per diluted share, which included write-offs, impairment charges, transaction costs, other non-cash adjustments, and operating losses from discontinued operations. In the comparable quarter of 2013 the Company reported net income of $541,000, or $0.05 per diluted share.

It should be noted that both current year and prior year discontinued operations earnings did not include management, administrative, accounting and public company costs.

Anthony Spier, chairman and chief executive officer of AG&E Holdings Inc., said, "The idea of 'change' best characterizes the just completed third quarter of 2014. We are now a company with our entire focus as a distributor to the casino and gaming markets. With the sale of our legacy business we have an improved balance sheet with approximately $6.2 million in cash. On November 7th, HTP US Inc. paid an additional $1.5 million completing the next step of the LCD sales transaction, and we expect to receive the final payment of between $150,000 and $200,000 in the next 90 days. We now have no long-term debt and have mutually agreed with Wells Fargo to cancel our current banking agreement.  Consequently, there are no third quarter bank covenants. We are in the process of negotiating a new banking agreement with Wells Fargo and are continuing our banking relationship with them. We also have an asset in the form of net operating loss carry-forward of approximately $9 million."

Mr. Spier continued, "In addition to focusing on the growth of our parts distribution business, we are dedicated to "right sizing" the operating expense profile of our continuing Company. We have taken steps to minimize public company costs, reduce executive salaries, and will soon gain an operating advantage from reduced general and administrative expenses due to lower employee compensation and benefits costs as a number of our previous employees have transferred to the acquiring company of our former LCD business."

"As we enter this new chapter in the history of our Company," concluded Mr. Spier, "we do so with great enthusiasm and the necessary assets to expand a business in which we are already a market leader. We have a strong capital base, we carry no long-term debt, and we have a strong dedication to drive down our operating costs in order to maximize our operational and financial performance going forward. We are excited with the opportunities ahead."

Outlook
Based on its best estimates and information available at this time, management expects fourth quarter revenue of between $4.3 million and $4.7 million which reflects the current decline in the Illinois VLT business due to the City of Chicago not having opted into the program. Fiscal 2014 revenues for the new Company are expected to be between $22.8 and $23.2 million compared to $28.2 million in fiscal 2013.

Strategic Review
The Board of Directors and management of AG&E Holdings Inc. are continuing to review strategic options with its financial advisor, Innovation Capital, with the goal of maximizing shareholder value. In addition to the Company continuing on as an independent public company, a number of options are being explored, including the acquisition of a business to expand the Company's parts distribution business to the gaming industry; the potentiality of being acquired by another public or private company; the potentiality of being taken private by a private equity partner; or other potential transactions that could measurably enhance shareholder value. While there can be no assurance that a transaction of any sort may occur, management and the Company's Board of Directors are dedicated to seriously considering any realistic transaction that the strategic review may reveal that will accrue to the benefit of the Company's loyal shareholders. 

Conference Call
The Company will host a conference call and webcast at 11:00 AM Eastern Time on Thursday, November 13, 2014.  Both the call and webcast are open to the general public.

The conference call domestic dial-in number is 877-261-8990 and the pass code is 38475687. Questions will be taken only from participants on the conference call. The teleconference will be webcast by Thomson/CCBN on the Company's website at www.agegaming.com under the investor relations section. The conference call will be available via replay for 30 days beginning late Thursday November 13, 2014.  The replay call in number is 888-843-7419 and the pass code is 38475687#.

About AG&E Holdings Inc.
AG&E Holdings Inc. ("AGE"), is a leading parts distributor to the casino and gaming markets. It sells parts and services to more than 700 casinos in North America with offices in Las Vegas, Nevada, Hammonton, New Jersey, Miami, Florida and McCook, Illinois. AGE is a distributor of Spielo Video Lottery Terminals (VLTs) in Illinois.

Safe Harbor
This press release contains forward-looking statements within the meaning of the federal securities laws.  The Private Securities Litigation Reform Act of 1995 provides a safe harbor for such forward-looking statements.  The words believe, expect, anticipate, estimate, will, and other similar statements of expectation identify forward-looking statements.  Those statements include statements regarding the intent, belief or expectations of the Company and its management.  Readers are cautioned that the forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, and that actual results could differ materially from those expressed in any forward-looking statement. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, but are not limited to, development of competing technologies, availability of adequate credit, interruption or loss of supply from key suppliers, increased competition, the regulatory process and regulatory and legislative changes affecting the gaming industry.  AG&E Holdings Inc. assumes no obligation to update the information contained in this release to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events. For additional investor information, please contact Joe Diaz of Lytham Partners at (602) 889-9700.


AG&E Holdings Inc.
Condensed Consolidated Statements of Earnings (unaudited)
Three Months and Nine Months Ended September 30, 2014 and 2013


Three Months Ended Sept 30,

Nine Months Ended Sept 30,
2014 2013 2014 2013
Net sales $ 5,261,000 5,255,000 18,513,000 19,925,000
Cost of sales 4,197,000 4,353,000 14,958,000 16,625,000
Gross margin 1,064,000 902,000 3,555,000 3,300,000
Selling & administrative expenses 1,543,000 1,258,000 4,043,000 4,116,000
Goodwill Impairment 1,329,000 - 1,329,000 -
Operating Loss (1,808,000) (356,000) (1,817,000) - (816,000)
Interest expense 15,000 15,000 45,000 60,000
Other Income, net (5,000) (6,000) (18,000) (5,000)
Income Tax expense 501,000 - 539,000 1,000
Loss from continuing operations $ (2,319,000) $ (365,000) $ (2,383,000) $ (872,000)
Discontinued operations:
  (Loss) earnings from discontinued operations (1,450,000) 325,000 (1,089,000) 1,413,000
  Loss on sale of assets (2,145,000) - (2,145,000) -
Discontinued operations, net of income taxes (3,595,000) 325,000 (3,234,000) 1,413,000
Net (loss) income  $ (5,914,000) $ (40,000) $ (5,617,000) $ 541,000
Basic earnings per share:
  Continuing operations  $ (0.20) $ (0.03) $ (0.20) $ (0.07)
  Discontinued operations $ (0.30) $ 0.03 $ (0.28) $ 0.12
Net (loss) income per share $ (0.50) $ (0.00) $ (0.48) $ 0.05
Diluted earnings per share:
  Continuing operations $ (0.20) $ (0.03) $ (0.20) $ (0.07)
  Discontinued operations $ (0.30) $ 0.03 $ (0.28) $ 0.12
Net (loss) income per share $ (0.50) $ (0.00) $ (0.48) $ 0.05
Basic average common shares outstanding   11,761,613   11,703,139   11,755,022   11,707,321
Diluted average common shares outstanding   11,761,613   11,703,229   11,755,022   11,708,663


HUG#1870948

distributed by