Quantum International Income Corp. Announces Financial Results for the Third Quarter of Fiscal 2019

Closed Two Asset Acquisitions; Increased Credit Facility by $25 Million to Fund Future Acquisitions; Cash Flow From Operations Up ~40% in Q3 FY 2019 Compared to Q3 FY 2018

TORONTO, ON / ACCESSWIRE / January 30, 2019 / Quantum International Income Corp. (the "Corporation" or "Quantum") (TSXV: QIC) is pleased to announce the filing of its financial results for the third quarter of the 2019 fiscal year. For more information, please see the condensed interim consolidated financial statements of the Corporation for the third quarter ended November 30, 2018 and related management's discussion and analysis, which are available electronically on SEDAR (www.sedar.com) under Quantum's issuer profile. All figures are in U.S. dollars unless otherwise noted.

"This has been important quarter for Quantum as we have made progress on several strategic fronts: we increased our credit facility from US$75 million to US$100 million and we increased our footprint in Georgia by completing two asset acquisitions comprised of high-performing locations. In addition, Jamie Boyden was recently appointed to the COAM Advisory Board. These milestones have positioned Quantum to continue executing on our plan to grow through strategic acquisitions." said Manu K. Sekhri, Chief Executive Officer of Quantum.

Highlights - Quarter Ended November 30, 2018 ⁽¹⁾

• Acquired an aggregate of twenty (20) additional contracts in November 2018 - eleven (11) from Feeling Lucky Amusement, LLC, and nine (9) from Goldstar Amusement LLC - for a combined purchase price of $9.38 million.
• Finalized an amendment to the multi-draw credit facility of Lucky Bucks, LLC as of November 14, 2018 to increase the aggregate principal amount available from US$75 million to US$100 million.
• Generated gaming revenues of $16.82 million, compared to $14.17 million for the third quarter of the 2018 fiscal year, representing an approximate 19% increase over the same period in the prior year.
• Generated Adjusted EBITDA of $6.95 million, compared to $6.42 million for the third quarter of the 2018 fiscal year, representing an approximately 8% increase over the same period in the prior year.
• Generated positive cash flow from operations of $2.97 million, compared to $2.12 million for the third quarter of the 2018 fiscal year, representing an approximate 40% increase over the same period in the prior year.
• Generated net income of $0.74 million, compared to a net loss of $0.81 million for the third quarter of the 2018 fiscal year.
• Generated basic and diluted earnings per share of $(0.005) and $(0.005), compared to a basic and diluted loss per share of $(0.027) and $(0.027) in the same period in the prior year.

Note:

⁽¹⁾ These reported figures are based on consolidated results and do not reflect the impact of the non-controlling interest.

About Quantum International Income Corp.

Quantum International Income Corp. is a gaming company. Quantum's vision is to build a diversified portfolio of world-class gaming operations. The Corporation looks to enhance shareholder value by growing organically and through acquisitions. The Corporation has an active acquisition strategy with a particular focus on cash-flows and high margins. Currently, the Corporation is the largest route operator of skill-based gaming machines in the State of Georgia, United States of America.

Material information pertain to the Corporation may be found on SEDAR under Quantum's issuer profile at www.sedar.com or on Quantum's website at www.quantumincomecorp.com.

Cautionary Statement Regarding Forward-Looking Information

This news release may contain forward-looking statements or "forward-looking information" within the meaning of applicable Canadian securities laws ("forward-looking statements"). Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. In this press release, forward-looking statements relate to, among other things, to the Corporation's vision to build a diversified portfolio of world-class gaming operations; enhancing shareholder value by organic and acquisitive growth opportunities; the active acquisition strategy of the Corporation; Quantum being positioned to continue executing on our growth strategy; the Corporation's success in the Georgia gaming market; and the ability of the Corporation to execute upon a consolidation strategy in the Georgia gaming market.

All forward-looking statements reflect the Corporation's beliefs and assumptions based on information available at the time the statements were made. Actual results or events may differ from those predicted in these forward-looking statements. All of the Corporation's forward-looking statements are qualified by the assumptions that are stated or inherent in such forward-looking statements, including the assumptions listed below. Although the Corporation believes that these assumptions are reasonable, this list is not exhaustive of factors that may affect any of the forward-looking statements. The key assumptions that have been made in connection with the forward-looking statements include the following: the digital gaming terminals being fully-licensed by the Georgia State Lottery; the continuation of the Corporation's consolidation strategy in the Georgia gaming market; the growing footprint of Quantum in the Georgia gaming market; generating value for the shareholders of the Corporation; the regulatory regime governing the business of Quantum in Georgia; the exchange rate between the U.S. dollar and Canadian dollar; the ability to grow the business and generate stable distributions for shareholders; the availability of high-growth, high-margin opportunities; and the execution of the Corporation's business strategy.

Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others: the availability of opportunities to consolidate additional assets in the Georgia gaming market; the availability of investment opportunities on terms acceptable to the Corporation; the regulatory regime in the State of Georgia; the licensing regime governing the Georgia State Lottery; the exchange rate between the U.S. dollar and Canadian dollar; and other internal and external factors disclosed in other documents publicly filed by the Corporation. Although Quantum has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

The Corporation disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise, except in accordance with applicable securities laws.

Non-IFRS Financial Measures

Statements in this news release make reference to Adjusted EBITDA, which is a non-IFRS (as defined herein) financial measure that the Corporation believes is appropriate to provide meaningful comparison with, and to enhance an overall understanding of, the Corporation's past financial performance and prospects for the future. The Corporation believes that Adjusted EBITDA provides useful information to both management and investors by excluding specific expenses and items that management believe are not indicative of Quantum's core operating results. Adjusted EBITDA is a financial measure that does not have a standardized meaning under International Financial Reporting Standards ("IFRS"). Adjusted EBITDA is defined as earnings before financing costs, income taxes, depreciation, amortization of property and equipment and intangible assets, stock-based compensation, foreign exchange, impairment, gain/loss on settlement of accounts payable, financing income, business acquisition costs, warrant fair value adjustment and derivative asset fair value adjustment. As there is no standardized method of calculating Adjusted EBITDA, it may not be directly comparable with similarly titled measures used by other companies. The Corporation considers Adjusted EBITDA to be a relevant indicator for measuring trends in performance and its ability to generate funds to service its debt and to meet its future working capital and capital expenditure requirements. Adjusted EBITDA is not a generally accepted earnings measure and should not be considered in isolation or as an alternative to net income (loss), cash flows or other measures of performance prepared in accordance with IFRS.

For further information please contact Quantum:

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SOURCE: Quantum International Income Corp.