Ainsworth Game Technology (ASX:AGI) said its US unit, Ainsworth Game Technology Inc., received refunds totaling $2.7 million, representing substantially all of the tariffs previously paid under the International Emergency Economic Powers Act (IEEPA), on June 30, according to a Friday Australian bourse filing.
The company said the refund follows a Feb. 20 US Supreme Court ruling that IEEPA does not authorize the US Administration to impose tariffs, with the IEEPA tariffs declared unlawful and the company having applied for refunds of previously paid amounts.
As a result of the refund, Ainsworth now expects to report first-half underlying profit before tax of about AU$5 million, up from the prior guidance of AU$1 million, and underlying earnings before interest, taxes, depreciation, and amortization of about AU$17 million, up from the previous forecast of AU$13 million.
Total revenue guidance of about AU$116 million remains unchanged.
The company said it expects positive cashflows from operations of about AU$8 million for the first half, up from its previous forecast of AU$2 million, driven by the IEEPA tariff refunds and stronger-than-anticipated cash collection.