BOULDER, CO--(Marketwire - November 13, 2008) - Global Casinos, Inc. (
Net revenue increased 87% to $1,671,000 from $895,000 in the same period a year ago. The increase is primarily attributable to Global's March 2008 acquisition of the Doc Holliday Casino in Central City. First quarter operating income was $30,000 versus $81,000 in last year's first quarter. The decline is largely the result of higher stock-based compensation and consulting expenses, combined with operating losses at Doc Holliday. Global reported a net loss attributable to common shareholders of $29,000, or less than $0.01 per diluted share, versus net income attributable to common shareholders of $59,000, or $0.01 per diluted share, in the first quarter last year. For the three months ended September 30, net operating cash flow increased 27% to $181,000 versus $142,000 in the comparable fiscal 2007 period.
Clifford L. Neuman, president, said, "In addition to the revenue contributions from our new Doc Holliday operations, we achieved an 11% quarter-over-quarter increase in revenue at our core Bull Durham property. The growth and performance of our legacy gaming operations is particularly encouraging given current economic conditions, which have negatively impacted much of the local and national gaming industry. Bull Durham's performance in this environment reflects the ongoing success we are having with our targeted marketing and customer loyalty programs. Our efforts to implement similar programs at Doc Holliday are proceeding on plan."
Neuman said the recent passage of a Colorado ballot initiative could significantly strengthen the financial prospects of the state's gaming industry. "Higher wager limits, extended hours of operation and the introduction of craps and roulette all could be in place by next summer. There is compelling evidence that expanded gaming and higher bet limits can enhance the economic viability of localized gaming markets. A similar increase in wager limits was authorized in Deadwood, South Dakota in 2000, and it helped fuel substantial growth in both gaming revenue and tax receipts. That growth continues today, as Deadwood has experienced a 7 percent increase in gaming revenue so far in 2008. Over the same time frame, gaming revenue in Colorado is down 11.4 percent. We are optimistic the passage of Amendment 50, coupled with our internal efforts to enhance operations, will result in long-term growth and profitability at Global Casinos."
About Global Casinos, Inc.
Global Casinos, Inc. owns and operates the Bull Durham Saloon and Casino and Doc Holliday Casino, located in Colorado's limited stakes gaming districts of Black Hawk and Central City, respectively.
Safe Harbor Statement
Certain statements in this news release that are not historical facts are forward-looking statements, such as statements relating to anticipated enhancements in the Company's financial performance, and future development or expansion activities. Such forward-looking statements involve a number of risks and uncertainties that may significantly affect performance and financial results in the future and, accordingly, actual results may differ materially from those expressed in any forward-looking statements. Such risks and uncertainties include, but are not limited to, those related to effects of competition, leverage and debt service financing and refinancing efforts, general economic conditions, changes in gaming laws or regulations (including the legalization of gaming in various jurisdictions), risks related to development and construction activities, as well as the other risks detailed from time to time in the Company's SEC reports, including the report on Form 10-KSB for the year ended June 30, 2008.
GLOBAL CASINOS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
for the three months ended September 30, 2008 and 2007
2008 2007
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Revenues:
Casino $ 1,709,765 $ 932,974
Promotional allowances (39,142) (38,307)
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Net Revenues 1,670,623 894,667
Expenses:
Casino operations 1,537,921 756,638
Operating, general, and administrative 102,737 56,585
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1,640,658 813,223
Income from operations 29,965 81,444
Other income (expense):
Interest (42,047) (20,765)
Equity in earnings of Global Gaming
Technologies (1,198) (1,689)
Loss on asset disposals (1,100) -
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Income (loss) before provision for income
taxes (14,380) 58,990
Provision for income taxes - -
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Net income (loss) (14,380) 58,990
Series D Preferred dividends (14,311) -
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Net income (loss) attributable to common
shareholders $ (28,691) $ 58,990
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Earnings (loss) per common share:
Basic $ (0.00) $ 0.01
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Diluted $ (0.00) $ 0.01
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Weighted average shares outstanding:
Basic 5,925,215 5,202,907
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Diluted 5,925,215 5,291,002
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GLOBAL CASINOS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
September 30, June 30,
2008 2008
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ASSETS
Current Assets
Cash and cash equivalents $ 1,243,331 $ 1,163,416
Accrued gaming income 205,364 219,821
Inventory 16,469 16,469
Prepaid expenses and other current assets 65,850 92,972
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Total current assets 1,531,014 1,492,678
Investment in Global Gaming Technologies 59,649 60,847
Land, building and improvements, and
equipment:
Land 517,950 517,950
Building and improvements 4,121,308 4,121,308
Equipment 3,015,336 3,057,670
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Total land, building and improvements,
and equipment 7,654,594 7,696,928
Accumulated depreciation (3,988,858) (3,900,633)
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Land, building and improvements, and
equipment, net 3,665,736 3,796,295
Goodwill 1,898,496 1,898,496
Total assets $ 7,154,895 $ 7,248,316
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable, trade $ 95,690 $ 75,196
Accounts payable, related parties 20,553 68,332
Accrued expenses 335,650 359,461
Accrued interest 6,361 6,390
Joint venture obligation 30,000 30,000
Current portion of long-term debt 2,195,222 589,581
Other 249,270 254,105
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Total current liabilities 2,932,746 1,383,065
Long-term debt, less current portion - 1,659,411
Commitments and contingencies
Stockholders' equity:
Preferred stock: 10,000,000 shares
authorized
Series A - no dividends, $2.00 stated
value, non-voting, 2,000,000 shares
authorized, 200,500 shares issued and
outstanding 401,000 401,000
Series B - 8% cumulative, convertible,
$10.00 stated value, non-voting,
400,000 shares authorized, no shares
issued and outstanding - -
Series C - 7% cumulative, convertible,
$1.20 stated value, voting 600,000
shares authorized, no shares issued
and outstanding - -
Series D - 8% cumulative, convertible,
$1.00 stated value, non-voting
1,000,000 shares authorized, 700,000
shares issued and outstanding 700,000 700,000
Common stock - $0.05 par value; 50,000,000
shares authorized; 5,955,215 and 5,865,215
shares issued and outstanding 297,761 293,261
Additional paid-in capital 14,053,282 14,027,093
Accumulated (deficit) (11,229,894) (11,215,514)
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Total equity 4,222,149 4,205,840
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Total liabilities and stockholders' equity $ 7,154,895 $ 7,248,316
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Contact Information: CONTACTS: Clifford L. Neuman President and CEO Global Casinos, Inc. 303-449-2100 Geoff High Principal Pfeiffer High Investor Relations, Inc. 303-393-7044