Year-to-Date Net Revenue Up 78%
BOULDER, CO--(Marketwire - February 18, 2009) - Global Casinos, Inc. (
Net revenue increased 69% to $1,510,000 from $892,000 in the second period last year. The increase was the result of Global's March 2008 acquisition of the Doc Holliday Casino, as well as a quarter-over-quarter increase in revenue from Global's flagship Bull Durham Casino. The Company reported a second quarter operating loss of $102,000 versus operating income of $87,000 in the year-ago second quarter. The decline is largely attributable to increased expenses associated with the addition of the Doc Holliday operations. Management is currently implementing a variety of new marketing strategies, floor operations and customer loyalty programs designed to enhance the performance of the Doc Holliday property.
Global reported a second-quarter net loss attributable to common shareholders of $164,000, or $0.03 per diluted share, versus net income attributable to common shareholders of $63,000, or $0.01 per diluted share, in the second quarter last year. The net loss attributable to common shareholders resulted from the operating results of the Doc Holliday Casino, the payment of a preferred stock dividend and increases in the Company's corporate expenses.
Through six months, net revenue increased 78% to $3,180,000 from $1,787,000 in the comparable prior-year period. Global reported a loss from operations of $72,000 versus income from operations of $168,000 in the comparable prior-year period. Net loss attributable to common shareholders was $193,000, or $0.03 per diluted share, versus net income of $122,000, or $0.02 per diluted share, at the six-month mark last year. At December 31, 2008, Global reported operating cash flow of $140,000.
Clifford L. Neuman, president, said, "Year-to-date revenue at our core Bull Durham casino was up nearly 7 percent versus the same period in fiscal 2008. This growth was achieved in spite of softness in the gaming industry and a weak overall economy, and it illustrates the continued success of our marketing and customer loyalty programs at Bull Durham. We hope to make significant investments in similar programs at Doc Holliday during the coming year. In addition, the voter-authorized increase in wager limits, expanded hours of casino operations and addition of craps and roulette as approved games will go into effect on July 2. We are optimistic these changes will bring significant benefits to Colorado's gaming market, and attract a much larger customer base."
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 December 31, 2008 and 2007 2008 2007 ------------ ------------ Revenues: Casino $ 1,547,593 $ 930,251 Promotional allowances (37,767) (38,344) ------------ ------------ Net Revenues 1,509,826 891,907 Expenses: Casino operations 1,536,430 762,990 Operating, general, and administrative 75,402 42,076 ------------ ------------ 1,611,832 805,066 Income (loss) from operations (102,006) 86,841 Other income (expense): Interest (40,607) (19,127) Equity in earnings of Global Gaming Technologies (5,485) (4,533) Loss on asset disposals (1,643) - ------------ ------------ Income (loss) before provision for income taxes (149,741) 63,181 Provision for income taxes - - ------------ ------------ Net income (loss) (149,741) 63,181 Series D Preferred dividends (14,311) - ------------ ------------ Net income (loss) attributible to common shareholders $ (164,052) $ 63,181 ============ ============ Earnings (loss) per common share: Basic $ (0.03) $ 0.01 ============ ============ Diluted $ (0.03) $ 0.01 ============ ============ Weighted average shares outstanding: Basic 5,955,215 5,202,907 ============ ============ Diluted 5,955,215 5,290,311 ============ ============ GLOBAL CASINOS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS for the six months ended December 31, 2008 and 2007 2008 2007 ------------ ------------ Revenues: Casino $ 3,257,358 $ 1,863,225 Promotional allowances (76,909) (76,651) ------------ ------------ Net Revenues 3,180,449 1,786,574 Expenses: Casino operations 3,074,351 1,519,628 Operating, general, and administrative 178,139 98,661 ------------ ------------ 3,252,490 1,618,289 Income (loss) from operations (72,041) 168,285 Other income (expense): Interest (82,654) (39,892) Equity in earnings of Global Gaming Technologies (6,683) (6,222) Loss on asset disposals (2,743) - ------------ ------------ Income (loss) before provision for income taxes (164,121) 122,171 Provision for income taxes - - ------------ ------------ Net income (loss) (164,121) 122,171 Series D Preferred dividends (28,622) - ------------ ------------ Net income (loss) attributible to common shareholders $ (192,743) $ 122,171 ============ ============ Earnings (loss) per common share: Basic $ (0.03) $ 0.02 ============ ============ Diluted $ (0.03) $ 0.02 ============ ============ Weighted average shares outstanding: Basic 5,925,867 5,202,907 ============ ============ Diluted 5,925,867 5,290,666 ============ ============ GLOBAL CASINOS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS December 31, June 30, 2008 2008 ------------ ------------ ASSETS Current Assets Cash and cash equivalents $ 1,020,875 $ 1,163,416 Accrued gaming income 318,006 219,821 Inventory 21,415 16,469 Prepaid expenses and other current assets 47,495 92,972 ------------ ------------ Total current assets 1,407,791 1,492,678 Acquisition escrow deposit - - Investment in Global Gaming Technologies 54,164 60,847 Land, building and improvements, and equipment: Land 517,950 517,950 Building and improvements 4,121,308 4,121,308 Equipment 3,063,233 3,057,670 ------------ ------------ Total land, building and improvements, and equipment 7,702,491 7,696,928 Accumulated depreciation (4,113,364) (3,900,633) ------------ ------------ Land, building and improvements, and equipment, net 3,589,127 3,796,295 Goodwill 1,898,496 1,898,496 Total assets $ 6,949,578 $ 7,248,316 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable, trade $ 136,786 $ 75,196 Accounts payable, related parties 13,658 68,332 Accrued expenses 334,102 359,461 Accrued interest 6,361 6,390 Joint venture obligation 30,000 30,000 Current portion of long-term debt 2,116,788 589,581 Other 253,786 254,105 ------------ ------------ Total current liabilities 2,891,481 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 14,038,971 14,027,093 Accumulated deficit (11,379,635) (11,215,514) ------------ ------------ Total equity 4,058,097 4,205,840 ------------ ------------ Total liabilities and stockholders' equity $ 6,949,578 $ 7,248,316 ============ ============
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