Global Casinos, Inc. (OTCBB: GBCS) today announced financial
results for its fiscal second quarter ended December 31, 2008.
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
============ ============
CONTACTS: Clifford L. Neuman President and CEO Global Casinos,
Inc. 303-449-2100 Geoff High Principal Pfeiffer High Investor
Relations, Inc. 303-393-7044
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