Gunslinger Records Provides Status Update on Kinbasha’s Operations and Future Growth Prospects
May 17 2011 - 12:30PM
Business Wire
Gunslinger Records Inc. (the “Corporation”) (PINK:MUZC) owner
and operator of retail gaming centers in Japan through its
subsidiary Kinbasha Co., Ltd. (“Kinbasha”), provides a status
update on the company’s operations and future growth prospects,
based on Japan’s 9.0 magnitude earthquake and resulting tsunami on
March 11.
“The earthquake and subsequent tsunami that hit the Tohoku
region of Japan in March affected many businesses, but the Japanese
economy and the Pachinko industry in particular is showing steady
signs of recovery,” said Mr. Masatoshi Takahama, Chief Executive
Officer. “Fortunately for Kinbasha, the company reported no
casualties from customers or staff as a result of the earthquake
and tsunami. Also, none of Kinbasha’s facilities were affected by
any radioactivity from the Fukushima Nuclear Power Plant, as the
closest parlor is located more than 100km away.”
Kinbasha reports that 16 out of the 21 Pachinko parlors owned by
the company were forced to suspend operations immediately after the
quake, however due to the company’s robust contingency policies and
disaster preparedness, a total of 11 parlors resumed operations
within a week, and another 4 parlors by April. Repair work at these
15 facilities consisted primarily of broken windows and ceiling
damage.
“Kinbasha was able to quickly resume operations at a majority of
our Pachinko parlors due to our emergency preparedness and by
deploying quick and decisive measures to open facilities,” said Mr.
Takahama. “With the initial recovery phase behind us, we look
forward to making further enhancements and refurbishments to
affected parlors in order to attract more customers. Kinbasha also
has plans to expand our entertainment offerings to create a more
comfortable environment for our patrons, and thus expedite our
organic growth potential in 2011.”
Although Kinbasha reports the earthquake decreased the number of
customers at the end of April to 90% of the company’s 2010 levels,
the management team expects to bring its customer numbers back to
baseline by September, and to further enhance its metrics beyond
100% after October 2011.
Of Kinbasha’s 21 facilities, two parlors are planned to be
closed by management due to a lack of market potential to offset
the cost of repairs. However unlike Kinbasha, many smaller
competitors will be forced to sell profitable properties in key
locations due to the fact that they have insufficient capital to
pay for repairs, even though it may be economically advantageous to
do so.
Mr. Takahama continued, “Part of any long-term success is
finding opportunities in adverse circumstances. Despite the
earthquake, Kinbasha is being presented with a unique opportunity
to increase the scale of our operations by acquiring competing
operators without sufficient funds to repair their damaged yet
profitable facilities. Over the next year, we hope to acquire four
Pachinko parlors and identify additional targets for future
expansion. Through a combination of organic growth and accretive
acquisitions, Kinbasha remains acutely focused on our goal of
increasing revenue, earnings and ultimately, shareholder
value.”
Kinbasha currently owns three mid-size restaurants and 21 retail
gaming centers, known as Pachinko Parlors, in Japan. The
pinball-like game of Pachinko is extremely popular and can be found
throughout the country at railroad stations, malls and inner
cities. As a significant part of the national economy, the Pachinko
business in Japan generates three times the total sum of Japan's
other avenues of public legal gambling, including horse racing and
lottery; and it benefits from approximately 15 million regular
enthusiasts spending an estimated $250 billion per year.
About Gunslinger Records Inc.
Gunslinger Records Inc. is a Florida corporation that acquired
its operating subsidiary, Kinbasha Co., Ltd. (“Kinbasha”), through
a reverse merger in January 2011. Based in Hitachi City, Japan,
Kinbasha is a leading retail gaming company focused on expansion
and growth in Japan’s highly-profitable gaming and food and
beverage industries. Founded in 1957, Kinbasha’s principal business
is the ownership and operation of retail gaming centers in Japan
which offer customers the opportunity to play the game of chance
known as Pachinko. Pachinko is played on a device which resembles a
slot machine. The game is considered to be Japan's most popular
leisure activity and the gaming centers are commonly referred to as
Pachinko Parlors. Kinbasha currently employs over 1,000 people and
owns 21 Pachinko Parlors in the prefectures of Chiba, Ibaraki and
Tokyo. In addition, the company also owns three mid-size
restaurants in Japan which offer traditional Japanese cuisine.
Safe Harbor Statement
This release contains certain "forward-looking statements"
relating to the business of the Company and its subsidiary
companies. All statements, other than statements of historical fact
included herein are "forward-looking statements" including
statements regarding: the Company's business and operations;
business strategy, plans and objectives of the Company and its
subsidiaries; and any other statements of non-historical
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and uncertainties. Although the Company believes that the
expectations reflected in these forward-looking statements are
reasonable, they do involve assumptions, risks and uncertainties,
and these expectations may prove to be incorrect. Investors should
not place undue reliance on these forward-looking statements, which
speak only as of the date of this press release. The Company's
actual results could differ materially from those anticipated in
these forward-looking statements as a result of a variety of
factors, including those discussed in the Company's periodic
reports that are filed with the Securities and Exchange Commission
and available on its website (http://www.sec.gov). All
forward-looking statements attributable to the Company or persons
acting on its behalf are expressly qualified in their entirety by
these factors. Other than as required under the securities laws,
the Company does not assume a duty to update these forward-looking
statements.