SOURCE: Global Casinos, Inc.

Global Casinos, Inc.

November 17, 2009 13:18 ET

Global Casinos Reports Strong Earnings Improvement in First Fiscal Quarter

Q1 Operating Cash Flow up 41%

BOULDER, CO--(Marketwire - November 17, 2009) - Global Casinos, Inc. (OTCBB: GBCS) today announced financial results for its first quarter ended September 30, 2009.

First quarter net income attributable to common stockholders was $131,000, or $0.02 per diluted share, versus a net loss attributable to common shareholders of $29,000, or less than $0.01 per diluted share, in the first quarter a year ago. The bottom-line improvement is attributable to a 9% reduction in operating expenses and a slight increase in net revenue, which was $1,681,058 versus $1,670,623 in the first quarter last year.

Operating income increased to $183,000 from $30,000 in the same quarter a year ago. Cash flow from operations was $256,000 versus $181,000 during the same period last year.

"Our cost containment efforts resulted in another quarter of much improved bottom-line results and increased operating cash flow," said Clifford L. Neuman, president. "Our Bull Durham property continues to perform well, in spite of the challenges dealt to the broader gaming market by the economic downturn. The July 2 statewide implementation of higher wager limits and extended operating hours clearly strengthened the performance of Colorado's gaming sector during what was otherwise another difficult quarter for the U.S. gaming industry."

"As we enter the slower winter season, we will maintain our focus on operational efficiencies," Neuman added. "We will be especially focused on stabilizing our Doc Holliday property, where the anticipated seasonal slowdown will present the greatest challenge. We also will continue to leverage the strong cash flow and operating results of our Blackhawk-based Bull Durham casino."

Neuman said management has made meaningful progress in its efforts to refinance certain secured obligations that came due in September 2009. "We are engaged in constructive discussions with two note holders regarding terms for a potential refinance and an extension of these notes. We intend to continue making payments under the notes pending the conclusion of our renegotiation efforts."

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, 2009.

                  CONSOLIDATED STATEMENTS OF OPERATIONS
          for the three months ended September 30, 2009 and 2008



                                                      2009         2008
                                                  -----------  -----------

Revenues:
   Casino                                         $ 1,721,262  $ 1,709,765
   Promotional allowances                             (40,204)     (39,142)
                                                  -----------  -----------
      Net Revenues                                  1,681,058    1,670,623

Expenses:
   Casino operations                                1,462,551    1,537,921
   Operating, general, and administrative              35,709      102,737
                                                  -----------  -----------
                                                    1,494,760    1,640,658

Income (loss) from operations                         182,798       29,965

Other income (expense):
   Interest                                           (37,353)     (42,047)
   Equity in earnings of Global Gaming
    Technologies                                            -       (1,198)
   Impairment of investment in Global Gaming
    Technologies                                            -            -
   Loss on asset disposals                                  -       (1,100)
                                                  -----------  -----------

Income (loss) before provision for income taxes       145,445      (14,380)
   Provision for income taxes                               -            -
                                                  -----------  -----------

Net income (loss)                                     145,445      (14,380)

Series D Preferred dividends                          (14,311)     (14,311)
                                                  -----------  -----------
Net income (loss) attributable to common
 shareholders                                     $   131,134  $   (28,691)
                                                  ===========  ===========

Earnings (loss) per common share:
   Basic                                          $      0.02  $     (0.00)
                                                  ===========  ===========
   Diluted                                        $      0.02  $     (0.00)
                                                  ===========  ===========

Weighted average shares outstanding:
   Basic                                            5,994,710    5,925,215
                                                  ===========  ===========
   Diluted                                          6,033,216    5,925,215
                                                  ===========  ===========





                  GLOBAL CASINOS, INC. AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEETS


                                                September 30,   June 30,
                                                    2009          2009
                                                ------------  ------------
                     ASSETS
Current Assets
   Cash and cash equivalents                    $  1,538,881  $  1,378,074
   Accrued gaming income                             254,906       190,516
   Inventory                                          19,309        19,309
   Prepaid expenses and other current assets          98,587       100,791
                                                ------------  ------------
      Total current assets                         1,911,683     1,688,690
Land, building and improvements, and equipment:
   Land                                              517,950       517,950
   Building and improvements                       4,121,308     4,121,308
   Equipment                                       3,111,066     3,192,703
                                                ------------  ------------
      Total land, building and improvements,
       and equipment                               7,750,324     7,831,961
   Accumulated depreciation                       (4,412,165)   (4,393,514)
                                                ------------  ------------
   Land, building and improvements, and
    equipment, net                                 3,338,159     3,438,447
Goodwill                                           1,898,496     1,898,496
Total assets                                    $  7,148,338  $  7,025,633
                                                ============  ============

           LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
   Accounts payable, trade                      $    146,719  $    140,541
   Accounts payable, related parties                  20,437        18,507
   Accrued expenses                                  298,528       360,774
   Accrued interest                                    6,720         6,720
   Joint venture obligation                           25,850        25,850
   Current portion of long-term debt               2,001,297     2,038,068
   Other                                             335,058       252,578
                                                ------------  ------------
      Total current liabilities                    2,834,609     2,843,038
Long-term debt, less current portion                       -             -
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; 6,032,488 and 5,955,215
    shares issued and outstanding                    301,625       297,761
   Additional paid-in capital                     13,992,640    14,010,815
   Accumulated deficit                           (11,081,536)  (11,226,981)
                                                ------------  ------------
Total equity                                       4,313,729     4,182,595
                                                ------------  ------------
Total liabilities and stockholders' equity      $  7,148,338  $  7,025,633
                                                ============  ============

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