SOURCE: Global Casinos, Inc.

November 13, 2008 15:31 ET

Global Casinos Announces 87% Increase in First Quarter Net Revenue

Management Says Recent Voter Approval of Expanded Gaming and Increased Wager Limits Could Further Strengthen Global's Long-Term Financial Performance

BOULDER, CO--(Marketwire - November 13, 2008) - Global Casinos, Inc. (OTCBB: GBCS) today announced financial results for its fiscal first quarter ended September 30, 2008.

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
                                              -------------  -------------
Revenues:
  Casino                                      $   1,709,765  $     932,974
  Promotional allowances                            (39,142)       (38,307)
                                              -------------  -------------
      Net Revenues                                1,670,623        894,667

Expenses:
  Casino operations                               1,537,921        756,638
  Operating, general, and administrative            102,737         56,585
                                              -------------  -------------
                                                  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)             -
                                              -------------  -------------

Income (loss) before provision for income
 taxes                                              (14,380)        58,990
  Provision for income taxes                              -              -
                                              -------------  -------------

Net income (loss)                                   (14,380)        58,990

Series D Preferred dividends                        (14,311)             -
                                              -------------  -------------
Net income (loss) attributable to common
 shareholders                                 $     (28,691) $      58,990
                                              =============  =============

Earnings (loss) per common share:
  Basic                                       $       (0.00) $        0.01
                                              =============  =============
  Diluted                                     $       (0.00) $        0.01
                                              =============  =============

Weighted average shares outstanding:
  Basic                                           5,925,215      5,202,907
                                              =============  =============
  Diluted                                         5,925,215      5,291,002
                                              =============  =============






                  GLOBAL CASINOS, INC. AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEETS

                                              September 30,     June 30,
                                                  2008            2008
                                              -------------  -------------
                   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
                                              -------------  -------------
      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
                                              -------------  -------------
      Total land, building and improvements,
       and equipment                              7,654,594      7,696,928
   Accumulated depreciation                      (3,988,858)    (3,900,633)
                                              -------------  -------------
   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
                                              =============  =============

   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
                                              -------------  -------------
      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)
                                              -------------  -------------
Total equity                                      4,222,149      4,205,840
                                              -------------  -------------
Total liabilities and stockholders' equity    $   7,154,895  $   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