SOURCE: Global Casinos, Inc.

Global Casinos, Inc.

October 02, 2009 08:00 ET

Global Casinos' Fourth Quarter Financial Results Include Strong Improvements in Operating Income and Net Earnings

BOULDER, CO--(Marketwire - October 2, 2009) - Global Casinos, Inc. (OTCBB: GBCS) today announced financial results for its fourth quarter and fiscal year ended June 30, 2009.

Fourth quarter net income attributable to common stockholders was $150,000, or $0.02 per diluted share, versus $35,000, or $0.01 per diluted share, in the fourth quarter a year ago. The 333% increase is largely the result of operational improvements and cost controls implemented at the Company's Central City-based Doc Holliday Casino, which was acquired in March of 2008. Fourth quarter operating income increased 171% to $256,000 versus $95,000 in the same quarter a year ago. Fourth quarter net revenue decreased approximately 4% to $1,623,000 from $1,688,000 in the fourth quarter a year ago. The decline is attributable to weakness in the gaming industry as a result of the economic downturn.

"Our ongoing efforts to enhance Global's operational performance are having the intended impact, and resulted in the strongest quarterly operating profit and net income performance of fiscal 2009," said Clifford L. Neuman, president. "Our core Bull Durham property continued to outperform its peers in the Colorado gaming industry. For the full fiscal year, Bull Durham delivered a nearly 5% increase in net revenue, while gaming revenue statewide declined by approximately 9%."

"On July 2, new voter-approved rules went into effect for Colorado's gaming communities, and early indications from the Colorado Division of Gaming are that they are helping reverse the trend of declining casino revenues," Neuman added. "We are positioning Global to take advantage of this improving environment, particularly at Doc Holliday, where we have incorporated a more strategic mix of table games, implemented new marketing strategies, enhanced our floor operations and invested in new customer loyalty programs. As economic conditions improve, we believe Global will be well positioned to benefit."

Full-year 2009 Highlights

For the full fiscal year ended June 30, net revenue increased 45% to $6,388,000 from $4,402,000 in fiscal 2008. The increase is primarily attributable to the March 2008 acquisition of Doc Holliday. Income from operations was $211,000 versus $238,000 a year ago. The decline is attributable to increased stock-based compensation expense, as well as added costs associated with the operations of Doc Holliday. Full-year net loss attributable to common stockholders was $68,000, or $0.01 per diluted share, versus net income attributable to common shareholders of $106,000, or $0.02 per diluted share, in fiscal 2008.

Global reported cash flow from operations for the fiscal year of $768,000 versus $584,000 in fiscal 2008. The Company closed the year with cash and cash equivalents of $1,378,000.

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.

                  GLOBAL CASINOS, INC. AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF OPERATIONS
        for the three month periods ended June 30, 2009 and 2008

                                                        2009       2008
                                                      ---------  ---------
Revenues:
  Casino                                              1,666,912  1,731,506
  Promotional Allowances                                (43,441)   (43,400)

                                                      ---------  ---------
  Net Revenues                                        1,623,471  1,688,106
                                                      ---------  ---------

Operating Expenses:
  Casino Ops                                          1,339,348  1,503,255
  Operating G&A                                          27,773     90,175

                                                      ---------  ---------
  Total Operating Expenses                            1,367,121  1,593,430
                                                      ---------  ---------

Income (loss) from operations                           256,350     94,676
                                                      ---------  ---------

Other (income) expense:
  Net Interest                                           37,842     44,398
  Equity in Earnings of GGT                              54,104      1,562
  Gain on Debt                                                -          -
  (Gain) loss on asset disposal                             537          -
                                                      ---------  ---------
                                                         92,483     45,960
                                                      ---------  ---------
Net income (loss) before extraordinary items            163,867     48,716
Extraordinary items                                           -          -
                                                      ---------  ---------
Net income (loss) before dividends                      163,867     48,716
Series D Preferred Dividends                            (14,156)   (14,156)

                                                      ---------  ---------
Net income (loss) - common stockholders                 149,711     34,560
                                                      ---------  ---------
Earnings (loss) per common share:
  Basic                                               $    0.03  $    0.01
                                                      =========  =========
  Diluted                                             $    0.02  $    0.01
                                                      =========  =========

Weighted average shares outstanding:
  Basic                                               5,955,215  5,837,591
                                                      =========  =========
  Diluted                                             6,033,699  5,924,672
                                                      =========  =========




                  GLOBAL CASINOS, INC. AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF OPERATIONS
                for the year ended June 30, 2009 and 2008

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

Revenues:
  Casino                                          $ 6,551,412  $ 4,561,095
  Promotional allowances                             (163,596)    (158,641)
                                                  -----------  -----------
    Net Revenues                                    6,387,816    4,402,454

Expenses:
  Casino operations                                 5,928,092    3,949,039
  Operating, general, and administrative              249,213      215,112
                                                  -----------  -----------
                                                    6,177,305    4,164,151

Income (loss) from operations                         210,511      238,303

Other income (expense):
  Interest                                           (157,851)    (105,979)
  Equity in earnings of Global Gaming Technologies    (10,437)      (8,688)
  Impairment of investment in Global Gaming
   Technologies                                       (50,410)           -
  Loss on asset disposals                              (3,280)           -
                                                  -----------  -----------

Income (loss) before provision for income taxes       (11,467)     123,636
  Provision for income taxes                                -            -
                                                  -----------  -----------

Net income (loss)                                     (11,467)     123,636

Series D Preferred dividends                          (56,778)     (17,856)
                                                  -----------  -----------
Net income (loss) attributable to common
 shareholders                                     $   (68,245) $   105,780
                                                  ===========  ===========

Earnings (loss) per common share:
  Basic                                           $     (0.01) $      0.02
                                                  ===========  ===========
  Diluted                                         $     (0.01) $      0.02
                                                  ===========  ===========

Weighted average shares outstanding:
  Basic                                             5,940,420    5,836,006
                                                  ===========  ===========
  Diluted                                           5,940,420    5,923,088
                                                  ===========  ===========




                  GLOBAL CASINOS, INC. AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEETS

                                              June 30, 2009  June 30, 2008
                                              -------------  -------------
    ASSETS
Current Assets
  Cash and cash equivalents                   $   1,378,074  $   1,163,416
  Accrued gaming income                             190,516        219,821
  Inventory                                          19,309         16,469
  Prepaid expenses and other current assets         100,791         92,972
                                              -------------  -------------
    Total current assets                          1,688,690      1,492,678

Acquisition escrow deposit                                -              -
Investment in Global Gaming Technologies                  -         60,847
Land, building and improvements, and
 equipment:
  Land                                              517,950        517,950
  Building and improvements                       4,121,308      4,121,308
  Equipment                                       3,192,703      3,057,670
                                              -------------  -------------
    Total land, building and improvements,
     and equipment                                7,831,961      7,696,928
  Accumulated depreciation                       (4,393,514)    (3,900,633)
                                              -------------  -------------
  Land, building and improvements, and
   equipment, net                                 3,438,447      3,796,295
Goodwill                                          1,898,496      1,898,496
                                              -------------  -------------
Total assets                                  $   7,025,633  $   7,248,316
                                              =============  =============

    LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:                          June 30, 2009  June 30, 2008
                                              -------------  -------------
  Accounts payable, trade                     $     140,541  $      75,196
  Accounts payable, related parties                  18,507         68,332
  Accrued expenses                                  360,774        359,461
  Accrued interest                                    6,720          6,390
  Joint venture obligation                           25,850         30,000
  Current portion of long-term debt               2,038,068        589,581
  Other                                             252,578        254,105
                                              -------------  -------------
    Total current liabilities                     2,843,038      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                     14,010,815     14,027,093
  Accumulated deficit                           (11,226,981)   (11,215,514)
                                              -------------  -------------
Total equity                                      4,182,595      4,205,840
                                              -------------  -------------
Total liabilities and stockholders' equity    $   7,025,633  $   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