BOULDER, CO--(Marketwire - October 2, 2009) - Global Casinos, Inc. (
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
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Revenues:
Casino 1,666,912 1,731,506
Promotional Allowances (43,441) (43,400)
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Net Revenues 1,623,471 1,688,106
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Operating Expenses:
Casino Ops 1,339,348 1,503,255
Operating G&A 27,773 90,175
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Total Operating Expenses 1,367,121 1,593,430
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Income (loss) from operations 256,350 94,676
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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 -
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92,483 45,960
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Net income (loss) before extraordinary items 163,867 48,716
Extraordinary items - -
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Net income (loss) before dividends 163,867 48,716
Series D Preferred Dividends (14,156) (14,156)
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Net income (loss) - common stockholders 149,711 34,560
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Earnings (loss) per common share:
Basic $ 0.03 $ 0.01
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Diluted $ 0.02 $ 0.01
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Weighted average shares outstanding:
Basic 5,955,215 5,837,591
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Diluted 6,033,699 5,924,672
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GLOBAL CASINOS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
for the year ended June 30, 2009 and 2008
2009 2008
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Revenues:
Casino $ 6,551,412 $ 4,561,095
Promotional allowances (163,596) (158,641)
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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
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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) -
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Income (loss) before provision for income taxes (11,467) 123,636
Provision for income taxes - -
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Net income (loss) (11,467) 123,636
Series D Preferred dividends (56,778) (17,856)
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Net income (loss) attributable to common
shareholders $ (68,245) $ 105,780
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Earnings (loss) per common share:
Basic $ (0.01) $ 0.02
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Diluted $ (0.01) $ 0.02
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Weighted average shares outstanding:
Basic 5,940,420 5,836,006
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Diluted 5,940,420 5,923,088
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GLOBAL CASINOS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 30, 2009 June 30, 2008
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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
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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
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Total land, building and improvements,
and equipment 7,831,961 7,696,928
Accumulated depreciation (4,393,514) (3,900,633)
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Land, building and improvements, and
equipment, net 3,438,447 3,796,295
Goodwill 1,898,496 1,898,496
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Total assets $ 7,025,633 $ 7,248,316
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities: June 30, 2009 June 30, 2008
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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
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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)
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Total equity 4,182,595 4,205,840
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Total liabilities and stockholders' equity $ 7,025,633 $ 7,248,316
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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