SOURCE: Kinbasha Gaming International, Inc.
HITACHI, JAPAN--(Marketwire - Oct 22, 2012) - Kinbasha Gaming International, Inc. (the "Company") (PINKSHEETS: KNBA), owner and operator of retail gaming centers in Japan, today released its financial results for the fiscal first quarter ended June 30, 2012 through a Form 10/A filing with the United States Securities and Exchange Commission. The Company has announced that its Form 10 had become effective as of October 12, 2012, and that it is now a fully reporting public company.
"Becoming a US reporting company is a major milestone that will help facilitate our ability to grow our business and pursue a variety of capital raising strategies in the US markets," said Masatoshi Takahama, Chief Executive Officer of Kinbasha Gaming International. "Additionally, with the announcement of our latest quarterly results, Kinbasha is showing solid revenue improvements over the same period in 2011 and we expect this trend to continue as our expansion plans are implemented and our debt restructuring plan gathers momentum."
Kinbasha reported revenues of $23.6 million for the quarter ended June 30, 2012, an increase of $4.5 million compared to $19.1 million in the same period of 2011. The increase in revenues was primarily a result of increased customer turnout at Kinbasha's various locations, as well as the reopening of a parlor that had been badly damaged in the earthquake and tsunami in 2011. Likewise, Kinbasha's net loss for the first quarter ending June 30, 2012 improved to $1.9 million, compared to a net loss of $5.3 million in the same period of 2011. This overall improvement to the bottom-line was primarily attributable to increased sales and improved machine management by Kinbasha's team.
"We are pleased with the fact that we were able to enhance our bottom-line as we build upon our 2012 results and implement a series of initiatives to open new parlors throughout Japan," Mr. Takahama continued.
As part of strategic initiatives, Kinbasha's plan is to raise capital to build out and/or acquire additional pachinko parlor stores within the Tokyo Metropolitan Area, and begin to shift the company's strong branding, game machine management systems and proprietary point-of-sale analytical technology to areas where pachinko stores are more profitable.
Mr. Takahama concluded, "We believe that becoming a fully reporting company with the SEC is an important step to establishing our visibility in the marketplace and increasing shareholder value and liquidity. Kinbasha is focusing on improving our financial position, broadening our sales in Tokyo and building upon brand recognition in Japan, and we hope that these efforts will translate into long-term value for our shareholders."
About Kinbasha Gaming International, Inc.
Based in Hitachi City, Japan, Kinbasha Gaming International, Inc. (PINKSHEETS: KNBA) is a retail gaming company that operates 21 pachinko parlors in the Japanese prefectures of Ibaraki, Tokyo and Chiba. For more than 50 years, the company's retail gaming establishments have offered customers the opportunity to play the games of chance known as pachinko and pachislo. Pachinko is played on a device which resembles a vertical pinball machine and pachislo is played on a machine that resembles a western style slot machine. Pachinko and pachislo are collectively ranked as Japan's largest leisure activity, accounting for approximately $230 billion in annual revenues. For more information on Kinbasha, please visit: www.kinbashainc.com
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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 information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks 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.