Trans World Corporation Announces 2012 Second Quarter Financial
Results
Company to Hold Quarterly Conference Call August 8, 2012 at 2:00 p.m.
EDT
NEW YORK, Aug 08, 2012 (BUSINESS WIRE) --
--Second Quarter 2012 Financial Highlights
--Trans World achieved profitability despite overall business being negatively
affected by 2012 Euro Cup Championship held in Poland and Ukraine;
--Revenue from continuing operations was $8.3 million compared with $9.3 million
in the prior year period;
--Results include changes in gaming and corporate taxes that became effective in
2012 compared to no such corporate tax and lower gaming tax in the prior year
period;
--Income from continuing operations (after taxes of $309,000) was $246,000, or
$0.03 per diluted share, compared with $894,000, or $0.10 per diluted share, in
the prior year period; and,
--EBITDA from continuing operations was approximately $1.1 million compared with
$1.5 million in the prior year period.
--First Half 2012 Financial Highlights
--Revenue from continuing operations was $17.4 million compared with $17.6
million in the prior year period;
--Income from continuing operations (after taxes of $684,000) was $749,000, or
$0.08 per diluted share, compared with $1.2 million, or $0.15 per diluted share,
in the prior year period; and,
--EBITDA from continuing operations was approximately $2.5 million compared with
$2.7 million in the prior year period.
Trans World Corporation
("TWC" or the
"Company") (OTC: TWOC), a
premier owner and operator of casinos and a hotel in Europe, today reported its
financial results for the second quarter and first half of 2012 ended June 30.
Mr. Rami Ramadan, Chief Executive Officer, commented,
"We were pleased to achieve profitable operations
despite an exceptional event that affected our attendance during the period. The
2012 Euro Cup Championship adversely affected our operations in the second
quarter, which was similar to the negative impact on our business from the 2010
World Cup Championship. However, we were pleased to see attendance levels
improve following this event. We also experienced a bottom line impact from the
new gaming tax structure implemented this year. However, we believe that the
operational improvements (player rewards and cost-effective marketing) that
began more than a year ago will continue to provide a strong foundation as we
head into the second half of 2012. We are also continuing to see improvement in
our hotel operations, which posted a 5.6 percentage points
("ppts") occupancy gain
this quarter versus the same period a year ago."
Financial and Operating Review
On July 11, 2012, the Company sold its smallest casino asset, formerly the
Rozvadov Casino, for EUR1.0 million, or approximately $1.3 million,
pursuant to the exercise of the buyout option in the five-year lease agreement.
The Company's expects to record a gain on the sale of
its Rozvadov facility of approximately $300,000 in the current third quarter
period.
Q2 2012 vs Q2 2011:
Second quarter 2012 revenue from TWC's continuing
operations was approximately $8.3 million, a decrease of 11% from approximately
$9.3 million in the same period of 2011. The decreases resulted primarily from
the negative impact of the 2012 UEFA European Football Championship
("Euro Cup") matches that
were held from June 8 to July 1, 2012.
Income from continuing operations before income taxes for the second quarter of
2012 was $555,000, versus $894,000 for the same quarter in 2011. Income from
continuing operations after estimated income taxes of $309,000, fell to
$246,000, or $0.03 per diluted share, versus $843,000, or $0.10 per diluted
share, for the same quarter a year ago, which was not subject to income taxes.
The increase in gaming taxes and income taxes were due to amendments to the
local tax regulations for casino operations that became effective in 2012. As
TWC previously reported, the Czech government changed the gaming taxes to a new
flat gaming tax of 20.0% of gross gaming revenue and imposed a 19% corporate
income tax for casino operations. Gaming taxes and related fees for the Company
effectively rose to 21.1% of gross gaming revenue in the second quarter of 2012,
from 15.4% of gross gaming revenue in the same period a year ago.
YTD Q2 2012 vs YTD Q2 2011:
For the six months ended June 30, 2012, total revenue declined by 1.1% to $17.4
million, from $17.6 million one year ago. For the same six months, income from
continuing operations before income taxes was $1.4 million, compared with $1.3
million for the same six month period one year ago, a 7.2% improvement. The
company accrued an estimated $684,000 for income taxes, for the first six months
of 2012, which reduced income from continuing operations, to $749,000, or $0.08
per diluted share, versus $1.3 million, or $0.15 per diluted share, for the same
period last year.
EBITDA from continuing operations of approximately $2.5 million, decreased 8.2%
from the approximately $2.7 million for the same six-month period in 2011. A
table reconciling EBITDA, a non-GAAP (Generally Accepted Accounting Principles)
financial measure, to the appropriate GAAP measure is included with the
Company's financial information below.
Balance Sheet Highlights
At June 30, 2012, stockholders' equity was
approximately $36.6 million, or $4.05 per diluted share, compared with $37.2
million, or $4.16 per diluted share, at December 31, 2011.
Conference Call
TWC will host a conference call to discuss these results at 2:00 p.m. EDT today,
August 8, 2012.
The dial-in numbers are:
Live Participant Dial In (Toll Free): 877-407-8035
Live Participant Dial In (International): 201-689-8035
The conference call will also be webcast live via the Investor Relations section
of Trans World's website at www.transwc.com, or by
clicking the following link:
http://www.investorcalendar.com/IC/CEPage.asp?ID=169263
About Trans World Corporation
Trans World Corporation, founded in 1993, is a publicly traded, US corporation
with all of its gaming and hotel operations in Europe. Additional information
about TWC and its American Chance Casinos and the Hotel Savannah, can be found
at www.transwc.com, www.american-chance-casinos.com and www.hotel-savannah.com,
which are not part of this release.
This press release contains certain forward-looking statements and data. Any
statements and data contained herein that are not historical fact may be deemed
to be forward-looking data. Without limiting the foregoing, words such as
"may,"
"will,"
"expect,"
"believe,"
"anticipates,"
"estimates," or
"continue" or comparable
terminology or the negative thereof are intended to identify certain
forward-looking statements. These statements, by their nature, involve
substantial risks and uncertainties, both known and unknown, and actual results
may differ materially from any future results expressed or implied by such
forward-looking statements. The Company undertakes no obligation to publicly
update or revise any forward-looking statements or data whether as a result of
new information, future events or otherwise.
TRANS WORLD CORPORATION AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE
INCOME (LOSS)
Three and Six Months Ended June 30, 2012 and
2011
(in thousands, except for share data)
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