RECENT NEWS:
Global Casinos Announces 120% Increase in Fourth Quarter Operating Income on 96% Improvement in Revenue
Existing Casino Revenue up 19% Versus Year-Ago Quarter
BOULDER, CO, Oct 13, 2008 (MARKET WIRE via COMTEX) -- Global Casinos, Inc. (OTCBB: GBCS) today announced financial results for its fourth quarter and fiscal year ended June 30, 2008.
Fourth quarter revenue increased 96% to $1,688,000 from $860,000 in the same period a year ago. The increase is attributable to the Company's March 2008 acquisition of the Doc Holiday Casino in Central City, as well as improved quarter-over-quarter results at its flagship Bull Durham Casino in Blackhawk. Fourth quarter income from operations increased 120% to $95,000 from $43,000 in the year-ago fourth quarter. Net income increased to $49,000 from $12,000 in the fourth quarter last year, while net income attributable to common stockholders was $35,000, or $0.01 per diluted share, versus $12,000, or $0.00 per diluted share, in the fourth quarter a year ago.
Clifford L. Neuman, president, said, "Our aggressive efforts to strengthen Global's core casino operations resulted in a 19% quarter-over-quarter increase in organic revenue during the fourth period. We attribute this increase to the strength of our casino management software platform, as well as our employees' attention to customer service and the enhancements we have made to our targeted advertising and marketing programs. Collectively, these efforts helped fuel a marked improvement in our customer retention levels."
"The momentum Bull Durham carried at the end of the fourth quarter has continued into the new year," Neuman added. "In spite of challenging economic conditions, we currently expect to achieve a first quarter revenue increase at Bull Durham of between 10% and 12% versus the same quarter last year."
Neuman said management is now focused on improving the financial and operational performance of Global's recently acquired Doc Holiday property. "Like many local and national casinos, Doc Holiday has experienced declining revenue trends in recent quarters, and this will likely continue into the first fiscal period of 2009. We are working to combat this situation with tighter cost controls and targeted marketing programs. Doug James, our president and general manager of casino operations, spearheaded the successful growth initiatives at Bull Durham, and will now oversee the implementation of similar marketing and customer loyalty programs at Doc Holiday. Given our operational team's track record, we are optimistic that Fiscal 2009 will be a year of continued improvement at both of our casino properties."
Neuman said potential passage of a Colorado ballot initiative could further enhance Global's prospects for long-term financial growth. "Proposed changes to Colorado's gaming laws could significantly improve the economic prospects Colorado's casino industry. If passed, Amendment 50 would allow local gaming communities to increase wager limits to $100 from the current $5 limit. In addition, casinos could add roulette and craps to their gaming portfolios, and expand their hours of operation. We believe that the increase in wager limits will attract additional local and out-of-state customers, who normally would go to jurisdictions with higher wager limits. At present, this amendment is leading in the polls and has received widespread support from local media, business organizations and educational institutions. Given the financial benefits this amendment would bring to Colorado's community colleges and three gaming towns, we are optimistic it will pass in November."
Full-year 2008 Highlights
For the full fiscal year ended June 30, revenue increased 23% to $4,402,000 from $3,578,000 in fiscal 2007. Income from operations was $238,000 versus $245,000 a year ago. The decline is largely attributable to added expenses associated with the Doc Holiday Casino acquisition. Full-year net income increased to $124,000 from $119,000 in fiscal 2007, while income attributable to common stockholders was $106,000, or $0.02 per diluted share, versus $119,000, or $0.02 per diluted share last year.
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 June 30, 2008 and 2007
2008 2007
----------- -----------
Revenues:
Casino $ 1,731,506 $ 894,476
Promotional allowances (43,400) (34,525)
----------- -----------
Net Revenues 1,688,106 859,951
Expenses:
Casino operations 1,503,255 770,134
Operating, general, and administrative 90,175 46,858
----------- -----------
1,593,430 816,992
Income from operations 94,676 42,959
Other income (expense):
Interest (44,398) (20,866)
Equity in earnings of Global Gaming
Technologies (1,562) (10,209)
----------- -----------
Income before provision for income taxes 48,716 11,884
Provision for income taxes - -
----------- -----------
Net income 48,716 11,884
Series D Preferred dividends (14,156) -
----------- -----------
Net income attributible to common shareholders $ 34,560 $ 11,884
=========== ===========
Earnings per common share, basic and diluted: $ 0.01 $ 0.00
=========== ===========
GLOBAL CASINOS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
for the years ended June 30, 2008 and 2007
2008 2007
----------- -----------
Revenues:
Casino $ 4,561,095 $ 3,738,142
Promotional allowances (158,641) (160,020)
----------- -----------
Net Revenues 4,402,454 3,578,122
Expenses:
Casino operations 3,949,039 3,071,360
Operating, general, and administrative 215,112 261,297
----------- -----------
Total operating expenses 4,164,151 3,332,657
Income from operations 238,303 245,465
Other income (expense):
Interest (105,979) (93,800)
Equity in earnings of Global Gaming
Technologies (8,688) (30,465)
Loss on asset disposals - (2,123)
----------- -----------
Income before provision for income taxes 123,636 119,077
Provision for income taxes - -
----------- -----------
Net income 123,636 119,077
Series D Preferred dividends (17,856) -
----------- -----------
Net income attributable to common shareholders $ 105,780 $ 119,077
=========== ===========
Earnings per common share:
Basic $ 0.02 $ 0.02
=========== ===========
Diluted $ 0.02 $ 0.02
=========== ===========
Weighted average shares outstanding:
Basic 5,836,006 5,158,249
=========== ===========
Diluted 5,923,088 5,273,247
=========== ===========
GLOBAL CASINOS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 30, June 30,
2008 2007
----------- -----------
ASSETS
Current Assets
Cash and cash equivalents $ 1,163,416 $ 1,563,968
Accrued gaming income 219,821 39,273
Inventory 16,469 7,410
Prepaid expenses and other current assets 92,972 13,606
----------- -----------
Total current assets 1,492,678 1,624,257
Acquisition escrow deposit - 100,000
Investment in Global Gaming Technologies 60,847 69,535
Land, building and improvements, and equipment:
Land 517,950 517,950
Building and improvements 4,121,308 4,110,685
Equipment 3,057,670 2,347,232
----------- -----------
Total land, building and improvements, and
equipment 7,696,928 6,975,867
Accumulated depreciation (3,900,633) (3,383,760)
----------- -----------
Land, building and improvements, and equipment,
net 3,796,295 3,592,107
Goodwill 1,898,496 -
Total assets $ 7,248,316 $ 5,385,899
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable, trade $ 75,196 $ 47,226
Accounts payable, related parties 68,332 24,850
Accrued expenses 359,461 243,100
Accrued interest 6,390 3,852
Joint venture obligation 30,000 40,000
Current portion of long-term debt 589,581 52,664
Other 254,105 120,000
----------- -----------
Total current liabilities 1,383,065 531,692
Long-term debt, less current portion 1,659,411 1,899,647
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 -
Common stock - $0.05 par value; 50,000,000
shares authorized;
5,865,215 and 5,202,909 shares issued and
outstanding at June 30, 2008 and 2007,
respectively 293,261 260,146
Additional paid-in capital 14,027,093 13,632,564
Accumulated (deficit) (11,215,514) (11,339,150)
----------- -----------
Total equity 4,205,840 2,954,560
----------- -----------
Total liabilities and stockholders' equity $ 7,248,316 $ 5,385,899
=========== ===========
CONTACTS:
Clifford L. Neuman
President and CEO
Global Casinos, Inc.
303-449-2100
Geoff High
Principal
Pfeiffer High Investor Relations, Inc.
303-393-7044
SOURCE: Global Casinos, Inc.
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