BOULDER, CO--(Marketwire - November 17, 2009) - Global Casinos, Inc. (
First quarter net income attributable to common stockholders was $131,000, or $0.02 per diluted share, versus a net loss attributable to common shareholders of $29,000, or less than $0.01 per diluted share, in the first quarter a year ago. The bottom-line improvement is attributable to a 9% reduction in operating expenses and a slight increase in net revenue, which was $1,681,058 versus $1,670,623 in the first quarter last year.
Operating income increased to $183,000 from $30,000 in the same quarter a year ago. Cash flow from operations was $256,000 versus $181,000 during the same period last year.
"Our cost containment efforts resulted in another quarter of much improved bottom-line results and increased operating cash flow," said Clifford L. Neuman, president. "Our Bull Durham property continues to perform well, in spite of the challenges dealt to the broader gaming market by the economic downturn. The July 2 statewide implementation of higher wager limits and extended operating hours clearly strengthened the performance of Colorado's gaming sector during what was otherwise another difficult quarter for the U.S. gaming industry."
"As we enter the slower winter season, we will maintain our focus on operational efficiencies," Neuman added. "We will be especially focused on stabilizing our Doc Holliday property, where the anticipated seasonal slowdown will present the greatest challenge. We also will continue to leverage the strong cash flow and operating results of our Blackhawk-based Bull Durham casino."
Neuman said management has made meaningful progress in its efforts to refinance certain secured obligations that came due in September 2009. "We are engaged in constructive discussions with two note holders regarding terms for a potential refinance and an extension of these notes. We intend to continue making payments under the notes pending the conclusion of our renegotiation efforts."
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.
CONSOLIDATED STATEMENTS OF OPERATIONS
for the three months ended September 30, 2009 and 2008
2009 2008
----------- -----------
Revenues:
Casino $ 1,721,262 $ 1,709,765
Promotional allowances (40,204) (39,142)
----------- -----------
Net Revenues 1,681,058 1,670,623
Expenses:
Casino operations 1,462,551 1,537,921
Operating, general, and administrative 35,709 102,737
----------- -----------
1,494,760 1,640,658
Income (loss) from operations 182,798 29,965
Other income (expense):
Interest (37,353) (42,047)
Equity in earnings of Global Gaming
Technologies - (1,198)
Impairment of investment in Global Gaming
Technologies - -
Loss on asset disposals - (1,100)
----------- -----------
Income (loss) before provision for income taxes 145,445 (14,380)
Provision for income taxes - -
----------- -----------
Net income (loss) 145,445 (14,380)
Series D Preferred dividends (14,311) (14,311)
----------- -----------
Net income (loss) attributable to common
shareholders $ 131,134 $ (28,691)
=========== ===========
Earnings (loss) per common share:
Basic $ 0.02 $ (0.00)
=========== ===========
Diluted $ 0.02 $ (0.00)
=========== ===========
Weighted average shares outstanding:
Basic 5,994,710 5,925,215
=========== ===========
Diluted 6,033,216 5,925,215
=========== ===========
GLOBAL CASINOS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
September 30, June 30,
2009 2009
------------ ------------
ASSETS
Current Assets
Cash and cash equivalents $ 1,538,881 $ 1,378,074
Accrued gaming income 254,906 190,516
Inventory 19,309 19,309
Prepaid expenses and other current assets 98,587 100,791
------------ ------------
Total current assets 1,911,683 1,688,690
Land, building and improvements, and equipment:
Land 517,950 517,950
Building and improvements 4,121,308 4,121,308
Equipment 3,111,066 3,192,703
------------ ------------
Total land, building and improvements,
and equipment 7,750,324 7,831,961
Accumulated depreciation (4,412,165) (4,393,514)
------------ ------------
Land, building and improvements, and
equipment, net 3,338,159 3,438,447
Goodwill 1,898,496 1,898,496
Total assets $ 7,148,338 $ 7,025,633
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable, trade $ 146,719 $ 140,541
Accounts payable, related parties 20,437 18,507
Accrued expenses 298,528 360,774
Accrued interest 6,720 6,720
Joint venture obligation 25,850 25,850
Current portion of long-term debt 2,001,297 2,038,068
Other 335,058 252,578
------------ ------------
Total current liabilities 2,834,609 2,843,038
Long-term debt, less current portion - -
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; 6,032,488 and 5,955,215
shares issued and outstanding 301,625 297,761
Additional paid-in capital 13,992,640 14,010,815
Accumulated deficit (11,081,536) (11,226,981)
------------ ------------
Total equity 4,313,729 4,182,595
------------ ------------
Total liabilities and stockholders' equity $ 7,148,338 $ 7,025,633
============ ============
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