Four Corners Pre-Releases Financial Results for Fiscal Year 2010 & Announces Renewal of K&B’s Sales, Inc. Bingo Distributor...
January 26 2011 - 10:37AM
Business Wire
Four Corners, Inc. (FCNE.PK) (the “Company”) today pre-released
unaudited financial results for the 52-week period ended October
31, 2010 and announced the renewal of the bingo distributorship
license for its subsidiary, K&B Sales, Inc. (“K&B”).
Financial Update
The Company reported consolidated net income of approximately
$1.6 million, or $0.16 per basic share including, net income from
discontinued operations of $1.2 million, or $0.13 per basic share,
for the 52-week period ended October 31, 2010. For the 52-week
period ended November 1, 2009, the Company reported a consolidated
net loss of approximately $2.3 million, or $(0.22) per basic and
diluted share, including a net loss from discontinued operations of
approximately $0.8 million, or $(0.08) per basic and diluted share.
Discontinued operations for fiscal years 2010 and 2009 were
comprised principally of the operating results of Eclipse Gaming
Systems, LLC, which the Company sold in May 2010. Discontinued
operations for fiscal year 2010 also includes a gain of $1.5
million resulting from the sale of Eclipse. The Company had net
income from continuing operations of approximately $0.3 million, or
$0.03 per basic and diluted share, for fiscal year 2010 compared to
a net loss from continuing operations of $1.5 million, or $(0.14)
per basic and diluted share, for fiscal year 2009.
The Company had revenue from continuing operations of
approximately $16.4 million in fiscal year 2010, almost all of
which was bingo revenue. Revenue from continuing operations of
$15.7 in fiscal year 2009 was all bingo revenue.
As of October 31, 2010, the Company had approximately $3.0
million of cash and total debt of approximately $6.0 million.
Substantially all of the Company’s indebtedness is to related
parties.
Business Update
On January 20, 2011, the Texas Lottery Commission voted
unanimously to accept a settlement agreement between the Commission
staff and K&B regarding the renewal of K&B’s bingo
distributor license. K&B’s license has been renewed and an
administrative penalty was assessed against K&B in the amount
of $2.3 million. Of that amount $2.1 million is deferred pending
K&B’s compliance with the settlement agreement, and the
deferred penalty will be vacated in five years. During the five
year period, K&B has agreed not operate, promote, service or
install games in Texas that fall within the Commission’s definition
of a gambling device, and it has agreed that it will not allow any
of its officers, directors, employees or agents to do the same.
K&B has agreed to pay the Commission its legal fees and $0.2
million over a 12-month period beginning February 1, 2011.
“We are pleased with our financial results in what was an
important transition year for the Company. We expect to continue to
remain focused on building K&B, while we selectively look at
strategic distribution opportunities in other jurisdictions that
leverage our expertise, reputation and relationships. We remain
excited about the future and believe we are well positioned for
future growth and success,” said John J. Schreiber, the Company’s
chairman, president and chief executive officer.
About Four Corners
Four Corners (FCNE.PK) is a holding company of certain
subsidiaries whose primary focus is the gaming industry. The
Company’s wholly-owned subsidiary, K&B Sales, Inc., distributes
bingo supplies and related equipment to charity bingo licensees in
Texas. FC Distributing LLC, a wholly-owned subsidiary of the
Company, distributes gaming machines and other gaming related
equipment to the Native American casino market in Oklahoma.
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