Global Casinos, Inc. (OTCBB: GBCS) today announced financial
results for its second quarter and six-month period ended December
31, 2009.
Second quarter net revenue was $1,333,000 versus $1,510,000 in
the second quarter of fiscal 2009. The decline is attributable to
poor weather conditions and continued weak consumer spending.
The Company reported a loss from operations of $266,000 versus a
loss from operations of $104,000 in last year's second quarter. The
increased operating loss was the result of lower revenue, increased
stock-based compensation expense and increased fees associated with
the Company's debt restructuring efforts. These increased expenses
were partially offset by a $102,000 reduction in casino operating
expenses. Net loss attributable to common shareholders was
$340,000, or $0.06 per diluted share, versus a net loss
attributable to common shareholders of $164,000, or $0.03 per
diluted share, in the second quarter a year ago.
Operating cash flow at the six-month mark was $163,000, up from
$140,000 during the same period last year.
Cliff Neuman, president and CEO, "The second fiscal quarter is
traditionally one of our slowest periods due to the seasonal nature
of Colorado's mountain-based gaming industry. Challenging weather
conditions along Colorado's Front Range only exacerbated the annual
slowdown in customer traffic."
"As we anticipate the busier Spring and Summer seasons, as well
as a rebound in consumer spending, we continue to focus on
enhancing efficiencies at our Bull Durham and Doc Holliday
properties," Neuman added. "These efforts drove down casino
operating expenses by nearly 6% versus last year's second quarter.
We also have made important progress on our debt restructuring
efforts, which is encouraging given the extremely tight credit
markets. We are optimistic these ongoing efforts will ultimately
have a material positive impact on our cost structure and earnings
potential."
Year-to-date results
Net revenue through the first six months of fiscal 2010 was
$3,014,000 versus $3,180,000 in the same period last year. Loss
from operations was $83,000 versus an operating loss of $75,000 at
the six-month mark last year. Net loss attributable to common
shareholders was $209,000, or $0.03 per diluted share, versus a net
loss attributable to common shareholders of $193,000, or $0.03 per
diluted share, in the same period 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, 2009.
GLOBAL CASINOS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
for the three months ended December 31, 2009 and 2008
2009 2008
----------- -----------
Revenues:
Casino $ 1,368,809 $ 1,547,593
Promotional allowances (36,006) (37,767)
----------- -----------
Net Revenues 1,332,803 1,509,826
Expenses:
Casino operations 1,434,364 1,536,430
Operating, general, and administrative 164,581 75,402
Loss on asset disposals - 1,643
----------- -----------
1,598,945 1,613,475
Income (loss) from operations (266,142) (103,649)
Other income (expense):
Interest (59,190) (40,607)
Equity in earnings of Global Gaming
Technologies - (5,485)
----------- -----------
Income (loss) before provision for income taxes (325,332) (149,741)
Provision for income taxes - -
----------- -----------
Net income (loss) (325,332) (149,741)
Series D Preferred dividends (14,311) (14,311)
----------- -----------
Net income (loss) attributable to common
shareholders $ (339,643) $ (164,052)
=========== ===========
Earnings (loss) per common share:
Basic $ (0.06) $ (0.03)
=========== ===========
Diluted $ (0.06) $ (0.03)
=========== ===========
Weighted average shares outstanding:
Basic 6,059,855 5,955,215
=========== ===========
Diluted 6,059,855 5,955,215
=========== ===========
GLOBAL CASINOS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
for the six months ended December 31, 2009 and 2008
2009 2008
----------- -----------
Revenues:
Casino $ 3,090,071 $ 3,257,358
Promotional allowances (76,210) (76,909)
----------- -----------
Net Revenues 3,013,861 3,180,449
Expenses:
Casino operations 2,896,915 3,074,351
Operating, general, and administrative 200,290 178,139
Loss on asset disposals - 2,743
----------- -----------
3,097,205 3,255,233
Income (loss) from operations (83,344) (74,784)
Other income (expense):
Interest (96,543) (82,654)
Equity in earnings of Global Gaming
Technologies - (6,683)
----------- -----------
Income (loss) before provision for income taxes (179,887) (164,121)
Provision for income taxes - -
----------- -----------
Net income (loss) (179,887) (164,121)
Series D Preferred dividends (28,622) (28,622)
----------- -----------
Net income (loss) attributable to common
shareholders $ (208,509) $ (192,743)
=========== ===========
Earnings (loss) per common share:
Basic $ (0.03) $ (0.03)
=========== ===========
Diluted $ (0.03) $ (0.03)
=========== ===========
Weighted average shares outstanding:
Basic 6,040,536 5,925,867
=========== ===========
Diluted 6,040,536 5,925,867
=========== ===========
GLOBAL CASINOS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, 2009 June 30, 2009
----------------- -----------------
ASSETS
Current Assets
Cash and cash equivalents $ 813,770 $ 1,378,074
Accrued gaming income 225,217 190,516
Inventory 21,464 19,309
Prepaid expenses and other current
assets 98,034 100,791
----------------- -----------------
Total current assets 1,158,485 1,688,690
Land, building and improvements, and
equipment:
Land 517,950 517,950
Building and improvements 4,128,021 4,121,308
Equipment 3,151,918 3,192,703
----------------- -----------------
Total land, building and
improvements, and equipment 7,797,889 7,831,961
Accumulated depreciation (4,555,214) (4,393,514)
----------------- -----------------
Land, building and improvements,
and equipment, net 3,242,675 3,438,447
Goodwill 1,898,496 1,898,496
----------------- -----------------
Total assets $ 6,299,656 $ 7,025,633
================= =================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable, trade $ 137,864 $ 140,541
Accounts payable, related parties 16,003 18,507
Accrued expenses 353,723 360,774
Accrued interest 4,309 6,720
Joint venture obligation 25,850 25,850
Current portion of long-term debt 1,167,366 2,038,068
Current portion of loan
participation obligations 25,638 -
Other 333,698 252,578
----------------- -----------------
Total current liabilities 2,064,451 2,843,038
Long-term debt, less current portion - -
Loan participation obligations, less
current portion 237,449 -
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;
6,095,488 and 5,955,215 shares
issued and outstanding 304,775 297,761
Additional paid-in capital 13,998,849 14,010,815
Accumulated deficit (11,406,868) (11,226,981)
----------------- -----------------
Total equity 3,997,756 4,182,595
----------------- -----------------
Total liabilities and stockholders'
equity $ 6,299,656 $ 7,025,633
================= =================
CONTACTS: Clifford L. Neuman President and CEO Global Casinos,
Inc. 303-449-2100 Geoff High Principal Pfeiffer High Investor
Relations, Inc. 303-393-7044
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