Global Casinos announces 120% increase in fourth quarter operating income

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 us$ 95,000 from us$ 43,000 in the year-ago fourth quarter.

Net income increased to us$ 49,000 from us$ 12,000 in the fourth quarter last year, while net income attributable to common stockholders was us$ 35,000 versus us$ 12,000 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 us$ 100 from the current us$ 5 limit. In addition, casinos could add roulette and craps to their gaming portfolios, and expand their hours of operation.”

He added: “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."

For the full fiscal year ended June 30, revenue increased 23% to us$ 4,402,000 from us$ 3,578,000 in fiscal 2007. Income from operations was us$ 238,000 versus us$ 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 us$ 124,000 from us$ 119,000 in fiscal 2007, while income attributable to common stockholders was us$ 106,000, versus us$ 119,000 last year.