Global
Casinos Reports Q2 Results
Global Casinos, Inc. (OTCBB:GBCS)
has announced its financial results for the
second fiscal quarter ended December 31, 2005.
Casino
revenues for the three months ended December
31, 2005, were $944,549 compared to $999,577
for the 2004, a decrease of $55,028 or 5.5%.
The revenue decrease is primarily attributed
to the completion of certain construction work
performed in the town of Black Hawk in June
2005 that had the effect of driving customer
traffic into the casino during the comparable
period in 2004. This anticipated decrease in
customer traffic during the quarter as compared
to the same period in 2004 was partially offset
by increased promotional efforts.
For
the six months ended December 31, 2005, Casino
revenues were $2,021,529 compared to $1,966,555
for the comparable period in fiscal 2005, an
increase of $54,974 or 2.8%. The beginning of
this six-month period still had some of the
aforementioned construction, which drove additional
traffic to the casino.
INCOME
FROM OPERATION
Income
from operation declined by $150,264 to $53,844
from $204,148 during the three months ended
December 31, 2005, compared to 2004. Operating
income decreased due to the reduction in revenues
and increased promotional expenses. For the
six months income from operations decreased
by $133,300 or 30% to $289,860 as a result of
the decreased revenues and increased promotional
expenses.
NET
INCOME
Net
income was a loss of ($111,736) for the quarter
ended December 31, 2005, compared to a net income
of $860,254 for the quarter ending December
31, 2004, a decrease of $971,990. Diluted earnings
per share were (0.03) for 2005 and $0.25 in
2004. For the six months ended December 31,
2005, net loss was ($44,030) compared to 2004
net income of $1,029,606, a reduction of $1,073,636.
Diluted earnings per share were $(0.01) in 2005
and $0.34 for the comparable 2004 period. The
results for 2005 include an interest charge
of $336,180 versus $96,946 in 2004. This was
due to the issuance of a 12% convertible debenture
with detachable warrants and a beneficial conversion
feature. These debentures were converted to
equity on December 31, 2005, which will reduce
those interest charges in future quarters. In
2004 there was a one-time gain of $705,034 for
the six-month period due to actions taken to
improve the Company's financial position.
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