Global Casinos Reports Q2 Results
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 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.