American Bingo outlook is very bright.AUSTIN, Texas--(BUSINESS WIRE)--Sept. 13, 1996--American Bingo & Gaming Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : BNGO) today announced that management believes the Company's outlook is very bright contrary to the recent decline in the Company's stock price. The Company has returned to significant profitability in 1996, earning $350,000 or 9 cents EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. in the first half of the year on a near-doubling of revenues over the first half of 1995. The Company's cash flow is very healthy and cash balances have also nearly doubled since the beginning of the year. The Company has just signed a letter of intent to acquire three bingo centers in Mississippi and is in discussion to acquire several more centers by the end of 1996. Management expects new acquisitions to add directly to the Company's cash flow and bottom line. John Orton, chief financial officer, noted "We cannot account for the recent stock price decline. Management of the Company owns a significant portion of the Company's stock and our compensation programs incentivize in·cen·tiv·ize tr.v. in·cen·tiv·ized, in·cen·tiv·iz·ing, in·cen·tiv·iz·es To offer incentives or an incentive to; motivate: management to build value in our stock. We have a vested interest Vested Interest A financial or personal stake one entity has in an asset, security, or transaction. Notes: For example, if you have a mortgage, your bank has a vested interest on the sale of your house. See also: Right in the success of the Company along with our shareholders. At current price levels, our stock clearly does not reflect the Company's current annual revenue growth rate in excess of 50%, annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. 1996 year-to-date earnings of 18 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , nor our tremendous future growth prospects. The Company's stock traded at much higher levels when the Company was experiencing losses. We will continue to take all necessary steps to increase shareholder value." American Bingo & Gaming Corp. is the largest public bingo center lessor in the U.S. Except for historical information contained herein, the matters set forth in this press release are forward looking statements that are subject to risks and uncertainties, including the impact of competition, legislation, consumer preferences, general economic conditions and other risks detailed in the Company's SEC reports. CONTACT: American Bingo & Gaming Corp., Austin Corky cork·y adj. cork·i·er, cork·i·est 1. Of or resembling cork. 2. Informal Lively; buoyant. cork Logue or John Orton, 512/472-2041 |
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