Trans World Corporation Reports First Quarter 2001 Results and Announces Casino Expansion.Business Editors NEW YORK--(BUSINESS WIRE)--May 25, 2001 Trans World Corporation Trans World Corporation was the original name of the holding company set up to own Trans World Airlines. When the airline sought to diversify into other areas of business, a key investment was Hilton International Hotels (formerly Trans World Trans World is an economic simulation game for the Commodore 64 published by Starbyte Software in 1990. The player takes control of a new trucking company and competes against up to either three other human or computer players to make the most money. Gaming Corp.), (OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. : TWCP TWCP The Woodlands College Park (High School, Texas) TWCP TRU Waste Charcterization/Certification Program TWCP Tank Waste Characterization Planning ) today announced results for the first quarter ended March 31, 2001 and the expansion of its casino casino or cassino (both: kəsē`nō). 1 Card game played with a full deck by two to four players. Its origins are obscure though it probably traces back to the Italian game of Scopa. in Znojmo, Czech Republic Czech Republic, Czech Česká Republika (2005 est. pop. 10,241,000), republic, 29,677 sq mi (78,864 sq km), central Europe. It is bordered by Slovakia on the east, Austria on the south, Germany on the west, and Poland on the north. . Trans World Corporation ("TWC TWC The Weather Channel TWC Time-Warner Cable TWC Texas Workforce Commission (also seen as TWFC) TWC The Wellness Community TWC The Washington Center TWC Teachers & Writers Collaborative TWC Trustworthy Computing "), which owns and operates four casinos in Europe, reported revenues of $4.3 million for the first quarter of 2001, a 10.6% improvement over the same period in 2000. The revenue increase is based primarily on the continued growth in business volume at the Company's newest casino in Znojmo, Czech Republic, which opened in December 1999. TWC reported a net loss of $938,000 or $(0.12) per share for the period, which represents an improvement of 19.2% over the first quarter loss of $1.2 million or $(0.22) per share for the comparable period in 2000. Rami rami [L.] plural of ramus. rami communicantes bundles of nerve fibers connecting a sympathetic ganglion to spinal nerve; categorized as gray rami (unmyelinated postganglionic fibers) or white rami (myelinated preganglionic Ramadan, the Company's president and chief executive officer, commented, "Znojmo's growth has exceeded our expectations. To meet growing demand, in May 2001 we moved forward with our planned increase in gaming tables at the casino from 11 to 16 and have expanded to `round the clock' operation Thursday through Sunday as of May 24, 2001." According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Mr. Ramadan, Znojmo's initial success can be attributed to several factors. "The marketing and promotional strategies that we employed, which included a gala opening party followed by a billboard campaign targeting the northern suburbs of Vienna, Austria and a series of theme parties, proved to be extremely effective in drawing people to the casino," noted Mr. Ramadan. "The casino's growing clientele can also be attributed, in part, to the uniqueness and relaxed atmosphere that the Znojmo casino offers. Our "Southern Antebellum theme" and informal ambience am·bi·ence n. Variant of ambiance. ambience or ambiance Noun the atmosphere of a place Noun 1. have differentiated us from the more formal Viennese casinos and have made our brand, American Chance Casinos, a distinct and recognizable destination." In the first quarter of 2001, the Company's other European-based casinos performed slightly below the levels achieved during the same period in 2000, with Znojmo's gains offsetting these shortfalls. Mr. Ramadan continued, "We are confident that the remedy for the shortfall at our existing business units is expansion of our operations to include facilities modeled after our successful Znojmo prototype, which is a superior product with a proven formula. Further expansion will enable us to take advantage of our existing infrastructure as well as economies of scale. Diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. into the hotel industry is also paramount to TWC's future success and we intend to pursue this strategy aggressively. We have a successful casino product and the addition of hotels, which will represent an excellent complement to our existing operations, will accelerate our growth, give us stability in turbulent economic times, and further enhance the Company's overall image." The Company's European-based development team has been searching for hotel and casino acquisition and development opportunities in both Western European and Eastern European countries. "We have identified a number of target hotel acquisitions, including two hotels in France and one in England for which we have negotiated the terms of purchase and are approaching lenders for financing," said Mr. Ramadan. The Company is also pursuing relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. of its casino in Zaragoza, Spain to the city center and has tentative tentative, adj not final or definite, such as an experimental or clinical finding that has not been validated. plans to open a fifth casino in the Czech Republic. The opening dates for both projects are estimated to be mid-2002. Trans World Corporation owns and operates four casinos in Europe and specializes in small to medium sized casinos and gaming parlors in local venues worldwide. The Company's headquarters is located in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: The statements contained in this release which are not historical facts contain forward looking information with respect to plans, projections or future performance of the Company, the occurrence of which involve certain risks and uncertainties detailed in the Company's filings with the Securities and Exchange Commission.
TRANS WORLD CORPORATION (FORMERLY TRANS WORLD GAMING CORP.)
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS (Unaudited)
(In thousands, except for per share data)
Three Months Ended March 31,
2001 2000
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REVENUES $ 4,256 $ 3,848
----------------- ---------------
COSTS AND EXPENSES
Cost of revenues 2,149 2,107
Depreciation and amortization 650 702
Selling, general and administrative 1,331 1,141
----------------- ---------------
4,130 3,950
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EARNINGS (LOSS) FROM OPERATIONS 126 (102)
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OTHER EXPENSES:
Interest expense (1,019) (1,005)
Foreign exchange loss (45) (54)
----------------- ----------------
(1,064) (1,059)
----------------- ----------------
NET LOSS $ (938) $ (1,161)
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WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING,
basic and diluted 7,628 5,365
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LOSS PER COMMON SHARE,
basic and diluted $ (0.12) $ (0.22)
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COMPREHENSIVE LOSS
Net loss $ (938) $ (1,161)
Other comprehensive income,
foreign currency
translation adjustment 323 570
----------------- ---------------
Comprehensive loss $ (615) $ (591)
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