Trans World Gaming Announces Third Quarter Results; Company Expands Louisiana Gaming Facility.NEW YORK--(BUSINESS WIRE)--Nov. 13, 1996--Trans World Gaming Corp. (Nasdaq NM: IBET IBET Integrated Border Enforcement Team IBET Institute of Biomedical Engineering Technology IBET Integrated Biology English and Technology IBET Indoor Building Entrance Terminal (Bellcore) , IBETW) today announced financial results for its third quarter and nine months ended September September: see month. 30, 1996. Revenues for the third quarter increased 19% to $1,703,000 from $1,430,000 for the same period in 1995. The Company reported a net loss of $261,000, or $(0.10) per share, for the three months ended September 30 1996, versus a net profit of $127,000, or $0.05 per share, for the comparable 1995 quarter. The net loss incurred in the 1996 third quarter includes $237,000, or $0.09 per share, in financing expenses and legal fees related to the Company's recent refinancings. Revenues for the nine months ended September 30, 1996 increased 13% to $4,963,000 from $4,408,000 for the same period in 1995. The Company reported a net loss of $940,000, or $(0.37) per share, versus a net profit of $472,000, or $(0.19) per share, for the comparable nine month period in 1995. Management noted that the net loss largely reflects costs incurred from the previously announced refinancing Refinancing An extension and/or increase in amount of existing debt. , and termination costs associated with the recent change in management. These expenses, which account for a majority of the Company's nine month loss, are not representative of the Company's ongoing business. In a related announcement, the Company amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. its 1O-QSB filing with the Securities and Exchange Commission for the quarter ended June June: see month. 30, 1996. The Company previously reported a loss for the six months ended June 30, 1996 of $256,046, or $(0.10) per share versus a profit of $344,767, or $0.14 per share for the similar period in 1995. The Company adjusted its interest expense in the second quarter 1996 by $416,000 to $581,000 as compared to $149,000 in 1995 as previously reported. The adjustment is directly attributable to the difference between the trading price Trading price The price at which a security is currently selling. ($.8438 per share) of the Company's common stock at the time of the March 1996 bridge loan from C.P. Baker & Co., Ltd., and the $0.01 per share exercise price of 499,925 warrants issued in connection with the financings. As a result, the Company's net loss for the six months ended June 30, 1996 is $679,000, or $(0.27) per share, as compared to a profit of $345,000, or $0.14 per share, for the similar period in 1995. Stanley Stanley, town (1991 pop. 1,557), capital of the Falkland Islands, S Atlantic Ocean, on East Falkland island. It is the main port and trading center of the islands. The name is sometimes written as Port Stanley. Kohlenherg, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of 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., stated, "While we are disappointed in the bottom line results for the first nine months of 1996, we believe that the recently completed financings were necessary to strengthen our balance sheet and provide a foundation to support future growth." Kohlenberg also noted that the Company recently received approval for and has installed eighteen additional video poker Video poker is a casino game based on five-card draw poker. It is played on a computerized console which is a similar size to a slot machine. History Video poker first became commercially viable when it became economical to combine a television-like monitor with a machines in its Toledo Palace operation in DeRidder, Louisiana The city of DeRidder is the parish seat of Beauregard Parish, in the US state of Louisiana. [1] [2] The population was 9,808 at the 2000 census. Geography DeRidder is located at (30.851419, -93. . "We are hopeful that once the Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. authorities activate the new devices as part of
the state-wide video poker system, we will experience increased revenues
in DeRidder." Kohlenberg indicated that the request for activation activation /ac·ti·va·tion/ (ak?ti-va´shun)1. the act or process of rendering active. 2. the transformation of a proenzyme into an active enzyme by the action of a kinase or another enzyme. 3. has been forwarded to the Louisiana authorities and anticipates activation of the devices within the next few weeks. Trans World Gaming owns and operates two casinos A list of casinos. Antigua and Barbuda
"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. -0-
TRANS WORLD GAMING CORP.
FINANCIAL HIGHLIGHTS
(in thousands except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
1996 1995 1996 1995
Revenues $ 1,703 $ 1,430 $ 4,963 $ 4,408
Cost and expenses:
Cost of revenue 962 715 2,556 2,073
Administrative 447 297 1,623 831
Depreciation and amortization 346 106 734 413
Total costs and expenses 1,755 1,118 4,913 3,317
Earnings/(loss) from operations (52) 312 50 1,091
Interest expense 189 152 926 439
Earnings/(loss) before taxes $ (241) $ 160 $ (876) $ 652
Provision for tax 20 33 64 180
Net earnings/(loss) $ (261) $ 127 $ (940) $ 472
Earnings/(loss) per share $(0.10) $ 0.05 $ (0.37) $ 0.19
Common Stock Outstanding 2,544 2,544 2,544 2,544
SELECTED BALANCE SHEET INFORMATION
September 30, 1996 December 31, 1995
(unaudited) (audited)
Total current assets $ 1,525 $ 596
Total assets 15,533 13,546
Total liabilities 6,849 5,425
Long term debt 5,977 1,178
Shareholders' equity $ 8,684 $ 8,121
-0-
TRANS WORLD GAMING CORP.
RE-STATED FINANCIAL RESULTS FOR
Three Months and Six Months ended June 30, 1996
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1996 1996 1996 1996
restated restated
Revenues $ 1,594 $ 1,594 $ 3,261 $ 3,261
Cost and expenses:
Cost of revenue 760 760 1,594 1,594
Administrative 547 547 1,175 1,175
Depreciation and amortization 194 194 388 388
Total costs and expenses 1,501 1,501 3,157 3,157
Earnings from operations 93 93 104 104
Interest expense 581 158 738 315
Earnings/(loss) before tax $ (488) $ (65) $ (634) $ (211)
Provision for tax 22 22 44 44
Net earnings/(loss) $ (510) $ (87) $ (678) $ (256)
Net earnings/(loss) per share $ (0.20) $ (0.03) $ (0.27) $ (0.10)
Common stock outstanding 2,544 2,544 2,544 2,544
CONTACT: Trans World Gaming Corp., 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 Dominick J. Valenzano Chief Financial Officer 212-563-3355 |
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