Casino Journal Reports Record 3rd Quarter Results
Casino Journal Publishing Group Reports 3rd Consecutive Record Quarterly Results
Highlights:
9 Month Revenues sets record of $9,722,909: +41%
9 Month Revenues Soar Past 1998 Total Revenues
3 Month Revenues of $2,966,493: +36%
9 Month EBITDA sets record: $0.21 per share, +780%
Las Vegas - November 10, 1999 - Casino Journal Publishing Group, Inc. (OTC Bulletin Board: CJPG) today announced record results for the 3rd quarter and 9 month financial reporting periods ending September 30, 1999.
REVENUES
Revenues for the 3rd quarter totaled $2,966,493 as compared with $2,186,660 in the year ago period, up 36%. The increase in revenues was driven by a 32% increase in advertising revenues to $1,948,235 and a 74% increase in subscription revenues to $791,226.
Revenues for the 9 months ending September 30, 1999 rose 41% to a record $9,722,909 from $6,911,693. Revenues for the 9 month period ending September 30, 1999 were $599,583 more than revenues recorded for all 12 months of 1998. Advertising revenues rose 30% to $5,478,864 while subscription revenues rose 72% to $2,398,583. Trade show, consulting, Internet and other revenue rose 40% to $1,845,462.
Record subscription revenue growth continued the trend started in the 3rd quarter of 1998 as a result of the Company's aggressive marketing campaigns and the launch of the Company's newest consumer magazine, Strictly Slots in December of 1998. The 3rd quarter ending September 30, 1999 marks the 4th straight quarter where subscription revenues have risen more than 50% on a year over year comparison. Strictly Slots has generated over $1.3 million in cash subscription revenue since it's launch and Casino Player cash subscription revenues have increased an average of $20,000 a month in the first 9 months of 1999.
The record advertising revenues for the 3rd quarter and 9 month period were driven by increased circulation of Casino Player, the successful launch of Strictly Slots and a 10% increase in advertising revenue at the Company's flagship trade publication, Casino Journal. It should be noted that Casino Journal, the company's Business to Business (BtoB) magazine has seen an increase in advertising revenue while BtoB publications nationwide have seen an average 5.5% decrease in advertising revenue over the first 9 months of the year according to Folio magazine.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) rose $390,022 to $237,205 or $0.05 per share in the 3rd quarter of 1999 versus negative EBITDA of $153,022 or -$0.03 per share. EBITDA for the 9 months ending September 30, 1999 rose 780% to $1,036,205 from $117,984 in the year ago period. EBITDA for the 3rd quarter and 9 month period was negatively affected by one time charges of slightly over $50,000 and the amortization of past promotional expenses of $54,000 in the 3rd quarter and $160,000 in the 9 months ended September 30, 1999.
INCOME
Income Before Income Taxes and Minority Interest in the 3rd quarter of 1999 rose $367,492 to $139,561 from a loss of $227,931 in the year ago period. Income Before Income Taxes and Minority Interest for the 9 months ended September 30, 1999 rose $794,055 to $822,787 from $28,732 in the year ago period. Earnings Per Share (EPS) for the 3rd quarter of 1999 rose to $0.01 versus a loss of $0.02 in the year ago period. EPS for the 9 months ended September 30, 1999 rose to $0.10 versus $0.01 in the year ago period.
COMPANY COMMENT
Commenting on the record results achieved in the 3rd quarter and first 9 months of 1999, Casino Journal Publishing Group, Inc. Chairman, CEO and Group Publisher Glenn Fine said, "It is with great pride that we report these record results. The 3rd and 4th quarter of each year are usually our most difficult periods due to the absence of Company trade shows and because our biggest issues of Casino Player are usually during the early summer months. In the 3rd quarter of 1999, our advertising revenues were just $36,000 below the record number that was set in the 2nd quarter. During the 2nd quarter, our annual "Best Of Gaming" issue of Casino Player set a new monthly advertising record. Advertising revenues in the 3rd quarter were driven by a record "World of Slots" issue of Casino Journal in September and continued strength in Casino Player and Strictly Slots."
Fine continued, "For the 4th quarter we will publish a special "Millennium Issue" supplement for Casino Player subscribers as well as our annual 2000 Casino Directory & Funbook. We also produced the first Northern Gaming Summit in Detroit, Michigan in October, which was widely supported by the riverboat, dockside and native American casinos throughout the Midwest. By having special magazine issues and adding this new trade show, we are trying to smooth out our revenue stream so we have 4 strong quarters a year. Judging by the 3rd quarter results, I think we have succeeded. It is important to note that record earnings were realized despite significant spending on our primary subscription acquisition program for Casino Player and Strictly Slots magazines. This is where we have marketing agreements with casinos, including many Harrah's, Hilton, Trump, Foxwoods and Tropicana properties to provide their customers with complimentary trial subscriptions. Our ability to renew these highly desirable subscribers, once their free trial expires, is our most effective program to develop what we call "Lifetime Subscribers." Our company is growing according to plan."
Casino Journal Publishing Group, Inc. publishes Casino Journal, the company's flagship magazine, and the most widely read trade publication serving the gaming industry; the National Gaming Summary, an extensive weekly newsletter that provides up-to-the-minute gaming news; the Gaming Industry Weekly and Daily Reports and the Daily Lodging Report targeting gaming and lodging executives and investors.
For the gaming consumer, CJPG publishes Casino Player and Strictly Slots, the nation's largest circulation consumer gaming publications, and the Atlantic City Insider, which targets the frequent Atlantic City gambler.
The Company also produces the American Gaming, Lodging and Leisure Summit in conjunction with Bear Stearns & Co. and the law firm of Lionel Sawyer and Collins; the Southern Gaming Summit with the Mississippi Casino Operators Association; the Atlantic City Chamber of Commerce Business Expo, the Northern Gaming Summit in conjunction with the Michigan law firm of Fraser Trebilcock Davis & Foster and Bear Stearns & Co. and UNLV Casino Ops trade shows.
Safe Harbor: Certain statements in this press release, including statements regarding the anticipated development and expansion of the Company's business, and the intent, belief or current expectations of the Company, its directors or its officers, are ``forward-looking' statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements.
Contact:
Alan R. Woinski, President of Casino Journal Publishing Group at (201) 599-8484
RR Communications (Investor Relations) at (800) 431-2612
Or visit our website at: casinocenter.com |
