American Wagering Announces Record First Quarter Results
PR Newswire - June 16, 1999 09:14
LAS VEGAS, June 16 /PRNewswire/ -- American Wagering, Inc. (Nasdaq: BETM) today announced the strongest first quarter results in the Company's history. Revenues for the 3 months ended April 30, 1999 rose 29% to $3,010,000 as compared with $2,335,000 for the year ago period. Operating Income rose 86% to $325,000 as compared with $175,000 in the year ago period. Net Income rose 136% in the 3 months ended April 30, 1999 to come in at $267,000 or $.03 per share as compared with $113,000 in the 3 months ended April 30, 1998 or $.01 per share.
The increases in revenues, income from operations and net income were attributed to a record 1st quarter in Handle (total amount wagered at the Company's sports and race books). Handle rose 13.1% from last year and totalled $22,793,000 as compared with $20,169,000 in the 1st quarter of 1998. Net win percentage (revenues divided by handle) increased 24.2%. The 1st quarter of 1999 produced a net win percentage of 7.6% as compared with 6.2% in the 1st quarter of 1998. As a result of the higher handle and higher win percentage, wagering revenues in the 1st quarter of 1999 rose 36.8% to $1,797,000 as compared with $1,314,000 in the year ago period.
Offsetting the significant increases in operating income were initial and start up costs of $136,000 related to the commencement of the Company's Internet Sports Book operations in Australia and the Company's Keno game which is expected to be launched this month. Net income before start up costs totalled $387,410 or .05 per share.
Commenting on the strong results, American Wagering, Inc. CEO Victor Salerno said, "The record first quarter results validates comments I made in our press release on our year end results. This company achieved record handle last year but since we are in the sports betting business, that handle did not show up in our bottom line results because the outcome of certain sporting events were in favor of the bettors. In the first quarter, our win percentage increased and that increase caused our stronger handle to finally begin to show up in our bottom line. The fact that we were able to show a 300% increase in our Earnings Per Share despite the costs associated with our ongoing growth plans pleases us even more. We look forward to the upcoming launch of our new progressive Keno game in the state of Nevada and the other projects we currently have in the planning stages."
American Wagering, Inc., owns and operates Leroy's Horse and Sports Place, the licensed bookmaker with the largest number of sports book locations (45) in the State of Nevada; CBS, the dominant supplier of sports and race book equipment and software in Nevada and creator and operator of Mega$ports. The Company also owns and operates a 150 room hotel/casino complex in Las Vegas and has formed an Australian subsidiary to operate Mega$ports on the Internet.
The statements contained in this release, which are not historical facts contain forward-looking information with respect to plans, projections or future performance of American Wagering, Inc., the occurrence of which involves certain risks and uncertainties, including that American Wagering takes financial risks on the outcome of sporting events as a principal betting against patrons; an increase or decrease in handle is not necessarily indicative of an increase or decrease in revenues or profits, there can be no assurance that the Progressive Keno game will be operated profitably. Investors should also examine other uncertainties detailed in American Wagering's filings with the Securities and Exchange Commission.
AMERICAN WAGERING, INC
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED APRIL 30, 1999 AND 1998
1999 1998
REVENUES $ 3,010,123 $ 2,335,368
OPERATING COSTS AND EXPENSES:
Direct costs 1,765,585 1,364,998
Research and development 151,381 139,272
Selling, general and administrative 579,881 491,445
Depreciation and amortization 188,145 164,296
TOTAL OPERATING COSTS AND EXPENSES 2,684,992 2,160,011
OPERATING INCOME 325,131 175,357
OTHER INCOME (EXPENSE):
Interest income 7,520 65,401
Other income -- 83,459
Minority Interest 5,023 --
Equity in loss from joint venture -- (110,315)
Interest expense (70,494) (101,125)
TOTAL OTHER EXPENSE (57,951) (62,580)
INCOME FROM CONTINUING OPERATIONS
BEFORE PROVISION (BENEFIT) FOR INCOME TAXES267,180 112,777
PROVISION (BENEFIT) FOR INCOME TAXES -- --
INCOME FROM CONTINUING OPERATIONS
DISCONTINUED OPERATIONS: 267,180 112,777
Income (loss) from
discontinued operations -- --
NET INCOME 267,180 112,777
PREFERRED STOCK DIVIDEND REQUIREMENTS (15,770) --
NET INCOME AVAILABLE TO
COMMON SHAREHOLDERS $ 251,410 $ 112,777
INCOME PER SHARE OF COMMON STOCK
Income from continuing operations
Basic $ 0.03 $ 0.01
Diluted $ 0.03 $ 0.01
Income (loss)from continuing operations
Basic $ 0.00 $ 0.00
Diluted $ 0.00 $ 0.00
Net income
Basic $ 0.03 $ 0.01
Diluted $ 0.03 $ 0.01
SOURCE American Wagering, Inc.
/CONTACT: Bob Ciunci of American Wagering, Inc., 702-735-5529; or Alan R.
Woinski of Gaming Venture Corp., U.S.A, 201-947-4642/
/Web site: casinocenter.com
(CJPG BETM) |
