Casino Journal Reports Record EBITDA, Pre-Tax and After Tax Net Income in 2nd Qtr.
PR Newswire - August 10, 1998 08:30
EBITDA of .10 per share
Pre-Tax Net Income of .09 per share
After Tax Net Income of .07 per share
LAS VEGAS, Aug. 10 /PRNewswire/ -- Casino Journal Publishing Group, Inc. (OTC-Bulletin Board: CJPG) today reported financial results for the second quarter of fiscal 1998, the first combined results reported since the merger of Casino Journal and Gaming Venture Corp., U.S.A.
For the second quarter, revenues rose 58% to $2,624,699 from $1,659,067 in the year ago period. The rise in revenues is attributable to higher advertising and subscription revenues as well as the addition of one new trade show and one new magazine. Income Before Income Taxes rose 262% to $441,159 from $122,133. Net Income After Provision For Income Taxes rose 255% to $313,159 or $0.07 per basic and diluted share versus a Pro Forma After Tax Net Income of $88,133 or $0.03 per share. The year ago comparative period was prior to the merger and was on less shares outstanding.
Results for the 6 months included 3 months ended March 30, 1998 of Casino Journal's operating results prior to the merger and 3 months ended June 30, 1998 of the combined companies.
Revenues for the 6 month period rose approximately 41% to $4,705,033. Income Before Income Taxes rose approximately 23% to $256,663.
Advertising Revenues in the 6 months ended June 30, 1998 rose approximately 53% to $2,722,540 from $1,850,276 in the year ago period. Subscription revenue rose approximately 7% to $930,641 compared with $876,378 in the year ago period.
During the quarter ended June 30, 1998, the Company successfully produced a new trade show, UNLV Casino Ops, in partnership with the University of Las Vegas' (UNLV) International Gaming Institute. At the trade show, the Company unveiled their newest quarterly magazine, Casino Ops. Prior to the merger, but in the past 6 months, the Company produced another new trade show, The Greater Atlantic City Chamber of Commerce Business Expo. One additional new magazine is expected to be produced by the end of this fiscal year. The quarter also included a new company record for monthly advertising revenues for a single issue of Casino Player magazine, the July Best of Gaming Issue which produced advertising revenues of over $400,000 for the single issue.
Commenting on the results, Alan Woinski, President and CFO of Casino Journal Publishing Group, Inc. said, "We are proud to announce our first quarterly results as a combined company. Results for the quarter were well above our expectations as a result of higher than expected advertising and trade show revenues. During the first 6 months of 1998, the Company also began a very aggressive direct mail, subscription generating, marketing campaign for Casino Player magazine and the results have met our expectations. These aggressive marketing campaigns will continue for all of our publications in the future. Despite the expenditures related to the direct mail marketing campaign and merger expenses, cash flow was well above our expectations for the quarter. Our Balance Sheet is very strong, our cash position is more than adequate to cover our expected future costs and start up of additional operations and management is now overly confident that we will meet or exceed our internal estimates of results for the entire year."
Glenn Fine, Chairman and CEO of Casino Journal Publishing Group, Inc. added, "We thank our employees and our customers for this quarterly earnings report. Without them, we could not have produced these higher than expected results. We also thank the many casinos, including Harrah's, Grand Casinos, Foxwoods and Boyd Gaming that continue promoting introductory Casino Player subscriptions to their extensive databases of gamblers. It's this type of innovative, targeted program that allows us to grow without the usual costs related to such growth."
Fine continued, "The combination of the management and operations of Casino Journal Publishing Group and Gaming Venture Corp., U.S.A. has been integrated quicker than we expected. There is no doubt that the merger, our strong balance sheet and the combination of our great employees has produced these results and this validates the reason behind this merger. We hope our shareholders are as pleased with these results as we are and we thank them for remaining supportive of us while we take the time to educate Wall Street on the merits and results of our Company."
Casino Journal Publishing Group (OTC-Bulletin Board: CJPG) is the largest publisher to the Gaming industry. Casino Journal Publishing Group publishes Casino Journal, a leading industry trade publication; Casino Player, the nation's largest and most widely read consumer gaming magazine; The National Gaming Summary, a gaming industry weekly newsletter; Nevada Hospitality, the official publication of the Nevada Hotel Motel Association; The Atlantic City Insider, a monthly newsletter for frequent visitors to Atlantic City casinos; The Gaming Industry Weekly Report, The Gaming Industry Daily Report and The Daily Lodging Report, 3 newsletters dedicated to providing information to Gaming and Lodging investors and executives. Casino Journal Publishing Group also produces The American Gaming and Lodging Summit 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 and UNLV's Casino Ops trade shows.
CASINO JOURNAL PUBLISHING GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1998 1997 1998 (B) 1997
Revenues $2,624,699 $1,659,067 $4,705,033 $3,339,271
Direct costs 1,029,240 896,598 2,182,449 1,677,028
Gross profit 1,595,459 762,469 2,522,584 1,662,243
General and
administrative
expenses 1,184,968 687,908 2,272,438 1,468,475
Income from
operations 410,491 74,561 250,146 193,768
Other income 30,668 47,572 6,517 16,505
Income before
taxes 441,159 122,133 256,663 210,273
Income taxes 128,000 34,000 (A) 128,000 75,000 (A)
Net income $ 313,159 $ 88,133 $ 128,663 $ 135,273
Basic and
diluted income
per share $ .07 $ .03 $. 03 $ .05
Shares used in
the calculation
of income
per share 4,633,020 3,000,000 3,803,245 3,000,000
(A) Pro forma -- as if Casino Journal Publishing Group was a
C-Corporation during the period.
(B) Includes 3 months of Casino Journal Publishing Group as a private
company with S-Corporation status.
SOURCE Casino Journal Publishing Group, Inc.
/CONTACT: Alan R. Woinski, President and CFO of Casino Journal Publishing
Group, 201-947-4642/
/Web site: casinocenter.com
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