Casino Journal Announces Fiscal 1998 Results
PR Newswire - March 31, 1999 09:05
LAS VEGAS, March 31 /PRNewswire/ -- Casino Journal Publishing Group, Inc. (OTC Bulletin Board: CJPG) today announced audited financial results for the year ended December 31, 1998. 1998 was a year of tremendous growth for the Company as revenues rose 26% to a record $9,123,326 as compared with $7,265,011 in fiscal 1997. Higher advertising and subscription revenue, along with the launch of 2 new magazines and 2 new trade shows offset the negative effects of the Company's highest grossing trade show, the American Gaming, Lodging and Leisure Summit, not being included in fiscal 1998 results as the show took place in January of 1999. The last AGLLS took place in December of 1997.
Advertising revenue rose 28% to a record $5,393,314 as compared with $4,237,232 in fiscal 1997. Advertising growth was attributed to higher circulation of the Company's flagship Casino Player magazine as well as a more aggressive sales approach by the Company's sales executives. Subscription revenues rose 62% to a record $2,308,098 as compared with $1,629,207 in fiscal 1997. During 1998, the Company embarked on various, aggressive subscription generating marketing campaigns to increase circulation of Casino Player magazine and prepare for the launch of the Company's newest consumer magazine, Strictly Slots. Trade show revenue decreased 10% to $819,607 from $914,078 in fiscal 1997 primarily due to the absence of the American Gaming, Lodging and Leisure Summit in fiscal 1998. This show took place in January of 1999 and if included in 1998 results, trade show revenue would have risen 55% to approximately $1,419,000.
Net loss for fiscal 1998 was $247,889 or $0.06 per share as compared with pro-forma net income of $232,413 or $0.08 per share in fiscal 1997. The net loss for fiscal 1998 was primarily caused by higher deprecation mid amortization of $161,212 due to the amortization of goodwill from the merger with Gaming Venture Corp., U.S.A., approximately $330,000 in costs from the launch of Strictly Slots magazine and a 180% rise in promotional expenses for subscription generating direct mail marketing campaigns. Not including the costs associated with the launch of Strictly Slots, EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) would have been $235,262 or $0.05 per share.
Commenting on the extreme growth in fiscal 1998, Casino Journal Publishing Group, Inc. Chairman and CEO Glenn Fine said, "We are very proud of what we accomplished in fiscal 1998. The Company beat every internal projection we had for the year. Every trade publication for the magazine industry says that you cannot successfully launch a consumer magazine for less than $1 million. We were able to successfully launch Strictly Slots in November of 1998 with less than half of what experts have said you need to launch this type of magazine. As of this date, we have generated approximately 66% of our subscription goal for all of 1999 for Strictly Slots. At the same time, we continue to grow Casino Player both in subscriptions and advertising revenue. In 1998, we launched 2 new magazines: Casino Ops and Strictly Slots, as well as 2 new trade shows: The Greater Atlantic City Chamber of Commerce Business Expo and the UNLV Casino Ops shows. Despite these launches and the absence of our largest trade show, the AGLLS, our net loss for the year was approximately 50% of what we expected. Revenues were 12% higher than we anticipated. Our first quarter of fiscal 1999 has been well above our expectations with a large jump in revenues for the AGLLS, high advertising revenue for Casino Player and a company record for subscriptions generated on a cash basis for any 3 month period. We will continue to aggressively grow this company in fiscal 1999 and beyond."
In the 4th quarter of fiscal 1998, the Company's Strictly Slots magazine was named as one of the top 30 Most Notable Magazine Launches of 1998 by Samir Husni, Hederman Lecturer and Professor for the Department of Journalism. The Company also signed an agreement with Greyhound Lines, Inc. (Amex: BUS) whereby Greyhound will distribute monthly issues of Casino Player and Strictly Slots magazines to passengers traveling from California and Arizona to gaining areas in Nevada such as Las Vegas, Lake Tahoe, Reno and Laughlin. It is contemplated that a total of 23,000 magazines a month will be distributed to passengers of Greyhound going to these gaming destinations.
Casino Journal Publishing Group, Inc. publishes Casino Player, the leading consumer magazine for the gaming industry with total circulation of over 400,000 a month; Strictly Slots, the newest consumer magazine for slot players and the gaming industry; Casino Journal, the leading trade magazine for the gaming industry; Casino Ops, a trade magazine for the middle level gaming executive; Nevada Hospitality, the official magazine of the Nevada Hotel/Motel & Restaurant Association; The National Gaming Summary, The Gaming Industry Weekly Report, The Gaming Industry Daily Report, The Daily Lodging Report and The Atlantic City Insider newsletters. 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 and UNLV's Casino Ops trade shows.
Financial Statements in this press release other than historical facts are "forward-looking" statements within the meaning of section 27A of the Securities Act of 1933, section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such statements about file Company's future expectations, including future revenues and earnings, and all other forward-looking statements be subject to the safe harbors created thereby. Since these statements involve risks and uncertainties and are subject to change at any time, the Company's actual results could differ materially from expected results. Investors are urged to consult the Company's filings with the Securities and Exchange Commission for other risks and uncertainties.
CASINO JOURNAL PUBLISHING GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
YEARS ENDED DECEMBER 31, 1998 AND 1997
1998 1997
Revenues
Advertising $5,393,314 $4,237,232
Subscriptions 2,308,098 1,629,207
Trade shows 819,607 914,078
Consulting 387,328 --
Other 214,979 484,494
9,123,326 7,265,011
Direct costs
Printing 1,953,947 1,514,989
Production 697,197 838,425
Postage 487,373 438,238
Distribution 349,033 281,210
Commissions 814,774 638,342
Other 289,330 185,536
4,591,654 3,896,740
Gross profit 4,531,672 3,368,271
Operating expenses
Promotion 558,488 197,453
General and administrative 4,067,922 2,686,139
Depreciation and
amortization 161,212 59,864
Interest expense 29,287 25,504
4,816,909 2,968,960
Operating income (loss) (285,237) 399,311
Other income 40,348 33,972
income (loss) before income
taxes and minority interest (244,889) 433,283
Income taxes 3,000 2,124
Income (loss) before
minority interest (247,889) 431,159
Minority interest in earnings
of American Gaming Summit, LLC -- 60,870
Net income (loss) $(247,889) $370,289
Pro forma income data
(unaudited) - 1997
income before income taxes
and minority interest,
as reported $433,283
Minority interest in earnings
of American Gaming Summit, LLC.
as reported 60,870
Income before taxes, as adjusted 372,413
Pro forma income taxes 140,000
Pro forma net income 232,413
Basic and diluted income
(loss) per share $(.06) $.08
Shares used in the calculation
of income (loss) per share 4,366,067 3,000,000
SOURCE Casino Journal Publishing Group, Inc.
/CONTACT: Alan R. Woinski, President & CFO of Casino Journal Publishing
Group, Inc., 201-947-4642/
/Web site: casinocenter.com
(CJPG) |
