Trans World Corporation Announces 3rd Quarter 2009 Results
http://www.businesswire.com/news/home/20091110006035/en
NEW YORK--(Business Wire)--
Trans World Corporation ("TWC" or the "Company") (OTC BB: TWOC), the owner and
operator of casinos and a hotel in Europe, today announces net income of
$552,000, or $0.06 per share, for the quarter ended September 30, 2009.
Results for the three-month period ended September 30, 2009
TWC`s net income for the third quarter 2009 was down from the same period in
2008, due to revenue-impacting factors, noted below, in addition to depreciation
expenses related to the Hotel Savannah and the Spa, which did not exist a year
ago. Net income decreased 47.2% in comparison to net income of $1,046,000, or
$0.12 per share, posted for the same quarter in 2008. The quarterly per share
calculation is based on fully-diluted shares of 8,907,773 and 8,905,606 for the
respective periods in 2009 and 2008.
For the third quarter of 2009, the Company continued to produce strong growth in
attendance, the principal business driver, which increased 6.8% and 10.6% for
live games and slots respectively, when compared to the same prior year period.
Despite this improvement, the Company`s total revenue dipped 7.3% to $8.7
million versus total revenue of $9.4 million generated for the same three months
in 2008. The revenue decline was the result of a combination of an influx of
younger players with less discretionary income, weaker hold percentages, and,
for the first time, the impact of the global economic downturn which negatively
influenced the drop per head ("DpH") of its players, and consequently, affected
the Company`s results. These negative trends were partially offset by the
contribution of the Company`s newest operations, the Hotel Savannah and the Spa.
For the same quarter in 2009, the Company achieved an EBITDA (see TWC`s
rationale for EBITDA usage below) of approximately $1.4 million versus an EBITDA
of approximately $1.7 million for the comparable quarter in 2008, which
represented a $302,000, or 17.9%, reduction and was partially due to the
anticipated first year operating losses of the Hotel Savannah and the Spa.
Results for the nine-month period ended September 30, 2009
TWC generated net income of $2.0 million, or $0.23 per share, in the first nine
months of 2009 versus net income of $2.4 million, or $0.27 per share, for the
same period in 2008. The net income decline of 16.5% was primarily due to an
increase in depreciation expenses. The per share calculation is based on
fully-diluted shares of 8,905,939 for 2009 and 8,899,200 for 2008.
While live game and slot attendance increased 5.7% and 12.8%, respectively, for
the nine months ended September 30, 2009 versus the same nine months a year ago,
the average live game DpH declined and some of the casinos experienced weaker
hold percentages, resulting in a revenue shortfall of approximately $2.2
million. Total revenue for the period was $25.3 million compared to $27.5
million for the same nine-month period in 2008. As discussed in the third
quarter results above, the DpH decline was primarily the result of an influx of
younger players and, more recently, the impact of the global economic downturn
on the wager volume of our regular customers.
For the comparable first nine months of the year, the Company achieved an EBITDA
of $4.2 million in 2009 versus an EBITDA of $4.1 million in 2008, a $90,000, or
2.2%, EBITDA improvement. The EBITDA growth demonstrated the Company`s ability
to offset revenue shortfalls by implementing measures that align costs with
business volume.
EBITDA rationale
A table reconciling EBITDA, a non-GAAP (Generally Accepted Accounting
Principles) financial measure, to the appropriate GAAP measure is included with
the Company`s financial highlights below. The Company believes that EBITDA, a
non-GAAP financial measure provides useful information to its investors as well
as to others who might be interested in purchasing shares of TWC common stock.
This belief is based on conversations and meetings TWC`s management has had with
its investors where the substance of these talks has centered around historical
and prospective EBITDA measurements. Based on management`s observations, it
appears that, even though the EBITDA measurement is not "GAAP," it does enhance
investors` understanding of the Company`s business. In short, this performance
measurement gives an analytic view of the Company`s operational earnings on a
cash-basis, excluding the impact of debt obligations and (non-cash) depreciation
and amortization.
Conference Call
TWC will host a conference call to discuss the Company's financial results for
the third quarter of 2009. The conference call will take place at 4:30 p.m. EST
on Thursday, November 12, 2009. Anyone interested in participating should call
1-877-686-1429 if calling within the United States or 1-574-941-1461 if calling
internationally, approximately 5 to 10 minutes prior to 4:30 p.m. Participants
should ask for the Trans World Corporation 2009 Third Quarter Financial Results
conference call. There will be a playback available until November 26, 2009. To
listen to the playback, please call 1-800-642-1687 if calling within the United
States or 1-706-645-9291 if calling internationally. Please use the pass code
#40936953 for replay.
Additional information about TWC and its Czech subsidiaries, American Chance
Casinos and Hotel Savannah, can be found at www.transwc.com,
www.american-chance-casinos.com and www.hotel-savannah.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: The statements contained in this release which are not historical facts
contain forward looking information with respect to plans, projections or the
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.
TRANS WORLD CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(dollars in thousands, except for share data)
Selected Information from the Condensed Consolidated Statements of Operations (unaudited)
Nine Months Ended September 30, Three Months Ended September 30,
2009 2008 2009 2008
REVENUES $ 25,292 $ 27,535 $ 8,735 $ 9,423
COSTS AND EXPENSES:
Cost of revenues 13,645 15,211 4,999 5,152
Depreciation and amortization 1,615 1,129 626 411
Selling, general and administrative 7,427 8,193 2,347 2,579
22,687 24,533 7,972 8,142
INCOME FROM OPERATIONS 2,605 3,002 763 1,281
OTHER EXPENSE:
Interest expense, net (566 ) (559 ) (211 ) (234 )
Foreign exchange loss - (1 ) - (1 )
(566 ) (560 ) (211 ) (235 )
NET INCOME $ 2,039 $ 2,442 $ 552 $ 1,046
Weighted Average Common Shares Outstanding:
Basic 8,869,806 8,848,914 8,871,640 8,855,320
Diluted 8,905,939 8,899,200 8,907,773 8,905,606
Earnings Per Common Share:
Basic $ 0.23 $ 0.28 $ 0.06 $ 0.12
Diluted $ 0.23 $ 0.27 $ 0.06 $ 0.12
Selected Balance Sheet Information
September 30, 2009 December 31, 2008
Unaudited
Total Current Assets $ 4,799 $ 5,155
Total Assets $ 56,317 $ 50,657
Total Current Liabilities $ 10,766 $ 8,635
Long-term Liabilities $ 7,523 $ 9,708
Total Stockholders' Equity $ 38,028 $ 32,314
EBITDA Reconciliation
Three Months Ended September 30,
2009 2008 Variance $ Variance %
(unaudited) (unaudited)
NET INCOME $ 552 $ 1,046 $ (494 ) -47.2 %
Add: Interest expense, net 211 234 (23 ) -9.8 %
Add: Depreciation and amortization expense 626 411 215 52.3 %
EBITDA $ 1,389 $ 1,691 $ (302 ) -17.9 %
EBITDA margin (% of revenues) 15.9 % 17.9 % (2.00 ) ppts
Nine Months Ended September 30,
2009 2008 Variance $ Variance %
(unaudited) (unaudited)
NET INCOME $ 2,039 $ 2,442 $ (403 ) -16.5 %
Add: Interest expense, net 566 559 7 1.3 %
Add: Depreciation and amortization expense 1,615 1,129 486 43.0 %
EBITDA $ 4,220 $ 4,130 $ 90 2.2 %
EBITDA margin (% of revenues) 16.7 % 15.0 % 1.70 ppts
Trans World Corporation
Jill Yarussi, 212-983-3355
Manager of Corporate Communications
Fax: 212-983-8129
jyarussi@transwc.com
Copyright Business Wire 2009
