Gaming Strategy
Featured Stories
Legal News Financial News Casino Opening and Remodeling News Gaming Industry Executives Search News Subscribe
Newsletter Signup
Stay informed with the
NEW Casino City Times newsletter!
Search Our Archive of Gaming Articles 

American Bingo Provides Earnings Guidance

12 April 2000

AUSTIN, Texas, April 12 (Press Release) - American Bingo & Gaming Corporation (Nasdaq: BNGO) announces that it expects earnings for the first quarter of 2000 to be approximately $1,050,000 or $0.11-0.12/share.

In addition, the Company expects EBITDA/L (Earnings Before Interest Taxes Depreciation Amortization and License fees) to be approximately $2,000,000 or $0.20-0.22/share.

The Company does not expect to report any non-recurring or extraordinary expenses in the first quarter. In evaluating this earnings guidance it is important to note that the Company has engaged in a share repurchase program during the first quarter of 2000; and, has ultimately repurchased approximately 20% of its outstanding shares. All repurchased shares are being held in the Company treasury for future uses.

The weighted average number of common shares outstanding during the first quarter was 9,159,177 shares. The current number of shares outstanding (as of 12 April 2000) is 8,251,090 shares. The difference between the weighted average number of shares at the end of the first quarter and the current number of shares outstanding is approximately 10%, which in the future will increase per share performance in a meaningful manner.

American Bingo will release actual earnings on or before Wednesday, 19 April 2000; and, will conduct a conference call to discuss results at 11:00 AM CST, Thursday, 20 April 2000. Shareholders, investors and interested parties may participate in the conference call by calling 1-800-294-4202 and asking to access the American Bingo conference call. Operators will ask all participants to provide their name, company name, phone number, fax number and e-mail address. The conference call will be rebroadcast at the same number (1-800-294-4202) until 12:00 Midnight CST, Friday, 28 April 2000.

In commenting upon this earnings guidance, Jeffrey L Minch, the President of American Bingo said: "The first quarter seems to have been a very profitable quarter for American Bingo. We are still wrestling with a number of legacy problems and issues (and will continue to wrestle with them for some time) but we are clearly feeling the favorable impact of our cost reduction programs. The strategic plan is beginning to bear fruit. We are making progress in minimizing the impact of the impending cessation of video gaming."

American Bingo is engaged in the development and operation of charitable bingo halls. Qualified charities are able to fund their worthy causes by offering consumers entertainment in the form of bingo games -- subject to strict regulatory oversight -- for which the charities pay rent to American Bingo for the use of the facility subject to long standing leases. American Bingo has relationships with over 60 such charities.

Charities playing in American Bingo halls received approximately $3,200,000 in 1999 to fund their noble causes. American Bingo is the only public company attempting to strategically consolidate this $12,000,000,000 arcane, niche industry and is currently the largest public company operating charitable bingo halls in the United States. American Bingo operates twenty (20) bingo halls in Texas, Alabama and South Carolina and is currently developing two (2) new bingo halls in Alabama that will commence operations in 2000.

< Gaming News