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Casino Journal Publishing Group Reports Record Q3 Results

REVENUES

Revenues for the 3rd quarter totaled $3,228,781, a new company record and up 9% over 3rd quarter revenues in the year ago period. The increase in revenues was attributed to record 3rd quarter advertising revenues of $2,096,620 and record 3rd quarter subscription revenues of $887,477. Revenues for the 9 months ending September 30, 2000 rose $245,100 to a record $9,722,909. Advertising revenues set a new 9 month record of $5,833,969.

EBITDA

EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) rose to a record $311,225 in 3rd quarter 2000 as compared with $237,205 for the year ago period. EBITDA for the 9 month period ending September 30, 2000 totaled $916,225 or $0.16 per share. EBITDA for the 3 months and 9 months ending September 30, 2000 contain all promotional expenses incurred during those periods as compared with deferral and amortization of promotional expenses in the year ago period.

INCOME

Income Before Income Taxes and Minority Interest in the 3rd quarter of 2000 rose to a record $292,160 as compared, up 110% from $139,561 reported in the year ago period. Earnings Per Share (EPS) for the 3rd quarter of 2000 doubled to $0.02 per share as compared with $0.01 in the year ago period.

In the 3rd quarter of 2000, Provision for Income Taxes was significantly higher due to a tax benefit in the year ago quarter. 3rd quarter 2000 also had a higher weighted average shares outstanding due to the recent Poker Digest LLC acquisition and earn out shares from the past merger with Gaming Venture Corp., U.S.A.

COMPANY COMMENT

Commenting on the record results achieved in the 3rd quarter and first 9 months of 2000, Casino Journal Publishing Group, Inc. Chairman, CEO and Group Publisher Glenn Fine said, ``The results of the 3rd quarter of 2000 are particularly satisfying for the Company because we once again have delivered what we promised.

"In the first 2 quarters of this year, we explained to our shareholders that the widespread consolidation in the gaming industry was hindering our growth as it took awhile for marketing departments to consolidate and during the merger periods, many companies slowed their advertising growth. At the same time, we were up against very strong comparisons for subscription revenue due to last years' launch of our second consumer magazine, Strictly Slots. During the 3rd quarter, we completed our acquisition of Poker Digest, LLC.

"The acquisition of Poker Digest, the completion of many of the mergers in the industry and a pick up in subscription revenues all helped drive nearly 10% growth in revenues in the 3rd quarter. During the first 6 months of the year, the Company also reduced expenses and that helped drive a 400% gain in Net Income for the 3rd quarter.''

Fine continued, ``We recently announced that the Company entered into a Letter of Intent to sell our B2B Trade Shows and Trade Publications to Gem Communications, LLC. The 2 companies are currently in the middle of the due diligence period and we hope to shortly begin discussing the definitive agreement. The two companies expect to complete the Definitive Agreement by the end of the year and close the transaction the beginning of 2001.''

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