SEARCH NEWS:

 

Casino Journal Reports Record Q1 Revenues

Offsetting the higher advertising revenues was a decrease in trade show revenues to $476,278 from $577,305 last year and a decrease in subscription revenues to $681,414 from $782,282. The decrease in trade show revenues was primarily due to lower results at the Company's American Gaming, Lodging and Leisure Summit. The Company's Southern Gaming Summit, which occurred last week, produced results well above last year's record numbers therefore, on a year over year basis, trade show revenues are running almost identical to last year.

EBITDA Before Promotional Expenses rose to $313,192 from $302,000 in the year ago period. Net income for the first quarter ending March 31, 2000 declined to $36,931 or $.01 per share from $186,578 or $.04 per share in the year ago period. The decline in net income was primarily due to the expensing of promotional expenses during the period and higher printing expenses. In the year ago quarter, the Company deferred promotional expenses of over $150,000 from the launch of Strictly Slots and continued promotion of Casino Player. In the first quarter of 2000, the Company expensed over $100,000 in promotional expenses for the subscription marketing of Strictly Slots and Casino Player.

Commenting on the first quarter results and the plans for the future, Casino Journal Publishing Group, Inc. Chairman, CEO and Group Publisher Glenn Fine said, ``While the Company remained profitable in the first quarter, we face very difficult comparisons due to the explosive year we had in fiscal 1999. In 1999, the Company experienced the most explosive growth in revenues and net income of any traditional publishing company on a percentage basis. Due to that growth, the Company greatly increased our full time staff. That resulted in higher general and administrative expenses but the end result has been better customer service and our production department meeting deadlines on a more consistent basis. In addition, the company experienced higher printing expenses due to higher paper and production pricing and an increase in the number of pages per magazine''

Fine continued, ``The mega-mergers in the gaming industry continues at a rapid pace. These mega-mergers typically result in a consolidation of operations and a period where advertising departments and budgets are revised. As a result, casino companies tend to have a lull in advertising while the integration is being completed and we saw some of this in the first quarter and it has continued in the second quarter. The Company fully expected this and began to execute a growth plan for the future. The first product of that growth plan was announced this morning with the letter of intent to purchase Poker Digest, LLC. This will increase revenues by 10% on an annual basis and also will assist the Company in entering the newest growth market for the casino industry, California. Besides giving the Company a new niche publication, it also gives us a whole new line of business in Poker Cruises. Upon completion of the acquisition of Poker Digest LLC, our Gaming Entertainment Exposition unit will work with Classic Poker Cruises to increase the frequency and size of the Poker Cruises. While the acquisition of Poker Digest, LLC is the first step in our new growth plan, there are many other things that the company is currently working on. While some may say that the near 50% growth that the company achieved last year will be hard to duplicate, management is working on certain projects which can once again give us a similar increase in revenues over the next couple of years.''

Casino Journal Publishing Group, Inc. publishes Casino Journal, the company's flagship magazine, and the most widely read trade publication serving the gaming industry; the National Gaming Summary, an extensive weekly newsletter that provides up-to-the-minute gaming news; the Gaming Industry Weekly and Daily Reports and the Daily Lodging Report and Daily Lodging Report - Asia Pacific targeting gaming and lodging executives and investors.

For the gaming consumer, CJPG publishes Casino Player and Strictly Slots, the nation's largest circulation consumer gaming publications, and the Atlantic City Insider, which targets the frequent Atlantic City gambler. 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, the Northern Gaming Summit in conjunction with the Michigan law firm of Fraser Trebilcock Davis & Foster and UNLV Casino Ops trade shows.

Safe Harbor: Certain statements in this press release, including statements regarding the anticipated development and expansion of the Company's business, and the intent, belief or current expectations of the Company, its directors or its officers, are ``forward-looking'' statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. In addition, there is no assurance that the contemplated transaction will be completed or if completed, that it will be profitable for the company.

            CASINO JOURNAL PUBLISHING GROUP, INC. AND SUBSIDIARIES
                CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
                  THREE MONTHS ENDED MARCH 31, 2000 AND 1999
                                 (Unaudited)


                                                        2000           1999

    Revenues                                      $3,401,922     $3,117,496

    Direct costs                                   1,918,779      1,628,293

    Gross profit                                   1,483,143      1,489,203

    General and administrative expenses            1,461,688      1,242,483

    Income from operations                            21,455        246,720

    Other income                                      15,476         10,258

    Income before minority interest                   36,931        256,978


    Minority interest in earnings of American

    Gaming Summit, LLC                                    --       (70,400)

        Net income                                  $ 36,931      $ 186,578

    Basic and diluted income per share                 $ .01          $ .04

    Shares used in the calculation

    of income per share                           5,036,177   4,973,990

< Gaming News