EXHIBIT 99.1
FOR IMMEDIATE RELEASE
TRANS WORLD CORPORATION
ANNOUNCES PROFITS FOR 2003
and
REVERSE STOCK SPLIT
NEW YORK - (BUSINESS WIRE) - March 5, 2004 - Trans World Corporation
(TWC or the Company) (OTC: TWCP.OB), the owner and operator of casinos in
Europe, announces strong growth for the year ended December 31, 2003, with an
increase in its net income of $3.5 million, or $0.077 per share, versus 2002,
resulting in a net profit of $238,000, compared to a net loss of $3.3 million
for the year ended December 31, 2002. Approximately sixty percent of this
substantial increase is due to the $2.1 million net interest savings resulting
from the Company's recent major debt restructuring.
TWC's revenues were $17.6 million for the year ended December 31, 2003,
versus $14.2 million for the year ended December 31, 2002. The 24% growth in
revenue can be attributed to several factors, notably the 21% increase in
drop per head, which was the result of favorable exchange rates, aggressive
marketing, newer slot machines, and operational improvements in the Company's
casinos.
The positive trend continued in the fourth quarter of 2003. Revenues
were $5.1 million and represented a 30% improvement over the same quarter in
2002. With the benefit of the debt restructure, the Company achieved net
income of $582,000 in the fourth quarter, compared with a net loss of $1.1
million for the same period a year ago.
TWC owns and operates three full-service casinos and an American bar and
restaurant with limited gaming facilities in the Czech Republic. The casinos,
which operate under the brand name "American Chance Casinos" (ACC), showcase
themes portraying nostalgic and recognizable eras in American history. The
casinos are strategically located in border towns, and a vast majority of
ACC's clientele resides in Germany and Austria. The casual and exciting
atmosphere, together with the consistently high level of personal service and
professionalism, draws loyal gambling enthusiasts across international lines.
Using this successful formula, TWC is continuing its growth. Construction
of a new casino in the Czech Republic is expected to start later this month.
In addition, new projects, that will expand and diversify TWC's business into
the hotel and spa industry in Germany, are currently under negotiation.
- More -
Trans World Corporation
Press Release
Due mainly to the positive financial results in 2003, the planned
expansion projects, and a commitment to improve the liquidity of the Company's
common stock, TWC's Board of Directors has approved a one (1)-for-one hundred
(100) reverse stock split of its authorized and issued common stock, $0.001
par value per share, with all fractional shares being rounded up to the next
whole share. The reverse split will be effective on Monday, April 5, 2004.
"The Board of Directors believes that the decrease in the number of TWC's
authorized and issued shares of common stock will permit the market to better
value the Company and will more closely align its capitalization with that of
other similar-sized companies," said Rami S. Ramadan, President and Chief
Executive Officer of TWC.
After the effective date of the reverse stock split, the Company's
authorized shares of common stock will decrease from 950,000,000 to 9,500,000
and its issued and outstanding shares will decrease from 503,145,175 to
approximately 5,032,000.
Holders of record of TWC common stock on April 2, 2004 will be required
to exchange their pre-split share certificates for new post split share
certificates. Shortly after the record date, TWC will mail to all holders of
record a letter of transmittal to be used to send in the old certificates.
Please do not send any certificates to the Company now. Stockholders who have
questions about the reverse stock split may contact Hung Le, the Company's
Corporate Controller, at (212) 983-3355 or by e-mail at hdle@twcp.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.
Contact:
Trans World Corporation
Hung Le
Corporate Controller
212/983-3355
- More -
Trans World Corporation
Press Release
TRANS WORLD CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
Years Ended December 31, 2003 and 2002
(in thousands, except for per share data)
2003 2002 variance
------ ------ --------
<s> <c> <c> <c>
REVENUES $ 17,605 $ 14,237 $ 3,368
------ ------ ------
COSTS AND EXPENSES:
Cost of revenues 9,311 7,353 1,958
Depreciation and amortization 511 621 (109)
Selling, general and administrative 6,073 5,135 938
------ ------ ------
15,896 13,109 2,787
------ ------ ------
INCOME FROM OPERATIONS 1,709 1,128 581
------ ------ ------
OTHER INCOME/(EXPENSE):
Interest, net (1,806) (3,911) 2,105
Loss on sale of assets - (21) 21
Foreign exchange gain 351 228 123
Other (17) (537) 521
------ ------ ------
(1,471) (4,242) 2,770
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INCOME/(LOSS) BEFORE INCOME TAXES 238 (3,114) 3,351
INCOME TAXES - (161) 161
------ ------ ------
NET INCOME/(LOSS) 238 (3,275) $ 3,512
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WEIGHTED AVERAGE COMMON SHARES OUTSTANDING,
Basic 279,833 42,939 236,895
Diluted 280,592 42,939 237,653
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INCOME/(LOSS) PER COMMON SHARE,
Basic $ 0.00 $ (0.08) $ 0.08
Diluted $ 0.00 $ (0.08) $ 0.08
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COMPREHENSIVE INCOME/(LOSS):
Net income/(loss) $ 238 $ (3,275) $ 3,512
Other comprehensive income/(loss), foreign currency
translation adjustment 1,943 700 1,243
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Comprehensive income/(loss) $ 2,181 $ (2,575) $ 4,755
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