EXHIBIT 99.1
COMPANY CONTACT: FINANCIAL COMMUNICATIONS CONTACT
Trans World Gaming Corp. Lippert/Heilshorn & Associates, Inc.
Rami S. Ramadan, CEO Lisa D. Lettieri, VP
Tel: 212-563-3355 Klea Theoharis, AE
twg1215@aol.com Tel: 212-838-3777
www.lhai.com or lisa@lhai.com
TRANS WORLD GAMING CORP. ANNOUNCES THIRD QUARTER
AND NINE MONTHS RESULTS
Bottom Line Results for the Quarter Show Substantial Improvement
Company Secures $3 Million Loan at 12%
and Retires $1 Million Loan at 17%
NEW YORK, NY NOVEMBER 9, 1999 Trans World Gaming Corp. ("TWG") (OTC
Bulletin Board: IBET, IBETW) today announced financial results for the
third quarter and nine months ended September 30, 1999.
Financial Discussion
Revenue for the third quarter totaled $3.0 million compared with $3.9
million in the third quarter of 1998. The decrease was due mainly to the
closure of our Louisiana operations. EBITDA improved by $484,000 to
$482,000 or 16% of total revenue for the three months ended September
30, 1999 versus a negligible percentage of total revenue during the
third quarter of 1998. A net loss of $1.2 million or $0.35 per share
was reported for the quarter compared to a net loss of $1.8 million or
$0.59 per share during the comparable quarter last year.
For the nine months ended September 30, 1999, revenue was $12.6 million
compared to $10.2 million for the same period of 1998, an increase of
$2.4 million or 23.3%. EBITDA for the first nine months of this year
improved by $1.5 million to $2.0 million. The net loss for the first
nine months of 1999 amounted to $3.1 million or $0.92 per share versus a
loss of $3.4 million or $1.11 for the comparable nine-month period in
1998.
In commenting on the third quarter results, Rami Ramadan, Chief
Executive Officer of Trans World Gaming stated, "The Company succeeded
in reducing its net loss substantially while increasing EBITDA during
the quarter even though a voter mandate associated with our Louisiana
video poker business forced us to cease our operations in that state
beginning July 1, 1999. This situation caused our revenue from U.S.
operations to decrease from $1.5 million in the June 1999 quarter to
$84,000 in non-gaming revenue in the third quarter ended September 30,
1999.
Casino and Financing Discussion
Mr. Ramadan continued, "The increasing business at our Czech Republic
21st Century Resorts operation enabled us to offset some of the revenue
decline experienced at our U.S. facilities in Louisiana. The 21st
Century Resorts casino experienced a 31% increase in guests and a 40%
increase in drop bringing revenue from the casino to $2.1 million for
the quarter, up $600,000 from the third quarter of 1998. This was
achieved by implementing a marketing program that included increased
advertising, special promotions and the busing of patrons to the casino.
We intend to duplicate this successful strategy at our Spanish Casino de
Zaragoza, beginning in the fourth quarter of 1999."
"We are particularly pleased with the progress we've made on the expense
side of our business while moving forward with revenue-enhancing
initiatives. After the end of third quarter, Trans World Gaming
privately placed $3 million in debt securities and warrants. The new
senior notes due in 2004 are placed at a substantially lower 12%
interest rate than the outstanding short-term note that they replaced.
A portion of the loan was utilized to retire $1.0 million of 17%
short-term notes plus $250,000 in accrued interest. The remaining $1.8
million will be used to furnish our third casino in Snojmo, the Czech
Republic, which is scheduled to open in mid January 2000. The casino is
located on the border of Austria, consistent with our strategy of
developing casinos in border locales in the Czech Republic adjacent to
wealthier European communities where the availability of gaming is
limited and very highly taxed. The casino is adjacent to "Excalibur
City," a high-profile non-gaming entertainment and retail complex which
attracts more than 3,000 visitors daily. We look forward to holding a
gala grand opening in the third week of January."
Mr. Ramadan concluded, "These are exciting times for Trans World Gaming
as our efforts on all fronts come together to form a cohesive
combination of streamlined operations, opportunities for increasing
revenue and geographic expansion on a global scale."
Trans World Gaming owns and operates three casinos in Europe and
specializes in small to medium sized casinos and gaming parlors in local
venues worldwide. The Company maintains offices in New York and London.
"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 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.
-Tables to Follow-
TRANS WORLD GAMING CORP.
FINANCIAL HIGHLIGHTS
(in thousands, except for per share data)
Three Months Ended
September 30, 1999 September 30, 1998
_________________ __________________
Revenues $3,013 $3,862
Total Costs and Expenses 3,288 4,785
Income (Loss) From Operations (275) (923)
Other Income (Expense) (905) (878)
Income (Loss) Before Income Taxes (1,180) (1,801)
Income Taxes (benefit) 0 (19)
Net Income (Loss) (1,180) (1,782)
===========================================
Earnings (Loss) Per Common Share
Basic $(0.35) $(0.59)
===========================================
Weighted Average Common Shares Outstanding
Basic 3,364 3,044
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TRANS WORLD GAMING CORP.
FINANCIAL HIGHLIGHTS
(in thousands, except for per share data)
Nine Months Ended
September 30, 1999 September 30, 1998
___________________________________________
Revenues $12,602 $10,220
Total Costs and Expenses 12,801 11,529
Income (Loss) From Operations (199) (1,309)
Other Income (Expense) (2,899) (1,999)
Loss Before Income Taxes (3,098) (3,308)
Income Taxes (benefit) 0 82
Net Loss (3,098) (3,390)
===========================================
Loss Per Common Share $(0.92) $(1.11)
===========================================
Weighted Average Common Shares Outstanding 3,364 3,044
==========================================
Selected Balance Sheet Information
as of September 30, 1999
(in thousands)
September 30, 1999 June 30, 1999 December 31, 1998
------------------ ------------- -----------------
Total Current Assets $2,594 $3,257 $3,048
Total Assets 17,822 19,268 20,562
Total Liabilities 29,453 29,802 29,965
Long-term Debt 23,441 23,115 23,638
Total Stockholders' Deficit (11,631) (10,534) (9,403)