Trans World Corporation ("TWC" or the "Company") (OTCBB:
TWOC), the owner and operator of casinos in Europe, today announces
a profit for the fourth quarter and year ended December 31, 2005.
TWC had net income of $79,000, or $0.02 per share, for the year ended December 31, 2005, versus $1.2 million, or $0.25 per share, for the prior year. This decrease was primarily due to the budgeted costs associated with the launch and promotion of its newest and largest casino, Route 55, in Dolni Dvoriste, Czech Republic, which held its grand opening in January 2005. For the fourth quarter of 2005, TWC generated net income of $612,000, or $0.12 per share, versus $172,000, or $0.03 per share, for the same quarter in 2004.
Route 55 was instrumental in the 22.8% increase in TWC's revenues, which were $23.2 million for 2005 versus $18.9 million for 2004. Excluding Route 55, the Company also posted a healthy 16.8% increase in slot revenues for the same period.
Although the Company incurred high expenses during the initial marketing of Route 55, the return on these promotional investments was encouraging, as evidenced by the monthly performance indicators, particularly the steady rise in attendance at this property. As a result of these positive developments and the superior amenities and service offered at Route 55, TWC expects the casino to be a significant contributor to the Company's future earnings.
The Company begins this year with the strongest balance sheet and best operating outlook it has enjoyed this decade. In 2006, TWC will implement its strategy to develop its heretofore unused land assets through the construction of hotels that will complement TWC's casino business. These projects will further strengthen the Company's presence and recognition in Central Europe, which management believes will ultimately improve TWC's financial results and shareholder value in a material way.
Additional information about TWC and American Chance Casinos can be found at www.transwc.com or www.american-chance-casinos.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. -0- TRANS WORLD CORPORATION AND SUBSIDIARIES FINANCIAL HIGHLIGHTS for the Years ended December 31, 2005 and 2004 (dollars in thousands, except for per share data) Selected Information from the Consolidated Statements of Operations 2005 2004 ----------------- ----------------- Revenues $ 23,249 $ 18,938 Total Costs and Expenses 22,817 17,414 Income From Operations 432 1,524 Other Income (Expense) (353) (277) Income Before Income Taxes 79 1,247 Income Taxes - - Net Income $ 79 $ 1,247 ================= ================= Weighted Average Common Shares Outstanding: Basic 5,096,229 5,031,606 Diluted 5,099,872 5,039,194 ================= ================= Earnings Per Common Share: Basic $ 0.02 $ 0.25 Diluted $ 0.02 $ 0.25 ================= ================= Selected Balance Sheet Information as of December 31, 2005 and 2004 December 31, 2005 December 31, 2004 ----------------- ----------------- Total Current Assets $ 7,179 $ 3,332 Total Assets $ 26,025 $ 24,043 Total Current Liabilities $ 7,018 $ 8,037 Long-term Debt $ 3,627 $ 3,945 Total Stockholders' Equity $ 15,380 $ 12,061
TWC had net income of $79,000, or $0.02 per share, for the year ended December 31, 2005, versus $1.2 million, or $0.25 per share, for the prior year. This decrease was primarily due to the budgeted costs associated with the launch and promotion of its newest and largest casino, Route 55, in Dolni Dvoriste, Czech Republic, which held its grand opening in January 2005. For the fourth quarter of 2005, TWC generated net income of $612,000, or $0.12 per share, versus $172,000, or $0.03 per share, for the same quarter in 2004.
Route 55 was instrumental in the 22.8% increase in TWC's revenues, which were $23.2 million for 2005 versus $18.9 million for 2004. Excluding Route 55, the Company also posted a healthy 16.8% increase in slot revenues for the same period.
Although the Company incurred high expenses during the initial marketing of Route 55, the return on these promotional investments was encouraging, as evidenced by the monthly performance indicators, particularly the steady rise in attendance at this property. As a result of these positive developments and the superior amenities and service offered at Route 55, TWC expects the casino to be a significant contributor to the Company's future earnings.
The Company begins this year with the strongest balance sheet and best operating outlook it has enjoyed this decade. In 2006, TWC will implement its strategy to develop its heretofore unused land assets through the construction of hotels that will complement TWC's casino business. These projects will further strengthen the Company's presence and recognition in Central Europe, which management believes will ultimately improve TWC's financial results and shareholder value in a material way.
Additional information about TWC and American Chance Casinos can be found at www.transwc.com or www.american-chance-casinos.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. -0- TRANS WORLD CORPORATION AND SUBSIDIARIES FINANCIAL HIGHLIGHTS for the Years ended December 31, 2005 and 2004 (dollars in thousands, except for per share data) Selected Information from the Consolidated Statements of Operations 2005 2004 ----------------- ----------------- Revenues $ 23,249 $ 18,938 Total Costs and Expenses 22,817 17,414 Income From Operations 432 1,524 Other Income (Expense) (353) (277) Income Before Income Taxes 79 1,247 Income Taxes - - Net Income $ 79 $ 1,247 ================= ================= Weighted Average Common Shares Outstanding: Basic 5,096,229 5,031,606 Diluted 5,099,872 5,039,194 ================= ================= Earnings Per Common Share: Basic $ 0.02 $ 0.25 Diluted $ 0.02 $ 0.25 ================= ================= Selected Balance Sheet Information as of December 31, 2005 and 2004 December 31, 2005 December 31, 2004 ----------------- ----------------- Total Current Assets $ 7,179 $ 3,332 Total Assets $ 26,025 $ 24,043 Total Current Liabilities $ 7,018 $ 8,037 Long-term Debt $ 3,627 $ 3,945 Total Stockholders' Equity $ 15,380 $ 12,061