Southwest Casino Corporation (OTCBB:SWCC), a builder, owner and operator of casinos and other gaming and entertainment facilities, announced today its results for the third quarter ended September 30, 2007.
Southwest reported revenue of $4.8 million for the third quarter of 2007, compared with revenue of $5.9 million for the third quarter of 2006. The net loss for the third quarter was $656,000, or $0.02 basic per share, compared with net earnings of $560,000, or $0.03 basic and fully diluted per share for the same period last year.
For the nine months ended September 30, 2007, Southwest reported revenue of $15.4 million compared with $16.7 million for same period in 2006. The Company reported a net loss for the nine month period of $719,000, or $0.03 basic per share, compared with net earnings of $1.2 million, or $0.06 basic and fully diluted per share for the same period last year. The net loss for the three and nine months ended September 30, 2007 is due primarily to the termination of a management contract with the Cheyenne and Arapaho Tribes of Oklahoma, effective August 17, 2007, resulting in reduced revenues of $1.0 million and a write-off of previously capitalized contract costs.
Three months ended September 30, 2007 compared to three months ended September 30, 2006:
| Â | 2007 | Â | 2006 | Â | % Change | |||
| Revenue | $ | 4,780617 | $ | 5,929,444 | (19.4%) | |||
| Net Income (Loss) | (655,732) | 559,983 | - | |||||
| Earnings per share: | ||||||||
| Basic | $ | (0.02) | $ | 0.03 | - | |||
| Diluted | na | $ | 0.03 | - | ||||
Nine months ended September 30, 2007 compared to nine months ended September 30, 2006:
| Â | 2007 | Â | 2006 | Â | % Change | |||
| Revenue | $ | 15,379,015 | $ | 16,748,357 | (8.2%) | |||
| Net Income (Loss) | (719,279) | 1,235,204 | - | |||||
| Earnings per share: | ||||||||
| Basic | $ | (0.03) | $ | 0.06 | - | |||
| Diluted | na | $ | 0.06 | - | ||||
Mr. Jim Druck, Chief Executive Officer of Southwest Casino, said, "The decline in revenue for the quarter stems from the termination of our long-term management relationship with the Cheyenne and Arapaho Tribes of Oklahoma. We are proud of the casinos we successfully developed and managed for the Tribes for 14 years and to have achieved our goals of hiring, training and empowering tribal members. We sincerely miss our many friends among the Tribes.
"During the third quarter we leveraged that experience to establish a consulting relationship with Palace Resorts for their Moon Palace Casino, Golf and Spa Resort in Punta Cana, Dominican Republic. We are helping them with all phases of design, game selection, training, and equipping of the casino that will be part of this 1,700-room resort. The casino and the resort will set the standard for gaming and hospitality in the Caribbean. We continue to pursue other opportunities to acquire, manage or consult with other gaming properties.
"Additionally, we are very pleased that construction is ahead of schedule for our Running Aces Harness Park, racetrack and card room. We anticipate live racing will begin in April 2008, with cards in the air in July. The racetrack is strategically located in Columbus, Minnesota, on the north side of the Minneapolis-St. Paul metro area adjacent to Interstate 35, which carries more than 65,000 cars per day. We believe Running Aces Harness Park will become a major destination in Minnesota's gaming and entertainment market."
About Southwest Casino Corporation
Southwest Casino Corporation develops, owns, operates, manages and provides consulting services to casinos, gaming facilities and leisure facilities. Southwest owns and operates two casinos, the Gold Rush Hotel and Casino and the Gold Digger's Casino in Cripple Creek, Colorado. In September 2007, we entered into an agreement to work with Palace Resorts in developing and opening a casino at the Moon Palace Casino, Golf and Spa Resort now under construction in Punta Cana on the easternmost tip of the Dominican Republic. Southwest owns a 50 percent membership interest in North Metro Harness Initiative, LLC, which is building Running Aces Harness Park, a harness racetrack and 50-table card room in Columbus, Minnesota on the north side of the Twin Cities Metropolitan Area. Our corporate offices are located at 2001 Killebrew Drive, Suite 350, Minneapolis, Minnesota 55425.
This Press Release does not constitute an offer of to sell or solicitation of an offer to buy any securities.
This Press Release contains forward-looking statements, including statements regarding Southwest's beliefs about its ongoing business development efforts. These forward-looking statements involve risks and uncertainties that could cause the statements to be incorrect or cause actual results to differ materially. Those risks include all risks identified in the Risk Factors Section of our Annual Report on Form 10-KSB filed March 21, 2007. Other risks applicable to these forward-looking statements are also described in our periodic reports filed with the Securities and Exchange Commission. Southwest does not undertake to update any forward-looking statements it makes; but may choose from time to time to update them and, if it does, will disseminate the updates to the investing public.
