"Getting back to basics" is the song lyric that Vic Salerno, chairman and CEO of American Wagering, Inc. (BETM), has been singing, and based on the results for the fiscal year ended on Jan. 31, the strategy has been working.
Net income for the fiscal year amounted to $914,654, or $0.10 a share, compared to the previous year when earnings were $464,019, or $0.04 a share. Revenues were flat at $12,000,615 or $1,774 below the previous year. Salerno explained that the decrease was due to a change in the NFL schedule after the September 11 attacks. The change pushed the championship game from the end of the fourth quarter of fiscal 2002 to the first quarter of fiscal 2003.
Still, he noted, by instituting "numerous cost-cutting efforts and continuing efforts to focus on its core competencies and businesses," operating expanses were reduced by 8.7% or a total of $1,067,107.
Core businesses for American Wagering include Leroy’s Horse and Sports Place, a group of 41 sports books licensed in the State of Nevada, and Computerized Bookmaking Systems, the CBS ticket-writing system that revolutionized sports betting in the state. Also, the company has Secured Telephone Operating Platform (STOP), a system that ensures that telephone calls for account wagering originate from within the State of Nevada.
Currently on hiatus is the company’s AWI Keno system that is being reformatted by the company.
Impacted by the sluggish advertising market and the lingering effects of Sept. 11, Casino Journal Publishing Group Ins. (CJPG) reported declining revenues for the first quarter of fiscal 2002.
Revenues declined by $568,959 resulting in a loss of $650,428 as compared to a loss of $462,298 during the first quarter of 2001.
Management said the company has seen "a modest recovery with results being well ahead of the advertising revenues in the first quarter." As part of its cost cutting efforts, management has agreed to a temporary reduction in salaries with Chairman and CEO Glenn Fine taking the biggest reduction of 35%.
Fine said he felt it would take the company "a few more months to completely stabilize the company’s cash flow, between cost cutting and increased revenue."
Acres Gaming Inc.
Despite reporting a substantial decline in revenues for the quarter ended on March 31, Acres Gaming Inc. (AGAM) Chairman Bud Glisson said "our business momentum is quite strong."
During the quarter, revenues dropped to $5.6 million compared to $17.5 million recorded during the period a year ago. "However, Glisson explained, "the company has recorded virtually no revenue from Station Casinos Bonusing." He said the company had delivered and installed Xtra Play Cash and Random Xtra Play Cash systems to all six Station Casinos properties but that no revenues from these systems had been received as yet.
That, he said, will change during the next reporting period.
"Even without any Station Bonusing revenue, we expect net income during the fourth quarter of this fiscal year to exceed the $2.6 million net income from last year’s third quarter which was the company’s best quarter ever."
The quarterly loss per share amounted to $0.03 as against last year’s profit of $0.29 a share.