S&P 600 SmallCap
|
03.06.2010 12:30:00
|
Four Corners Reports Financial Results for the Fiscal Second Quarter of 2010 and the Sale of its Interest in Eclipse Gaming Systems, LLC
Four Corners, Inc. (FCNE.PK) (the "Company”) today reported unaudited financial results for the 13-week and 26-week periods ended May 2, 2010 and the sale of its interest in Eclipse Gaming Systems LLC ("Eclipse”).
The Company had consolidated net income of $14,714 and a consolidated net loss of $42,819, respectively, for the 13-week and 26-week periods ended May 2, 2010, including losses attributable to the noncontrolling interest in Eclipse for those periods. For the 13 weeks ended May 2, 2010, Four Corners had net income from continuing operations of $243,741, a net loss from discontinued operations of $146,328 and net income of $97,413. For the 26 weeks ended May 2, 2010, Four Corners had net income from continuing operations of $421,719, a net loss from discontinued operations of $319,901 and net income of $101,818. Discontinued operations for both periods were comprised principally of the operating results of Eclipse.
As of May 2, 2010, Four Corners had approximately $560,000 of cash and total debt of approximately $6.3 million, net of discounts.
On May 7, 2010, Four Corners sold its 61.5% ownership interest in Eclipse for approximately $1.9 million in cash to a group of investors headed by Eclipse’s management. Four Corners also received a payment of approximately $700,000 for past indebtedness and expenses owed by Eclipse. As part of this transaction, Four Corners also obtained an exclusive license in most of Oklahoma and Texas to distribute Eclipse’s Class II, Oklahoma Compact-Class III, and Video Lottery Terminals products. The Company also assumed Eclipse’s agreement to supply games to an Indian Tribe in Oklahoma. Four Corners is licensed by that Tribe and has supplied 76 machines running Eclipse games to certain of its casinos under a revenue-participation agreement. The machines were acquired as part of the Eclipse transaction.
"On behalf of the entire management team and board of directors, I would like to thank everyone for their support. We remain excited about the future and believe that our recent changes at the Company have positioned us well for future growth and success,” said John J. Schreiber, the Company’s president, chief executive officer and chairman of the board of directors.
The unaudited operating results for the 13-week and 26-week periods ended May 2, 2010 are shown below together with accompanying statements of financial position and cash flows. These financial statements were prepared for internal use, have not been reviewed by the Company’s auditors and are subject to change. Also shown below are Aces Wired’s condensed financial statements for fiscal years 2009 and 2008. Although these statements are based on audited financial statements for those periods, they do not contain required informative disclosures and thus are not intended to be in accordance with U.S. generally accepted accounting principles.
About Four Corners
Four Corners (FCNE.PK) is a holding company of certain subsidiaries whose primary focus is the gaming industry. The Company’s wholly-owned subsidiary, K&B Sales, Inc., distributes bingo supplies and related equipment to charity bingo licensees in Texas. FC Distributing LLC, a wholly-owned subsidiary of the Company distributes gaming machines and other gaming related equipment to the Native American casino market.
| Four Corners, Inc. | ||||||
| Condensed Consolidated Balance Sheet | ||||||
| (Unaudited) | ||||||
| May 2, 2010 | ||||||
|
ASSETS |
||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 560,069 | ||||
| Trade accounts receivable, net | 1,092,270 | |||||
| Inventory, net | 1,192,800 | |||||
| Other current assets | 370,906 | |||||
| Discontinued operations (Eclipse) | 2,136,807 | |||||
| Total current assets | 5,352,852 | |||||
| Property and equipment, net | 1,573,620 | |||||
| Other noncurrent assets | 25,971 | |||||
| Total assets | $ | 6,952,443 | ||||
|
|
||||||
|
LIABILITIES AND STOCKHOLDERS' DEFICIENCY |
||||||
| Current liabilities | ||||||
| Current maturities of notes payable to related parties | $ | 195,315 | ||||
| Trade accounts payable | 307,856 | |||||
| Liabilities of discontinued amusement-with-prize operations | 431,414 | |||||
| Other current liabilities | 1,025,104 | |||||
| Discontinued operations (Eclipse) | 919,026 | |||||
| Total current liabilities | 2,878,715 | |||||
| Notes payable to related parties, less current maturities and discount | 5,192,919 | |||||
| Other notes payable, less current maturities | 14,197 | |||||
| Other noncurrent amounts due to related parties | 414,547 | |||||
| Noncurrent liability of discontinued amusement-with-prize operations | 214,335 | |||||
| Total liabilities | 8,714,713 | |||||
| Stockholders' deficiency | ||||||
| Total Four Corners, Inc. stockholders' deficiency | (1,617,633 | ) | ||||
| Noncontrolling interest in Eclipse | (144,637 | ) | ||||
| Total stockholders' deficiency | (1,762,270 | ) | ||||
| Total liabilities and stockholders' deficiency | $ | 6,952,443 | ||||
| Four Corners, Inc. | ||||||||||
| Consolidated Statements of Operations | ||||||||||
| For the 13-week and 26-week Periods ended May 2, 2010 | ||||||||||
| (Unaudited) | ||||||||||
| Period ended May 2, 2010 | ||||||||||
| 13 weeks | 26 weeks | |||||||||
|
Revenue |
||||||||||
| Bingo supply and services | $ | 4,443,709 | $ | 8,212,056 | ||||||
|
Expenses |
||||||||||
| Cost of sales (bingo products) | 2,318,538 | 4,287,979 | ||||||||
| Bingo supply and services | 1,134,623 | 2,127,133 | ||||||||
| Corporate overhead | 628,401 | 1,147,766 | ||||||||
| Total expenses | 4,081,562 | 7,562,878 | ||||||||
| Operating income | 362,147 | 649,178 | ||||||||
|
Other income (expense) |
||||||||||
| Interest income | - | 150 | ||||||||
| Interest expense | (110,006 | ) | (210,809 | ) | ||||||
| Total other income (expense), net | (110,006 | ) | (210,659 | ) | ||||||
| Income from continuing operations before income taxes | 252,141 | 438,519 | ||||||||
| Income tax expense (Texas margin tax) | (8,400 | ) | (16,800 | ) | ||||||
| Net income from continuing operations | 243,741 | 421,719 | ||||||||
| Net loss from discontinued operations | (229,027 | ) | (464,538 | ) | ||||||
| Net income (loss) | 14,714 | (42,819 | ) | |||||||
| Net loss attributable to noncontrolling interest | (82,699 | ) | (144,637 | ) | ||||||
| Net income attributable to Four Corners, Inc. | $ | 97,413 | $ | 101,818 | ||||||
| Net income (loss) per share attributable to Four Corners, Inc. | ||||||||||
| common stockholders - Basic and Diluted | ||||||||||
| Net income from continuing operations | $ | 0.02 | $ | 0.04 | ||||||
| Net loss from discontinued operations | (0.01 | ) | (0.03 | ) | ||||||
| Net income | $ | 0.01 | $ | 0.01 | ||||||
| Weighted average number of Four Corners, Inc. common shares outstanding | ||||||||||
| Basic | 10,479,658 | 10,479,658 | ||||||||
| Diluted | 10,494,719 | 10,512,489 | ||||||||
| Net income (loss) attributable to Four Corners, Inc. common stockholders | ||||||||||
| Net income from continuing operations | $ | 243,741 | $ | 421,719 | ||||||
| Net loss from discontinued operations | (146,328 | ) | (319,901 | ) | ||||||
| Net income | $ | 97,413 | $ | 101,818 | ||||||
| Four Corners, Inc. | ||||||
| Condensed Consolidated Statement of Cash Flows | ||||||
| For the 26-week Period ended May 2, 2010 | ||||||
| (Unaudited) | ||||||
| Net cash provided by Operating Activities of Continuing Operations | $ | 192,313 | ||||
| Cash flows from Investing Activities of Continuing Operations: | ||||||
| Deposit on sale of Eclipse Gaming Systems, LLC | 100,000 | |||||
| Insurance proceeds from casualty loss of property and equipment | 9,033 | |||||
| Acquisitions of property and equipment | (201,531 | ) | ||||
| Net cash used in investing activities of continuing operations | (92,498 | ) | ||||
| Cash flows from Financing Activities of Continuing Operations: | ||||||
| Repayments of notes payable to related parties | (108,937 | ) | ||||
| Repayments of other notes payable | (3,476 | ) | ||||
| Payments of installment purchase agreement | (202,442 | ) | ||||
| Net cash used in financing activities of continuing operations | (314,855 | ) | ||||
| Net cash used in Discontinued Operations | (248,908 | ) | ||||
| Net decrease in cash and cash equivalents | (463,948 | ) | ||||
| Cash and cash equivalents - beginning of the period | 1,024,017 | |||||
| Cash and cash equivalents - end of the period | $ | 560,069 | ||||
| Aces Wired, Inc. | |||||||||
| Condensed Consolidated Balance Sheets | |||||||||
| November 1, | November 2, | ||||||||
| 2009 | 2008 | ||||||||
|
ASSETS |
|||||||||
| Current assets | |||||||||
| Cash and cash equivalents | $ | 1,024,017 | $ | 835,056 | |||||
| Trade accounts receivable, net | 978,527 | 857,607 | |||||||
| Inventory, net | 932,763 | 820,708 | |||||||
| Other current assets | 257,747 | 450,580 | |||||||
| Total current assets | 3,193,054 | 2,963,951 | |||||||
| Property and equipment, net | 2,799,463 | 2,388,733 | |||||||
| Intangible assets, net | 569,618 | 714,249 | |||||||
| Other noncurrent assets | 30,720 | 55,691 | |||||||
| Total assets | $ | 6,592,855 | $ | 6,122,624 | |||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY) |
|||||||||
| Current liabilities | |||||||||
| Trade accounts payable | $ | 631,763 | $ | 1,459,044 | |||||
| Current maturities of notes payable to related parties | 164,634 | 1,366,584 | |||||||
| Current maturities of other notes payable | 252,382 | - | |||||||
| Liabilities of discontinued amusement-with-prize operations | 493,414 | 1,882,344 | |||||||
| Other current liabilities | 769,955 | 495,739 | |||||||
|
Total current liabilities |
2,312,148 | 5,203,711 | |||||||
| Notes payable to related parties, less current maturities and discount | 5,251,563 | 233,959 | |||||||
| Other notes payable, less current maturities | 125,840 | - | |||||||
| Other noncurrent amounts due to related parties | 432,031 | 345,842 | |||||||
| Other noncurrent liabilities | 204,810 | 15,846 | |||||||
| Total liabilities | 8,326,392 | 5,799,358 | |||||||
| Total stockholders' equity (deficiency) | (1,733,537 | ) | 323,266 | ||||||
| Total liabilities and stockholders' equity (deficiency) | $ | 6,592,855 | $ | 6,122,624 | |||||
| Aces Wired, Inc. | ||||||||||
| Consolidated Statements of Operations | ||||||||||
| For the 52-week and 53-week Periods ended November 1, 2009 and November 2, 2008 | ||||||||||
| Period ended | ||||||||||
| November 1, | November 2, | |||||||||
| 2009 | 2008 | |||||||||
|
Revenue |
||||||||||
| Bingo supply and services | $ | 15,763,878 | $ | 14,918,125 | ||||||
| Game development and sales | 1,580,202 | 27,092 | ||||||||
| Total revenue | 17,344,080 | 14,945,217 | ||||||||
|
Expenses |
||||||||||
| Cost of sales (bingo products) | 8,521,918 | 8,144,671 | ||||||||
| Bingo supply and services | 3,837,332 | 3,827,638 | ||||||||
| Game development and sales | 2,316,871 | 1,009,805 | ||||||||
| Corporate overhead | 1,753,913 | 3,067,783 | ||||||||
| Amusement-with-prize legal proceedings | 2,701,667 | 1,604,804 | ||||||||
| Net loss resulting from the shutdown of amusement-with-prize operations | 28,238 | 1,081,974 | ||||||||
| Total expenses | 19,159,939 | 18,736,675 | ||||||||
| Operating loss | (1,815,859 | ) | (3,791,458 | ) | ||||||
|
Other income (expense) |
||||||||||
| Interest income | 935 | 26,182 | ||||||||
| Interest expense (including interest on related party indebtedness of $502,202 in 2009 | ||||||||||
| and $69,602 in 2008) | (535,799 | ) | (73,310 | ) | ||||||
| Other | - | (31,145 | ) | |||||||
| Total other income (expense), net | (534,864 | ) | (78,273 | ) | ||||||
| Loss from continuing operations before income taxes and minority interest | (2,350,723 | ) | (3,869,731 | ) | ||||||
| Income tax benefit (expense) | 126,680 | (20,444 | ) | |||||||
| Minority interest in net loss from continuing operations | - | 187,750 | ||||||||
| Net loss from continuing operations | (2,224,043 | ) | (3,702,425 | ) | ||||||
| Net loss from discontinued operations | (44,009 | ) | (10,261,194 | ) | ||||||
| Net loss | (2,268,052 | ) | (13,963,619 | ) | ||||||
| Deemed dividend on Series A convertible preferred stock | - | (399,250 | ) | |||||||
| Net loss available to common stockholders | $ | (2,268,052 | ) | $ | (14,362,869 | ) | ||||
| Net loss per common stock share - Basic and Diluted | ||||||||||
| Net loss from continuing operations | $ | (0.21 | ) | $ | (0.40 | ) | ||||
| Net loss from discontinued operations | - | (1.11 | ) | |||||||
| Deemed dividend on Series A convertible preferred stock | - | (0.05 | ) | |||||||
| Net loss available to common stockholders | $ | (0.21 | ) | $ | (1.56 | ) | ||||
| Weighted average number of common stock shares outstanding - Basic and Diluted | 10,479,658 | 9,222,632 | ||||||||
| Aces Wired, Inc. | ||||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||||
| For the 52-week and 53-week Periods ended November 1, 2009 and November 2, 2008 | ||||||||||
| Period ended | ||||||||||
| November 1, | November 2, | |||||||||
| 2009 | 2008 | |||||||||
| Net cash used in Operating Activities of Continuing Operations | $ | (1,180,127 | ) | $ | (1,223,014 | ) | ||||
| Cash flows from Investing Activities of Continuing Operations: | ||||||||||
| Proceeds from sales of property and equipment | 530,585 | 22,200 | ||||||||
| Acquisitions of property and equipment | (1,020,296 | ) | (1,373,321 | ) | ||||||
| Capitalized expenditures for game software development | (37,175 | ) | (325,936 | ) | ||||||
| Deferred acquisition costs | - | (557,132 | ) | |||||||
| Other | (54 | ) | (105 | ) | ||||||
| Net cash used in investing activities of continuing operations | (526,940 | ) | (2,234,294 | ) | ||||||
| Cash flows from Financing Activities of Continuing Operations: | ||||||||||
| Loan proceeds allocated to notes payable issued under credit facility with related party, | ||||||||||
| net of issuance costs | 4,583,149 | - | ||||||||
| Proceeds from issuance of other notes payable to related parties | 1,316,731 | 227,850 | ||||||||
| Proceeds from sale of Series A convertible preferred stock | - | 1,040,000 | ||||||||
| Proceeds from sale of common stock, net of issuance costs | - | 679,791 | ||||||||
| Loan proceeds allocated to detachable warrants issued under credit facility with related party | 243,061 | - | ||||||||
| Capital contributions from minority interest | - | 156,250 | ||||||||
| Proceeds from issuance of other notes payable | 112,950 | - | ||||||||
| Repayments of notes payable to related parties | (3,139,933 | ) | - | |||||||
| Repayments of other notes payable | (132,144 | ) | - | |||||||
| Repayments of installment purchase agreement | (49,520 | ) | (345,564 | ) | ||||||
| Distributions to minority interest | (20,000 | ) | - | |||||||
| Net cash provided by financing activities of continuing operations | 2,914,294 |
|
1,758,327 | |||||||
| Net cash used in Discontinued Operations | (1,018,266 | ) | (1,076,008 | ) | ||||||
| Net increase (decrease) in cash and cash equivalents | 188,961 | (2,774,989 | ) | |||||||
| Cash and cash equivalents - beginning of the period | 835,056 | 3,610,045 | ||||||||
| Cash and cash equivalents - end of the period | $ | 1,024,017 | $ | 835,056 | ||||||
Der finanzen.at Ratgeber für Aktien!
Wenn Sie mehr über das Thema Aktien erfahren wollen, finden Sie in unserem Ratgeber viele interessante Artikel dazu!
Jetzt informieren!
ETF-Sparplan
Oskar ist der einfache und intelligente ETF-Sparplan. Er übernimmt die ETF-Auswahl, ist steuersmart, transparent und kostengünstig.