FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1999
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
EXCHANGE ACT
For the transition period from to
Commission file number 0-15415
GLOBAL CASINOS, INC.
(Exact Name of Registrant as Specified in its Charter)
Utah 87-0340206
(State or other jurisdiction I.R.S. Employer
of incorporation or organization) Identification number
5373 N. Union Blvd., Suite 100 Colorado Springs, Colorado 80918
(Address of Principal Offices) (Zip Code)
Registrant's telephone number, including area code:(719) 590-4900
Check whether the Issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the last
12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes [ X ] No [ ]
As of November 22, 1999 1,546,360 shares of Common Stock of the
Registrant were outstanding.
Transitional Small Business Disclosure Format (check one)
Yes [ ] No [ X ]
INDEX
PART 1. FINANCIAL INFORMATION:
Item 1. Financial Statements
Balance Sheets at September 30, 1999
(unaudited) and June 30, 1999
Statements of Operations for the Three
Months Ended September 30, 1999 (unaudited) and
September 30,1998 (unaudited)
Statements of Cash Flows for the Three
Months Ended September 30, 1999 (unaudited) and
September 30,1998 (unaudited)
Notes to Unaudited Financial Statements
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
PART II. OTHER INFORMATION
PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements
The consolidated financial statements included herein have been
prepared by Global Casinos, Inc. ("the Company", "Global")
without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission (SEC). Certain information
and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted
accounting principles have been omitted pursuant to such SEC
rules and regulations. In the opinion of management of the
Company the foregoing statements contain all adjustments
necessary to present fairly the financial position of the Company
as of September 30, 1999, and its results of operations and its
cash flows for the three months ended September 30, 1999 and
1998. The Company's balance sheet as of September 30, 1999
included herein has been derived from the Company's audited
financial statements as of that date included in the Company's
annual report on Form 10-KSB. The results for these interim
periods are not necessarily indicative of the results for the
entire year. The accompanying financial statements should be
read in conjunction with the financial statements and the notes
thereto filed as a part of the Company's annual report on Form 10-KSB.
CONSOLIDATED BALANCE SHEETS
(In Thousands)
September 30, June 30,
1999 1999
(unaudited)
ASSETS
Current assets:
Cash 460 505
Accounts receivable:
Trade, net of allowance for doubtful accounts
of $88 at September 30 and June 30, 1999 408 386
Related parties 3 22
Inventory 225 260
Prepaid rent 90 116
Current portion of notes receivable 66 156
Marketable trading securities 755 851
Property rights held for sale 200 200
Other 127 67
Total current assets 2,333 2,563
Land, building and improvements and equipment:
Land 518 518
Buildings and improvements 4,081 4,072
Equipment 2,533 2,027
7,132 6,617
Accumulated depreciation (2,014) (1,872)
5,118 4,745
Other assets:
Leasehold rights and interests and contract
rights, net of amortization of $917 and $848
at September 30 and June 30, 1999 1,373 1,441
Goodwill, net of amortization of $313 and
$276 at September 30 and June 30, 1999 1,852 1,888
Hotel credits 500 493
Notes receivable, net of current portion,
including receivables in default 192 197
Other assets, net of amortization of $26 at
September 30 and June 30, 1999 46 25
Restricted cash 140 140
4,103 4,184
11,554 11,492
(Continued)
CONSOLIDATED BALANCE SHEETS
(Continued)
(In Thousands)
September 30, June 30,
1999 1999
(unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable, including $60 and
$82 to a related party at September 30
and June 30, 1999 414 506
Accrued expenses:
Wages and taxes 463 570
Casino license fees 1,278 1,169
Interest, including $27 and $14 to
related parties at September 30 and
June 30, 1999 332 308
Other 498 265
Note payable 262 301
Current portion of long-term debt,
including debt in default and
$514 and $439 to related parties at
September 30 and June 30, 1999 1,819 1,712
Other 40 40
Total current liabilities 5,106 4,871
Long-term debt, less current portion 2,782 2,580
Commitments and contingencies
Stockholders' equity:
Preferred stock - convertible: 10,000,000
shares authorized
Class A - $2 par value, nonvoting,
96,500 shares issued and outstanding 193 193
Class B - $.01 par value, nonvoting,
283,801 and 296,329 shares issued
and outstanding at September 30 and
June 30, 1999 3 3
Class C - $.01 par value, voting;
487,172 shares issued and outstanding 5 5
Common stock - $.05 par value; 50,000
shares authorized; 1,546,360 shares
issued and outstanding 77 77
Additional paid-in capital 12,790 12,915
Accumulated deficit (9,401) (9,152)
3,667 4,041
11,554 11,492
See accompanying notes.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30
(Unaudited)
(In Thousands)
1999 1998
Revenues:
Casino 1,154 1,305
Bingo 930 815
Food and beverage 32 27
Other 34 117
2,150 2,265
Expenses:
Cost of sales 524 437
Operating, general, and administrative 1,494 1,836
Depreciation and amortization 247 181
2,264 2,454
Loss from operations (115) (189)
Other income (expense):
Interest income 13 7
Interest expense, including $13 and $12
to related parties at September 30,
1999 and 1998 (125) (116)
Realized gain on sale of marketable securities 121 0
Adjustment to market value of
marketable securities (129) 0
(120) (109)
Loss before extraordinary item (234) (297)
Extraordinary item - gain from
restructuring of debt 57
Net loss (178) (297)
Dividends on Class B and C preferred stock (72) (65)
Net loss available to common stockholders (250) (362)
Loss per common share - basic and diluted:
Loss from continuing operations (0.19) (0.24)
Extraordinary item 0.03
Net loss available to common stockholders (0.16) (0.24)
Weighted average shares outstanding 1,546,360 1,504,461
See accompanying notes.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED SEPTEMBER 30
(Unaudited)
(In Thousands)
1999 1998
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash provided by operating activities 35 89
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of equipment (59) (130)
Collections on note receivable 47 16
Issuance of note receivable (75) 0
Purchases of marketable trading securities (205) 0
Sales of marketable trading securities 399 0
Net cash provided by (used in)
investing activities 107 (115)
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments of long-term debt (316) (54)
Issuances of long-term debt 343 54
Principal payments of notes payable (39) (28)
Payment of mandatory redeemable preferred stock (3)
Redemption of Class B preferred stock (125) (115)
Payment of dividends on Class B preferred stock (49) (55)
Net cash used in financing activities (187) (200)
Net (decrease) increase in cash (45) (226)
Cash at beginning of year 505 863
Cash at end of year 460 637
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest 75 65
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND
FINANCING ACTIVITIES:
Mandatory redeemable preferred stock
converted to common stock 4
Note receivables in payment of debt 124
Fixed assets acquired through debt 457
Dividends accrued on Class B and Class C
preferred stock 23 10
See accompanying notes.
GLOBAL CASINOS, INC. & SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1999
(Unaudited)
1. ORGANIZATION and SIGNIFICANT ACCOUNTING POLICIES
The Consolidated Financial Statements for the three months
ended September 30, 1999 and 1998 have been prepared in
accordance with the accounting policies described in the
Company's annual report on Form 10-KSB. Management believes
the statements include all adjustments of a normal recurring
nature necessary to present fairly the results of operations
for the interim periods.
At September 30, 1999, and for the three months ended
September 30, 1999 and 1998, the consolidated financial
statements of the Company include the accounts of the
following wholly-owned subsidiaries. All significant
intercompany accounts and transactions have been eliminated
in consolidation.
CASINOS USA, INC. ("Casinos USA"), a Colorado
corporation, which owns and operates the Bull Durham
Saloon and Casino ("Bull Durham"), located in the
limited stakes gaming district of Black Hawk, Colorado.
GLOBAL CENTRAL, INC., a Colorado corporation, which
owns and operates the Tollgate Saloon & Casino
("Tollgate), located in the limited stakes gaming
district of Central City, Colorado.
GLOBAL ALASKA INDUSTRIES ("Global Alaska"), which
operates Alaska Bingo Supply, Inc. ("ABS") located in
Anchorage, Alaska.
GLOBAL PELICAN N.V. ("Pelican"), a St. Maarten Limited
Liability company located on the island of St. Maarten
in the Dutch Netherlands Antilles.
WOODBINE CORPORATION ("Woodbine"), a South Dakota
corporation, which operated Lillie's Casino in
Deadwood, South Dakota through June 30, 1995.
BPJ HOLDINGS N.V. ("BPJ"), a Curacao limited liability
company, which operated the Casino Masquerade on the
Caribbean resort island of Aruba through February 1998.
The Company disposed of its investment in BPJ in
December 1998.
DESTINATION MARKETING SERVICES ("DMS"), a Colorado
corporation, which acquired the net assets of a
Colorado travel services company in January 1998. The
Company disposed of its investment in DMS in October
1998.
2. TOLLGATE SALOON & CASINO
In August 1999, the Company entered into a lease and option
agreement (the "lease agreement") to lease the Tollgate
Saloon & Casino in Central City, Colorado. The Company paid
a $30,000 deposit upon inception of the lease agreement, of
which $10,000 is nonrefundable. The term of the lease is 24
months with monthly rent of $6,000. The Company has the
option to purchase the casino and associated real estate and
equipment at any time prior to the expiration of the lease
agreement at a purchase price of $1,400,000.
The Company entered into an agreement with a third party who
had previously operated the casino to lease additional
gaming equipment under terms that grant the Company the
ability to purchase the equipment at the end of the 24-month
term for $35,000. The equipment lease requires monthly
rents of $1,700.
3. EARNINGS PER SHARE
Basic loss per share represents the net loss available to
common stockholders divided by the weighted average number
of common shares outstanding during the year. Diluted loss
per share reflects the potential dilution that could occur
if securities or other contracts to issue common stock were
exercised or converted into common stock or resulted in the
issuance of common stock that then shared in the losses of
the entity. Convertible preferred stock, stock options,
stock warrants and convertible promissory notes are not
considered in the calculation for the three months ended
September 30, 1999 and 1998 as the impact of the potential
common shares would be to decrease loss per share.
Therefore, diluted loss per share is equivalent to basic
loss per share.
4. SEGMENT INFORMATION
The Company operates in three significant lines of business:
the casino gaming industry, the distribution of bingo
products, and the leasing of bingo halls. Each reportable
segment is a strategic business unit that offers different
products and services. The bingo-related segments are
managed together to realize synergies in employment and
marketing strategies.
The accounting policies of the segments are the same as
those described in the summary of significant accounting
policies. The Company evaluates the performance of each
segment based on profit or loss from operations.
Following is a tabulation of business segment information
for the three months ended September 30, 1999 and 1998 (in
thousands):
Bingo
Bingo Hall
Casino Products Leasing Other Total
1999
Revenue $1,216 $777 $157 $2,150
Interest revenue 1 12 13
Interest expense 75 6 44 125
Depreciation and
amortization 123 110 14 247
Realized and
unrealized gains
and (losses) (8) (8)
Extraordinary item 57 57
Net income (loss) (328) 52 58 40 (178)
Identifiable assets 4,585 757 6,212 11,554
Capital expenditures 511 2 3 516
expenditures
1998
Revenue $1,338 $641 $178 $108 $2,265
Interest revenue 7 7
Interest expense 60 9 47 116
Depreciation and
amortization 91 74 16 181
Realized and
unrealized gains
and (losses)
Net income (loss) (293) 41 74 (119) (297)
Identifiable assets 4,701 934 6,182 11,817
Capital expenditures 374 16 1 391
The following table sets forth financial information for the
Company's foreign and domestic operations for the three
months ended September 30, 1999 and 1998 (in thousands):
Foreign** Domestic Total
1999
Revenue $362 $1,788 $2,150
Net income (loss) (233) 56 (177)
Identifiable assets 116 11,437 11,553
1998
Revenue $672 $1,592 $2,264
Net income (loss) (310) 13 (297)
Identifiable assets 392 11,425 11,817
** Foreign includes the operations of Aruba and St. Maarten.
5. SUBSEQUENT EVENT
In November 1999, Hurricane Lenny caused significant damage to
the island of St. Maarten. The extent of damage to the island
and to the Pelican Casino, and the effect of the damage
on the operations of the Copmany, has not been determined.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Certain statements in this Management's Discussion and Analysis
of Financial Condition and Results of Operations which are not
historical facts are forward-looking statements such as
statements relating to future operating results, existing and
expected competition, financing and refinancing sources and
availability and plans for future development or expansion
activities and capital expenditures. Such forward-looking
statements involve a number of risks and uncertainties that may
significantly affect the Company's liquidity and results in the
future and, accordingly, actual results may differ materially
from those expressed in any forward-looking statements. Such
risks and uncertainties include, but are not limited to, those
related to effects of competition, leverage and debt service
financing and refinancing efforts, general economic conditions,
changes in gaming laws or regulations (including the legalization
of gaming in various jurisdictions) and risks related to
development and construction activities. The following
discussion and analysis should be read in conjunction with the
consolidated financial statements and notes thereto appearing
elsewhere in this report.
Overview
Global Casinos, Inc. and its wholly-owned subsidiaries operate in
the domestic and international gaming industry. The Company is
organized as a holding company for the purpose of acquiring and
operating casinos, gaming properties and other related interests.
At September 30, 1999, the Company's consolidated financial
statements consisted mainly of the following: the corporate
office in Colorado Springs, Colorado; the Bull Durham Saloon &
Casino in Black Hawk, Colorado; the Tollgate Saloon & Casino in
Central City, Colorado; the Pelican Casino on the island of St.
Maarten, Netherlands Antilles; and Alaska Bingo Supply ("ABS") in
Anchorage, Alaska.
The operations of the Company are seasonal. St. Maarten
experiences a higher concentration of tourists from December
through April. The Pelican Casino's busy season counters the
slow seasons of the Company's domestic operations. The Bull
Durham and Tollgate casinos experience a significant increase in
tourists from May through September. ABS's operations are
strongly influenced by the amount of daylight and snow received.
Consequently, its operations are the strongest from September
through April when people do not tend to be outdoors.
Bull Durham Saloon & Casino
The Bull Durham is located approximately one hour from Denver,
Colorado in the town of Black Hawk. In November 1998, the casino
completed its expansion project that increased the gaming space
approximately 2,500 square feet to a total of 7,200 square feet.
The casino now operates with 148 slot machines and three black
jack tables. The Bull Durham employs an average of 30 full-time
employees.
Tollgate Saloon & Casino
The Tollgate is located approximately one mile from Bull Durham
in the historic mining town of Central City. In August 1999, the
Company entered into a lease and option agreement to lease the
Tollgate for a term of 24 months with the option to purchase the
casino and associated real estate and equipment at any time prior
to the expiration of the lease agreement at a purchase price of
$1,400,000.
The Tollgate consists of 19,233 square feet on three levels in a
restored historic commercial building. The casino operates with
four black jack tables, 121 slot machines, and employs
approximately 25 full-time employees.
Pelican Casino
The Pelican Casino is located on the Dutch side of St. Maarten.
Casino operations are prohibited on the French side of the
island. The Pelican's customer base consists mainly of American
and European tourists. The casino is located in one of the
largest time-share complexes on the island, the Pelican Resort,
which has over 700 rooms. The casino occupies 7,000 square feet
and features 130 slot machines, eight black jack tables, three
Caribbean Stud tables, two roulette wheels, one Let-it-Ride
table, and one craps table. The Pelican employs an average of 66
full-time employees.
Alaska Bingo Supply
ABS is primarily engaged in the distribution of a full line of
bingo related products. ABS products are sold in Alaska to non-
profit organizations and municipalities that use the products for
fund-raising purposes. Charitable bingo is currently the sole
form of legalized gaming in Alaska. ABS also receives rent
income from the leasing of space to two bingo hall operators.
ABS employs seven full-time employees.
Results of Operations - Three Months Ended September 30, 1999
Compared to the Three Months ended September 30, 1998
The Company incurred a net loss of $177,415 for the three months
ended September 30, 1999, a decrease of $120,154 compared to
$297,569 for the same period in 1998. Net loss available to
common stockholders was $249,638 for the three months ended
September 30, 1999 compared to $362,784 for the same period in 1998.
The results of operations for the three months ended September
30, 1999 were comprised of Bull Durham, Tollgate, Pelican Casino,
and Alaska Bingo Supply. The period in 1998 was comprised of
Bull Durham, Pelican Casino, Alaska Bingo Supply, Destination
Marketing, and Casino Masquerade.
During the second quarter of 1998, the Company sold its
investments in BPJ Holdings ("BPJ") and Destination Marketing.
Destination Marketing was not a material subsidiary of the
Company. The Company, through BPJ, had operated Casino
Masquerade through February 1998, at which time the hotel in
which it was located was closed for major repairs and
renovations. The Company did not earn any revenue from Casino
Masquerade during the three months ended September 30, 1998.
Revenues
The Company's revenues are generated from casino operations,
sales of bingo products, rental income from the leasing of bingo
halls, and miscellaneous income that is comprised of food and
beverage sales at the casinos. Revenues for the three months
ended September 30, 1999 were $2,149,917 compared to $2,264,638
for the 1998 period, a decrease of $114,721 or 5%.
Bull Durham's revenues increased $66,847 to $732,620 for the
three months ended September 30, 1999 compared to $665,773 for
the period in 1998. The increase is largely due to the expansion
that opened in November 1998 being in operation for the entire
period in 1999. Tollgate's revenues for the three months ended
September 30, 1999 were $121,986. The Pelican Casino's revenues
decreased $60,540 to $361,734 for the three months ended
September 30, 1999 compared to $422,274 for the same period in
1998. The decrease was due to a general decrease in island
tourism.
Alaska Bingo's revenues increased $114,734 to $933,577 for the
three months ended September 30, 1999 compared to $818,843 for
the period in September 30, 1998. Of the increase, approximately
72% came from the increase in pulltab sales.
Expenses
Cost of sales increased $86,745 to $523,673 for the three months
ended September 30, 1999 compared to $436,928 for the period in
1998. Approximately 80% of sales costs are incurred by Alaska
Bingo. Alaska Bingo's gross profit remained at approximately 44%
for both of the three months ended September 30, 1999 and 1998.
Operating, general, and administrative expenses decreased
$342,034 to $1,494,022 for the three months ended September 30,
1999 compared to $1,836,056 for the period in 1998. The decrease
is primarily due to costs incurred by Casino Masquerade and
Destination Marketing during the three months ended September 30,
1998, which totaled $393,703. The Pelican Casino's operating
costs decreased $123,581 for the three months ended September 30,
1999 compared to the prior year period due to a reduction in
management overhead. These cost reductions were offset by
$242,586 in operating costs incurred by Tollgate in its first
three months of operations.
Depreciation and amortization costs increased $65,935 to $246,581
for the three months ended September 30, 1999 compared to
$180,646 for 1998. The increase is due largely to a reduction in
the estimated useful life of Pelican Casino's equipment and
improvements, resulting in fixed assets being depreciated over a
shorter time period.
Other expenses net of income was comparable to the prior year at
$119,899 for the three months ended September 30, 1999 compared
to $108,577 in 1998. Interest expense increased approximately
$8,572 due primarily to the issuance of debt in the acquisition
of fixed assets. Unrealized losses in market value adjustments of
marketable trading securities exceeded realized gains by
approximately $8,000. These charges were offset by an
approximate $5,000 increase in interest income attributable to
hotel credits received in the settlement of the Casino Masquerade
lease.
The Company recognized an extraordinary item of $56,843 related
to gains from debt restructuring and extinguishment. Included in
the gain was $20,566 recognized in July 1999, when Global Casinos
paid a total of $52,858 in cash and assumed a note of $54,163 to
retire the unsecured debt of Casinos USA.
Liquidity and Capital Resources
The Company's primary source of cash is internally generated
through operations. Historically, cash generated from operations
has not been sufficient to satisfy working capital requirements
and capital expenditures. Consequently, the Company has depended
on funding through debt and equity financing to address these
shortfalls.
The working capital deficiency increased by $464,924 to
$(2,772,761) at September 30, 1999 from $(2,307,837) at June 30,
1999. Current assets decreased to $2,332,568 at September 30,
1999 from $2,563,614 at June 30, 1999, a decrease of $231,046 or
9%. Current liabilities increased to $5,105,329 at September 30,
1999 from $4,871,451 at June 30, 1999, an increase of $233,878 or
5%. The increase in the working capital deficit was due mainly
to increases in debt to acquire equipment and fund the start-up
operations of Tollgate.
In August 1999, the Company entered into a lease and option
agreement (the "lease agreement") to lease the Tollgate Saloon &
Casino in Central City, Colorado. The Company paid a $30,000
deposit upon inception of the lease agreement, of which $10,000
is nonrefundable. The term of the lease is 24 months with
monthly rent of $6,000. The Company has the option to purchase
the casino and associated real estate and equipment at any time
prior to the expiration of the lease agreement at a purchase
price of $1,400,000. In addition, the Company entered into an
agreement with a third party who had previously operated the
casino to lease additional gaming equipment under terms that
grant the Company the ability to purchase the equipment at the
end of the 24-month term for $35,000. The equipment lease
requires monthly rents of $1,700.
During the three months ended September 30, 1999, related parties
made working capital loans to the Company in the amount of
$342,981. The loans accrue interest at 9%. The Company paid
$145,070 and transferred $123,766 toward the principal of the
outstanding working capital loans. At September 30, 1999, the
Company owed $350,638 to the related parties. The Company
incurred $456,919 in debt to acquire equipment predominantly for
the operations of Tollgate. The debt is secured by the
equipment, and bears interest at average rates of 12% over two years.
Net cash provided by operating activities decreased $54,856 to
$34,535 for the three months ended September 30, 1999 compared to
$89,391 for the same period in 1998. The decrease is due largely
to working capital costs incurred in the start-up of Tollgate.
Investing activities provided $221,425 in net cash during the
three months ended September 30, 1999. During the three months
ended September 30, 1998, investing activities used $114,806 in
net cash. The main reason for the $221,425 positive change was
net sales of $193,499 in marketable trading securities during the
three months ended September 30, 1999. In addition, the Company
decreased its cash purchases of fixed assets by $71,554 during
the three months ended September 30, 1999 compared to the period
in 1998.
The Company used $187,011 in cash for financing activities during
the three months ended September 30, 1999 compared to $200,195
during the same period in 1998, a decrease of $13,184. The main
reason for the decrease is that the Company issued debt in excess
of principal payments of $14,789 during the three months ended
September 30, 1999 compared to the prior year period.
The Company continues its efforts to formulate plans and
strategies to address the Company's financial condition and
increase profitability. Management will continue to address debt
currently in default by negotiating with creditors to convert
debt to equity, extend maturity dates of debt, and accept reduced
payment terms. The Company will also continue to explore
acquisition opportunities, and improve operating efficiencies at
its existing properties. Management believes that these plans
will result in increased liquidity and future profitability.
SUBSEQUENT EVENT
In November 1999, Hurricane Lenny caused significant damage to
the island of St. Maarten. The extent of damage to the island
and to the Pelican Casino, and the effect of the damage
on the operations of the Copmany, has not been determined.
Year 2000 Issue
The Company recognizes the need to ensure its operations will not
be adversely impacted by Year 2000 software failures. Software
failures due to processing errors potentially arising from
calculations using the Year 2000 date are a known risk. The
Company is addressing this risk to the availability and integrity
of financial systems and the reliability of the operational
systems. The Company has established processes for evaluating
and managing the risks and cost associated with this problem,
including communicating with suppliers, dealers, and others with
which it does business to coordinate Year 2000 conversion. The
total cost of compliance and its effect on the Company's future
results of operations is being determined as part of the detailed
conversion planning process.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
None, except as previously disclosed.
Item 2(a). Changes in Securities
None, except as previously disclosed.
Item 3. Defaults Upon Senior Securities
None, except as previously disclosed.
Item 4. Submission of Matters to a Vote of Security Holders
None, except as previously disclosed.
Item 5. Other Information
None, except as previously disclosed.
Item 6(a). Exhibits
None, except as previously disclosed.
Item 6(b). Reports on Form 8-K
None.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the Registrant has duly caused
this Quarterly Report to be signed on its behalf by the
undersigned, thereunto duly authorized.
GLOBAL CASINOS, INC.
Date: November 22, 1999 By:/s/Stephen G. Calandrella
Stephen G. Calandrella, President
Date: November 22, 1999 By:/s/Barbara G. Chacon
Barbara G. Chacon, Chief, Financial Officer
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<NET-INCOME> (178)
<EPS-BASIC> (0.16)
<EPS-DILUTED> (0.16)
</TABLE>
