MINNEAPOLIS, Minn. - (Business Wire) Southwest Casino Corporation (OTCBB:SWCC) announced today its results for the quarter ended March 31, 2008.
Southwest Casino Corporation reported a net loss of $1.38 million for the quarter ended March 31, 2008, compared with a net loss of $415,000 for the same period in 2007. Basic loss per share for the first quarter was $0.05, compared with a basic loss of $0.02 per share for the first quarter of 2007.
Revenue for the first quarter of 2008 was $3.78 million compared with revenue of $5.14 million for the same period in 2007. The decrease in revenue in 2008 was primarily attributed to the loss of $1.63 million in management fees due to the previously announced termination of the Company’s management contract with the Cheyenne and Arapaho Tribes of Oklahoma on August 17, 2007. This was offset by new consulting fees of $150,000 for Palace Resort’s casino in the Dominican Republic and increased revenue at our two company-owned and operated casinos in Colorado of approximately $110,000.
The following table summarizes Southwest Casino Corporation’s results:
| | Q1 2008 | | Q1 2007 |
| Revenue | | $ | 3,777,744 | | | $ | 5,142,229 | |
| Net (Loss) Income | | | ($1,377,109 | ) | | | ($415,064 | ) |
| Earnings (Loss) per share - basic | | | ($0.05 | ) | | | ($0.02 | ) |
| Weighted average common shares outstanding – basic | | | 27,460,943 | | | | 24,478,519 | |
Mr. Jim Druck, Chief Executive Officer of Southwest Casino, stated, “We experienced a net loss during the first quarter of 2008 that is an expected result of the continuing process of transitioning Southwest to a more stable business platform. We are proud of the progress we have made in that transition, including our Colorado casinos outperforming their market during the quarter, expansion into international gaming with our consulting agreement for a casino in Punta Cana, Dominican Republic, the opening of Running Aces Harness Park on April 11, 2008, and securing a change in state law that permits Running Aces to offer all-breed simulcasting. We will continue to explore other opportunities that we believe are a good fit for Southwest and will increase shareholder value.”
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 Gold Digger’s Casino in Cripple Creek, Colorado. Southwest also owns a 50 percent membership interest in North Metro Harness Initiative, LLC. North Metro owns and operates Running Aces Harness Park which offers live harness racing, all-breed simulcasting, and, scheduled to open July 2008, a 50-table card room in Columbus, Minnesota on the north side of the Twin Cities Metropolitan Area. Southwest’s 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. Many of these risks are specifically identified in the Risk Factors Section of our Annual Report on Form 10-KSB filed March 31, 2008. 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.
Southwest Casino Corporation
Thomas E. Fox, President, 952-853-9990
or
Investor Relations:
Strategic Growth International
Stan Altschuler or Richard Cooper, 212-838-1444
saltschuler@sgi-ir.com
rcooper@sgi-ir.com
www.sgi-ir.com
