Trans World Corporation Announces 2013 Second Quarter Financial Results

Trans World Corporation Announces 2013 Second Quarter Financial Results

Company to host quarterly conference call today at 2:00 p.m. ET

Highlights of 2013 Second Quarter (comparisons year-over-year)

• Net income increased 42.1% to $405,000, or equivalent to $0.04 per diluted share;

• Revenue from continuing operations increased 9.0% to $9.0 million;

• Slot game attendance increased 24.9%, while live game attendance decreased 9.9%; and,

• EBITDA from continuing operations decreased 6.1% to $993,000.

Highlights of 2013 Year-to-Date (comparisons year-over-year)

• Revenue from continuing operations was $17.2 million for the first half of 2013, compared with $17.4 million;

• Severe winter weather and flooding contributed to a 10.2% decrease in live game attendance for the first half of 2013;

• Net income was $673,000, or equivalent to $0.07 per diluted share for the first half of 2013, compared with $643,000, or equivalent to $0.07 per diluted share;

• EBITDA from continuing operations was approximately $1.9 million, compared with approximately $2.5 million in the prior year period; and,

• Stockholders' equity per diluted share was $4.42, as compared with $4.56 at December 31, 2012.

NEW YORK--(BUSINESS WIRE)-- Trans World Corporation ("TWC" or the "Company") (OTCQB: TWOC), a premier owner and operator of casinos and a hotel in Europe, today reported financial results for the second quarter and six months ended June 30, 2013.

Mr. Rami Ramadan, Chief Executive Officer, commented, "Despite severe flooding that plagued Europe in the second quarter, and effectively reduced attendance at some of our casinos, TWC was able to generate a 9.0% increase in total revenue, as well as a 42.1% increase in net income, when compared to the same quarter a year ago. The growth in revenue was primarily due to a combination of higher spending per capita, which boosted players' drop per head, as well as a stronger hold percentage, and an increase in slot business. We have partially recovered from the impact of this recent flooding and the unusually severe winter, experienced in the first quarter, and are taking great efforts to continue improving results for the remainder of 2013. We expect that the re-launch of our newly-renovated casino, located in Ceska Kubice, Czech Republic, at the end of the recent quarter, and the continued popularity of our slot business at all our casinos, will provide incremental revenue in the future."

Ceska Kubice Casino Expansion

On June 29, 2013, the Company hosted a re-launch party at the Ceska Kubice Casino, located near the German border, to celebrate the newly-expanded facility. The Company enlarged the casino building by nearly 60% to include an improved live game area, the addition of five VIP hotel guestrooms, and a larger restaurant and entertainment facility.

2013 Second Quarter

Second quarter total revenue increased 9.0% to $9.0 million, compared with approximately $8.3 million for the same quarter in the prior year. The increase in revenue was primarily attributed to stronger business volume at two of the Company's casinos. Revenues for live games increased by 9.8% over the same quarter of the prior year, due to a 15.2% increase in drop per head and a 1.4 percentage point increase in win percentage, as compared with the second quarter of the prior year. Revenue from slot games also increased for the period by 10.7%. These revenue improvements were made in spite of the widespread flooding that prevented many of the Company's players from visiting TWC's casinos.

Income from continuing operations after taxes increased 64.6%, to $405,000, or $0.04 per diluted share, from $246,000, or $0.03 per diluted share, earned for the same quarter a year ago.

2013 Year-to-date

For the six months ended June 30, 2013, total revenue decreased 1.1%, to $17.2 million, from $17.4 million a year ago. The decrease in revenue for the six months was primarily due to the wintry weather that effectively reduced TWC's volume of business for 34 days in the first quarter. The reduction in revenue was also partially affected by sizable jackpots paid out during the second quarter.

The Company incurred an expense for the provision for foreign income taxes of $355,000, versus $684,000 a year ago. The lower income taxes were due to a shift toward higher value added taxes (VAT), which increased by $234,000 versus the prior year's VAT. Income from continuing operations after taxes was $673,000 versus $749,000 in the prior year's same six month period.

EBITDA was approximately $1.9 million, a 24.6% decrease from approximately $2.5 million for the same six-month period in 2012. The reduction was due largely to the additional marketing and promotional costs of re-launching the Ceska Kubice Casino and to higher VAT expenses. A table reconciling EBITDA, a non-GAAP (Generally Accepted Accounting Principles) financial measure, to the appropriate GAAP measure is included with the Company's financial information below.

Balance Sheet Highlights

The Company had cash of approximately $4.3 million at June 30, 2013 compared with approximately $6.9 million at December 31, 2012. At June 30, 2013, stockholders' equity was approximately $40.0 million, or $4.42 per diluted share, down from approximately $41.2 million, or $4.56 per diluted share, at December 31, 2012. As mentioned in the previous quarter and is still applicable, the reduction in stockholders' equity at June 30, 2013 versus December 31, 2012, was due to the rise of U.S. dollar against the primary currency of our foreign subsidiaries.

Share Repurchase Plan Update

On November 12, 2012, the Company announced that its Board of Directors had authorized the establishment of a stock repurchase program for the Company to purchase up to 500,000 shares of the Company's common stock, $0.001 par value per share ("Common Stock"), over the next 12 months. By the end of the second quarter, the Company had repurchased 46,300 shares of Common Stock at an average stock price of $2.60.

Conference Call

The Company will discuss these results in a conference call today at 2:00 PM ET.

The conference call will also be webcast live via the Investor Relations section of Trans World's website at www.transwc.com, or by clicking the following link: http://transwc.equisolvewebcast.com/q2-2013

About Trans World Corporation

Trans World Corporation, founded in 1993, is a publicly traded, US corporation with all of its gaming and hotel operations in Europe. Additional information about TWC and its Czech subsidiaries, American Chance Casinos and Hotel Savannah, can be found at www.transwc.com, www.american-chance-casinos.com and www.hotel-savannah.com.

The press release herein contains certain forward-looking statements and data. For this purpose, any statements and data contained herein that are not historical fact may be deemed to be forward-looking data. Without limiting the foregoing, words such as "may," "will," "expect," "believe," "anticipates," "estimates," or "continue" or comparable terminology or the negative thereof are intended to identify certain forward-looking statements.These statements, by their nature, involve substantial risks and uncertainties, both known and unknown, and actual results may differ materially from any future results expressed or implied by such forward-looking statements. The company undertakes no obligation to publicly update or revise any forward-looking statements or data whether as a result of new information, future events or otherwise.