SOURCE: Kinbasha Gaming International, Inc.
HITACHI, JAPAN--(Marketwire - Aug 16, 2012) - Kinbasha Gaming International, Inc. (the "Company") (PINKSHEETS: KNBA) owner and operator of retail pachinko gaming centers in Japan, today announced that it has filed its new Form 10 filing with the SEC and released its audited financial results for the fiscal year ending March 31, 2012, in addition to its previously issued results for the years 2011 and 2010.
"We are pleased to have completed our audit for 2012 and released our financials as part of our new Form 10 filing with the SEC," said Masatoshi Takahama, Chief Executive Officer of Kinbasha Gaming International. "Although our fiscal 2012 results were down compared to 2011 due to the major disruptions caused by the earthquake and subsequent tsunami that took place in March 2011, Kinbasha showed solid revenue improvements in the quarters following the disaster. We expect this trend to continue as both the Japanese economy as a whole, and Kinbasha's same-store parlor results, in particular, improve after the earthquake."
Kinbasha reported fiscal year 2012 revenue of approximately $91.2 million, a decrease compared to $94.9 million in 2011. The decrease in revenue was primarily a result of the massive earthquake and resulting tsunami in Japan on March 11, 2011 and the permanent closing of an underperforming pachinko parlor in May 2011. Despite the earthquake, Kinbasha's net loss for 2012 improved to $6.0 million, compared to a net loss of approximately $12.1 million in 2011. This overall improvement to the bottom-line was primarily attributable to a reduction in depreciation due to fewer machines, improved machine management and various efficiency and cost-cutting measures enacted by Kinbasha's management team.
Mr. Takahama continued, "We are pleased with the fact that we were able to enhance our bottom-line despite the adverse events this past year. With the disaster behind us, our mission is to improve upon our 2012 results and implement a series of initiatives to open new parlors throughout Japan, specifically in Tokyo."
As part of Kinbasha's strategic initiatives, management plans to obtain additional capital to build out and/or acquire additional pachinko parlor stores within the Tokyo Metropolitan Area, and begin to shift the company's strong branding, successful operations teams and proprietary analytics technology to areas where pachinko stores are more profitable. In fact, Kinbasha's current parlors in the greater Tokyo area generate revenue which is, on average, three times greater than the company's other parlors on a per-machine basis.
"In addition to our strategies in Japan, we will to continue to place a significant focus on our investor initiatives in the United States," concluded Mr. Takahama. "Now that we have fully audited results for the past three years, we look forward to finalizing our Form 10 process and becoming a fully reporting company with the SEC -- one step closer to our goal of listing on a senior exchange."
About Kinbasha Gaming International, Inc.
Based in Hitachi City, Japan, Kinbasha Gaming International, Inc. (OTC: KNBA) is a retail gaming company that operates 21 pachinko parlors in the Japanese prefectures of Ibaraki, Tokyo and Chiba. For more than 50 years, the company's retail gaming establishments have offered customers the opportunity to play the games of chance known as pachinko and pachislo. Pachinko is played on a device which resembles a vertical pinball machine and pachislo is played on a machine that resembles a western style slot machine. Pachinko and pachislo are collectively ranked as Japan's largest leisure activity, accounting for approximately $230 billion in annual revenue. For more information on Kinbasha, please visit: www.kinbashainc.com
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Safe Harbor Statement
This release contains certain "forward-looking statements" relating to the business of the Company and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding: the Company's business and operations; business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.