Gunslinger Records Provides Status Update on Kinbasha's Operations and Future …
May 30, 2011
Update Presents Detailed Corporate Strategy in Wake of Japan’s Earthquake and Tsunami
HITACHI, Japan–(EON: Enhanced Online News)–Gunslinger Records Inc. (the “Corporation”) (PINK:MUZC) owner and operator of retail gaming centers in Japan through its subsidiary Kinbasha Co., Ltd. (“Kinbasha”), provides a status update on the company’s operations and future growth prospects, based on Japan’s 9.0 magnitude earthquake and resulting tsunami on March 11.
“The earthquake and subsequent tsunami that hit the Tohoku region of Japan in March affected many businesses, but the Japanese economy and the Pachinko industry in particular is showing steady signs of recovery”
“The earthquake and subsequent tsunami that hit the Tohoku region of Japan in March affected many businesses, but the Japanese economy and the Pachinko industry in particular is showing steady signs of recovery,” said Mr. Masatoshi Takahama, Chief Executive Officer. “Fortunately for Kinbasha, the company reported no casualties from customers or staff as a result of the earthquake and tsunami. Also, none of Kinbasha’s facilities were affected by any radioactivity from the Fukushima Nuclear Power Plant, as the closest parlor is located more than 100km away.”
Kinbasha reports that 16 out of the 21 Pachinko parlors owned by the company were forced to suspend operations immediately after the quake, however due to the company’s robust contingency policies and disaster preparedness, a total of 11 parlors resumed operations within a week, and another 4 parlors by April. Repair work at these 15 facilities consisted primarily of broken windows and ceiling damage.
“Kinbasha was able to quickly resume operations at a majority of our Pachinko parlors due to our emergency preparedness and by deploying quick and decisive measures to open facilities,” said Mr. Takahama. “With the initial recovery phase behind us, we look forward to making further enhancements and refurbishments to affected parlors in order to attract more customers. Kinbasha also has plans to expand our entertainment offerings to create a more comfortable environment for our patrons, and thus expedite our organic growth potential in 2011.”
Although Kinbasha reports the earthquake decreased the number of customers at the end of April to 90% of the company’s 2010 levels, the management team expects to bring its customer numbers back to baseline by September, and to further enhance its metrics beyond 100% after October 2011.
Of Kinbasha’s 21 facilities, two parlors are planned to be closed by management due to a lack of market potential to offset the cost of repairs. However unlike Kinbasha, many smaller competitors will be forced to sell profitable properties in key locations due to the fact that they have insufficient capital to pay for repairs, even though it may be economically advantageous to do so.
Mr. Takahama continued, “Part of any long-term success is finding opportunities in adverse circumstances. Despite the earthquake, Kinbasha is being presented with a unique opportunity to increase the scale of our operations by acquiring competing operators without sufficient funds to repair their damaged yet profitable facilities. Over the next year, we hope to acquire four Pachinko parlors and identify additional targets for future expansion. Through a combination of organic growth and accretive acquisitions, Kinbasha remains acutely focused on our goal of increasing revenue, earnings and ultimately, shareholder value.”
Kinbasha currently owns three mid-size restaurants and 21 retail gaming centers, known as Pachinko Parlors, in Japan. The pinball-like game of Pachinko is extremely popular and can be found throughout the country at railroad stations, malls and inner cities. As a significant part of the national economy, the Pachinko business in Japan generates three times the total sum of Japan’s other avenues of public legal gambling, including horse racing and lottery; and it benefits from approximately 15 million regular enthusiasts spending an estimated $250 billion per year.
About Gunslinger Records Inc.
Gunslinger Records Inc. is a Florida corporation that acquired its operating subsidiary, Kinbasha Co., Ltd. (“Kinbasha”), through a reverse merger in January 2011. Based in Hitachi City, Japan, Kinbasha is a leading retail gaming company focused on expansion and growth in Japan’s highly-profitable gaming and food and beverage industries. Founded in 1957, Kinbasha’s principal business is the ownership and operation of retail gaming centers in Japan which offer customers the opportunity to play the game of chance known as Pachinko. Pachinko is played on a device which resembles a slot machine. The game is considered to be Japan’s most popular leisure activity and the gaming centers are commonly referred to as Pachinko Parlors. Kinbasha currently employs over 1,000 people and owns 21 Pachinko Parlors in the prefectures of Chiba, Ibaraki and Tokyo. In addition, the company also owns three mid-size restaurants in Japan which offer traditional Japanese cuisine.
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 (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.
<a href="http://eon.businesswire.com/news/eon/20110517006873/en/Kinbasha/MUZC/Gunslinger-Recordstag:news.google.com,2005:cluster=http://eon.businesswire.com/news/eon/20110517006873/en/Kinbasha/MUZC/Gunslinger-RecordsTue, 17 May 2011 17:37:11 GMT 00:00″>Gunslinger Records Provides Status Update on Kinbasha's Operations and Future …
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