Alliance Gaming Reports Third Quarter Results and Provides Update On Other Significant Business Matters.Business/Gaming Editors LAS VEGAS--(BUSINESS WIRE)--May 5, 2000 Alliance Gaming Alliance Gaming NYSE: AGI is a Las Vegas, Nevada based manufacturer of slot machines and casino management software. History On June 18, 1996 merged with Bally Gaming International. Corporation (Nasdaq:ALLY) today announced results for the quarter and nine months ended March 31, 2000 and provided updates on several other business matters. Third Quarter Results For the third quarter, the Company reported a net loss before special items of $5.0 million, or $0.49 per share, compared to net income of $0.8 million or $0.08 per share in the prior year quarter. After the net impact of $4.1 million or $0.40 per share of special items, the net loss for the period totaled $9.1 million, or $0.89 per share. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become before unusual items totaled $11.4 million for the current quarter, compared to $15.4 million in the prior year quarter. Major Business Developments The Company reported that its Bally bally Adjective, adv Brit old-fashioned, slang extreme or extremely: a bally nuisance, he's too bally charming for his own good Adj. 1. Gaming and Systems business unit has received regulatory approval for its progressive games to be deployed in Atlantic City Atlantic City, city (1990 pop. 37,986), Atlantic co., SE N.J., an Atlantic resort and convention center; settled c.1790, inc. 1854. Situated on Absecon Island, a barrier island 10 mi (16. . The Company expects to install 83 of its popular Thrillions(R) based Betty Bet´ty n. 1. A short bar used by thieves to wrench doors open. The powerful betty, or the artful picklock. - Arbuthnot. 2. Boop(TM) progressive games on trial at four casinos A list of casinos. Antigua and Barbuda
The Company also announced that it is in the final stages of negotiations for the sale of its Nevada Nevada (nəvăd`ə, –vä–), far western state of the United States. It is bordered by Utah (E), Arizona (SE), California (SW, W), and Oregon and Idaho (N). Route business unit, United Coin Machine Company. The sale is contingent upon Adj. 1. contingent upon - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent on, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent the buyer's completion of due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. and the approval of the various regulatory bodies. Pursuant to an agreement with its senior lenders, the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). will be used to reduce a significant portion of the Company's bank debt. Additionally, the Company reported that it has entered into an amendment to its bank credit agreement which allows the Company to obtain third party financing for its proprietary games, which is a key product in the Company's growth strategy, as well as waiver The voluntary surrender of a known right; conduct supporting an inference that a particular right has been relinquished. The term waiver is used in many legal contexts. and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. modification of certain financial covenants. The Company incurred a charge of $0.5 million resulting from this amendment, and the interest rates charged on the existing bank debt will be increased by 1 percent, to an effective current average rate of approximately 10.6 percent. Updates on Restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). Initiatives and Other Business Matters In addition to the restructuring initiatives previously announced for the third quarter for Bally Gaming and Systems business unit for which the Company has taken a charge of $1.3 million, the Company has implemented a second round of restructuring at its Bally Wulff operation in Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). . This restructuring includes reductions in workforce as a result of lower current and projected wall machine unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. . The Company recorded a charge of $1.3 million in the third quarter for the Bally Wulff restructuring and related costs. The Company also announced that as part of its overall cost reduction efforts, in March 2000 it began the process of reducing its presence in both South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. and Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. . Both of these sales offices have generated operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. since their inception, and given the competitive environments in both countries, the Company believes that the limited return on investment potential does not justify and did not warrant the size of the Company's operations in these areas. The Company has recorded a third quarter charge of approximately $4.0 million for the expected restructuring costs to be incurred for these two offices. Of this amount, $1.9 million reflect in the Cost of Operations section of the attached Consolidated Schedule of Operations. The total estimated favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. EBITDA impact from the restructuring of the business units undertaken so far this fiscal year is estimated to exceed $10.0 million on an annualized basis. In March 2000, the Company completed a sale of its Development and Management rights for a proposed gaming venture with the Ewaaiipaayp Tribe tribe [Lat., tribus: the tripartite division of Romans into Latins, Sabines, and Etruscans], a social group bound by common ancestry and ties of consanguinity and affinity; a common language and territory; and characterized by a political and economic of Mission Indians Mission Indians, Native Americans of S and central California; so called because they were under the jurisdiction of some 21 Spanish missions that were established between 1769 and 1823. in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, . The sale agreement calls total consideration of $10.0 million, $3.0 million of which was received at closing, with future contingent payments aggregating $7.0 million. Finally, the Company also has been attempting to divest To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. its two Casino casino or cassino (both: kəsē`nō). 1 Card game played with a full deck by two to four players. Its origins are obscure though it probably traces back to the Italian game of Scopa. properties. This effort came to a conclusion during the third quarter with the closing of the bid process. The Company did not receive any bids that it felt were reasonable given these properties' financial performance. The Company believes that the ongoing litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. the Big Black River site, to which the Company is not a party, was a significant factor in the bidding process for the Rainbow Casino. The Company will no longer pursue selling these assets at this time. "I am very pleased with the strong performance of our Casino and Route business units right now," stated Bob Miodunski, Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. and recently elected Company President. "We are effecting significant change throughout the Bally Gaming and Bally Wulff organizations, and I am pleased that these operating units operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon have been able to stay focused on the business while at the same time modifying the way in which we conduct business." "The approval of our progressive product in Atlantic City is something we have been working diligently dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d on for several months now, and we are very excited about the opportunity to deploy these units. We believe that our rapid-hit progressive is the type of product that should do very well in that market," continued Miodunski. "The amendment to our bank credit agreement allows us the financial liquidity and flexibility we need to increase our investment in the progressive gaming operations division of Bally Gaming and Systems," stated Robert Saxton Robert Saxton (born 1953 in London) is a British composer. Biography After early advice and encouragement from Benjamin Britten, Robert Saxton took private composition lessons with Elisabeth Lutyens. , Chief Financial Officer. "We believe the future growth at Bally Gaming and Systems will be in the area of gaming operations, and therefore we need to be able to properly finance that growth. The sale of the gaming management and development rights with the Ewaaiipaayp Tribe was a result of our analysis of the market place and the fact that development of that property will likely take several years and require capital and other resources which we believe are better deployed in our other businesses," stated Saxton Saxton can refer to:
Results of operations for the third quarter Operating results for the March 2000 quarter include:
-- Consolidated revenues of $117.5 million decreased 7 percent
from $125.7 million in the prior year quarter. Substantial
revenue growth was reported at both the Route Operations and
Casino Operations business units, but revenue declined at both
the Bally Gaming and Systems and Bally Wulff business units.
-- The gross unusual charges for restructuring and related costs
totaled $6.6 million. The restructuring and related costs were
incurred for the previously announced restructuring of the
Bally Gaming and Systems business unit, the Bally Wulff
restructuring costs, the closing of the two unprofitable
foreign sales offices discussed above, and other corporate
staff reductions. The unusual charges were netted against a
$3.0 million gain from the sale of the gaming management and
development rights.
-- Consolidated EBITDA before unusual items was $11.4 million,
compared to $15.4 million in the prior year quarter.
Substantial quarter over quarter growth in EBITDA was reported
at the Casino Operations business unit, smaller growth was
reported at the Route Operations business unit, and Bally
Gaming and Systems and Bally Wulff both reported declines in
EBITDA.
-- Operating income before unusual items totaled $4.6 million,
compared to $9.7 million in the prior year.
For the nine months ended March 31, 2000, revenues totaled $349.2 million resulting in EBITDA, before unusual items, of $35.8 million compared to $328.4 million of revenues and $31.1 million of EBITDA in the prior year period. For the nine months ended March 31, 2000 the Company reported a net loss applicable to shareholders of $15.8 million or $1.55 per share after the impact of special items, compared to a net loss of $12.1 million or $1.25 per share for the prior year period.
EBITDA Summary
Three Months Ended March 31,
2000 1999
(Dollars in Millions)
Bally Gaming and Systems $ 0.7 $ 4.8
Route Operations 6.6 6.5
Casino Operations 7.7 6.1
Bally Wulff (0.1) 3.2
Corporate office expense (3.5) (5.2)
Unusual items, net (3.6) --
Alliance total EBITDA $ 7.8 $ 15.4
Recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. Revenues for Bally Gaming and Systems Increase 527 Percent The following chart summarizes financial information for the Bally Gaming and Systems business unit (excluding the impact of unusual items):
Three Months Ended
March 31
2000 1999
(Dollars in Millions)
Revenues $26.0 $38.4
EBITDA $ 0.7 $ 4.8
EBITDA Margin 3% 12%
Operating Income (Loss) $(1.2) $ 3.7
Approximate Number of New
Gaming Machines Sold 1,180 4,450
For the quarter ended March 31, 2000, Bally Gaming and Systems reported revenues of $26.0 million, a 32 percent decrease over the prior year quarter. Revenues were impacted by a 75 percent decrease in new unit shipments, offset by a 4 percent increase in the average selling price The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. of new gaming machines See video game console. . The current quarter unit sales were negatively impacted by the fact there were no new casino openings this period, and the prior quarter benefited from the sale of 2,000 games to the Ontario Lottery lottery, scheme for distributing prizes by lot or other method of chance selection to persons who have paid for the opportunity to win. The term is not applicable when lots are drawn without payment by the interested parties to determine some matter, e.g. and 500 games into the Washington market. Bally Systems reported sales of $4.9 million of revenue compared to $5.8 million in the prior year quarter. The current quarter shipments for Bally Gaming included approximately 230 units to the Nevada and Atlantic City markets, 400 units to international markets, and 550 units to riverboats, Native American casinos American Casino is a current American reality television series. The show originally aired on the Discovery Channel, but in June 2005, it was moved to The Travel Channel. and other domestic markets. The overall gross margin percentage for the current quarter, excluding the impact of unusual items, improved to 53 percent compared to 47 percent in the prior year quarter. The improvement was due primarily to a change in product mix to higher margin gaming machines and greater revenues from higher margin recurring revenue machines, partially offset by an increase in royalty expenses. At March 31, 2000, the Company's Bally Gaming and Systems business unit had an installed base of approximately 2,300 gaming machine units earning recurring revenues compared to approximately 2,000 units at December 31, 1999. During the March 2000 quarter, Bally Gaming and Systems recorded $6.2 million of revenues from the operation of the proprietary games, and a total of $8.8 million from all recurring revenue sources, up 527 percent from the prior year quarter. The gaming operations of Bally Gaming and Systems achieved a 64 percent gross margin or $4.0 million. Bally Gaming and Systems reported an operating loss before unusual charges of $1.2 million compared to operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $3.7 million in the prior year quarter. The decline in operating income was a result of new unit sales volumes being substantially below the break even level, and was partially offset by the substantial income contribution of the Bally Gaming and Systems gaming operations. Route Operations Reports Increase in Operating Income of 12 Percent The following chart summarizes the combined financial information for the Nevada route operations and the Louisiana-based Video Services, Inc. (VSI VSI Vinyl Siding Institute VSI Voltage Source Inverter VSI Virtual Switch Interface VSI Vertical Speed Indicator VSI Voluntary Separation Incentive VSI Virtual Socket Interface VSI Vision Systems International VSI Vertical Shaft Impactor ) operations:
Three Months Ended
March 31
2000 1999
(Dollars in Millions)
Revenues $53.5 $46.0
EBITDA $ 6.6 $ 6.5
EBITDA Margin 12.4% 14.1%
Operating Income $ 4.3 $ 3.8
Average Number of Gaming
Machines 8,600 8,100
For the quarter ended March 31, 2000, the Route Operations business unit reported revenues of $53.5 million, a 16 percent increase over the prior year quarter. The revenue improvement was due to a 20 percent increase in the Nevada route operations revenues, resulting from increases in win per day per gaming machine and an increase in the number of gaming machines deployed which includes those added as part of the Raley's locations. For the Nevada route operations, net win per day per gaming machine increased 10 percent to $66.40 compared to $60.50 in the prior year quarter. Currently, the Gamblers Bonus product is available at approximately 325 locations and is installed in over 3,300 gaming machines or 42 percent of the total installed base of gaming machines. Revenues at VSI decreased 12 percent primarily due to the loss of revenues resulting from the closing of two off-track betting off-track betting n. Abbr. OTB A system of placing bets away from a racetrack. parlors as a result of parish gaming referendums, which reduced the gaming units deployed by 7 percent. Net win per day per gaming machine declined to $80.50 from $85.40 in the prior year quarter due in part to competition from gaming in nearby venues. Route Operations EBITDA increased 2 percent compared to the prior year quarter. The increase in net revenues was offset by increased costs related to space lease expense and an increase in certain selling, general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. , primarily game rental expense. Operating income increased 12 percent compared to the prior year quarter. The increase is due primarily to lower depreciation expense as a result of the use of more rental games. Casino Operations Reports Increase in Operating Income of 30 percent The following chart summarizes combined financial information for the Rainbow Casino in Vicksburg, Mississippi Vicksburg is a city in Warren County, Mississippi. It is located 234 miles (377 km) north by west of New Orleans on the Mississippi and Yazoo rivers, and 40 miles (65 km) due west of Jackson, the state capital. and the Rail City Casino in Sparks, Nevada Sparks is a city in Washoe County, Nevada, United States. The population was 66,346 at the 2000 census. Estimates in 2006 place the population at around 90,000 due to rapid growth in areas such as Spanish Springs, Wingfield Springs, and D'Andrea. :
Three Months Ended
March 31
2000 1999
(Dollars in Millions)
Revenues $19.4 $16.4
EBITDA $ 7.7 $ 6.1
EBITDA Margin 40% 37%
Operating Income $ 7.2 $ 5.5
Average Number of Gaming
Machines 1,489 1,200
Average Number of Table Games 23 21
For the quarter ended March 31, 2000, Casino Operations reported an 18 percent increase in revenues over the prior year quarter to $19.4 million. Rainbow Casino revenues increased by 17 percent to $14.8 million as a result of a 35 percent increase in the average number of gaming machines and higher table game revenue, partially offset by a 15 percent decrease in net win per day per gaming machine to $146. The recently completed casino expansion has resulted in over 1,000 gaming machines on the casino floor, compared to 740 at March 31, 1999. Rail City Casino revenues improved by 22 percent to $4.6 million as a result of a 25 percent increase in net win per day per gaming machine to $81 and a 6 percent increase in the average number of gaming machines. Cost of revenues, as a percentage of revenues, decreased over the prior year quarter to 37 percent, as revenues grew at a greater pace than direct costs. Selling, general and administrative costs as a percentage of revenues increased slightly over the prior year quarter to 23 percent due primarily to increases in promotional expenses Noun 1. promotional expense - the cost of promoting a product business expense, trade expense - ordinary and necessary expenses incurred in a taxpayer's business or trade at the Rainbow Casino. Casino Operations EBITDA increased 26 percent over the prior year quarter. Rainbow Casino EBITDA of $6.4 million increased 19 percent and Rail City Casino EBITDA of $1.3 million increased 80 percent. EBITDA as a percentage of revenues at the Rainbow Casino increased to 43 percent compared to 42 percent in the prior year quarter. EBITDA as a percentage of revenues at the Rail City Casino increased to 29 percent compared to 20 percent in the prior year quarter. Casino Operations operating income increased by 30 percent compared to the prior year quarter. The increase is the result primarily of the incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. revenues added at both properties exceeding the increase in related cost of gaming. Wall Machines and Amusement Amusement is the state of experiencing humorous and usually entertaining events or situations, and is associated with enjoyment, happiness, laughter and pleasure. Amusement may also be experienced through the recollection of events which have given rise to amusement in the past. Games Reports Lower Results The following chart summarizes the financial results for the Wall Machines and Amusement Games business unit (excluding the impact of unusual items):
Three Months Ended
March 31
2000 1999
(Dollars in Millions)
Revenues $18.7 $24.8
EBITDA $(0.1) $ 3.2
EBITDA Margin (1)% 13%
Operating Income $(1.6) $ 2.2
Approximate Number of New Wall
Machines Sold 2,000 2,700
Approximate Number of New Wall
Machines Leased 940 1,000
Installed Base of Leased Machines 5,170 5,050
For the quarter ended March 31, 2000, the Wall Machines and Amusement Games business unit reported revenues of $18.7 million, a 25 percent decrease from the prior year quarter. The lower revenues resulted from a 26 percent decrease in shipments of new wall machines, a 43 percent decrease in the average selling price of new wall machines, and a 26 percent decrease in amusement game distribution revenues, partially offset by a 2 percent increase in leased machine revenues. The prior period benefited from the sales of a niche game with higher than traditional margins, sales of which did not occur in the current quarter. The foreign currency fluctuation Fluctuation A price or interest rate change. between the dollar and the deutschmark decreased revenues by $2.6 million in the quarter ended March 31, 2000. Gross margin for the quarter, excluding the impact of unusual items, was 34 percent compared to 40 percent in the prior year quarter. This decrease was due to lower unit sales, and comparatively low selling prices, however the prior year quarter included substantial sales of a niche game at higher than traditional margins. Wall Machines and Amusement Games reported an operating loss before unusual items of $1.6 million compared to operating income of $2.2 million in the prior year quarter, due primarily to the decrease in gross margins and increases in depreciation expense, offset by lower selling, general and administrative expenses. Net interest expense for the Company in the three months ended March 31, 2000 increased to $8.8 million from $8.1 million in the prior year quarter due to higher average amount of total borrowings and slightly higher interest rates, and a $0.5 charge incurred in connection with obtaining the amendment to the credit agreement discussed above. During the quarter, the Company increased its total indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. by $5.5 million, due primarily to an increase on its revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. lines for working capital purposes. The disclosures herein include statements that are "forward looking" within the meaning of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the Securities Act of 1934, as amended, and are subject to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. created thereby. Such forward-looking information involves important risks and uncertainties that could significantly affect results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. made by or on behalf of the Company. Future operating results may be adversely affected as a result of a number of factors enumerated This term is often used in law as equivalent to mentioned specifically, designated, or expressly named or granted; as in speaking of enumerated governmental powers, items of property, or articles in a tariff schedule. in the Company's public reports and prospectuses such as the impact of competition, uncertainties concerning such matters as the Company's high leverage, its ability to service debt, its holding company structure, its operating history and recent losses, competition, product development, customer financing, sales to non-traditional gaming markets, foreign operations, dependence on key personnel, strict regulation by gaming authorities, gaming taxes and value added taxes value added tax n (BRIT) → impuesto sobre el valor añadido or agregado (LAM) value added tax n (Brit , the uncertain effect of National Gambling Commission, change in control, and other risk factors listed from time to time in the Company's SEC reports, including but not limited to, the most recent reports on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and 10-Q. Alliance Gaming Corporation is a diversified diversified (di·verˑ·s gaming company headquartered in Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. , Nevada. The Company is engaged primarily in the design, manufacture and distribution of advanced gaming devices and systems worldwide and is the nation's largest gaming machine route operator and operates two regional casinos A Regional Casino, more commonly known as a Super Casino (or occasionally known as Mega Casino or variants) is the term given to the largest category of casino permitted under English law. . Additional information about the Company can be found on the Alliance Gaming web site at: http://www.ally.com.
ALLIANCE GAMING CORPORATION
SUMMARY CONSOLIDATED STATEMENT OF OPERATIONS
Three Months Ended
March 31,
2000 1999
(In 000s, except per
share amounts)
Revenues $ 117,544 $ 125,733
Cost of operations(a) 76,227 78,452
Selling, general and administrative
expenses 28,466 26,944
Research and development costs 3,390 4,949
Unusual items, net(b) 1,638 --
EBITDA 7,823 15,388
Depreciation and amortization 6,767 5,710
Operating income 1,056 9,678
Net interest expense(c) (8,770) (8,104)
Minority interest and other (1,153) (629)
Net loss before income taxes (8,867) 945
Income tax (provision) benefit (223) 246
Net income (loss) (9,090) 1,191
Special stock dividends -- (430)
Net income (loss) applicable to
common shares $ (9,090) $ 761
Basic and diluted net income
(loss) per share $ (0.89) $ 0.08
Weighted average common shares
outstanding 10,253 9,742
Weighted average common and common
share equivalents outstanding 10,253 9,747
Memo:
Special Charges of $4.1 million for the March 2000 quarter
are as follows:
(a) Includes unusual charge of $1.9 million for write-down of
inventory in Australia
(b) Includes $4.7 million charge for restructuring costs, net of
$3.0 million gain on sale of certain gaming development and
management rights.
(c) Includes $0.5 million fee incurred related to the amendment
of the Company's credit agreement.
ALLIANCE GAMING CORPORATION
SUMMARY CONSOLIDATED STATEMENT OF OPERATIONS
Nine Months Ended
March 31,
2000 1999
(In 000s, except per
share amounts)
Revenues $349,233 $328,414
Cost of operations(a) 225,160 208,393
Selling, general and administrative
expenses 78,752 75,847
Research and development costs 11,467 13,094
Unusual items, net(b) 2,164 --
EBITDA 31,690 31,080
Depreciation and amortization 19,792 16,869
Operating income 11,898 14,211
Net interest expense(c) (25,036) (23,136)
Minority interest and other (2,205) (2,224)
Net loss before income taxes (15,343) (11,149)
Income tax (provision) benefit (478) 307
Net loss (15,821) (10,842)
Special stock dividends -- (1,254)
Net loss applicable to common shares $(15,821) $(12,096)
Basic and diluted loss per share $ (1.55) $ (1.25)
Weighted average common shares
outstanding 10,221 9,651
Weighted average common and common
share equivalents outstanding 10,221 9,651
Memo:
Special Charges of $5.1 million for the nine months ended March
2000 are as follows:
(a) Includes unusual charge of $1.9 million for write-down of
inventory in Australia
(b) Includes $6.2 million charge for restructuring costs, net of
$3.0 million gain on sale of certain gaming development and
management rights, and $1.0 million gain on the release of an
option the Company had to operate gaming machines at a
dormant dog racing track in Kansas.
(c) Includes $1.0 million in fees incurred related to amendments
of the Company's credit agreement.
ALLIANCE GAMING CORPORATION
SELECTED BALANCE SHEET DATA
As of
March 31, June 30,
2000 1999
(In 000s)
Cash and cash equivalents $ 38,930 $ 16,930
Working capital 117,927 108,661
Total assets 359,536 356,307
Total long term debt,
including current maturities 347,760 318,706
Total stockholders' deficiency (50,483) (30,408)
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