American Gaming Reports Year End 1998 and First Quarter 1999 Results.PARAMUS, New Jersey--(BUSINESS WIRE)--June 17, 1999-- American Gaming & Entertainment, Ltd. (the "Company") reported in its Form 10-KSB that net loss for common stockholders for the year ended December 31, 1998 was approximately $6,720,000 or ($0.54) per share as compared to $9,039,000 or ($0.72) per share for the year ended December 31, 1997, based upon a weighted average number of 12,532,102 common shares outstanding for each period. The primary components of such decrease in net loss for common stockholders are discussed below. Revenues for the year ended December 31, 1998 amounted to approximately $445,000, a decrease of approximately $188,000 or approximately 30% compared to the year ended December 31, 1997. For the years ended December 31, 1998 and December 31, 1997, the Company recorded revenues of approximately $445,000 and $623,000, respectively, attributable to a 4.9% equity interest in a riverboat riv·er·boat n. A boat suitable for use on a river. gaming and entertainment complex in Rising Sun, Indiana Rising Sun is a city in Ohio County, Indiana, along the Ohio River. The population was 2,470 at the 2000 census. The city is the county seat of Ohio CountyGR6. Geography Rising Sun is located at (38. (the "Rising Sun Interest"). Selling, general and administrative expenses were approximately $1,633,000 for the year ended December 31, 1998, representing a decrease of approximately $13,000 or approximately 1% when compared to the year ended December 31, 1997. However, selling, general and administrative expenses for the year ended December 31, 1997 included the reversal of a previously recorded consulting expense in the amount of approximately $195,000 due to a consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a advising the Company that such firm was not seeking payment of such unpaid amount and a reversal of previously recorded state taxes in the amount of approximately $188,000 due to a tax refund Tax refund Money back from the government when too much tax has been paid or withheld from a salary. . Exclusive of such reversals, selling, general and administrative expenses decreased approximately $396,000 for the year ended December 31, 1998 as compared to the year ended December 31, 1997. Such decrease was primarily due to decreases in compensation, rent, insurance, consulting expense and expenses related to real property in Alabama Alabama, indigenous people of North America Alabama (ăləbăm`ə), indigenous people of North America whose language belongs to the Muskogean branch of the Hokan-Siouan linguistic stock (see Native American languages). and the Harolds Club in Nevada. For the year ended December 31, 1998, the Company recorded a reversal of net liabilities for subsidiaries in bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most of $781,000 based upon the anticipated distributions under a proposed plan of liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy for the Company's two Mississippi Mississippi, state, United States Mississippi (mĭs'əsĭp`ē), one of the Deep South states of the United States. It is bordered by Alabama (E), the Gulf of Mexico (S), Arkansas and Louisiana, with most of the border formed by subsidiaries. No such amounts were recorded for the year ended December 31, 1997. Net interest expense for the year ended December 31, 1998 was approximately $2,937,000, a decrease of approximately $2,556,000 or approximately 47% compared to the year ended December 31, 1997. Interest expense decreased approximately $2,542,000 while interest income increased approximately $14,000 during the year ended December 31, 1998 compared to the year ended December 31, 1997. Interest expense for the year ended December 31, 1998 included the reversal of previously recorded interest expense in the amount of approximately $2,342,000, primarily attributable to reclassifying as deferred charter revenues amounts that were previously recorded as debt. For the year ended December 31, 1998, the Company wrote down the value of a note receivable note receivable A debt due from borrowers and evidenced by a written promise of payment. Note receivable, an entry on the asset side of many corporate balance sheets, indicates the dollar amount of loans due to be repaid by borrowers. by approximately $165,000, to reflect the agreement by the Company to accept the payment of $300,000 in 1999 in full satisfaction of such note. No writedowns were recorded for the year ended December 31, 1997. Net gain on sale of investments for the year ended December 31, 1997 was substantially due to a net gain of approximately $625,000 on the sale of 12,500 shares of Multimedia Games, Inc. preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. . No such gains were recorded for the year ended December 31, 1998. The Company reported in its Form 10-QSB for the period ended March 31, 1999 that net loss for common stockholders for the three months ended March 31, 1999 was approximately $2,330,000 or ($0.19) per share as compared to $2,378,000 or ($0.19) per share for the three months ended March 31, 1998, based upon a weighted average number of 12,532,102 common shares outstanding for each period. The primary components of such decrease in net loss for common stockholders are discussed below. For the three months ended March 31, 1998, the Company recorded revenues of approximately $189,000 attributable to the Rising Sun Interest. The Company has not received any financial statement information relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Rising Sun Interest for the three months ended March 31, 1999 and therefore has not recorded any revenues attributable to the RSR RSR Regular sinus rhythm, see there Interest for the three months ended March 31, 1999. Selling, general and administrative expenses were approximately $443,000 for the three months ended March 31, 1999, representing an increase of approximately $42,000 or approximately 10% when compared to the three months ended March 31, 1998. Such increase is primarily due to an increase of approximately $51,000 in legal fees relating to 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. in the bankruptcy proceedings bankruptcy proceedings n. the bankruptcy procedure is: a) filing a petition (voluntary or involuntary) to declare a debtor person or business bankrupt, or, under Chapter 11 or 13, to allow reorganization or refinancing under a plan to meet the debts of the party of the Company's two Mississippi subsidiaries and a $35,000 judgment against the Company for unpaid insurance premiums, partially offset by a decrease of approximately $32,000 in insurance expense. Net interest expense for the three months ended March 31, 1999 was approximately $1,133,000, a decrease of approximately $230,000 or approximately 17% compared to the three months ended March 31, 1998. Interest expense decreased approximately $233,000 while interest income decreased approximately $3,000 during the three months ended March 31, 1999 compared to the three months ended March 31, 1998. Interest expense for the three months ended March 31, 1998 includes interest on debt that was reclassified as deferred charter revenue as of December 31, 1998. The Company recorded a net gain of approximately $48,000 for the three months ended March 31, 1999 related to the sale of real property in Alabama. No such gain was recorded for the three months ended March 31, 1998. The Company's Common Stock is traded on the OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. under the symbol "AGEL". |
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