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BALLY'S GRAND, INC. REPORTS RESULTS FOR THE PERIOD ENDED SEPT. 30, 1993

 LAS VEGAS, Nov. 8 /PRNewswire/ -- Arthur Goldberg, chairman, president and chief executive officer of Bally's Grand, Inc., announced today results of Bally's Grand, Inc., the operator of Bally's Las Vegas casino resort.
 In August 1993 the company completed its reorganization pursuant to its Chapter 11 Plan and emerged from bankruptcy. The Chapter 11 reorganization of the company and the implementation of fresh-start reporting on August 31, 1993, which requires assets and liabilities to be adjusted to fair value, make current and prior year results of operations non-comparable other than revenues.
 Revenues for the three months ended Sept. 30, 1993 and 1992 were $64,195,000 and $73,773,000, respectively. Revenues for the third quarter 1992 period include $11,589,000 of revenues for the Bally's Reno casino hotel resort which was sold in July 1992. Excluding the change in revenues attributable to the sale of Bally's Reno, the revenues for the three months ended Sept. 30, 1993 increased $2,011,000 over revenues for the three months ended Sept. 30, 1992. Operating income for the combined one month ended Sept. 30, 1993 and the two months ended August 31, 1993 was $9,112,000 compared to $12,558,000 ($1,730,000 from Bally's Reno) for the same period in 1992. Excluding the results of Bally's Reno, operating income for the combined 1993 periods decreased $1,716,000 from the three months ended Sept. 30, 1992.
 Net income for the three months ended Sept. 30, 1993 was $139,281,000 compared to $19,440,000 ($1,142,000 from Bally's Reno) for the same period in 1992. Net income for the 1993 third quarter includes, on a net of tax basis, income from reorganization items of $62,988,000 and an extraordinary gain on discharge of prepetition liabilities of $75,352,000, in addition to one month reported using a fresh-start accounting basis. The 1992 quarter benefited from reorganization credits of $9,181,000, a new tax sharing agreement, and the non-accrual of contractual interest on debt of $9,660,000 offset by an adjustment to an extraordinary credit for utilization of tax loss carryforwards of ($2,139,000).
 For the nine-month period ended Sept. 30, 1993, revenues were $195,011,000 compared to $254,423,000 for the same period in 1992. Revenues for the 1992 period include $72,412,000 of revenues for Bally's Reno. Excluding the change in revenues attributable to the sale of Bally's Reno, revenues for the first nine months of 1993 increased $13,000,000 compared to the same period in 1992. Operating income for the nine months of 1993 was $32,201,000 compared to $34,758,000 ($5,383,000 from Bally's Reno) for the same period in 1992. Excluding the results of Bally's Reno, operating income for the nine months ended Sept. 30, 1993 increased $2,826,000 from the nine months ended Sept. 30, 1992.
 Net income for the nine months ended Sept. 30, 1993 was $140,561,000 compared to $31,553,000 ($3,552,000 from Bally's Reno) for the same period in 1992. Net income for the 1993 period includes, on a net of tax basis, income from reorganization items of $63,214,000, an extraordinary gain on discharge of prepetition liabilities of $75,352,000, and a non-cash charge against income for the cumulative effect on prior years of a change in accounting for income taxes of $3,172,000 resulting from the company's adoption of Statement of Financial Accounting Standards No. 109, in addition to one month reported using a fresh-start accounting basis. The 1992 period benefited, after tax, from reorganization credits of $2,881,000, the non-accrual of contractual interest on debt of $28,987,000, a new tax sharing agreement, and an extraordinary credit for utilization of tax loss carryforwards of $1,298,000.
 BALLY'S GRAND, INC.
 Consolidated Operating Summary
 (Unaudited; in 000s, except per share)
 Post-reorganization Pre-reorganization
 One month 2 mos. 3 mos.
 ended ended ended
 9/30/93 8/31/93 9/30/92
 Revenues $21,067 $43,128 $73,773
 Operating income 3,381 5,731 12,558
 Reorganization items, net -- 108,324 14,500
 Income before extraordinary items 589 63,340 21,579
 Extraordinary gain on discharge
 of prepetition liabilities -- 75,352 --
 Extraord. credit for utilization
 of tax loss carryforwards -- -- (2,139)
 Net income 589 138,692 19,440
 Average shares outstanding 10,600
 Earnings per share $.06
 NOTES:
 A. In August 1993, the company completed its Chapter 11 reorganization and emerged from bankruptcy. Fresh-start reporting was implemented on Aug. 31, 1993, requiring assets and liabilities to be adjusted to fair value. The Chapter 11 reorganization of the company and the implementation of fresh-start reporting make current and prior- year results of operations non-comparable other than for revenues.
 B. The company sold its Bally Reno casino hotel resort of July 31, 1992. Bally Reno's revenues and operating income included in the results of operations for the three months ended Sept. 30, 1992, were $11.6 million and $1.7 million, respectively.
 C. Reorganization items, net for the two months ended Aug. 31, 1993, consist of: (1) the adjustment of property and equipment and debt to fair value ($115.4 million); (2) professional fees, compensation and other expenses ($7.6 million); and (3) interest earned ($.5 million). Reorganization items, net for the three months ended Sept. 30, 1992, consist of: (1) gain on the sale of Bally's Reno ($15.8 million); (2) professional fees ($2.3 million); and (3) interest earned ($1.0 million).
 D. The extraordinary gain on discharge of prepetition liabilities is net of income taxes of $6.9 million.
 E. The company's operations are somewhat subject to seasonal fluctuations.
 Post-reorganization Pre-reorganization
 One month 8 mos. 9 mos.
 ended ended ended
 9/30/93 8/31/93 9/30/92
 Revenues $21,067 $173,944 $254,423
 Operating income 3,381 28,820 34,758
 Reorganization items, net -- 109,165 6,523
 Income before extraord. items &
 cum. effect on prior years of
 chg. in acctg. for income taxes 589 67,792 30,255
 Extraord. gain on discharge of
 prepetition liabilities -- 75,352 --
 Extraord. credit for utilization
 of tax loss carryforwards -- -- 1,298
 Cum. effect on prior years of
 chg. in acctg. for income taxes -- (3,172) --
 Net income 589 139,972 31,553
 Average shares outstanding 10,600
 Earnings per share $.06
 NOTES:
 A. In August 1993, the company completed its Chapter 11 reorganization and emerged from bankruptcy. Fresh-start reporting was implemented on Aug. 31, 1993, requiring assets and liabilities to be adjusted to fair value. The Chapter 11 reorganization of the company and the implementation of fresh-start reporting make current and prior year results of operations non-comparable other than for revenues.
 B. The company sold its Bally Reno casino hotel resort on July 31, 1992. Bally Reno's revenues and operating income included in the results of operations for the nine months ended Sept. 30, 1992, were $72.4 million and $5.4 million, respectively.
 C. Reorganization items, net for the eight months ended Aug. 31, 1993, consist of (1) the adjustment of property and equipment and debt to fair value ($115.4 million); (2) professional fees, compensation and other expenses ($8.5 million); and (3) interest earned ($2.3 million). Reorganization items, net for the nine months ended Sept. 30, 1992, consist of: (1)gain on the sale of Bally's Reno ($15.8 million); (2) professional fees ($8.4 million); (3) write-off of debt discount ($3.1 million; and (4) interest earned ($2.2 million).
 D. The extraordinary gain on discharge of prepetition liabilities is net of income taxes of $6.9 million.
 E. The company's operations are somewhat subject to seasonal fluctuations.
 -0- 11/8/93
 /CONTACT: Laurie Terry or Michael W. Kempner, both of MWW/Strategic Communications, Inc., 201-342-9500/


CO: Bally's Grand, Inc. ST: Nevada IN: CNO SU: ERN

TM -- NY086 -- 1924 11/08/93 17:14 EST
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Date:Nov 8, 1993
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