Printer Friendly

BALLY MANUFACTURING CORPORATION REPORTS 1993 SECOND QUARTER AND YEAR TO DATE RESULTS; GAMING OPERATIONS POST OUTSTANDING RESULTS

 CHICAGO, July 30 /PRNewswire/ -- Arthur M. Goldberg, chairman, chief executive officer and president of Bally Manufacturing Corporation (NYSE: BLY) announced today that results from operations for the second quarter of 1993, "were encouraging, and included record results from our Bally's Park Place casino hotel in Atlantic City."
 Income from continuing operations for the second quarter of 1993 was $2,353,000 ($.04 per share) compared to $3,100,000 ($.06 per share) for the same period in 1992 and net income for the second quarter of 1993 was $2,353,000 ($.04 per share) compared to $4,157,000 ($.09 per share) for the same period in 1992. The 1992 period included income from discontinued operations of $1,057,000 ($.03 per share).
 For the six-month period ended June 30, 1993, income from continuing operations totalled $6,190,000 ($.10 per share) compared to $5,744,000 ($.11 per share) for the six-month period in 1992. Income before extraordinary items and cumulative effect of an accounting change for the first half of 1993 was $6,190,000 ($.10 per share) compared to $8,045,000 ($.17 per share) in 1992. The 1992 period included income from discontinued operations of $2,301,000 ($.06 per share).
 The company recorded an extraordinary charge in the first quarter of 1993 totalling $8.1 million related to early redemptions in connection with refinancings of debt of two of its operating subsidiaries. Additionally, in the first quarter of 1993, the company adopted Statement of Financial Accounting Standards No. 109 which resulted in a one-time cumulative non-cash charge of $28.2 million. The 1992 period included extraordinary gains of $.6 million related to the repurchase of debt. Including all of the aforementioned, the net loss for 1993 six- month period was $30,097,000 ($.68 per share) compared to net income of $8,657,000 ($.19 per share) in 1992.
 Mr. Goldberg commented, "Our second quarter results in Atlantic City and Bally's overall year-to-date results continue to clearly reflect the success of our business strategies to maximize Atlantic City casino hotels results and to refocus fitness center operations for the long-term."
 "We were particularly gratified to see the level of the 1993 operating earnings of the Atlantic City operations of $29,673,000 for the quarter and $50,234,000 year-to-date which reflect improvements of $4,789,000 and $10,396,000 from the respective 1992 periods. The recent improvements of the health club revenues and income during June have continued during July, showing signs that the major changes made to that business over the past 18 months are strengthening the balance sheet and may soon yield a payback in the form of improved earnings."
 Mr. Goldberg added, "Bally's Park Place's record results thus far this year show the strength of an outstanding facility in a great location with a solid management team. The revenue gains are over 5 percent year-to-date despite severe winter weather that hampered attendance on three weekends, while operating cost savings of over $5 million were achieved. Our overall Atlantic City revenue gain compares favorably to the city-wide average year-to-date gain for all casinos of less than 2 percent. More recently, city-wide gaming revenues are up and all signals indicate that the Atlantic City market is poised to have a record setting summer."
 "Although Bally's Health & Tennis' revenues and collections are somewhat below last year's levels for the six-month period (down 5 percent and 2 percent, respectively), the new sales programs and payment plans we announced in the fourth quarter of 1992 appear to be succeeding by significantly improving the collection quality of new membership contracts sold, one of our most important goals. In June, sales volumes returned to last year's levels without reducing the quality of our receivables portfolio. We will continue to focus on cash flow and improving our balance sheet. While this emphasis may lower near-term earnings, we believe it will result in improved results for late 1993, and beyond," said Mr. Goldberg.
 "Last quarter I promised that Bally would capitalize on its position as a leader in the casino gaming industry and aggressively pursue new opportunities with its new financial strength," continued Mr. Goldberg.
 "Since then we have been successful in being one of only four ventures to be awarded a preliminary license approval for a riverboat casino to operate in downtown New Orleans. We are rapidly constructing our new dockside casino in Tunica, Miss., near Memphis, Tenn., and expect our new facility to open in about three months. We have submitted a first-class proposal to the Ontario Provincial Government for the operation, with our partner Canadian Pacific, of a new casino hotel in Windsor. And, we are actively pursuing opportunities in a number of other potential gaming jurisdictions."
 "Our fitness center operations are progressing through a significant transition and we hope to begin yielding improved results later in 1993. The June 1993 offering of notes by Bally's Casino Holdings, Inc. provided us with approximately $130 million to fund gaming ventures and aggressively explore new markets. These are busy and exciting times at Bally as we work to build a stronger company and reward our shareholders."
 Bally Manufacturing Corporation is one of the world's foremost operators of casino hotel resorts and fitness centers.
 BALLY MANUFACTURING CORPORATION
 Consolidated Operating Summary
 (unaudited)
 Three months ended June 30 1993 1992
 Revenues $327,872,000 $332,223,000
 Income from continuing
 operations before
 income taxes 5,053,000 4,089,000
 Income from continuing
 operations 2,353,000 3,100,000
 Income from discontinued
 operations -- 1,057,000
 Net income 2,353,000 4,157,000
 Preferred stock dividend
 requirement 694,000 694,000
 Net income applicable
 to common stock 1,659,000 3,463,000
 Per common share:
 Income from continuing
 operations $.04 $.06
 Income from discontinued
 operations -- .03
 Net income .04 .09
 Average common shares
 outstanding 46,495,554 37,650,501
 A. The financial results for the three months ended June 30, 1992 have been restated to reflect the equity in earnings of Bally Gaming International, Inc. ("Gaming") as a discontinued operation because of the company's intention to dispose of its remaining investment in Gaming. Effective January 1, 1993, the company accounts for its 17 percent ownership interest in the common stock of Gaming on the cost method because certain executive officers and directors of Gaming ceased being executive officers of the company causing the company to no longer hold significant control over Gaming.
 B. The company's operations are subject to seasonal fluctuations.
 BALLY MANUFACTURING CORPORATION
 Consolidated Operating Summary
 (unaudited)
 Six months ended June 30 1993 1992
 Revenues $662,835,000 $663,997,000
 Income from continuing
 operations before
 income taxes 12,790,000 8,442,000
 Income from continuing
 operations 6,190,000 5,744,000
 Income from discontinued
 operations -- 2,301,000
 Extraordinary gain (loss)
 on extinguishment
 of debt (8,090,000) 612,000
 Cumulative effect on prior
 years of change in accounting
 for income taxes (28,197,000) --
 Net income (loss) (30,097,000) 8,657,000
 Preferred stock dividend
 requirement 1,389,000 1,389,000
 Net income (loss) applicable
 to common stock (31,486,000) 7,268,000
 Per common share:
 Income from continuing
 operations $.10 $.11
 Income from discontinued
 operations .06
 Extraordinary gain (loss)
 on extinguishment of debt (.17) .02
 Cumulative effect on prior
 years of change in accounting
 for income taxes (.61) --
 Net income (loss) (.68) .19
 Average common shares
 outstanding 46,310,534 37,341,303
 NOTES:
 A. The financial results for the six months ended June 30, 1992 have been restated to reflect the equity in earnings of Bally Gaming International, Inc. ("Gaming") as a discontinued operation because of the company's intention to dispose of its remaining investment in Gaming. Effective Jan. 1, 1993, the company accounts for its 17 percent ownership interest in the common stock of Gaming on the cost method because certain executive officers and directors of Gaming ceased being executive officers of the company causing the company to no longer hold significant control over Gaming.
 B. The extraordinary loss on extinguishment of debt for the six months ended June 30, 1993 is attributed to the early redemption of the Bally's Health & Tennis Corporation 13-5/8 percent senior subordinated debentures and the GNAC, Corp. 13-1/4 percent Mortgage-Backed Notes through refinancings in January 1993 and March 1993, respectively. The extraordinary gain on extinguishment of debt for the six months ended June 30, 1992 is a result of market purchases of various issues of the company's public debt. In addition, revenues for the six months ended June 30, 1993 and 1992 include gains of $.6 million and $3.9 million, respectively, on market purchases of various issues of the company's public debt for sinking fund requirements.
 C. Effective Jan. 1, 1993, the company changed its method of accounting for income taxes as required by Statement of Financial Accounting Standards ("SFAS") No. 109, "Accounting for Income Taxes." As permitted by SFAS No. 109, the company has elected to use the cumulative effect approach rather than to restate the financial results of any prior periods to apply the provisions of SFAS No. 109.
 D. The company's operations are subject to seasonal fluctuations.
 -0- 7/30/93
 /CONTACT: Laurie Terry or Michael Levine of MWW/Strategic Communications, Inc. 201-342-9500, for Bally Manufacturing/
 (BLY)


CO: Bally Manufacturing Corporation ST: Illinois IN: CNO SU: ERN

TS -- NY068 -- 7939 07/30/93 17:00 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 30, 1993
Words:1571
Previous Article:PEOPLES ENERGY REPORTS LOWER THIRD QUARTER RESULTS
Next Article:NATIONAL COMMUNITY BANKS, INC. REPORTS SECOND QUARTER RESULTS
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters