Elsinore reports third-quarter, nine-month results; construction on schedule for first quarter 1995; opening of Palm Springs and Washington state casinos.LAS VEGAS--(BUSINESS WIRE)--Nov. 14, 1994--Elsinore Corp. (ASE/PSE:ELS) today reported financial results for the third quarter and nine months ended Sept. 30, 1994. Revenues for the quarter were $15,782,000, compared with $16,893,000 for the third quarter last year. The company reported a net loss of ($2,927,000), or ($0.24) per share, compared with a net loss of ($1,240,000), or ($0.10) per share, for the same period last year. The 1994 third quarter included an 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. interest expense of $1,004,000 over the corresponding quarter of 1993. For the nine months ended Sept. 30, 1994, Elsinore reported revenues of $47,472,000, compared with revenues of $50,560,000 for the same period last year. The company had a net loss for the nine-month period of ($7,079,000), or ($0.59) per share, compared with net income of $442,000, or $0.04 per share, for the first nine months of 1993. Incremental interest expense accounted for $4,313,000 of the net reduction in income between the two periods. ``Downtown Las Vegas Downtown Las Vegas can have several meanings depending on how it is used. It can mean:
Thomas Ellsworth Martin (January 18, 1893 - June 27, 1971) was a United States Representative and Senator from Iowa. , Elsinore's president and 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. . ``An additional factor affecting our revenues was the discontinuance Cessation; ending; giving up. The discontinuance of a lawsuit, also known as a dismissal or a non-suit, is the voluntary or involuntary termination of an action. DISCONTINUANCE, pleading. A chasm or interruption in the pleading. 2. of certain tour operations that did not meet the company's targets for profitability. The occupancy rate Noun 1. occupancy rate - the percentage of all rental units (as in hotels) are occupied or rented at a given time pct, per centum, percent, percentage - a proportion in relation to a whole (which is usually the amount per hundred) at our Four Queens The Four Queens Hotel and Casino is located in downtown Las Vegas on the Fremont Street Experience. Home to the Queen's Machine, the world's largest slot machine, the 690 room hotel and 40,000 square foot casino is owned and operated by TLC Enterprises, which acquired the Hotel remained high at 93% during the third quarter. However, we believe guests continue to spend a portion of their gaming and entertainment dollars at the new attractions along the Strip. This condition is expected to continue into 1995, until our spectacular new attraction, the Fremont Street Experience The Fremont Street Experience (FSE) is a pedestrian mall and attraction in downtown Las Vegas, Nevada. The FSE occupies the westernmost 5 blocks of Fremont Street and portions of some other adjacent streets. , begins to draw additional visitors to the downtown area.'' First Quarter Scheduled Openings of Native American Casinos ``Construction is on schedule for openings during the first quarter 1995 of our two Native American casino projects. We expect revenue contributions will begin in the second quarter next year from both the Spotlight 29 Casino The Spotlight 29 Casino is a Native American gambling enterprise in Coachella, California. It is run by the Twenty-nine Palms Band of Mission Indians. The facility has 110,000 square feet with 2,000 slot machines, 30 table games, and an 11 table poker room. near Palm Springs, California Palm Springs is a famed Riverside County, California desert resort city, approximately 110 miles (177 km) east of Los Angeles and 140 miles (225 km) northeast of San Diego. As of the 2000 census, the city population was 42,807. and the 7 Cedars Casino in Washington State.'' Spotlight 29 is a 74,000 square foot, Class II casino situated on land of the Twenty-Nine Palms Band 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. . This casino is on a well traveled and highly visible site approximately 20 miles east of Palm Springs at the intersection of Interstate 10 and Highway 86. The casino is expected to attract visitors from the 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, area which has a population of more than 20 million people within 150 miles of the site. 7 Cedars is a 54,000 square foot, Class III casino being constructed on the Jamestown S'Klallam reservation on the Olympic Peninsula The Olympic Peninsula is the large arm of land in western Washington state that lies across Puget Sound from Seattle. It is bounded on the west by the Pacific Ocean, the north by the Strait of Juan de Fuca, and the east by Puget Sound and the Hood Canal. , approximately 70 miles northwest of Seattle. The casino is located on land fronting U.S. 101 and is expected to attract tourists and visitors from the Seattle and Victoria, B.C. areas. Funds for the development of the Spotlight 29 Casino and the 7 Cedars Casino were raised as part of Elsinore's mortgage financing completed in October 1993. Of the $60 million raised in this financing, $10 million was allocated to the completion of Spotlight 29 and $9 million to 7 Cedars. Fremont Street Experience Expected to Increase Downtown Visitors ``In addition to the expected 1995 revenue from our two Native American casino management contracts, we expect our revenue stream to be enhanced starting in the fourth quarter reflecting the opening of the $63 million Fremont Street Experience,'' stated Martin. ``We anticipate that this celestial vault and light show extravaganza will attract considerable attention to the downtown casinos, including our Four Queens Hotel and Casino.'' Construction of Nashville Nevada Hotel and Casino Expected to Begin in Early 1995 Elsinore announced last April that the company plans to develop up to four casino/hotels at the master planned community Noun 1. planned community - a residential district that is planned for a certain class of residents residential area, residential district, community - a district where people live; occupied primarily by private residences , the Mojave Valley Resort, with joint venture partner J.F. Temple Development. The Mojave Valley Resort is located on highways connecting California, Nevada and Arizona, about six miles south of Laughlin, Nev., at the southern tip of the state. This major resort complex will include several river front casino/hotels, an 18-hole gold course, an RV park, hundreds of residences and a commercial area. The Elsinore/Temple joint venture's first project, the 500-room Nashville Nevada Hotel and Casino, will be located on a 24.5 acre parcel with a 32,500 square-foot casino floor, and will feature 1,050 slot machines, 31 table games, six poker tables, a sports book and a 700-space full service RV park. The company expects to begin construction on Nashville Nevada in early 1995 and anticipates opening the project in the first quarter of 1996. ``We believe Elsinore is well positioned to grow in coming years. Revenue contributions from the Nashville Nevada Hotel and Casino are anticipated in 1996, and, if we exercise our option, we will begin developing our second Mojave Valley Resort project during that year,'' added Martin. ``Additionally, we continue to follow our growth strategy of pursuing a broad spectrum of gaming opportunities, with the goal of opening one or two new gaming ventures annually during the next five years.'' Elsinore Corp. owns and operates the Four Queens, a downtown Las Vegas Hotel and Casino offering 704 rooms, meeting facilties, four restaurants, 1050 slot machines and numerous blackjack blackjack, one of the world's most widely played gambling card games; also known as twenty-one or vingt-et-un. Despite contesting claims between the French and Italians, its origins are unknown. , craps craps: see dice. craps Gambling game in which each player in turn throws two dice, attempting to roll a winning combination. The term derives from a Louisiana French word, crabs, which means “losing throw. and other table games. For information on Elsinore Corp. via facsimile at no cost, simply call 1-800-PRO-INFO and dial company code 177. -0-
ELSINORE COPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
1994 1993 1994 1993
REVENUES, NET $ 15,782 $ 16,893 $ 47,472 $ 50,560
(LOSS) INCOME BEFORE
FEDERAL INCOME TAXES ($ 2,927) ($ 594) ($ 7,079) $ 1,181
(1)
PROVISION FOR FEDERAL
INCOME TAXES (2) -- 646 -- 739
NET (LOSS) INCOME ($ 2,927) ($ 1,240) ($ 7,079) $ 442
EARNINGS (LOSS) PER
COMMON SHARE AND
COMMON SHARE
EQUIVALENT ($ 0.24) ($ 0.10) ($ 0.59) $ 0.04
WEIGHTED AVERAGE
NUMBER OF COMMON
SHARES AND COMMON
SHARE EQUIVALENTS 12,079,164 12,062,164 12,069,387 12,323,168
(1) Income (loss) before federal income taxes includes $1,300,000
for the nine months ended September 30, 1993; and $1,202,000 for the
quarter ended September 30, 1993, for estimated interest expense as
a result of an IRS audit of the fiscal years 1980 through 1983.
(2) 1993 includes $624,000 in federal income taxes recorded in the
third quarter of 1993 due to estimated tax liability for an IRS
audit of the fiscal years 1980 through 1983.
BALANCE SHEET INFORMATION
(Dollars in Thousands)
September 30, December 31,
1994 1993
Current Assets $ 6,267 $ 7,499
Total Assets 69,203 71,923
Current Liabilities 15,967 12,799
Long-Term Debt 54,042 54,368
Shareholders (Deficit)
Equity (995) 4,567
CONTACT: Elsinore Corp., 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.
Thomas E. Martin, 702/387-5110
James L. White, 702/387-5146
Financial Relations Board
Daniel Saks or Jody Martin, 818/783-2400
Sue Caulton, 415/986-1591 (Analysts)
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