Elsinore reports third-quarter, nine-month results.LAS VEGAS--(BUSINESS WIRE)--Nov. 16, 1995--Elsinore Corp. (ASE/PSE:ELS) Thursday reported financial results for the third quarter and nine months ended Sept. 30, 1995. Revenues for the quarter were $13,756,000, compared with $15,445,000 for the third quarter last year. The company reported a third quarter net loss of $8,921,000, or 56 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , compared with a net loss of $2,926,000, or 24 cents per share, for the same period last year. Elsinore noted that the net loss for the third quarter was increased by $5,307,000 as a result of reserves taken for possible settlement of disputes with 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. and the write-off of certain unamortized casino development costs. Elsinore reported that third quarter revenues from the company's 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 and Casino 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. decreased 11.6% to $13,444,000, primarily reflecting the disruption of traffic flow to downtown Las Vegas Downtown Las Vegas can have several meanings depending on how it is used. It can mean:
For the nine months ended Sept. 30, 1995, Elsinore reported revenues of $43,049,000, compared with revenues of $46,624,000 for the same period last year. The company had a net loss for the nine-month period of $16,198,000, or $1.05 per share, compared with a net loss of $7,079,000, or 59 cents per share, for the first nine months of 1994. "Despite the difficult conditions, we are maintaining the vitality of the Four Queens Hotel and Casino and expect to benefit from the long-awaited opening on Nov. 30 of the Fremont Street Experience," stated Thomas E. Martin
Thomas Ellsworth Martin (January 18, 1893 - June 27, 1971) was a United States Representative and Senator from Iowa. , Elsinore's president and chief executive officer. "We expect a major improvement in customer count at the Four Queens, which should have a strong positive effect on our gaming as well as hotel operations. This increase in traffic, combined with our successful cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. efforts at the Four Queens, should result in increased cash flow as we continue through the company's 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 ." On Oct. 31, 1995, the company and certain subsidiaries reported the filing of a voluntary petition for reorganization under Chapter 11 of the bankruptcy code with the United States Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. for the District of Nevada. The Fremont Street Experience, a major downtown redevelopment project that features a 10-story "celestial vault" canopy with an electronic light show choreographed to music, will connect the Four Queens and nine other major entertainment venues in a downtown mall that offers a total of 17,000 slot machines, 650 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. and other table games, 41 restaurants and 8,000 hotel rooms. The company noted that it is continuing to negotiate toward a settlement of its dispute regarding 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, Calif. As previously reported, the company has disengaged dis·en·gage v. dis·en·gaged, dis·en·gag·ing, dis·en·gag·es v.tr. 1. To release from something that holds fast, connects, or entangles. See Synonyms at extricate. 2. from the Spotlight 29 management contract following a dispute regarding, among other things, the terms of the management contract under which the company had the exclusive right to manage the casino owned by the 29 Palms Band of Mission Indians. Elsinore believes that a resolution of the dispute is possible that could recover a substantial portion of the company's investment over time. There can be no assurance that a settlement agreement can be reached with the tribe or that the bankruptcy court will approve the final settlement. However, based upon the progress to date of the aforementioned negotiations, in September 1995 the company wrote down to $9 million the aggregate amount advanced to the tribe and accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. thereon. In connection with the filing of the bankruptcy petition, the company has been informed by the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. that trading has been halted indefinitely pending clarification of the outcome of the bankruptcy proceedings. Elsinore owns and operates the Four Queens, a downtown Las Vegas Hotel and Casino offering 704 rooms, meeting facilities, four restaurants, 1,050 slot machines and numerous blackjack, 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 via facsimile at no cost, call 800/PRO-INFO and dial company code 177. -0-
Elsinore Corp.
Condensed Consolidated Statements of Operations
(Unaudited)
(Dollars in thousands, except per-share data)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
1995 1994 1995 1994
Revenues, net $ 13,756 $ 15,445 $ 43,049 $ 46,624 Net (loss) income/a $ (8,921) $ (2,926) $(16,198) $ (7,079) Earnings (loss) per common share and common share equivalent ($0.56) ($0.24) ($1.05) ($0.59) Weighted average number of common shares and common share equivalents 15,877,849 12,079,164 15,383,988 12,069,387 -0- Note a: Net income for the third quarter and nine months was reduced by a write-down to $9 million the aggregate amount advanced to the Twenty-Nine Palms Band and accrued interest thereon; a $807,000 write-off of capitalized costs associated with the Nashville Nevada Project; and a $242,000 write-off of casino development costs related to the 7 Cedars Casino.
Balance Sheet Information
(Dollars in thousands)
Sept. 30, Dec. 31,
1995 1994
Current assets $ 4,786 $ 6,204 Total assets 60,210 67,315 Current liabilities 17,176 16,709 Long-term debt 56,741 52,081 Shareholders' (deficit) equity (13,896) (1,664) CONTACT: Elsinore Corp., Las Vegas Thomas E. Martin, 702/387-5110 Gary Acord, 702/387-5146 or The Financial Relations Board, Los Angeles Daniel Saks, 310/442-0599 (general info) Sue Caulton, 415/986-1591 (analysts) |
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