Elsinore reports year-end results; company completes $1.706 million financing.LAS VEGAS--(BUSINESS WIRE)--March 31, 1995--Elsinore Corp. (ASE/PSE:ELS) Friday reported decreases in revenues and net income for the company's fourth quarter and fiscal year ended Dec. 31, 1994. Due mainly to the impact of the opening of a number of megacasinos on the Las Vegas Strip The Las Vegas Strip (also known as The Strip) is a 4 mi (6.7 km) section of Las Vegas Boulevard South, most of which has been designated an All-American Road. , Elsinore experienced a decline in 1994 results from its principal operation, the 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 downtown Las Vegas Downtown Las Vegas can have several meanings depending on how it is used. It can mean:
The company reported a net loss for the quarter of $2,361,000, or 19 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 $2,979,000 or 25 cents per share for the fourth quarter of 1993. The net loss in the 1993 fourth quarter included an extraordinary loss of $285,000 or three cents per share for extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt following the company's debt refinancing in October 1993 through a private placement of $60 million of first mortgage notes and the net loss in 1994 included an extraordinary gain of $735,000, or six cents per share. Revenues for 1994 decreased 6.2 percent to $62,706,000 from $66,852,000 for the prior year, primarily as a result of lower casino revenues. The company reported a net loss in 1994 of $9,441,000, or 78 cents per share, compared with a net loss of $2,537,000, or 21 cents per share, the previous year. The 1994 results reflect an increase of $4,330,000 in interest expense related to the debt refinancing. The 1993 results included the extraordinary charge of $285,000, or two cents per share, due to the extinguishment of debt and the net loss in 1994 included an extraordinary gain of $735,000, or six cents per share. "Despite a slight increase in occupancy at the Four Queens to 92.7 percent from 92.4 percent, our casino revenues decreased 10.9 percent to $46,270,000 for the year, as many of our guests, and the guests of other downtown properties, spent part of their gaming budgets at recently opened megacasinos on the Strip," said Thomas E. Martin
Thomas Ellsworth Martin (January 18, 1893 - June 27, 1971) was a United States Representative and Senator from Iowa. , Elsinore's president. "In addition, due to the disruption caused by the renovation of 300 of the 700 rooms at the Four Queens, our hotel revenue declined 6.5 percent to $9,234,000." Martin noted that the Four Queens and other downtown casinos expect to benefit from the opening of 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. , which is currently anticipated by the end of the current year. "We believe that The Fremont Street Experience will become a major attraction in the 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. market and will result in increased patronage at the Four Queens," he added. The Fremont Street Experience is a cooperative undertaking among downtown casinos which, will transform four blocks of Fremont Street Fremont Street is the second most famous street in Las Vegas, Nevada after the Las Vegas Strip. Located in the heart of the downtown casino corridor, it is (or was) the address for many famous casinos such as Binion's Horseshoe, Eldorado Club, Fremont Hotel and Casino, Golden Gate into a covered pedestrian mall pedestrian mall pedestrian (US) n → Fußgängerzone f pedestrian mall n (US) → zona pedonale featuring a 10-story celestial vault with high-tech light and sound shows. The attraction will connect the Four Queens and nine other major entertainment venues that together will offer 17,000 slot machines, more than 500 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 Fremont Street Experience is key to the future success of downtown casinos and until it is completed, these casinos must work extra hard to compete with the many new attractions in the Las Vegas market," Martin said. 7 Cedars Casino -- Washington State As part of the Elsinore corporate strategy to expand its operating base beyond the Four Queens, the company and the Jamestown S'Klallam Tribe successfully opened the 7 Cedars Casino on Feb. 3, 1995. 7 Cedars is a 54,000 square-foot Class II and Class III gaming facility 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. northwest of Seattle. Developed at a cost of approximately $9 million, 7 Cedars features Las Vegas-style table games including 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. , blackjack, roulette roulette (r  lĕt`), game of chance popular in gambling casinos, and in a simplified form elsewhere. In gambling houses the roulette wheel is set in an oblong table. and power, as well as
bingo, pull tabs and other non-house banked games."This new casino opened with solid operating performance and strong support of the local community. We look forwards to increasing results at the 7 Cedars Casino as the tourist season Tourist Season is a novel written in 1986 by Carl Hiaasen. It is set in and around Miami, Florida. Bookjacket tagline The only trace of the first victim was his Shriner's fez washed up on the Miami beach. unfolds on the Olympic Peninsula," Martin said. Spotlight 29 -- Palm Springs, Calif. Elsinore reported that the newly opened 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, which the company developed and manages for the 29 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. , has experienced lower than expected operating results. This performance is primarily the result of heightened competition in the form of the increasing use by other Native American casinos in the local area of Class III electronic gaming machines. As a result of this competition, the 29 Palms Band of Mission Indians has installed electronic gaming devices in the Spotlight 29 Casino without the permission of Elsinore. Because these electronic gaming devices are being operated without a Compact with the State of California, this situation has created serious difficulties for the company with the Nevada Gaming Commission The Nevada Gaming Commission is a Nevada state governmental agency involved in the regulation of casinos throughout the state, along with the Nevada Gaming Control Board. It was founded in 1959 by the Nevada Legislature. authorities. The Nevada Gaming Commission has stated to Elsinore that if the electronic gaming devices are not deemed legal under both state and federal law by April 30, 1995, Elsinore must extricate itself from its management contract at Spotlight 29. Therefore, the company has begun negotiations with the Tribe to remove itself from this contract. Company Completes $1.706 Million Financing Elsinore also announced Friday that it has executed an agreement for the sale of $1.706 million in 7-1/2 percent convertible subordinated debentures subordinated debenture An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before . The debentures are convertible into Elsinore common shares at the price of $1-1/8 per share. Proceeds from the financing will be used for working capital purposes. "This additional working capital allows us to meet our current obligations while continuing to reorganize re·or·gan·ize v. re·or·gan·ized, re·or·gan·iz·ing, re·or·gan·iz·es v.tr. To organize again or anew. v.intr. To undergo or effect changes in organization. Elsinore's capital structure," Martin concluded. Elsinore Corp. owns and operates the Four Queens, a downtown Las Vegas Hotel and Casino offering 704 rooms, meeting facilities, four restaurants, 1,067 slot machines, and numerous blackjack, craps 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
(dollars in thousands, except for per-share data)
Three Months Ended Year Ended
Dec. 31, Dec. 31,
1994 1993 1994 1993
Revenues $ 15,235 $ 16,272 $ 62,706 $ 66,852 Loss before income taxes and extraordinary item ($ 3,096) ($ 2,809) ($10,176) ($ 1,628) Income tax benefit (expense) --- 115 --- (624) Loss before extraordinary item (3,096) (2,694) (10,176) (2,252) Extraordinary item: Gain (loss) on extinguishment of debt 735 (285) 735 (285) Net loss ($ 2,361) ( $2,979) ($ 9,441) ($ 2,537) Per common and equivalent share: Loss before extraordinary item (25 cents) (22 cents) (84 cents) (19 cents) Extraordinary item (6 cents) (3 cents) (6 cents) (2 cents) Net loss (19 cents) (25 cents) (78 cents) (21 cents) Weighted avg. common and equivalent shares outstanding 12,217,729 12,062,164 12,016,778 12,049,430 -0-
Consolidated Balance Sheet Data
Year Ended Dec. 31
1994 1993
Total assets $ 67,315 $ 71,923
Current portion of
long-term debt 2,309 204
Long-term debt net of
current portion:
Notes payable 50,791 53,018
Capital leases 1,290 1,350
Stockholders' equity
(deficiency) (1,664) 4,567
CONTACT: Elsinore Corp., Las Vegas Thomas E. Martin, 702/387-5110 or The Financial Relations Board Daniel Saks, 818/783-2400, General Info. Sue Caulton, 415/986-1591, Analyst Contact |
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