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BALLY MANUFACTURING ANNOUNCES 1993 THIRD QUARTER RESULTS: CASINO GROUP CONTINUES TO POST STRONG RESULTS

 CHICAGO, Nov. 5 /PRNewswire/ -- Arthur M. Goldberg, Chairman and Chief Executive Officer of Bally Manufacturing Corporation (NYSE: BLY), announced today that results from operations for the quarter and the nine months ended September 30, 1993 "reflect strong profits from our Casino Group. This trend will be supplemented by the acquisition of 35 percent of Bally's Grand - Las Vegas and the upcoming opening of our new Bally's Tunica Gambling Hall & Saloon which is ready for business, awaiting the Mississippi Gaming Commission's completion of licensing procedures. Bally's Health & Tennis' earnings are still lagging, but the cash results were comparable to last year's levels."
 For the third quarter of 1993, income from continuing operations before income taxes was $4,280,000 compared to $3,672,000 for the same period in 1992. The 1992 period included gains totalling $598,000 from purchases of the Company's public debt securities for sinking fund purposes. No similar purchases occurred during the 1993 period. After income taxes, which included a special charge in 1993 of $1,675,000 ($.03 per share) for the recent 1 percent increase in federal tax rates, continuing operations for the 1993 period lost $320,000 ($.02 per share) compared to earnings of $1,433,000 ($.02 per share) for the same period in 1992, which included the aforementioned gains ($.01 per share) from purchases of bonds. Net income for the third quarter of 1993 was $5,895,000 ($.11 per share) compared to $17,818,000 ($.43 per share) for the 1992 third quarter. Net income for the third quarter of 1993 included a gain of $6,215,000 ($.13 per share) from the sale of Bally's remaining shares of Bally Gaming International, Inc. common stock. The 1992 period also reflected a gain from the sale of Bally Gaming shares in the public market totalling, inclusive of tax credits, $16,385,000 ($.41 per share).
 For the nine-month period ended September 30, 1993, income from continuing operations before income taxes totalled $17,070,000 compared to $12,114,000 for the 1992 period. The 1992 period included gains totalling $4.5 million from purchases of the Company's public debt securities for sinking fund purposes. Similiar gains during the 1993 period totalled only $.6 million. After income taxes, continuing operations earned $5,870,000 ($.08 per share) compared to $7,177,000 ($.13 per share) for the comparable 1992 period, which included the aforementioned gains ($.07 per share) from purchases of bonds. An additional year-to-year change is attributable to the aforementioned special charge which arose from the increase in federal tax rates from 34 percent to 35 percent which was applied retroactively to all deferred tax amounts.
 The Company, as previously disclosed, 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 for increased tax liabilities. The 1992 nine-month period included extraordinary gains of $.6 million related to the repurchase of debt. Both periods reflected income from discontinued operations representing the aforementioned disposals of Bally Gaming stock. Including the above listed items, the net loss for the 1993 nine-month period was $24,202,000 ($.54 per share) compared to net income of $26,475,000 ($.62 per share) in 1992.
 Mr. Goldberg commented, "Our third quarter results, which continued the same trends as Bally's year-to-date results, demonstrate the progress we have made in our core casino operations. Year-to-date 1993 operating earnings of the Atlantic City properties totalled $92,339,000 compared to $76,909,000 for 1992, a $15,430,000 (20 percent) improvement. We expect these positive trends to continue and be fueled by openings in new locations such as Tunica (near Memphis, Tennessee), New Orleans and others.
 "Our management team has worked hard to develop strong proposals for opportunities in Windsor, Ontario and St. Louis, both of which are pending. I remain very confident that through these quality proposals and efforts in other jurisdications we are creating significant opportunities for our shareholders."
 Mr. Goldberg stated that, "Although Bally's Health & Tennis' earnings were disappointing, we continue to operate the business for cash flow and remain convinced that the cost reductions and changes in selling methods implemented during the past twelve months will, in the future, translate into quality earnings. 'Cash EBITDA', the measure of cash flow used by the Company, totalled $22.0 million for the three months ended September 30, 1993 which is comparable to $23.2 million for the respective 1992 period. The shortfalls in cash sales, downpayments and collections coupled with increased cash expenses during the first six months of 1993, when compared to 1992, have in total diminished during the third quarter of 1993 and recent trends appear more positive. Renewals and dues revenues continue to strengthen, supporting our belief that trends in 1994 should be positive. Finally, we are concentrating a great deal of our efforts on the development of new marketing initiatives that we believe will strengthen the value of our memberships and add to earnings in 1994."
 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 September 30
 1993 1992
 Revenues $332,450,000 $333,358,000
 Income from continuing operations
 before income taxes 4,280,000 3,672,000
 Income (loss) from continuing operations (320,000) 1,433,000
 Income from discontinued operations 6,215,000 7,199,000
 Extraordinary credit for utilization of
 tax loss carryforwards -- 9,186,000
 Net income 5,895,000 17,818,000
 Preferred stock dividend requirement 694,000 694,000
 Net income applicable to common stock 5,201,000 17,124,000
 Per common and common equivalent share:
 Income (loss) from continuing operations $(.02) $.02
 Income from discontinued operations .13 .18
 Extraordinary credit for utilization of
 tax loss carryforwards -- .23
 Net income .11 .43
 Average common and common equivalent
 shares outstanding 48,731,663 39,616,747
 NOTES:
 A. Revenues for the three months ended September 30, 1992 include a gain of $.6 million on market purchases of an issue of the Company's public debt for sinking fund requirements. No similar purchases occurred during the three months ended September 30, 1993.
 B. Loss from continuing operations for the three months ended September 30, 1993 includes a charge of $1.7 million ($.03 per share) as a result of applying the change in the U.S. statutory tax rate from 34 percent to 35 percent to deferred tax balances as of January 1, 1993.
 C. The financial results for the three months ended September 30, 1993 and 1992 reflect Bally Gaming International, Inc. ("Gaming") as a discontinued operation because of the Company's disposal of its remaining investment in Gaming. Income from discontinued operations for the three months ended September 30, 1993 and 1992 includes gains from the sale of Gaming common stock of $6.2 million and $6.7 million, respectively.
 D. The Company's operations are subject to seasonal fluctuations.
 BALLY MANUFACTURING CORPORATION
 CONSOLIDATED OPERATING SUMMARY
 (unaudited)
 Nine months ended September 30
 1993 1992
 Revenues $995,285,000 $997,355,000
 Income from continuing operations
 before income taxes 17,070,000 12,114,000
 Income from continuing operations 5,870,000 7,177,000
 Income from discontinued operations 6,215,000 9,500,000
 Extraordinary items:
 Gain (loss) on extinguishment of debt (8,090,000) 612,000
 Credit for utilization of tax loss
 carryforwards -- 9,186,000
 Cumulative effect on prior years of
 change in accounting for income taxes (28,197,000) --
 Net income (loss) (24,202,000) 26,475,000
 Preferred stock dividend requirement 2,083,000 2,083,000
 Net income (loss) applicable to common
 stock (26,285,000) 24,392,000
 Per common and common equivalent share:
 Income from continuing operations $ .08 $.13
 Income from discontinued operations .13 .24
 Extraordinary items:
 Gain (loss) on extinguishment of debt (.17) .02
 Credit for utilization of tax loss
 carryforwards -- .23
 Cumulative effect on prior years of
 change in accounting for income taxes (.58) --
 Net income (loss) (.54) .62
 Average common and common equivalent
 shares outstanding 48,302,105 39,387,075
 NOTES:
 A. Revenues for the nine months ended September 30, 1993 and 1992 include gains of $.6 million and $4.5 million, respectively, on market purchases of various issues of the Company's public debt for sinking fund requirements.
 B. Income from continuing operations for the nine months ended September 30, 1993 includes a charge of $1.7 million ($.03 per share) as a result of applying the change in the U.S. statutory tax rate from 34 percent to 35 percent to deferred tax balances as of January 1, 1993.
 C. The financial results for the nine months ended September 30, 1993 and 1992 reflect Bally Gaming International, Inc. ("Gaming") as a discontinued operation because of the Company's disposal of its remaining investment in Gaming. Income from discontinued operations for the nine months ended September 30, 1993 and 1992 includes gains from the sale of Gaming common stock of $6.2 million and $6.7 million, respectively.
 D. The extraordinary loss on extinguishment of debt for the nine months ended September 30, 1993 is attributed to the early redemptions of debt of two operating subsidiaries through refinancings in the first quarter. The extraordinary gain on extinguishment of debt for the nine months ended September 30, 1992 is a result of market purchases of various issues of the Company's public debt.
 E. Effective January 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 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.
 F. The Company's operations are subject to seasonal fluctuations.
 -0- 11/5/93
 /CONTACT: Laurie Terry or Michael W. Kempner of MWW/Strategic Communications, Inc., 201-342-9500/
 (BLY)


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

LG-GK -- NY007 -- 1208 11/05/93 11:47 EST
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