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BALLY MANUFACTURING CORPORATION 1992 YEAR-END RESULTS SHOW $58 MILLION IMPROVEMENT FROM CONTINUING OPERATIONS OVER PREVIOUS YEAR

 COMPANY POSTS SIXTH CONSECUTIVE QUARTER OF IMPROVED RESULTS
 CHICAGO, IL, February 22, 1993 /PRNewswire/ -- Arthur M. Goldberg, Chairman, Chief Executive Officer and President of Bally Manufacturing Corporation (NYSE: BLY) announced today results for the year and fourth quarter ended December 31, 1992.
 For the year, income from continuing operations improved more than $58 million reflecting income of $557,000 compared to a loss of $57,825,000 in 1991. Before income taxes, continuing operations earned $3,259,000 in 1992 compared to a loss of $84,219,000 in 1991. Net income was $11,774,000 ($.22 per share) in 1992 compared to net income of $21,528,000 ($.55 per share) in 1991. Net income for 1991 included income from discontinued operations of $23,300,000 ($.69 per share) and extraordinary items totalling $56,053,000 ($1.65 per share). Net income for 1992 included extraordinary items totalling $11,217,000 ($.27 per share). Revenues rose to $1,297,002,000 in 1992 compared to $1,262,512,000 in 1991.
 The fourth quarter, traditionally the Company's weakest, also reflected improved results with a net loss of $14,701,000 ($.34 per share) in 1992 compared to a net loss of $33,812,000 ($.96 per share) in 1991. Continuing operations lost $16,120,000 ($.37 per share) in the quarter compared to a loss of $29,625,000 ($.84 per share) in 1991. Revenues rose to $299,647,000 for the quarter from $284,500,000 in 1991.
 Mr. Goldberg stated, "The Company's performance continued to show a steady improvement in operating results. We have just completed a successful transition year for Bally. By curing all of our debt defaults a year ahead of schedule, we established the momentum to achieve our goals for 1993."
 With respect to Bally's health club business, Mr. Goldberg said, "The financial markets have given us an enthusiastic reception to our recent, successful public note offer. The offering affords the health club business the ability to grow at a controlled pace.
 "This business has achieved a significant turnaround during 1992, increasing operating income by over $30 million. With improved economic conditions, management believes the health club business should return to profitability in 1993."
 Turning to the Atlantic City casino hotel operations, Mr. Goldberg noted that Bally's Park Place casino hotel reported improved operating income for the year by over $8 million, all of which was achieved in the fourth quarter. Bally's Grand-Atlantic City also showed progress in 1992 compared to the prior year. "Our January 1993 performance in Atlantic City ranked our properties first and second in terms of net revenue gains year-to-year. Recent changes in strategy appear to already have positively affected these operations," he said.
 In summary, Mr. Goldberg commented, "Our restructuring is largely behind us now, we are experiencing favorable reaction to the restructuring transactions we have completed, and we are positioned to explore, in earnest, some of the many gaming opportunities that are becoming available. We are well on the way to recapturing the magic of the Bally name."
 Bally Manufacturing is one of the world's foremost operators of casino hotels and fitness centers.
 BALLY MANUFACTURING CORPORATION
 CONSOLIDATED OPERATING SUMMARY
 Year ended December 31
 1992 1991
 Revenues $1,297,002,000 $1,262,512,000
 Income (loss) from continuing
 operations before income taxes 3,259,000 (84,219,000)
 Income (loss) from continuing
 operations 557,000 (57,825,000)
 Income from discontinued operations 23,300,000
 Extraordinary items:
 Credit for utilization
 of tax loss carryforwards 10,605,000
 Gain on extinguishment
 of debt 612,000 56,053,000
 Net income 11,774,000 21,528,000
 Preferred stock dividend
 requirement 2,778,000 2,778,000
 Net income applicable to common stock 8,996,000 18,750,000
 Per common and common
 equivalent share:
 Loss from continuing operations $(.05) $(1.79)
 Income from discontinued operations .69
 Extraordinary items:
 Credit for utilization of tax loss
 carryforwards .26
 Gain on extinguishment of
 debt .01 1.65
 Net income .22 .55
 Average common and common equivalent
 shares outstanding 41,110,353 33,872,044
 NOTES:
 A. In addition to the extraordinary gains resulting from the extinguishment of public debt of the Company and a subsidiary, revenues for 1992 and 1991 include gains on the purchase of public debt of the Company and a subsidiary for sinking fund requirements of $4.5 million and $14.7 million, respectively.
 B. Income from continuing operations for 1992 includes a gain of $6.7 million, net of tax, which resulted from the July 1992 sale through a public offering of 4,547,600 shares of Bally Gaming International, Inc. common stock (approximately 43% of the then outstanding shares of Bally Gaming International, Inc.) which were held by the Company. Loss from continuing operations for 1991 includes a gain of $5.2 million, net of tax, which resulted from the November 1991 sale through a public offering of 3,000,000 shares of Bally Gaming International, Inc. common stock which were held by the Company. The financial results for 1992 and 1991 have been presented (after restatement of 1991) to reflect the results of operations of Bally Gaming International, Inc. on the equity method of accounting due to the July 1992 public offering.
 C. The financial results for 1991 reflect as discontinued operations the results of operations of the Company's Life Fitness, Inc. and Scientific Games, Inc. businesses, which were sold on July 2, 1991 and October 1, 1991, respectively. In addition, included in income from discontinued operations for 1991 is a net gain on the sale of these businesses of $18.0 million, net of tax.
 D. The financial results for 1992 and 1991 have been presented to reflect the results of operations of Bally's Grand, Inc. on the equity method of accounting. Pursuant to the Amended Plan of Reorganization for Bally's Grand, Inc., the Company believes: (i) it will lose control of this subsidiary, which is currently operating as a debtor-in-possession under the authority of the United States Bankruptcy Code; and (ii) its loss is limited to its investment in and advances to this subsidiary, which were written down to zero in 1990.
 E. Loss from continuing operations per common and common equivalent share is calculated after giving effect to the preferred stock dividend requirement.
 BALLY MANUFACTURING CORPORATION
 CONSOLIDATED OPERATING SUMMARY
 (unaudited)
 Three months ended December 31
 1992 1991
 Revenues $299,647,000 $284,500,000
 Loss from continuing
 operations before income
 taxes (26,884,000) (47,446,000)
 Loss from continuing
 operations (16,120,000) (29,625,000)
 Loss from discontinued
 operations (4,851,000)
 Extraordinary items:
 Credit for utilization of
 tax loss carryforwards 1,419,000
 Gain on extinguishment of
 debt 664,000
 Net loss (14,701,000) (33,812,000)
 Preferred stock dividend
 requirement 694,000 694,000
 Net loss applicable to common
 stock (15,395,000) (34,506,000)
 Per common and common equivalent
 share:
 Loss from continuing
 operations $(.37) $(.84)
 Loss from discontinued
 operations (.14)
 Extraordinary items:
 Credit for utilization of
 tax loss carryforwards .03
 Gain on extinguishment of debt .02
 Net loss (.34) (.96)
 Average common and common equivalent
 shares outstanding 45,202,070 36,092,993
 NOTES:
 A. Loss from continuing operations for the three months ended December 31, 1991 includes a gain of $5.2 million, net of tax, which resulted from the November 1991 sale through a public offering of 3,000,000 shares of Bally Gaming International, Inc. common stock which were held by the Company.
 B. The financial results for the three months ended December 31, 1992 and 1991 have been presented (after restatement of the 1991 period) to reflect the results of operations of Bally Gaming International, Inc. on the equity method of accounting due to the July 1992 sale of an additional 4,547,600 shares of Bally Gaming International, Inc. common stock (approximately 43 % of the then outstanding shares of Bally Gaming International, Inc.) which were held by the company.
 C. The financial results for the three months ended December 31, 1991 reflect as discontinued operations the results of operations of the Company's Life Fitness, Inc. and Scientific Games, Inc. businesses, which were sold on July 2, 1991 and October 1, 1991, respectively. In addition, included in loss from discontinued operations for the 1991 period is a net loss on the sale of these businesses of $4.2 million, net of tax.
 D. The financial results for the three months ended December 31, 1992 and 1991 have been presented to reflect the results of operations of Bally's Grand, Inc. on the equity method of accounting. Pursuant to the Amended Plan of Reorganization for Bally's Grand, Inc., the Company believes: (i) it will lose control of this subsidiary, which is currently operating as a debtor-in-possession under the authority of the United States Bankruptcy Code; and (ii) its loss is limited to its investment in and advances to this subsidiary, which were written down to zero in 1990.
 E. Loss from continuing operations per common and common equivalent share is calculated after giving effect to the preferred stock dividend requirement.
 -0- 2/22/93
 /CONTACT: Laurie Terry or Michael W. Kempner, 201-342-9500, both of MWW/Strategic Communications for Bally/
 (BLY)


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

MA -- NY010 -- 8772 02/22/93 08:01 EST
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Date:Feb 22, 1993
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