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BALLY MANUFACTURING POSTS 5TH CONSECUTIVE QUARTER OF IMPROVED RESULTS

BALLY MANUFACTURING POSTS 5TH CONSECUTIVE QUARTER OF IMPROVED RESULTS
 "STEADY" PROGRESS IN THIRD QUARTER AND FIRST NINE MONTHS SIGNALS
 STRONGEST PERFORMANCE SINCE 1989, SAYS CHAIRMAN GOLDBERG
 CHICAGO, Oct. 30 /PRNewswire/ -- Arthur M. Goldberg, chairman and CEO of Bally Manufacturing Corporation (NYSE: BLY), announced today results from operations for the quarter, and the nine-month period ended Sept. 30, 1992 "reflected, on a consolidated basis, the fifth consecutive quarter of improved results from continuing operations."
 For the third quarter of 1992, income from continuing operations improved to $8,632,000 ($.20 per share) compared to $5,107,000 ($.12 per share) for the same period in 1991. Before income taxes, continuing operations earned $19,400,000 during the quarter compared to $7,584,000 in 1991. Net income for the third quarter was $17,818,000 ($.43 per share) compared to $41,208,000 ($1.16 per share) in 1991. Net income for the third quarter of 1992 included extraordinary gains from utilization of net loss carryforwards totalling $9,186,000 ($.23 per share). The 1991 period included income from discontinued operations of $22,302,000 ($.64 per share) and gains from the extinguishment of debt totalling $13,799,000 ($.40 per share).
 For the nine-month period ended Sept. 30, 1992, income from continuing operations totalled $16,677,000 ($.37 per share) compared to a loss from continuing operations of $28,200,000 ($.91 per share) for the 1991 period. Before income taxes, continuing operations earned $30,143,000 during the first nine months of 1992, compared to a loss of $36,773,000 during the same period a year earlier, a year-to-year improvement of $66,916,000.
 Net income for the nine-month period in 1992 was $26,475,000 ($.62 per share) compared to $55,340,000 ($1.61 per share) in 1991. Net income for the 1992 period included extraordinary gains from utilization of net loss carryforwards and the extinguishment of debt totalling $9,798,000 ($.25 per share). The 1991 period included income from discontinued operations of $28,151,000 ($.85 per share) and extraordinary gains of $55,389,000 ($1.67 per share) from debt extinguishment.
 "Our third quarter results from continuing operations reflect Bally Manufacturing's continued steady progress including our typically strong third quarter in the Atlantic City casino hotel segment. Our nine-month results from continuing operations reflect the company's strongest performance for three consecutive quarters since 1989," said Goldberg. "Our Atlantic City casino hotels, having received their two-year gaming license extension and aided by the commencement of unrestricted 24-hour gaming, posted solid operating income for the quarter, and maintained steady operating income on a year-to-date basis."
 For the 1992 third quarter, operating income of the Atlantic City casino hotels was $37,071,000 compared to $37,949,000 for the same period in 1991, while for the nine-month period, operating income was virtually unchanged at $76,909,000 compared to $77,178,000 for the same period in 1991.
 Operating income of the fitness center segment was $1,090,000 for the third quarter compared to $7,149,000 for the same period in 1991. "The 1991 period included the record-setting results of an off-season promotion in August and September, while our 1992 results were negatively impacted by Hurricane Andrew which significantly disrupted operations in the Southern Florida clubs," Goldberg said.
 For the nine-month period ended Sept. 30, 1992, the fitness centers' operating income was $40,642,000 compared to $15,418,000 in 1991. This segment continues its focus on cash from operations posting $15,380,000 for the 1992 third quarter and $41,932,000 year-to-date.
 The July 1992 sale of 4.5 million additional shares of common stock of Bally Gaming International, the gaming equipment business which Bally Manufacturing initially took public in November 1991, raised net proceeds totalling $51,243,000 which were used principally for debt service. The gain before income taxes from this sale and related transactions totalled $15,235,000.
 "Our recently completed exchange offer to the holders of Bally Manufacturing's debentures and preferred shareholders eliminates all remaining defaults on consolidated debt as well as arrearages on preferred dividends and signals the return of Bally's ability to utilize the capital markets more effectively and explore opportunities to grow its businesses," Goldberg said.
 Bally Manufacturing is one of the world's foremost operators of casino hotels and fitness centers. Bally is listed on the New York Stock Exchange (NYSE: BLY.)
 BALLY MANUFACTURING CORPORATION
 Consolidated Operating Summary
 (unaudited)
 Three months ended Sept. 30 1992 1991
 Revenues $333,358,000 $349,078,000
 Income from continuing operations before
 income taxes 19,400,000 7,584,000
 Income from continuing operations 8,632,000 5,107,000
 Income from discontinued operations --- 22,302,000
 Extraordinary items:
 Credit for utilization of net loss
 carryforwards 9,186,000 ---
 Gain on extinguishment of debt --- 13,799,000
 Net income 17,818,000 41,208,000
 Preferred stock dividend requirement 694,000 694,000
 Net income applicable to common stock 17,124,000 40,514,000
 Earnings per common and common equivalent share:
 Income from continuing operations $.20 $.12
 Income from discontinued operations --- .64
 Extraordinary items:
 Credit for utilization of net loss carryforwards .23 ---
 Gain on extinguishment of debt --- .40
 Net income .43 1.16
 Average common and common equivalent
 shares outstanding 39,616,747 34,796,104
 Notes:
 (A) -- In addition to the extraordinary gains resulting from the extinguishment of public debt of the company and a subsidiary, revenues for the three months ended Sept. 30, 1992 and 1991 include gains on the purchase of public debt of the company for sinking fund requirements of $.6 million and $.8 million, respectively.
 (B) -- Income from continuing operations before income taxes for the three months ended Sept. 30, 1992 includes a gain of $15.2 million which resulted from the sale through a public offering of 4,547,600 shares of Bally Gaming International, Inc., common stock (approximately 43 percent of the then outstanding shares of Bally Gaming International, Inc.). Upon completion of the sale, the financial results for the three months ended Sept. 30, 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.
 (C) -- The financial results for the three months ended Sept. 30, 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 Oct. 1, 1991 respectively. In addition, included in income from discontinued operations for the three months ended Sept. 30, 1991 is a gain on the sale of Life Fitness, Inc., of $22.2 million, net of tax.
 (D) -- The financial results for the three months ended Sept. 30, 1992 and 1991 have been presented (after restatement of the 1991 period) to reflect the results of operations of Bally's Grand, Inc., on the equity method of accounting. Pursuant to the 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) -- There was no difference between primary and fully diluted earnings per common and common equivalent share in either period. In addition, the


average common and common equivalent shares outstanding exclude the issuance of approximately 6.8 million shares of company common stock in October 1992 in connection with the consent solicitations.
 BALLY MANUFACTURING CORPORATION
 Consolidated Operating Summary
 (unaudited)
 Nine months ended Sept. 30 1992 1991
 Revenues $997,355,000 $978,012,000
 Income (loss) from continuing operations
 before income taxes 30,143,000 (36,773,000)
 Income (loss) from continuing operations 16,677,000 (28,200,000)
 Income from discontinued operations --- 28,151,000
 Extraordinary items:
 Credit for utilization of net loss
 carryforwards 9,186,000 ---
 Gain on extinguishment of debt 612,000 55,389,000
 Net income 26,475,000 55,340,000
 Preferred stock dividend requirement 2,083,000 2,083,000
 Net income applicable to common stock 24,392,000 53,257,000
 Earnings per common and common equivalent share:
 Income (loss) from continuing operations $.37 $(.91)
 Income from discontinued operations --- .85
 Extraordinary items:
 Credit for utilization of net loss carryforwards .23 ---
 Gain on extinguishment of debt .02 1.67
 Net income .62 1.61
 Average common and common equivalent shares
 outstanding 39,387,075 33,123,592
 Notes:
 (A) -- In addition to the extraordinary gains resulting from the extinguishment of public debt of the company and a subsidiary, revenues for the nine months ended Sept. 30, 1992 and 1991 include gains on the purchase of public debt of the company for sinking fund requirements of $4.5 million and $14.7 million, respectively.
 (B) -- Income from continuing operations before income taxes for the nine months ended Sept. 30, 1992 includes a gain of $15.2 million which resulted from the sale through a public offering of 4,547,600 shares of Bally Gaming International, Inc., common stock (approximately 43 percent of the then outstanding shares of Bally Gaming International, Inc.). Upon completion of the sale, the financial results for the nine months ended Sept. 30, 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.
 (C) -- The financial results for the nine months ended Sept. 30, 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 Oct. 1, 1991 respectively. In addition, included in income from discontinued operations for the nine months ended Sept. 30, 1991 is a gain on the sale of Life Fitness, Inc., of $22.2 million, net of tax.
 (D) -- The financial results for the nine months ended Sept. 30, 1992 and 1991 have been presented (after restatement of the 1991 period) to reflect the results of operations of Bally's Grand, Inc., on the equity method of accounting. Pursuant to the 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) -- There was no difference between primary and fully diluted earnings per common and common equivalent share in either period. In addition, the average common and common equivalent shares outstanding exclude the issuance of approximately 6.8 million shares of company common stock in October 1992 in connection with the consent solicitations.
 -0- 10/30/92
 /CONTACT: Michael Kempner or Stan Steinreich of MWW/Strategic Communications, 201-342-9500, for Bally/
 (BLY) CO: Bally Manufacturing Corporation ST: Illinois IN: CNO SU: ERN


KD -- NY101 -- 7397 10/30/92 19:31 EST
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Date:Oct 30, 1992
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