BLACK HAWK HOLDINGS, INC. ANNOUNCES FURTHER INFORMATION REGARDING THE ACQUISITION OF EAGLE PLASTICS, INC.
MINNEAPOLIS, Oct. 22 /PRNewswire/ -- Black Hawk Holdings, Inc. (OTC Bulletin Board: BHHI), a Minneapolis-based public company, announced on September 16 that it had signed a definitive purchase agreement to acquire approximately 91 percent of Eagle Plastics, Incorporated. The acquisition is scheduled to be completed by the end of November. Acquisition funds will come from approximately $15,000,000 of debt and $3,000,000 of cash. It is anticipated that the debt will be in two components, approximately $10,000,000 of senior secured debt, $6,000,000 of which to provide a revolving credit line for Eagle, and $5,000,000 of subordinated debt. In conjunction with the acquisition, Black Hawk and Eagle have prepared financial statements for the eight month period ended Aug. 31, 1993 and prepared pro forma statement of operation data on a combined basis as if the acquisition of Eagle occurred on the first day of the appropriate period. The following reflects, on a selected basis, such information. Selected Financial Information Statement of Operations Data: BLACK HAWK EAGLE Year Eight Months Year Eight Months Ended Ended Ended Ended 12/31/93 8/31/93 12/31/92 8/31/93 Net Revenues $72,297 $12,604 $23,248,765 $17,202,671 Net (Loss) Earnings (690,557)(169,093) 1,629,999(a) 1,138,450(a) Pro Forma Net (Loss) Income(a) -- -- 984,999 689,450 Deficiency in Income Required to Pay Preferred Stock Dividends -- -- -- -- PRO FORMA Year Ended Eight Months Ended Net Revenues $23,321,062 $17,215,276 Net (Loss) Earnings (697,558) (129,643) Pro Forma Net (Loss) Income(a) -- -- Deficiency in Income Required to Pay Preferred Stock Dividends (890,058) (257,976) (a) Eagle elected to have its income taxed as an S corporation under the provisions of the Internal Revenue Code; therefore, taxable income or loss was reported to the individual stockholders for inclusion in their respective tax returns. No provision for federal and state income taxes is included in determining net income. The pro forma net (loss) income reflects net income which would have been reported had Eagle not elected to be taxed as an S corporation. Balance Sheet Data: As of August 31, 1993 Black Hawk Eagle Actual Actual Current Assets $412,311 $6,145,211 Total Assets 499,948 10,951,063 Current Liabilities 56,070 4,144,281 Long Term Liabilities --- 2,056,113 Minority Interest --- --- Total Stockholders' Equity 443,878 4,750,669 The complete financial and other information is available upon request from Black Hawk. Black Hawk's Common Stock is traded on the NASDAQ Bulletin Board under the symbol BHHI. -0- 10/22/93 /CONTACT: Melissa Quinn of Padilla Speer Beardsley, 612-871-8877, for Black Hawk Holdings; or William H. Spell of Black Hawk Holdings, 612-371-9650/ (BHHI)
CO: Black Hawk Holdings, Inc. ST: Minnesota IN: FIN SU: TNM
AL-DS -- MN019 -- 5860 10/22/93 15:59 EDT
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|Date:||Oct 22, 1993|
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