Printer Friendly


 BAY SAINT LOUIS, Miss., Nov. 9 /PRNewswire/ -- Casino Magic Corp. (NASDAQ-NMS: CMAG) today reported net income of $8,611,000, or 28 cents per share, for the third quarter ended Sept. 30, 1993, vs. a net loss of $2,863,000, or 22 cents per share in last year's third quarter. Net revenues for the third quarter were $61,437,000, vs. $1,127,000 last year.
 For the nine months ended Sept. 30, net income was $31,895,000, or $1.04 per share, vs. a net loss of $4,052,000, or 29 cents per share in last year's nine-month period. Net revenues for the nine months were $147,129,000, vs. $2,270,000 last year.
 Marlin F. Torguson, president and chief executive officer of Casino Magic said, "Our business on the Mississippi Gulf Coast continues to grow. In the third quarter, with the added contribution of our new Biloxi casino, combined net revenues from our two Gulf Coast casinos grew by more than 30 percent over the second quarter.
 "Our Bay Saint Louis casino continues to generate excellent customer traffic and recorded 35 percent operating margins in the third quarter despite expenses related to the Dubuque Casino Belle, which was moored next to the Bay Saint Louis casino through Sept. 15.
 "The Biloxi casino, which opened its first phase in June, showed an increase in revenues in each month of the third quarter, but did not contribute to net income in the quarter. We plan to complete the construction of our two permanent parking facilities at the Biloxi casino soon after the first of the year, and we expect that the availability of parking and the opening of the second phase of casino operations will improve revenues at Casino Magic Biloxi.
 "Shortly after the end of the third quarter the company received net proceeds of approximately $128 million from a private placement of First Mortgage Notes and warrants to purchase 810,000 shares of common stock. This financing substantially strengthened our balance sheet and allowed us to repay approximately $51 million in debt and construction payables that were classified as current liabilities on our Sept. 30 balance sheet. We also used approximately $24 million to refinance other long-term liabilities. In addition, the private placement gave us approximately $53 million in cash, which will be used for general corporate purposes, including the evaluation and development of additional gaming opportunities."
 The company confirmed that its joint venture partnership with Caesars World submitted a proposal to the St. Louis Development Corporation on Oct. 18 to plan, develop and operate a dockside riverboat gaming casino and entertainment
complex in St. Louis, Mo. Casino Magic is also awaiting approval of its license application by the Greek Government's Gaming Commission to develop, operate, manage and partially own an American-style casino in Greece.
 Torguson said, "In addition to St. Louis, and Porto Carras, Greece, we have been active in pursuing and securing real estate options in potential new gaming jurisdictions in the U.S., and we are in the process of negotiating agreements for future management opportunities under the Indian Gaming Regulatory Act. These new business development efforts are consistent with our strategy of positioning Casino Magic for profitable long term growth."
 Casino Magic Corp., a Minnesota corporation with principal offices in Bay Saint Louis, Miss., operates gaming casinos in Bay Saint Louis and Biloxi, Miss., and Deadwood, S.D.
 The common stock of Casino Magic Corp. is listed on the NASDAQ National Market System under the symbol CMAG.
 (Dollar amounts in thousands except per share data)
 Three months ended Three months ended
 Sept. 30, 1993 Sept. 30, 1992
 (unaudited) (unaudited)
 Net revenues $61,437 $1,127
 Costs and expenses 46,410 1,940
 Pre-opening expense 0 1,597
 Other (income) expense 1,264 453
 Income (loss) before
 income taxes 13,763 (2,863)
 Income taxes 5,152 0
 Net income (loss) $8,611 $(2,863)
 Net income (loss)
 per common share (a) $0.28 $(0.22)
 Weighted average
 common shares and
 common share
 equivalents outstanding (a) 30,932,122 13,024,584
 Nine months ended Nine months ended
 Sept. 30, 1993 Sept. 30, 1992
 (unaudited) (unaudited)
 Net revenues $147,129 $2,270
 Costs and expenses 93,914 3,806
 Pre-opening expense 2,114 1,597
 Other (income) expense 2,059 919
 Income (loss) before
 income taxes 49,042 (4,052)
 Income taxes 17,147 0
 Net income (loss) $31,895 $(4,052)
 Net income (loss)
 per common share (a) $1.04 $(0.29)
 Weighted average
 common shares and
 common share
 equivalents outstanding (a) 30,578,233 14,080,528
 (a) Per share amounts and shares outstanding have been adjusted to reflect a 3-for-1 stock split effective June 18, 1993.
 -0- 11/9/93
 /CONTACT: Doug Ewing of Swenson/Falker Associates, 612-371-0000 or Marlin Torguson of Casino Magic Corp., 601-467-9257/

CO: Casino Magic Corp. ST: Minnesota, Missouri, Mississippi IN: CNO SU: ERN

DS-AL -- MN005 -- 2134 11/09/93 09:32 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 9, 1993

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters