GRAND CASINOS, INC. ANNOUNCES PROFITABLE FISCAL YEAR
GRAND CASINOS, INC. ANNOUNCES PROFITABLE FISCAL YEAR MINNEAPOLIS, Oct. 26 /PRNewswire/ -- Grand Casinos, Inc.
(NASDAQ-NMS: GRND), which manages two Las Vegas-style casinos on behalf of the Mille Lacs Band of Ojibwe Indians in northern Minnesota, today announced the company operated profitably in its fiscal year ended Aug. 2, 1992.
Lyle Berman, chairman and chief executive officer of Grand Casinos, said the close of the fiscal year also marked the company's sixth consecutive quarter of profitability as a result of continuing strong patronage at the two company-managed casinos -- Grand Casino Mille Lacs and Grand Casino Hinckley -- both located north of Minneapolis. Grand Casino Mille Lacs opened in April 1991, and Grand Casino Hinckley opened in May 1992. On a combined basis, these facilities generated slightly more than $74.0 million of gaming revenue in fiscal 1992. In the same period, the company reported pro forma net income of $2.8 million, or $0.26 per share, on total revenues of $7.1 million. There were 10.7 million pro forma weighted average common shares outstanding at fiscal year-end 1992 compared with pro forma weighted average common shares outstanding of 8.7 million at fiscal year-end 1991. In the fourth quarter, pro forma net income was $1.3 million, or $0.10 per share, on total revenues of $3.2 million and 12.8 million pro forma weighted average common shares outstanding. Grand Casinos' revenues represent the company's 40 percent share of distributable casino profits, with the remaining 60 percent going to the tribe. Because the company's first casino, Grand Casino Mille Lacs, did not open until April 1991, and therefore only generated revenues for the four months in fiscal 1991, and the company's second casino, Grand Casino Hinckley, did not open until May 1992, fiscal-year 1991 results are not comparable to 1992 fiscal-year results. Berman said the company is extremely pleased with the financial and operational strides made in its first year as a public company. "Fiscal 1992 was a year of positioning and growth, with Grand Casinos achieving momentum," Berman said. "We operated profitably, absorbing substantial costs of recruiting and training staff, negotiating and securing additional management contracts and casino sites, and building a management team with the experience and depth to manage six to eight casinos, which is the company's goal over the next two years." Berman said in addition to the two casinos currently in operation, Grand Casinos has management contracts to develop and manage casinos on behalf of the Coushatta and the Tunica-Biloxi Tribes of Louisiana -- giving the company a total of four casino management opportunities in Indian gaming. He noted the Louisiana casinos should be opened during the 1993 calendar year. Also, as previously announced, the company has received approval by the Mississippi Gaming Commission for a gaming license for its proposed Gulfport, Miss., dockside casino. Berman said Grand Casino Gulfport, the first of three dockside casinos the company plans to own, develop and operated on the Gulf Coast, is expected to open in the spring of 1993 with 1,500 slot machines and 100 tables games, housed on four connected barges totaling 204,000 square feet. He said the casino facility will also have restaurants, an entertainment lounge, a day care center and ample, on-site parking. Berman noted, with these projects in its pipeline, Grand Casinos is well on its way toward achieving its operating goal. FINANCIAL POSITION STRENGTHENED The company received approximately $52.2 million in net proceeds from public offerings of 2,760,000 and 2,875,000 shares of common stock in October 1991, and May 1992, respectively. The net proceeds of these public offerings have been used to develop, construct and equip Grand Casino Mille Lacs and Hinckley and will be used to partially fund the development, construction and equipping of the Mississippi casino and the casinos for the Tunica-Biloxi and the Coushatta Tribes. At the close of the company's fiscal year, the company's financial position was strong, reflecting its growing profitability and successful equity offerings. At Aug. 2, 1992, shareholders' equity was $54.4 million, or $4.08 per share, the current ratio was a very strong 12-to-1 and working capital totalled $36.0 million, which included $29.8 million in cash and cash equivalents. Grand Casinos, Inc. develops and manages casino gaming facilities for Indian Tribes on Indian land and is currently developing its own gaming facilities which are not located on Indian land. The company's common stock is traded on the NASDAQ National Market System under the symbol GRND. GRAND CASINOS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS Three months ended Aug. 2, 1992 July 28, 1991 Revenues $3,174,266 $2,325,963 Income before income taxes 2,108,120 2,095,715 Net earnings 1,264,877 2,095,715 PRO FORMA DATA Historical income before income taxes 2,108,128 2,095,715 Pro forma provision for income taxes at 40 percent 843,251 822,740 Pro forma net earnings 1,264,877 1,272,975 Pro forma net earnings per common share $0.10 $0.11 Pro forma weighted average common shares outstanding 12,790,357 11,262,248 Twelve months ended Aug. 2, 1992 July 28, 1991 Revenues $7,089,421 $2,396,797 Income before income taxes 4,659,300 2,056,849 Net earnings 3,339,300 2,056,849 PRO FORMA DATA Historical income before income taxes 4,659,300 2,056,849 Pro forma provision for income taxes at 40 percent 1,863,720 822,740 Pro forma net earnings 2,795,580 1,234,109 Pro forma net earnings per common share $0.26 $0.14 Pro forma weighted average common shares outstanding 10,739,147 8,736,754 CONSOLIDATED BALANCE SHEET Twelve months ended Aug. 2, 1992 July 28, 1991 CURRENT ASSETS: Cash and cash equivalents $29,829,773 $ 832,975 Total current assets 39,242,879 2,383,544 Total Assets 57,916,874 4,963,257 LIABILITIES: Total current liabilities 3,214,863 542,051 Total liabilities 3,479,349 542,051 SHAREHOLDERS' EQUITY: Total shareholders' equity 54,437,525 4,421,206 Total liabilities and shareholders' equity $57,916,874 $4,963,257 -0- 10/26/92 /CONTACT: Tom Brosig, chief operating officer, or James White, chief financial officer, Grand Casinos, Inc., 612-449-9092; or Michael Rosenbaum or Audrey Lowe, both of FRB/Chicago, 312-266-7800/ /NOTE: For more information on Grand Casinos, Inc. via facsimile at no cost, simply dial 1-800-PRO-INFO and enter company code number 079/ (GRND) CO: Grand Casinos, Inc. ST: Minnesota IN: CNO SU: ERN
KH -- MN012 -- 4881 10/26/92 14:06 EST
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|Date:||Oct 26, 1992|
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