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GRAND CASINOS, INC. FIRST ANNUAL SHAREHOLDERS MEETING EXCERPTS FROM THOMAS J. BROSIG SPEECH

 MINNEAPOLIS, Minn., Dec. 22 /PRNewswire/ -- The following is text from a speech given by Thomas J. Brosig, chief operating officer of Grand Casinos, Inc. (NASDAQ: GRND), at the annual meeting held Dec. 18, 1992:
 This has certainly been a year of change and a year of accomplishment and we expect the next twelve months will be just as exciting and rewarding for our shareholders.
 Our goal since day one has been to operate six to eight premier Las Vegas-style destination resorts within two or three years.
 Toward that end, we currently have two casinos, owned by the Mille Lacs Band of Ojibwe, open and profitable.
 Grand Casino Mille Lacs is a facility encompassing 108,000 square feet with 45,000 feet of gaming space. The casino has almost 1,400 slots, 48 table games, a full service restaurant, buffet, bingo hall, lounge and snack shop.
 Grand Casino Hinckley is a facility encompassing 116,000 square feet with 40,000 feet of gaming space. This casino has 1,500 slots, 52 table games, our newest restaurant concept, Grand Grille Americana, a buffet, Kids Quest, video arcade, lounge, snack stop and RV park.
 These casinos represent the eleventh and thirteenth casinos opened in the state of Minnesota -- which has quickly become a mature gaming market. As such, our near-term outlook in this market is for modest revenue growth.
 In Mississippi, we are currently developing two company-owned dockside casinos.
 The first of these is located in Gulfport and has an expected opening date of May 15, 1993. This facility will be 204,000 square feet with approximately 65,000 square feet of casino space for 1,600 slots, 90 to 100 table games and a 20 table poker room. The property will have a buffet, casual restaurant and food court with seating capacity for over 1,000 patrons. In addition, there will be a Kids Quest and video arcade with onsite parking for almost 1,800.
 In Biloxi, we plan to open in October, 1993. The casino will be similar in size and scope to our Gulfport facility. We have been licensed for both these sites by the Mississippi Gaming Commission and development is proceeding on schedule.
 We are in the midst of a private placement marketing effort to raise approximately $100 million of high-yield debt secured by a first mortgage on the assets. This financing will most likely include an equity component -- the amount and price of which are being negotiated.
 In Louisiana, we have contracts, approved by the Bureau of Indian Affairs, with two tribes, the Coushatta and Tunica-Biloxi. Both tribes have also successfully negotiated a compact with the state governing the games to be played in the casinos.
 When opened in November or December, 1993, these sites will be the first land-based, full service casinos to open in the state of Louisiana and, together with the two Grand Casinos open in Mississippi, will provide strong brand recognition in the region.
 We expect the initial performance of the Louisiana casinos will be similar to that realized thus far at the Minnesota casinos.
 So you can see we have significant strides toward the attainment of our near-term goal.
 We are a growth oriented company specializing in emerging gaming markets.
 We have set our longer-term sites on opening additional casinos each year beyond 1993. In fact, we have had substantive discussions with twelve tribes, government officials or local representatives for locations in larger metropolitan markets that are in the early states of legalizing gaming for their jurisdiction.
 As such, our longer-term goal is to operate up to twelve facilities like those we've been discussing.
 Remember, though, this is only a goal and our success in attaining this goal is subject to many obstacles, including limited finances, licensing, contract negotiation and approvals.
 To remain focused on accomplishing the aggressive goals we've set, our unique organizational structure approach was developed.
 You have already been introduced to many of our vice presidents and middle management associates. It is quite an impressive group with significant experience.
 We are internally organized into three distinct segments, all under the direction of Lyle Berman, the chief executive officer.
 First, we have a new business development group under the direction of Stan Taube. These folks are focused on being opportunistic in the emerging gaming venues.
 Second, we have a number of people under my direction. Our group assumes responsibility for the projects from the time we get the legal right to proceed and construction begins up until the ribbon is cut at grand opening.
 And lastly, Denis O'Brien, our senior vice president of casino operations, assumes responsibility for the property after it is open.
 Our management in each area principally comes from either the retail or gaming industries. We accessed the retail industry for expertise in recruiting, training and food services, to name a few.
 From the gaming industry, we sought operations, finance, planning, marketing and casino layout expertise.
 Together, this group, hand picked specifically to execute the game plan I have discussed, represents the most diverse and competent senior management of any gaming company specializing in emerging market development.
 Our financial performance in our early stage development phase has resulted in seven consecutive quarters of profitability. We have never gone in the public market to raise money to fund operating losses and today, we have in place the management talent required to open and operate the targeted 6 to 8 casinos, our initial company goal.
 In the quarter just ended, slot win of $28.1 million represents 84 percent of the gaming revenue and 69 percent of the total revenue, which was $40.7 million. Casino operating expense, which includes capital reinvested and principal repayment for moneys loaned to the casino, was $32.2 million or 79 percent of revenue. This left $8.5 million, or 21 percent, which was distributed between the Mille Lacs Band and Grand Casinos, or $3.4 million.
 Our operating expenses were $1.7 million in the quarter, or 50 percent of revenue, up from 14 percent of revenue in the comparable quarter last year. This increase highlights our front loading of expenses. In addition, the current quarter includes a one-time write off of $415,000, or $0.02 per share, attributable to the previously announced decision to withdraw from the Hayward, Wis., project.
 Net income for the quarter was $1.0 million, or $0.07 per share.
 Our balance sheet remains strong with over $55 million of equity and we have over $15 million of cash in the bank.
 Because so much of our recent effort has been focused on developing the company's first two owned properties in Mississippi, I wanted to spend a few moments telling you why.
 In Mississippi, we will operate within a wholly owned subsidiary, Good Casino Resorts. This region has distinct ingredients which will enhance its ability to become a major destination gaming market.
 First, it has population density. Second, it has an available infrastructure. Third, the coast is in close proximity to a regional airport. Fourth, there is a quality road network. Fifth, there is an existing, year-round tourism base. And finally, there is a convention center business.
 Let's examine these more closely.
 In the Minnesota casinos, we have proven that it is possible to convince day trip self drive customers to drive 90 miles or more to experience the fun and excitement these facilities offer. In fact, over 100,000 Minnesotans visit these casinos each week.
 Mississippi has a comparable population density of 2.4 million people within 90 miles. However, the real advantage of Mississippi is the density of people -- 43 million -- living with 500 miles of the site. The comparable Minnesota 500 mile population density is 32 million.
 There needs to be an infrastructure -- in addition to the casino -- to draw people. In Mississippi that already exists with over 5,000 hotel rooms, 26 miles of white sand beaches, shallow and warm water, 16 golf courses, deep sea fishing, quality food outlets and many other tourist attractions.
 The area is serviced by a regional airport which is located just three miles from our Gulfport location and fourteen miles from the Biloxi site. The airport currently is serviced by 16 flights each day on Northwest, Delta, American and Continental and is capable of landing the largest commercial jets in use, up to and including a 747 jumbo jet. The airport provides an excellent opportunity to market day trip air packages to the over 18 million people who live near a city with a major airport. Cities such as Tampa, Atlanta, Dallas and Houston, to name a few. These fall within the 500 mile radius of our sites -- about a one hour air commute.
 Anyone choosing to drive to the coast will find a quality road network available to them.
 Our sites are both located on U.S. 90, the primary east-west road along the coast, which currently has a daily traffic flow approximately 27 thousand cars.
 Four miles to the north is Interstate 10, which is the major east- west interstate along the southern end of the United States.
 The north-south connection at Gulfport is U.S. 49 and at Biloxi, I- 110 -- both major roadways.
 When you consider these highways connect with four other interstate roads, virtually all 43 million people living within 500 miles of these sites could drive to the coast within 8 hours.
 Prior to legalizing dockside gaming, the coast had a tourism base. Many people accessed the welcome center on I-10, lodging receipts were $48 million and overall retail sales were in excess of $2.2 billion. In addition, there were 1.9 million overnight visitors and 1.1 million people who came to the coast for the day.
 And lastly, there is a convention center in Biloxi which seats 11,500 and includes exhibit and banquet facilities. In 1991, 252 conventions had over 79 thousand delegates.
 The Biloxi site is in an area which will have a number of competitors. We believe this is the area of the coast which will develop into a strip of casinos.
 Biloxi, like Gulfport, will have the two barges situated along the front with enough land on either side for development of a hotel and or entertainment complex sometime in the future.
 In the early years we believe our two properties will dominate the Gulf Coast region. If project development occurs as scheduled, management believes it is possible for these sites to contribute incremental net income between $35 and $45 million in fiscal 1994. However, as the market matures and stabilizes, we see results moving more in line with those of mature gaming markets.
 -0- 12/22/92
 /CONTACT: Tom Brosig or James White of Grand Casinos, 612-449-9092; Michael Rosenbaum or Audrey Lowe, (Chicago) 312/266-7800, or Sue Caulton, (New York) 415-986-1591, all of Financial Relations Board for Grand Casinos/
 (GRND)


CO: Grand Casinos, Inc. ST: Minnesota IN: CNO SU:

TM -- NY069 -- 9366 12/22/92 18:55 EST
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