-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TZSZ2RA+EUOpwWda0SaqMzU8hg/mm5i2mhl3kbLMeCkK0RL+l5A5SczJfsa82roE c1safvqwtev0w3FD+fuBXg== 0000892569-96-000919.txt : 19960612 0000892569-96-000919.hdr.sgml : 19960612 ACCESSION NUMBER: 0000892569-96-000919 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960607 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CALIFORNIA HOTEL & CASINO CENTRAL INDEX KEY: 0000824412 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MISCELLANEOUS AMUSEMENT & RECREATION [7990] IRS NUMBER: 880121743 STATE OF INCORPORATION: NV FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: 1934 Act SEC FILE NUMBER: 033-51672-01 FILM NUMBER: 96578126 BUSINESS ADDRESS: STREET 1: 2950 S INDUSTRIAL RD CITY: LAS VEGAS STATE: NV ZIP: 89109 BUSINESS PHONE: 7027927216 MAIL ADDRESS: STREET 1: 2950 SOUTH INDUSTRIAL ROAD CITY: SAS VEGAS STATE: NV ZIP: 89109 10-Q/A 1 AMENDMENT NO. 1 TO QUARTERLY REPORT OF 12/31/95 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q / A (AMENDMENT NUMBER 1) (Mark One) [ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 1995 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________ Commission file number 33-51672 CALIFORNIA HOTEL AND CASINO (Exact name of registrant as specified in its charter) NEVADA 88-0121743 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 2950 SOUTH INDUSTRIAL ROAD LAS VEGAS, NEVADA 89109 (Address of principal executive offices) (Zip Code) (702) 792-7200 (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to filing requirements for the past 90 days. Yes X No ----- ----- Shares outstanding of each of the Registrant's classes of common stock as of January 31, 1996
Class Outstanding ----- ----------- Common stock, no par value 1,000
2 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS The following table sets forth for the periods indicated certain Income Statement Data for the Company's properties. As used herein, "Boulder Strip Properties" consist of Sam's Town Las Vegas, the Eldorado Casino and Jokers Wild Casino; and "Downtown Properties" consist of the California Hotel and Casino and the Fremont Hotel and Casino.
THREE MONTHS ENDED SIX MONTHS ENDED DECEMBER 31, DECEMBER 31, 1995 1994 1995 1994 --------- --------- --------- ---------- (IN THOUSANDS) (IN THOUSANDS) INCOME STATEMENT DATA NET REVENUES Stardust $ 48,612 $ 50,581 $ 96,406 $ 98,737 Boulder Strip Properties 50,492 43,631 93,404 83,361 Downtown Properties 36,311 35,203 68,762 68,099 --------- --------- --------- ---------- Total Properties 135,415 129,415 258,572 250,197 --------- --------- --------- ---------- OPERATING INCOME Stardust 7,114 8,284 12,917 14,816 Boulder Strip Properties 6,673 3,845 9,566 5,407 Downtown Properties 5,995 7,028 8,979 11,399 --------- --------- --------- ---------- Total Properties 19,782 19,157 31,462 31,622 --------- --------- --------- ----------
3 Consolidated net revenues increased 4.6% and 3.3%, respectively, for the three and six-month periods ended December 31, 1995 versus the comparable periods in the prior fiscal year. Revenues at the Boulder Strip Properties increased 15.7% and 12.0%, respectively, while Stardust revenues declined 3.9% and 2.4%, respectively, and revenues at the Downtown Properties increased 3.1% and 1.0%, respectively. Revenue growth on a consolidated basis was achieved in all major revenue categories of the Company's operations for both the three and six-month periods ended December 31, 1995, with casino revenue up 4.2% and 2.9%, respectively, food and beverage revenue, up 4.2% and 2.4%, respectively, and room revenue up 8.1% and 10.3%, respectively. Slot revenue, which accounts for 70% of casino revenue, increased 8.1% and 6.0%, respectively, for the three and six-month periods ended December 31, 1995 versus comparable periods in the prior fiscal year. Table games revenue, the only other significant component of casino revenue, decreased 3.6% and 4.2%, respectively, for the three and six-month periods. The Company's hotel rooms posted an overall occupancy rate of 92% and 94% for the three and six-month periods ended December 31, 1995. The Company's average room rate rose 9.6% and 10.4% for the three and six-month periods ended December 31, 1995, primarily as a result of an increase of 13.7% and 15.5% rise in average room rate at the Stardust for three and six-month period ended December 31, 1995. Occupancy statistics do not include Main Street Station rooms which the Company uses to augment the rooms base at the California and the Fremont. Consolidated operating income margins were 12.3% and 9.5%, respectively, for the three and six-month periods ended December 31, 1995 versus 12.1% and 10.3% for the comparable periods in the prior fiscal year. Consolidated operating income was $16.6 million and $24.7 million for the three and six-month periods ended December 31, 1995 versus $15.6 million and $25.9 million for the comparable periods of the prior fiscal year. The Boulder Strip Properties posted increases in operating income of 74% and 77% for the three and six-month periods ended December 31, 1995 which were offset by operating income declines at the Stardust and Downtown Properties. Net revenues at the Stardust declined 3.9% and 2.4%, respectively, for the second fiscal quarter and for the first six months of the current fiscal year versus the comparable periods in the prior fiscal year. Slot revenue decreased 4.5% in the second quarter and declined 4.4% for the six months ended December 31, 1995 compared to the comparable periods in the prior fiscal year. Table games revenue for the three and six-month periods ended December 31, 1995 was down 11.3% and 6.4%, respectively, versus comparable periods in the prior fiscal year as a result of flat wagering and lower net winnings. Room revenue at the Stardust for the three and six-months ended December 31, 1995 increased 6.7% and 10.6%, respectively, with declines in occupied rooms offset by increases in the average daily room rate of 13.7% and 15.5%, respectively. Operating income margins for the three and six-month periods ended December 31, 1995 were 14.6% and 13.4%, respectively, versus 16.4% and 15.0%, respectively, in the comparable periods in the prior fiscal year. The decline in operating income and operating income margin for the three and six-month periods is primarily attributable to decreased revenues and higher advertising and promotional expenses partially offset by increased operating income and operating income margins in the rooms department. 4 Net revenues at the Boulder Strip Properties increased 15.7% and 12.0%, respectively, for the three and six- month periods ended December 31, 1995 compared to the comparable periods in the prior fiscal year. Net revenues at Sam's Town increased 17.3% and 13.0% for the three and six-month periods ended December 31, 1995 versus the comparable periods in the prior fiscal year while revenues at the Eldorado and Jokers Wild increased slightly in both the three and six-month periods. Casino revenues at the Boulder Strip Properties increased 21.4% and 16.2%, respectively, for the three and six-month periods ended December 31, 1995, while rooms revenue increased 11.4% and 11.6%, respectively, and food and beverage revenue increased 8.0% and 3.9%, respectively. Operating income margins at the Boulder Strip Properties increased to 13.2% and 10.2%, respectively, for the three and six-month periods ended December 31, 1995 versus 8.8% and 6.5%, respectively, in the comparable periods of the prior year. All three Boulder Strip Properties posted operating income margin increases in the three and six-month periods ending December 31, 1995 with Sam's Town posting increases of 5.0 and 4.3 percentage points, respectively. Operating income margin at the Eldorado increased 3.5 and 1.5 percentage points, respectively, and operating income margins at Jokers Wild increased 2.9 and 0.5 percentage points, respectively, for the three and six-month periods. The significant increases in revenues, operating income and operating income margins at Sam's Town are primarily attributable to the successful implementation of aggressive marketing programs creating increased customer awareness and visitation. Net revenues at the Downtown Properties increased 3.1% and 1.0%, respectively, for the three and six-month periods ended December 31, 1995 versus the comparable periods in the prior fiscal year. Slot revenue and table games revenue for the second quarter and first six months ended December 31, 1995, were flat on slightly increased wagering. Net revenues at the Fremont increased 2.4% and declined 1.8% for the three and six-month periods ended December 31, 1995, versus the comparable periods in the prior fiscal year. Net revenues at the California increased 3.8% and 3.5% for the three and six-month periods ended December 31, 1995 versus the comparable periods in the prior fiscal year. Operating income margins at the Downtown Properties were 16.5% and 13.1% for the three and six-month periods ended December 31, 1995 versus 20.0% and 16.7% in the comparable period of the prior year. The Fremont operating income margin was 14.4% and 11.7%, respectively, for the three and six-month periods ended December 31, 1995 versus 17.9% and 15.7%, respectively, in the comparable three and six-month periods in the prior fiscal year. The California had operating income margins of 18.4% and 14.3%, respectively, for the three and six-month periods ended December 31, 1995 versus 21.8% and 17.7%, respectively, in the comparable three and six-month periods in the prior fiscal year. Construction of the Fremont Street Experience project, which was completed and opened to the public in December 1995, continued to negatively impact the Downtown Properties for the majority of the second fiscal quarter and first six months of the current fiscal year. Interest expense was $9.2 million and $18.8 million for the three and six-month periods ended December 31, 1995 versus $9.5 million and $18.5 million for the comparable period in the prior fiscal year. As a result of these factors, net income increased $1.5 million and decreased $0.5 million, respectively, for the three and six-months ended December 31, 1995 compared to the same period in the prior fiscal year. 5 FINANCIAL CONDITION AND CAPITAL RESOURCES For the six months ended December 31, 1995, the Company's net cash provided by operating activities was $31.5 million compared to $13.4 million in the prior year period primarily as a result of an increase in accounts payable and other liabilities. As of December 31, 1995, the Company had balances of cash and cash equivalents of approximately $34.3 million and had approximately $22.8 million of credit available under its bank credit agreement. In connection with opening of the Fremont Street Experience, the Company is committed to opening Main Street Station Hotel and Casino during 1996. This project is expected to include a refurbishment of rooms, a redesign of the property's public space, additional expanded restaurant facilities and increased parking capacity. The Company is in the design and planning stages of this project and has not yet developed a definite budget. The Company has also identified a potential casino/hotel site in Reno, Nevada. The Company has resolved certain zoning matters and is in the initial planning stages of the project design. 6 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. CALIFORNIA HOTEL AND CASINO (Registrant) Date: June 7, 1996 By /s/ Keith E. Smith --------------------------------- Keith E. Smith Vice President and Controller (Chief Accounting Officer) -----END PRIVACY-ENHANCED MESSAGE-----