not looking good
Europa Cruises Corporation Announces Second Quarter Results
MADEIRA BEACH, Fla., Aug. 23 /PRNewswire/ -- Europa Cruises Corporation (OTC Bulletin Board: KRUZ - news) today announced operating results for the three months ended June 30, 1999, and the six months ended June 30, 1999. Net income (loss) before preferred dividends for the three months ended June 30, 1999, and 1998 was $(726,389) and $252,922 respectively. Net income (loss) before preferred dividends for the six months ended June 30, 1999, and 1998 was $(790,266) and $292,109 respectively.
Deborah A. Vitale, President and Chairman of the Board of Directors, commenting on the operating results for the second quarter, stated: ''The Company continues to record expenses associated with problems arising in prior years. The Company recorded a $200,000 expense to income in the second quarter with respect to final settlement of a Florida Department of Revenue sales tax audit for the period July 1, 1994, through March 31, 1998. The Company had previously taken a $1,400,000 expense deduction for this estimated liability during the fourth quarter of 1998. The Company also recorded an expense of $120,000 in the second quarter as an estimate for any liability arising from an audit by the United States Department of Labor, Division of Wage and Hour for the period January 1, 1997, through April 30, 1999. The Company continues to experience decreased revenue as a direct result of better financed competition in our two operating ports. The Europa Star took on water in the last week of April, during a period of time considered to fall within our high season, resulting in damage to the vessel and an eleven-day loss of revenue. In addition, gaming revenues dropped significantly in June as a result of a poor hold during the month. The Company is beginning to feel the effects of competition from Mississippi junket operations and substantial advertising campaigns launched by Mississippi operators aimed at the Florida market. Despite problems in the core business of the Company, the Board of Directors have evidenced their confidence in the future of the Company in Mississippi by personally purchasing in excess of 1.6 million shares of the Company's stock since November, 1998.''
Europa Cruises Corporation is one of the largest off-shore gaming operators in the United States. The Company employs approximately 250 employees and owns and operates gaming ships out of ports located in Ft. Myers, and Madeira Beach, Florida. In addition to blackjack, poker, slot machines, craps, roulette and other games, the cruises offer fine dining, dancing and entertainment.
The Company, through its wholly owned subsidiary, Casino World, Inc., intends to construct a destination casino resort and hotel at its 404 acre site on the Bay of St. Louis in Diamondhead, Mississippi. The site, which is located immediately off Interstate 10, is adjacent to a site on which Mandalay Resort Group, previously known as Circus Circus Enterprises, Inc., also intends to develop a destination casino resort and hotel.
The development of the Diamondhead, Mississippi project is subject to risks and uncertainties which include those relating to permitting, financing, the activities of environmental groups, the outcome of litigation and the actions of federal, state, or local governments and agencies |
