Lake City Gaming's second quarter results
Lake City Gaming Corp LCG
Shares issued 11,203,000 Feb 10 close $4.80
Wed 10 Feb 99 News Release
Mr. Steven Kumpf reports
Gross casino revenues for the second quarter of 1999 exceeded $17-million.
After distributions to BC Lottery Corporation, net revenues were $4,656,838
plus other income of $107,397 totalling $4,764,235. The company is pleased
with the second quarter results as it was able to maintain revenues and
profits during seasonal reductions in tourism. Additional costs were
incurred pertaining to the Vernon opening, with revenues starting at the
end of the quarter. The revenues of the Vernon casino have increased
substantially since the opening.
The relocation and expansion of the Vernon casino occurred on Dec. 15,
1998. The new Vernon casino increased from 3,000 square feet to 12,400
square feet, located within the Village Green Hotel. The new premises
allowed for the increase from 89 to 177 slot machines and from eight to 12
gaming tables.
The relocation and expansion of the Kelowna casino to the Grand Okanagan
Resort remains on schedule for a projected opening in May 1999. The
expansion and relocation involves new premises of 21,000 square feet and an
increase from 155 to 300 slot machines and from 12 to 20 gaming tables,
respectively.
In the second quarter, the company received $518,143 of facilities
assistance compensation for recovery of eligible casino expenditures
pertaining to equipment and leaseholds. The FAC is applied as a reduction
of capital assets. Also in the second quarter, convertible debentures of
$650,000 were exercised into common shares and 100,000 stock options were
exercised for proceeds of $150,000.
LCG owns 100 per cent of Lake City Casinos Limited (LCCL) which operates
casinos in Kamloops, Vernon and Kelowna, B.C. LCCL operates 607 slot
machines and 38 gaming tables and is in the process of relocating the
Kelowna casino into new expanded premises. LCCL has also received
conditional approval from BC Lottery Corporation for a destination casino
in Penticton, B.C.
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