GEAA - Greate Bay Casino Corporation Reports Third Quarter Results
biz.yahoo.com
EGG HARBOR TOWNSHIP, N.J., Nov 9, 2001 /PRNewswire via COMTEX/ -- Greate Bay
Casino Corporation (OTC Bulletin Board: GEAA) today reported net income of
$973,000, or $0.19 per share, for the third quarter of 2001 compared to a net
loss of $1.2 million, or $0.22 per share, for the third quarter of 2000.
Revenues for the third quarter of 2001 amounted to $10.5 million compared to
revenues of $4.6 million for the third quarter of 2000. The increase in revenues
and net income was due to a dramatic increase in software installation revenues
at Advanced Casino Systems Corporation (ACSC), Greate Bay's sole remaining
operating subsidiary.
For the nine months ended September 30, 2001, Greate Bay reported net income of
$235,000 on revenues of $27.4 million compared to a net loss of $5.2 million on
revenues of $9.5 million for the comparable nine months of 2000. The improvement
in operating results for the nine months is attributable to the previously
mentioned increase in ACSC software installation revenues.
Greate Bay's only remaining operating activity is the development, installation
and maintenance of casino systems by ACSC. At September 30, 2001, Greate Bay and
its subsidiaries had debt outstanding to Hollywood Casino Corporation (HCC)
consisting of demand notes and accrued interest thereon totaling $9.9 million
and a 14.875% promissory note due 2006 together with interest thereon totaling
$51.9 million. Semi-annual interest payments of approximately $3.5 million
attributable to the 14.875% secured promissory note became payable commencing in
August 2001. ACSC's operations do not generate sufficient cash flow to provide
debt service on the HCC notes and, consequently, Greate Bay is insolvent. Greate
Bay is currently negotiating with HCC to restructure its obligations and, in
that connection, has entered into certain standstill agreements with HCC. Under
the standstill agreements, all payments of principal and interest due from HCC
during the period from March 1, 2000 through November 1, 2001 with respect to a
note have been deferred until December 1, 2001 in consideration of HCC's
agreement not to demand payment of principal or interest on Greate Bay's
obligations to HCC. The fair market value of Greate Bay's assets is
substantially less than its existing obligations to HCC, and accordingly,
management anticipates that any restructuring of Greate Bay's obligations will
result in the conveyance of all of its assets (or the proceeds from the sale of
its assets) to HCC, resulting in no cash or other assets remaining available for
distribution to Greate Bay's shareholders. Any restructuring of Greate Bay's
obligations, consensual or otherwise, will require it to file for protection
under federal bankruptcy laws and will ultimately result in the liquidation of
Greate Bay. |
