Tuesday September 30 9:07 AM EDT
Company Press Release
American Bingo & Gaming Corp. Closes Gold Strike Acquisition
AUSTIN, Texas, Sept. 30 /PRNewswire/ -- American Bingo & Gaming Corp. (Nasdaq:BNGO) reported that it has successfully closed its previously announced acquisition of Gold Strike Inc., a South Carolina video game machine operation. Gold Strike is the majority owner of a 120 video gaming machine route operation and generates multi-million dollar revenues annually in the $400 million South Carolina video game machine market. This acquisition was completed in a stock-for-stock transaction, will be accounted for as a pooling, and is expected to have a positive impact on the Company's financial results beginning in the current (third) quarter.
Separately, the Company reported that it has placed its previously announced North Beach, Maryland development on hold pending further review. Management believes that this investment would offer a very favorable return to both the local economy and the Company, but currently has an unacceptably high degree of risk based on uncertain licensing and political issues. The Company has only invested minimal funds to date on this project, and may seek other locations for investment in this market.
American Bingo is the market leader in the estimated $5.0 billion North American charitable bingo market. The Company derives revenues from its 20 bingo centers in Texas, Alabama and South Carolina, and also generates gaming revenues from its 40 video gaming centers in South Carolina. The Company intends to open five more bingo centers and add 30 more video gaming centers by the end of 1997.
Except for historical information contained herein, certain matters set forth in this press release are forward looking statements that are subject to risks and uncertainties, including customer attendance and spending, competition, capital resources, government regulation, general economic conditions and other risks detailed in the Company's SEC reports.
SOURCE American Bingo & Gaming Corp.
==> GOOD FOR 3Q earnings
==> GOOD POINT FOR MANAGEMENT, THEY AVOID HIGH RISKS |
