Anyone still watching this one? Earnings reported for 3Q are flat.
Here is the release:
Latin American Casinos Inc. Announces 3rd Quarter Results
NORTH MIAMI BEACH, Fla.--(BUSINESS WIRE)--Nov. 12, 1997--Lloyd Lyons, CEO of Latin
American Casinos Inc. (NASDAQ:LACI - news) announced Wednesday that the company earned
profits of $53,543, or $.02 per share on revenues of $559,104, for the three months ended
Sept. 30, 1997. For the nine months ended Sept. 30, 1997 the company generated slot machine
revenues of $1,465,790, and earnings of $.06 per share.
The company attributes the disappointing earnings to the costs incurred for expansion and
increased legal fees for litigation against the Peruvian Government.
The company has won an injunction against the Peruvian Casino Commission for their violation
of Constitutional rights when they imposed excessive taxes and restrictions on locations for slot
machines. The company is currently placing slot machines in new Peruvian locations.
The company is also in the process of opening offices in Medellin and Barrancea, Colombia and
will ship 1,000 machines to these locations.
Lyons said he expects the company to remain profitable throughout the remainder of 1997. He
also stated that if the company's current business plan, which includes slot machine operations
in Nicaragua and the upstart of The World's Best Rated Cigar Co., remains on target, the
company will show increased revenue and larger profits for 1998.
The company remains financially strong with over $9.5 million in assets, of which $3.6 million is
in cash and cash equivalents, 6,000 slot machines in inventory, no debt and a tax loss carry
forward of $757,000. The company has slot machine gaming routes and remains the largest slot
machine rental and remanufacturing company in Central and South America. The company has
3.3 million shares outstanding.
Latin American Casinos Inc.
Year End Results are summarized as follows:
3 Months Ended 9 Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1997 1996 1997 1996
Rental
Income: $559,104 $786,973 $1,465,790 $2,112,028
Net (Loss)
Income: $ 53,543 $387,350 $ 189,032 $1,090,529
Earnings
(Loss) per
common share: $.02 $.11 $.06 $.31
I am not really sure how to interpret this legal battle in Peru. What has been established? Has a conclusion been reached, and now LACI pushing the issue in an attempt to re-establish a profitable business in Peru? What about the Cigar company? There are a lot of questions that need to be answered to access the company's position.
Hmmm.
Chris |
