Annual casino revenue up 608 per cent
Lake City Gaming Corp LCG
Shares issued 11,203,000 Oct 7 close $3.50
Wed 7 Oct 98 News Release
Mr. Steve Kumpf reports
Gross casino revenue has increased by 608 per cent from $5.1-million for
fiscal 1997 to $31.1-million in fiscal 1998 ended June 30, 1998. Net
revenue to the company after distributions to government and charities
increased from $2.2-million in fiscal 1997 to $8.8-million in fiscal 1998.
Pre-tax income increased to $1,749,670 for fiscal 1998, not including
facilities assistance received for $782,411. After-tax income improved from
an $834 loss in fiscal 1997 to a profit of $1,037,204 in fiscal 1998.
In July 1997, the B.C. government announced expanding gaming provisions
including longer hours, higher bet limits, increased selection of table
games, and introduction of slot machines. In fiscal 1998 slot machines
represented $24-million or 77.3 per cent of total casino revenues. Slot
installations included: Kelowna - Oct. 28, 1997 (155 machines), Vernon -
Nov. 19, 1997 (89 machines), Kamloops - April 1, 1998 (275 machines). Gross
casino revenue increased from $8.9-million in the third quarter of fiscal
1998 to $14.9-million in the fourth quarter, reflecting the relocation and
expansion of the Kamloops casino.
Employment costs are the largest expenditure for LCG, which increased from
$1.5-million in fiscal 1997 to $5.0-million in fiscal 1998, but still
declined as a percentage of revenues. Employes increased from 89 to 350
reflecting extended hours and expanded gaming services. Additional
employees will be required in the planned expansions for Vernon, Kelowna
and Penticton.
The company's immediate focus is to complete the expansion of present
casinos to larger and upscale premises to increase revenues. Economy of
scale will reflect in future financial results. |
