<PAGE>
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_____________
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the Quarterly Period Ended June 30, 1997
OR
__ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the Transition Period from ____________________ to _____________________
Commission file number 333-4356
COAST HOTELS AND CASINOS, INC.
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C>
NEVADA 88-0345706
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) identification number)
4500 WEST TROPICANA AVE., LAS VEGAS, NEVADA 89103
(Address of principal executive offices) (Zip code)
</TABLE>
(702) 365-7000
(Registrant's telephone number, including area code)
None
(Former name, former address and former fiscal year,
if changed since last report.)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
--- ---
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
Shares of Common Stock outstanding as of June 30, 1997: 1,000
- --------------------------------------------------------------------------------
<PAGE>
ITEM 1. FINANCIAL STATEMENTS.
COAST HOTELS AND CASINOS, INC.
(A WHOLLY OWNED SUBSIDIARY OF COAST RESORTS, INC.)
CONDENSED BALANCE SHEETS
(AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)
(UNAUDITED)
<TABLE>
<CAPTION>
June 30, December 31,
1997 1996
-------- ------------
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents..................... $ 20,626 $ 61,555
Accounts receivable, net...................... 4,142 3,659
Other current assets.......................... 15,408 14,427
-------- --------
TOTAL CURRENT ASSETS....................... 40,176 79,641
PROPERTY AND EQUIPMENT, net...................... 290,766 286,025
OTHER ASSETS..................................... 8,737 6,680
-------- --------
$339,679 $372,346
======== ========
LIABILITIES AND
STOCKHOLDER'S EQUITY
CURRENT LIABILITIES:
Accounts payable.............................. $ 7,535 $ 13,479
Accrued liabilities........................... 22,411 23,864
Construction accounts payable................. 4,601 23,517
Current portion of long-term debt............. 7,561 6,781
-------- --------
TOTAL CURRENT LIABILITIES.................. 42,108 67,641
-------- --------
LONG-TERM DEBT, less current portion............. 191,427 195,764
-------- --------
DEFERRED RENT.................................... 3,765 2,577
-------- --------
OTHER LIABILITIES................................ 5,343 5,686
-------- --------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDER'S EQUITY:
Common Stock, $1.00 par value, 25,000 shares
authorized, 1,000 shares issued and
outstanding................................... 1 1
Additional paid-in capital.................... 95,858 95,858
Retained earnings............................. 1,177 4,819
-------- --------
TOTAL STOCKHOLDERS EQUITY.................. 97,036 100,678
-------- --------
$339,679 $372,346
======== ========
</TABLE>
The accompanying notes are an integral part of these condensed financial
statements.
2
<PAGE>
COAST HOTELS AND CASINOS, INC.
(A WHOLLY OWNED SUBSIDIARY OF COAST RESORTS, INC.)
CONDENSED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(AMOUNTS IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
----------------------------------------------
1997 1996 1997 1996
--------- --------- ---------- ---------
<S> <C> <C> <C> <C>
OPERATING REVENUES:
Casino........................................... $51,679 $35,380 $103,581 $ 71,300
Food and beverage................................ 14,903 9,510 30,183 19,389
Hotel............................................ 7,288 3,496 14,336 7,017
Other............................................ 4,714 2,463 9,188 4,914
------- ------- -------- --------
GROSS OPERATING REVENUES..................... 78,584 50,849 157,288 102,620
Less: promotional allowances.................... (6,251) (4,061) (12,571) (8,420)
------- ------- -------- --------
NET OPERATING REVENUES....................... 72,333 46,788 144,717 94,200
------- ------- -------- --------
OPERATING EXPENSES:
Casino........................................... 27,461 16,903 55,174 33,842
Food and beverage................................ 12,404 7,268 25,222 14,672
Hotel............................................ 3,141 1,806 6,131 3,485
Other............................................ 3,878 1,827 7,596 3,698
General and administrative....................... 15,739 9,431 32,509 18,712
Deferred rent.................................... 594 -- 1,189 --
Depreciation and amortization.................... 4,764 1,861 9,485 3,622
------- ------- -------- --------
TOTAL OPERATING EXPENSES............................. 67,981 39,096 137,306 78,031
------- ------- -------- --------
OPERATING INCOME............................. 4,352 7,692 7,411 16,169
------- ------- -------- --------
OTHER INCOME (EXPENSES)
Interest expense................................. (6,550) (5,870) (13,030) (10,177)
Interest income.................................. -- 1,484 98 2,447
Interest capitalized............................. -- 1,530 -- 2,231
Gain on disposal of assets....................... -- 2 829 2
------- ------- -------- --------
TOTAL OTHER INCOME (EXPENSES)........................ (6,550) (2,854) (12,103) (5,497)
------- ------- -------- --------
INCOME (LOSS) BEFORE INCOME TAX PROVISION (BENEFIT).. (2,198) 4,838 (4,692) 10,672
------- ------- -------- --------
INCOME TAX PROVISION (BENEFIT)....................... (202) 1,693 (1,050) 6,235
------- ------- -------- --------
NET INCOME (LOSS).................................... $(1,996) $ 3,145 $ (3,642) $ 4,437
======= ======= ======== ========
PRO FORMA DATA (reflecting change in tax status):
Provision (benefit) for income taxes............. (202) 1,693 (1,050) 3,735
------- ------- -------- --------
Net income (loss)................................ $(1,996) $ 3,145 $ (3,642) $ 6,937
======= ======= ======== ========
</TABLE>
The accompanying notes are an integral part of these condensed financial
statements.
3
<PAGE>
COAST HOTELS AND CASINOS, INC.
(A WHOLLY OWNED SUBSIDIARY OF COAST RESORTS, INC.)
CONDENSED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(AMOUNTS IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
Six Months Ended
June 30,
--------------------------------
1997 1996
-------- ---------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)..................................................... $ (3,642) $ 4,437
-------- ---------
ADJUSTMENTS TO RECONCILE NET INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Depreciation and amortization....................................... 9,485 3,622
Provision for bad debts............................................. 1,083 1,068
Gain on disposal of assets.......................................... (829) (2)
Deferred income taxes............................................... 1,181 2,500
Other non-cash expenses............................................. 1,484 217
Changes in assets and liabilities:
Net increase in accounts receivable and other assets.............. (3,552) (2,003)
Net increase (decrease) in accounts payable and accrued
liabilities...................................................... (7,345) 1,135
-------- ---------
TOTAL ADJUSTMENTS..................................................... 1,507 6,537
-------- ---------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES................... (2,135) 10,974
-------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures.................................................. (32,901) (42,793)
Proceeds from disposal of assets...................................... 1,088 20
Net additions to restricted cash equivalents.......................... -- (91,137)
-------- ---------
NET CASH USED IN INVESTING ACTIVITIES................................. (31,813) (133,910)
-------- ---------
CASH FLOW FROM FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt,
net of discounts and commissions.................................... -- 164,124
Principal payments on long-term debt.................................. (3,852) (1,181)
Proceeds from borrowings under bank line of credit.................... -- 1,045
Principal payments on bank line of credit............................. -- (29,200)
Payments for debt issue costs......................................... -- (1,236)
Advances to affiliates................................................ (3,129) (2,856)
-------- ---------
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES................... (6,981) 130,696
-------- ---------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS................... (40,929) 7,760
CASH AND CASH EQUIVALENTS, at beginning of year........................ 61,555 14,539
-------- ---------
CASH AND CASH EQUIVALENTS, at end of period............................ 20,626 $ 22,299
======== =========
</TABLE>
The accompanying notes are an integral part of these condensed financial
statements.
4
<PAGE>
COAST HOTELS AND CASINOS, INC.
(A WHOLLY OWNED SUBSIDIARY OF COAST RESORTS, INC.)
NOTES TO CONDENSED FINANCIAL STATEMENTS
NOTE 1 - BACKGROUND INFORMATION AND BASIS OF PRESENTATION
Background Information
Coast Hotels and Casinos, Inc. ("The Company"), a Nevada corporation, is a
wholly owned subsidiary of Coast Resorts, Inc. ("Coast Resorts"), which is also
a Nevada corporation. The Company owns and operates the following Las Vegas
hotel-casinos:
. Gold Coast Hotel and Casino, approximately one mile west of the
Las Vegas Strip on Flamingo Road.
. Barbary Coast Hotel and Casino, located on the Las Vegas Strip.
. The Orleans Hotel and Casino, located approximately one mile west
of the Las Vegas Strip on Tropicana Avenue.
The Gold Coast and Barbary Coast hotel-casinos had previously been owned
and operated independently by two partnerships, Gold Coast Hotel and Casino, a
Nevada limited partnership, and Barbary Coast Hotel and Casino, a Nevada general
partnership (collectively, the "Predecessor Partnerships"). On January 1, 1996,
the partners of the Predecessor Partnerships completed a reorganization (the
"Reorganization") with Coast Resorts. Coast Resorts was formed in September
1995 for the purpose of effecting such Reorganization of the Predecessor
Partnerships. Coast Resorts, Gold Coast and Barbary Coast were all related
through common ownership and management control.
In the Reorganization, the partners of the Predecessor Partnerships each
transferred to Coast Resorts their respective partnership interests in the
Predecessor Partnerships in exchange for an aggregate of 1,000,000 shares of
common stock, par value $.01 per share, of Coast Resorts ("Coast Resorts Common
Stock"). Coast Resorts immediately contributed to the Company all of the assets
and liabilities of the Predecessor Partnerships other than those relating to the
Coast West Lease, which Coast Resorts contributed to Coast West, another wholly
owned subsidiary of Coast Resorts. Coast Resorts retained the liability for an
aggregate principal amount of $51.0 million in notes payable to former partners
and retained the liability for $1.5 million relating to demand notes due to a
related party (the "Exchange Liabilities"). On January 16, 1996, the Exchange
Liabilities were exchanged for 494,353 shares of Coast Resorts Common Stock,
based upon management's estimate of the fair market value of such Coast Resorts
Common Stock.
5
<PAGE>
COAST HOTELS AND CASINOS, INC.
(A WHOLLY OWNED SUBSIDIARY OF COAST RESORTS, INC.)
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - BACKGROUND INFORMATION AND BASIS OF PRESENTATION (CONTINUED)
Basis of Presentation
The accompanying financial statements are unaudited and have been prepared
in accordance with generally accepted accounting principles for interim
financial information and with Article 10 of Regulation S-X. Accordingly, they
do not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements. The unaudited
financial statements should be read in conjunction with the audited financial
statements and footnotes for the year ended December 31, 1996. In the opinion
of management, all adjustments and normal recurring accruals considered
necessary for a fair presentation of the results for the interim period have
been included. The interim results reflected in the unaudited financial
statements are not necessarily indicative of expected results for the full year.
NOTE 2 - CONSTRUCTION COMMITMENTS
In the first quarter of 1997, the Company began construction of Phase Two
of The Orleans. The project, expected to cost $35 to $40 million, will include
twelve movie theaters, a child care facility, additional restaurants, gaming
facilities and space for live entertainment. In addition, the Company began
construction in the first quarter of 1997 of a new restaurant at the Barbary
Coast, estimated to cost $1.3 million. As of June 30, 1997, the Company had
expended $8.6 million and $812,000, respectively, related to the two
construction projects.
NOTE 3 - INCOME TAXES
Prior to the Reorganization, the Company operated as individual
partnerships which did not pay federal income taxes. The partners of the
Predecessor Partnerships were taxed on their proportionate share of each of
their respective partnership's taxable income or loss. Effective January 1,
1996 and in connection with the Reorganization, the Predecessor Partnerships
were terminated. The change in status to a "C" corporation resulted in the
recognition of net deferred tax liabilities, and a corresponding charge to
earnings through the income tax provision of approximately $2.5 million for the
quarter ended March 31, 1996. In addition, upon termination of the partnership
tax status on January 1, 1996, all undistributed earnings of the Predecessor
Partnerships were reclassified to additional paid-in capital.
Subsequent to the Reorganization, the Company is included in the
consolidated federal income tax return filed by Coast Resorts. The Company's
tax is allocated based on the amount of tax it would incur if it filed a
separate return. Coast Resorts will pay the Company an amount equal to the tax
benefit arising from the utilization of net operating losses of the Company to
the extent that such losses result in a reduction in the amount of tax payable
by Coast Resorts. For the three months and six months ended June 30, 1997, the
income tax benefit differs from that computed at the federal statutory corporate
tax rate due to limitations
6
<PAGE>
COAST HOTELS AND CASINOS, INC.
(A WHOLLY OWNED SUBSIDIARY OF COAST RESORTS, INC.)
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3 - INCOME TAXES (continued)
on Coast Resorts' ability to utilize the net operating losses generated by the
Company and adjustment of prior year tax liabilities.
The pro forma provision for income taxes and the related pro forma net
income reflect adjustments to income taxes assuming that the recognition of net
deferred tax liabilities occurred prior to January 1, 1996.
NOTE 4-ADVANCES TO COAST WEST
The Company has agreed to provide advances to Coast West sufficient to make
payments on the Coast West Lease and other obligations, up to a maximum of $8
million. The Coast West Lease relates to a parcel of land located in the
western area of Las Vegas to be used for future expansion opportunities. The
Coast West Lease term runs through December 31, 2055, with three 10-year renewal
options, with monthly payments of $166,667 for the year ending December 31,
1995. Thereafter the monthly rent increases by the amount of $5,000 in January
of each year. The Coast West Lease includes a put option exercisable by the
landlord requiring the purchase of the land at fair market value at the end of
the 20th through 24th years of the Coast West Lease, provided that the purchase
price shall not be less than ten times, nor more than fifteen times, the annual
rent at such time. Based on the terms of the Coast West Lease, the potential
purchase price commitment ranges from approximately $31.0 million to
approximately $51.0 in the years 2014 through 2018. As of June 30, 1997, the
Company had advanced Coast West approximately $3.6 million related to the Coast
West lease. Coast West is a development stage enterprise and has no source of
income and is therefore solely dependent on the advances to be provided by the
Company. There can be no assurance that Coast West will develop a gaming
property at the Coast West site, or that it will be able to repay any advances
made by the Company. Accordingly, the Company has recorded an allowance for
doubtful accounts in an amount equal to the advances for rent.
7
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Results of Operations
The following table sets forth, for the periods indicated, certain
financial information regarding the results of operations of the Company:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
------------------------------------------------------------------------
1997 1996 1997 1996
-------- ------- -------- -------
<S> <C> <C> <C> <C>
NET OPERATING REVENUES:
Gold Coast $31,427 $35,055 $ 63,955 $70,768
Barbary Coast 10,176 11,733 22,639 23,432
The Orleans 30,730 -- 58,123 --
-------------------------- ----------------------------
$72,333 $46,788 $144,717 $94,200
========================== ============================
OPERATING INCOME (LOSS):
Gold Coast $ 5,674 $ 7,727 $ 12,025 $16,317
Barbary Coast (898) 1,260 (79) 2,224
The Orleans 1,264 -- (1,217) --
Corporate Expenses (1,688) (1,295) (3,318) (2,372)
-------------------------- ----------------------------
$ 4,352 $ 7,692 $ 7,411 $16,169
========================== ============================
</TABLE>
Three Months Ended June 30, 1997 Compared to Three Months Ended June 30, 1996
and Six Months ended June 30, 1997 Compared to Six Months Ended June 30, 1996
Net revenues for the Company were $72.3 million in the quarter ended June
30, 1997, an increase of $25.5 million (54.6%) over revenues of $46.8 million in
the same quarter in 1996. For the six months ended June 30, 1997, net revenues
were $144.7 million, an increase of $50.5 million (53.6%) over revenues of $94.2
million in the first six months of 1996. The increases were due to the opening
of the Company's newest hotel-casino, The Orleans, in December 1996.
Operating income decreased to $4.4 million in the quarter ended June 30,
1997 compared to $7.7 million in the second quarter of 1996. For the first six
months of 1997, operating income decreased to $7.4 million compared to $16.2
million in the same period in 1996. The decreases were primarily due to lower-
than-expected results at the Company's newest hotel-casino, the Orleans, as well
as decreases at the Company's other two hotel-casinos, the Gold Coast and the
Barbary Coast (discussed below).
Net loss for the quarter ended June 30, 1997 was $2.0 million compared to
net income of $3.1 million in the quarter ended June 30, 1996. For the first
six months of 1997 net loss was $3.6 million compared to net income of $4.4
million in the first six months of 1996. The
8
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (CONTINUED)
decreases were due to increased interest expense as well as the lower-than-
expected operating results at the Company's three hotel-casinos described below.
Gold Coast. Net revenues for the Gold Coast Hotel and Casino declined in
----------
the three months and six months ended June 30, 1997 compared to revenues in the
same periods in 1996. For the three months ended June 30, 1997, net revenues
were $31.4 million compared to $35.1 million in 1996, a decrease of $3.7 million
(10.4%). For the six months ended June 30, 1997, net revenues were $64.0 million
compared to $70.8 million in 1996, a decrease of $6.8 million (9.6%). Compared
to 1996, casino revenues declined $3.0 million in the second quarter and $5.9
million in the first six months, due to lower customer wagering volume and low
win percentages. Food and beverage business decreased causing revenues to
decline $972,000 in the second quarter and $1.8 million in the first six months
of 1997, down 13.6% and 12.6%, respectively, compared to the same two periods in
1996. Management attributes the overall revenue decline at the Gold Coast to the
openings of new casinos (including The Orleans) and expanded capacity in others.
Due to the lower revenues, operating income at the Gold Coast was $5.7 million
in the second quarter of 1997 compared to $7.7 million in the second quarter of
1996. For the six months ended June 30, 1997, Gold Coast operating income was
$12.0 million compared to $16.3 million in 1996.
Barbary Coast. Net revenues for the Barbary Coast Hotel and Casino were
-------------
$10.2 million in the second quarter of 1997 compared to $11.7 million in the
same period in 1996, a decrease of 13.3%. For the first six months of 1997, net
revenues were $22.6 million, a 3.4% decrease from revenues of $23.4 million in
the first half of 1996. The lower revenues were primarily due to casino
revenues which declined $1.6 million (17.2%) in the second quarter of 1997
compared to the second quarter of 1996, and declined $875,000 (4.7%) in the
first half of 1997 compared to the first half of 1996. Second quarter table
games revenues declined $2.4 million (50.9%) compared to 1996 and for the first
six months table games revenues declined $2.5 million (29.0%) compared to 1996.
The lower table games revenues were due to a decrease in customer wagering
volume (11.8% in the second quarter and 7.6% for the first half of 1997) and to
a low table games win percentage. Due to the lower revenues, the Barbary Coast
experienced an operating loss of $898,000 in the quarter ended June 30, 1997
compared to operating income of $1.3 million in 1996. For the first six months
of 1997, the Barbary Coast had an operating loss of $79,000 compared to
operating income of $2.2 million in the first half of 1996.
The Orleans. The three months ended June 30, 1997 was the second full
-----------
quarter of operations for the hotel-casino which opened December 18, 1996. Net
operating revenues for the three months and six months ended June 30, 1997 were
$30.7 million and $58.1 million, respectively. Operating income was $1.3
million in the second quarter of 1997 compared to an operating loss of $2.5
million in the first quarter. The increase was primarily due to a 15.4%
increase in casino revenues.
9
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (CONTINUED)
LIQUIDITY AND CAPITAL RESOURCES
The Company's principal sources of liquidity have consisted of cash
provided by operating activities and, until termination of a bank credit
facility in January 1996, bank financing. On January 30, 1996, the Company
issued $175.0 million principal amount of 13% first mortgage notes due 2002
("First Mortgage Notes"). The net proceeds from the issuance, after deducting
discounts and commissions, were approximately $164.1 million. Of that amount,
approximately $29.2 million was used by the Company to repay all outstanding
indebtedness under the Company's revolving credit facility, which was
terminated, $19.3 million was deposited into an escrow account to fund the
Company's first two semi-annual interest payments on the First Mortgage Notes,
and approximately $114.8 million was applied to the cost of developing The
Orleans. The balance of approximately $800,000 was used to pay, in part, the
offering expenses of approximately $2.4 million. Additionally, approximately
$30 million of equipment for the Orleans project was financed through a capital
lease. The Company is permitted by the indenture pursuant to which the First
Mortgage Notes were issued, to borrow up to an additional $20 million for
working capital purposes. The Company may obtain financing for working capital
purposes, but no arrangements for such financing have been finalized.
The Company's consolidated cash requirements, in addition to debt service
on the First Mortgage Notes and equipment capital leases, include land lease
payments for its properties, ongoing maintenance capital expenditures at its
existing facilities and periodic enhancements to those facilities. The
Company's capital expenditures (exclusive of those associated with the
development and construction of The Orleans) for 1996 were approximately $6.2
million, most of which related to normal maintenance capital expenditures.
Management expects that maintenance capital expenditures for 1997 will be
approximately $7.0 million. In the first quarter of 1997, the Company began
construction of Phase Two of The Orleans. The project, expected to cost $35 to
$40 million, will include twelve movie theaters, a child care facility,
additional restaurants, gaming facilities and space for live entertainment. In
addition, the Company began construction in the 1997 first quarter of a new
restaurant at the Barbary Coast, estimated to cost $1.3 million. The Company
expects to finance the capital projects with existing cash reserves, cash from
operations and, if necessary, debt and/or equity financing. No assurance can be
given that cash from operations, in combination with cash reserves, will be
sufficient for the second phase of The Orleans and the Barbary Coast restaurant,
or that debt and/or equity financing, if necessary, will be obtainable. The
Company may obtain financing for working capital purposes, but no arrangements
for any such financing have been finalized.
FORWARD LOOKING STATEMENTS
The statements in this Management's Discussion and Analysis which are not
historical fact are forward looking statements that are made pursuant to the
Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.
The statements are subject to risks and uncertainties, including, but not
limited to increased competition, both in Nevada and other jurisdictions,
dependence on the Las Vegas area and the Southern California region for a
majority of the Company's customers, uncertainties associated with construction
projects, including the related disruption of operations and the availability of
financing, if necessary, which could cause actual results to vary materially
from those discussed herein.
10
<PAGE>
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
Not Applicable
11
<PAGE>
.
PART II. OTHER INFORMATION
Item 1: Legal Proceedings.
None.
Item 2: Changes in Securities.
None.
Item 3: Defaults Upon Senior Securities.
None.
Item 4: Submission of Matters to a Vote of Security Holders.
None.
Item 5: Other Information.
None.
Item 6: Exhibits and Reports on Form 8-K:
(a) Exhibits.
27. Financial Data Schedule.
(b) Reports on Form 8-K.
There were no reports filed on Form 8-K during the three months
ended June 30, 1997.
12
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Quarterly Report on Form 10-Q to be signed on
its behalf by the undersigned thereunto duly authorized.
Date: August 14, 1997 COAST HOTELS AND CASINOS, INC., a Nevada
corporation
By: /s/ Gage Parrish
-----------------------------------
Gage Parrish
Vice President and Chief Financial Officer
13
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> APR-1-1997
<PERIOD-END> JUN-30-1997
<CASH> 20,626
<SECURITIES> 0
<RECEIVABLES> 4,549
<ALLOWANCES> 407
<INVENTORY> 6,087
<CURRENT-ASSETS> 40,176
<PP&E> 364,294
<DEPRECIATION> 73,528
<TOTAL-ASSETS> 339,679
<CURRENT-LIABILITIES> 42,108
<BONDS> 191,427
0
0
<COMMON> 1
<OTHER-SE> 97,035
<TOTAL-LIABILITY-AND-EQUITY> 339,679
<SALES> 0
<TOTAL-REVENUES> 72,333
<CGS> 0
<TOTAL-COSTS> 46,884
<OTHER-EXPENSES> 21,097
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 6,550
<INCOME-PRETAX> (2,198)
<INCOME-TAX> (202)
<INCOME-CONTINUING> (1,996)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,996)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
