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 September 30, 1998
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: 1-13173
FLORIDA PANTHERS HOLDINGS, INC.
(Exact Name of Registrant as Specified in its Charter)
Delaware 65-0676005
(State of Incorporation) (I.R.S. Employer
Identification No.)
450 East Las Olas Boulevard 33301
Fort Lauderdale, Florida (Zip Code)
(Address of Principal Executive Offices)
Registrant's telephone number, including area code: (954) 712-1300
Former Name, Former Address and Former Fiscal Year, if Changed Since Last
Report: Not Applicable
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 [ ]
As of November 10, 1998, there were 34,890,358 shares of Class A Common
Stock, $.01 par value per share, and 255,000 shares of Class B Common Stock,
$.01 par value per share, outstanding.
<PAGE>
Part I - Financial Information
Item 1. Financial Statements
FLORIDA PANTHERS HOLDINGS, INC.
UNAUDITED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
<TABLE>
<S>
<C> <C>
September 30, June 30,
1998 1998
------------- ---------
ASSETS
Current assets:
Cash and cash equivalents........................... $ 11,466 $ 37,228
Restricted cash..................................... 34,234 29,296
Accounts receivable, net............................ 31,540 28,574
Inventory........................................... 7,269 6,499
Current portion of Premier Club notes receivable.... 4,068 4,089
Other current assets................................ 9,321 5,496
--------- ---------
Total current assets........................ 97,898 111,182
Property and equipment, net........................... 999,927 959,214
Intangible assets, net................................ 36,216 36,926
Long-term portion of Premier Club notes
receivable, net .................................... 7,670 7,828
Other assets.......................................... 19,389 13,057
---------- ----------
Total assets................................ $1,161,100 $1,128,207
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses............... $ 45,716 $ 41,326
Current portion of deferred revenue................. 68,108 35,114
Short-term debt..................................... 317,750 318,250
Current portion of long-term debt................... 4,804 4,540
Other current liabilities........................... 7,882 3,866
--------- ---------
Total current liabilities................... 444,260 403,096
Long-term debt........................................ 228,310 217,836
Premier Club refundable membership fees............... 64,317 65,046
Other non-current liabilities......................... 11,711 9,826
Minority interest..................................... 2,016 1,892
Shareholders' equity:
Class A Common Stock, $.01 par value, 100,000,000
shares authorized and 34,890,358 and 34,888,358
shares issued and outstanding at September 30, 1998
and June 30, 1998, respectively.................... 349 349
Class B Common Stock, $.01 par value, 10,000,000 shares
authorized and 255,000 shares issued and outstanding
at September 30, 1998 and June 30, 1998.......... 3 3
Contributed capital ................................ 432,131 432,110
Accumulated deficit................................. ( 21,997) ( 1,951)
----------- -----------
Total shareholders' equity ................. 410,486 430,511
----------- -----------
Total liabilities and shareholders' equity.. $1,161,100 $1,128,207
=========== ===========
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
FLORIDA PANTHERS HOLDINGS, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended September 30,
(In thousands, except per share data)
<TABLE>
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1998 1997
Revenue: --------- ---------
Leisure and recreation................................. $ 48,639 $ 30,287
Entertainment and sports............................... 3,639 2,662
--------- ---------
Total revenue.................................. 52,278 32,949
Operating expenses:
Cost of leisure and recreation services................ 27,557 17,568
Cost of entertainment and sports services.............. 3,425 3,338
Selling, general and administrative expenses........... 23,402 17,442
Amortization and depreciation.......................... 7,479 3,847
--------- ---------
Total operating expenses....................... 61,863 42,195
--------- ---------
Operating loss........................................... ( 9,585) ( 9,246)
Interest and other income................................ 437 465
Interest and other expense............................... ( 10,663) ( 3,288)
Minority interest........................................ ( 235) ( 88)
---------- ----------
Net loss................................................. $ (20,046) $( 12,157)
========== ==========
Net loss per share - basic and diluted................... $( 0.57) $( 0.38)
========== ==========
Shares used in computing net loss per share -
basic and diluted...................................... 35,145 32,000
========== =========
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
FLORIDA PANTHERS HOLDINGS, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Three Months Ended September 30,
(In thousands)
<TABLE>
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1998 1997
Operating activities: ----------- -----------
Net loss ......................................... $( 20,046) $( 12,157)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Amortization and depreciation................... 7,479 3,847
Income applicable to minority interest.......... 235 88
Changes in operating assets and liabilities
(excluding the effects of business acquisitions):
Accounts receivable............................. ( 2,966) ( 35)
Other assets.................................... ( 10,799) 2,730
Accounts payable and accrued expenses........... 4,390 ( 3,001)
Deferred revenue and other liabilities.......... 38,166 24,061
---------- ----------
Net cash provided by operating activities. 16,459 15,533
Investing activities:
Cash acquired in business acquisitions............ -- 12,476
Cash used in business acquisitions................ -- ( 75,508)
Capital expenditures.............................. ( 52,369) ( 11,418)
---------- ----------
Net cash used in investing activities..... ( 52,369) ( 74,450)
---------- ----------
Financing activities:
Net proceeds from the sale of common stock........ -- 108,763
Borrowings under credit facilities................ 31,800 --
Payments on long-term debt and other credit
facilities...................................... ( 21,562) ( 35,000)
Proceeds from exercise of stock options........... 21 --
Distribution to minority interests................ ( 111) ( 159)
----------- -----------
Net cash provided by financing activities. 10,148 73,604
---------- ----------
Increase (decrease) in cash and cash
equivalents............................ ( 25,762) 14,687
Cash and cash equivalents, at beginning of period. 37,228 13,709
---------- ----------
Cash and cash equivalents, at end of period....... $ 11,466 $ 28,396
========== ==========
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
FLORIDA PANTHERS HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation
The accompanying unaudited Consolidated Financial Statements of Florida Panthers
Holdings, Inc. and subsidiaries (the "Company") have been prepared in accordance
with generally accepted accounting principles for interim financial statements
and with the instructions to Form 10-Q and 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.
In the opinion of management, the financial information furnished in this report
reflects all adjustments necessary for a fair presentation of the results for
the interim period. The adjustments consist of normal recurring accruals. The
results of operations for the three-month period ended September 30, 1998 are
not necessarily indicative of the results to be expected for the entire year
primarily due to seasonal variations. All significant intercompany accounts have
been eliminated.
2. Organization
The Company is a holding company with subsidiaries currently operating in two
business segments: (1) leisure and recreation and (2)entertainment and sports.
The leisure and recreation business consists of the ownership of the Boca Raton
Resort and Club, the Arizona Biltmore Hotel, the Registry Hotel at Pelican Bay,
the Edgewater Beach Hotel, the Hyatt Regency Pier 66 Hotel and Marina, the
Radisson Bahia Mar Resort and Yachting Center and newly redesigned Grande Oaks
Golf Club (formerly known as Rolling Hills Golf Club).
The entertainment and sports business consists of the Florida Panthers Hockey
Club (the "Panthers"), arena development, arena management and ice skating rink
operations. The Company's arena development and management operations recently
completed development of the National Car Rental Center, a new multi-purpose
state-of-the-art entertainment and sports complex. In addition to serving as
home to the Panthers in the 1998-99 season, the National Car Rental Center
showcases other spectator sports and entertainment events, and provides a
centrally located site for meetings and conferences.
<PAGE>
Item 2. Management's Discussion and Analysis of Finanacial Condition and Results
Of Operations
This report may not contain all the information that is important to you. This
section should be read together with the Annual Report on Form 10-K because the
Form 10-K provides substantially greater detail.
Results of Operations
Business Segment Information
Business segment operating data, along with costs and expenses expressed as a
percentage of the related business segment revenue, is set forth below (in
000's).
<TABLE>
<S>
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Three Months Ended September 30,
---------------------------------------
1998 % 1997 %
Revenue: --------- --- --------- ---
Leisure and recreation......... $ 48,639 93% $ 30,287 92%
Entertainment and sports....... 3,639 7% 2,662 8%
-------- --------
Total revenue........ 52,278 100% 32,949 100%
Operating Expenses:
Cost of services:
Leisure and recreation....... 27,557 57% 17,568 58%
Entertainment and sports..... 3,425 94% 3,338 125%
Selling, general and
administrative expenses:
Leisure and recreation....... 19,169 39% 13,732 45%
Entertainment and sports..... 2,422 67% 2,093 79%
Corporate.................... 1,811 1,617
Amortization and depreciation:
Leisure and recreation....... 6,534 13% 2,867 10%
Entertainment and sports..... 913 25% 980 37%
Corporate 32 --
-------- --------
Total operating expenses....... 61,863 118% 42,195 128%
-------- --------
Operating loss....... $ (9,585) $ (9,246)
========= =========
EBITDA:
Leisure and recreation....... $ 2,234 $( 811)
Entertainment and sports..... ( 2,142) ( 2,688)
Corporate.................... ( 1,761) ( 1,435)
---------- ----------
Total...................... $ ( 1,669) $(4,934)
========== ==========
Adjusted EBITDA:
Leisure and recreation....... $ 3,445 $( 811)
Entertainment and sports..... ( 2,142) ( 2,688)
Corporate.................... ( 1,761) ( 1,435)
---------- ----------
Total...................... $ ( 458) $( 4,934)
========== ==========
</TABLE>
Seasonality
The Company has historically experienced, and expects to continue to experience,
seasonal fluctuations in its gross revenue and net earnings. Peak season at the
resorts extends from January through April, while the regular hockey season for
the Panthers commences in October and ends in April.
<PAGE>
Consolidated Results of Operations
The Company's operating loss amounted to $9.6 million and $9.2 million for the
three months ended September 30, 1998 and 1997, respectively. Higher
amortization and depreciation on a larger resort portfolio during the three
months ended September 30, 1998, more than offset the improvements in profit
margins for these same periods. Additional information relating to the operating
results for each business segment is set forth below.
Leisure and Recreation
Variations in leisure and recreation operating results between September 30,
1998 and 1997 were largely due to acquisitions. The Company purchased (1) a 68%
ownership interest in the Registry Hotel at Pelican Bay in August 1997 (and
acquired the remaining interests by July 1998), (2) the Arizona Biltmore Hotel
in March 1998 and (3) the Edgewater Beach Hotel in April 1998.
Revenue
Leisure and recreation revenue totaled $48.6 million and $30.3 million for the
three months ended September 30, 1998 and 1997, respectively. Approximately 62%
of 1998 revenue and 67% of 1997 revenue was derived from non-room sources such
as food and beverage sales, yachting and marina revenue, club memberships,
retail and other resort amenities. Management expects leisure and recreation
revenue for the three months ended December 31, 1998 and March 31, 1999 to be
higher than the just concluded quarter because the properties will be entering
their peak season of operations.
Operating Expenses
Cost of leisure and recreation services totaled $27.6 million or 57% of revenue
for the three months ended September 30, 1998, compared to $17.6 million or 58%
of revenue for the three months ended September 30, 1997. Cost of leisure and
recreation services primarily consisted of direct costs to service rooms,
marinas, food and beverage operations, retail establishments and other amenities
at the resorts.
<PAGE>
Selling, general and administrative expenses ("S,G&A") of the leisure and
recreation business totaled $19.2 million or 39% of revenue for the three months
ended September 30, 1998, compared to $13.7 million or 45% of revenue for the
three months ended September 30, 1997. S,G&A as a percent of revenue improved
because the Boca Raton Resort and Club held its S,G&A flat for each period,
while revenue increased $5.1 million for the three months ended September 30,
1998 compared to the three months ended September 30, 1997. S,G&A primarily
consisted of various fixed, indirect costs, including utility and property
costs, real estate taxes, insurance, management and franchise agreement fees and
administrative salaries.
Amortization and depreciation expense associated with the leisure and recreation
business totaled $6.5 million for the three months ended September 30, 1998,
compared to $2.9 million for the three months ended September 30, 1997. The
increase was primarily due to a full quarter of depreciation for the Registry
Hotel at Pelican Bay as well as depreciation for the recently acquired Arizona
Biltmore Hotel and Edgewater Beach Hotel.
Entertainment and Sports
Revenue
Entertainment and sports business revenue amounted to $3.6 million and $2.7
million for the three months ended September 30, 1998 and 1997, respectively.
The primary component of the entertainment and sports business is the Panthers
and arena operations. Revenue and direct expenses associated with the team are
recorded over the regular hockey season. Therefore, the majority of revenue is
reported during the three-month periods ended December 31 and March 31. Should
the Panthers participate in the playoffs, additional revenue and expenses will
be recorded during the three-month period ended June 30. The increase in revenue
during the three months ended September 30, 1998 was derived from the Company's
ownership interests in arena operations.
Operating Expenses
Cost of entertainment and sports services totaled $3.4 million or 94% of revenue
for the three months ended September 30, 1998, compared to $3.3 million or 125%
of revenue for the three months ended September 30, 1997. S,G&A of the
entertainment and sports business totaled $2.4 million or 67% of revenue for the
three months ended September 30, 1998, compared to $2.1 million or 79% of
revenue for the three months ended September 30, 1997. While cost of services
and S,G&A remained relatively flat in amount, these expenses decreased as a
percent of revenue because of an increase in revenue derived from the Company's
ownership interests in arena operations. Amortization and depreciation expense
associated with the entertainment and sports business totaled $913,000 and
$980,000 for the three months ended September 30, 1998 and 1997, respectively.
These expenses include amortization of Panthers' player's salaries and a
National Hockey League franchise fee that was paid in 1993 when the expansion
franchise was granted.
Corporate General and Administrative Expenses
Corporate general and administrative expenses totaled $1.8 million and $1.6
million for the three months ended September 30, 1998 and 1997, respectively.
Interest and Other Income
Interest and other income primarily include interest earned on cash and cash
equivalents and on Premier Club notes receivable. Interest and other income
totaled $437,000 and $465,000 for the three months ended September 30, 1998 and
1997, respectively.
Interest Expense
Interest expense totaled $10.7 million and $3.3 million for the three months
ended September 30, 1998 and 1997, respectively. The increase was the result of
higher debt levels assumed or originated in connection with the acquisitions of
resorts. The Company's debt increased to $550.9 million at September 30, 1998,
from $151.1 million at September 30, 1997.
<PAGE>
Minority Interest
Minority interest totaled $235,000 and $88,000 during the three months ended
September 30, 1998 and 1997, respectively. The increase in minority interest
expense follows higher operating income from Decoma, the majority-owned
subsidiary that manages the Miami Arena.
EBITDA
EBITDA represents earnings before interest expense, income taxes, depreciation,
amortization and minority interest. Management and certain investors use EBITDA
and Adjusted EBITDA (see below) as indicators of the Company's historical
ability to service debt. Management believes that an increase in EBITDA and
Adjusted EBITDA are indicators of the Company's improved ability to service
existing debt, to sustain potential future increases in debt and to satisfy
capital requirements. However, neither EBITDA nor Adjusted EBITDA is intended to
represent cash flows for the period. In addition, they have not been presented
as alternatives to either (1) operating income (as determined by generally
accepted accounting principles) as an indicator of operating performance or (2)
cash flows from operating, investing and financing activities (as determined by
GAAP) and is susceptible to varying calculations. EBITDA and Adjusted EBITDA as
presented may not be comparable to other similarly titled measures of other
companies.
EBITDA improved to $(1.7) million for the three months ended September 30, 1998
from $(4.9) million for the three months ended September 30, 1997. The
improvement in EBITDA was the result of an increase in revenue and better profit
margins during the three months ended September 30, 1998 as compared to the
three months ended September 30, 1997.
Adjusted EBITDA
Adjusted EBITDA represents EBITDA plus the annual change in net deferred income
from the Premier Club at the Boca Raton Resort and Club. The Premier Club
currently requires a non-refundable initial membership fee of $45,000 and annual
social dues starting at $2,300. Members of the Premier Club have unlimited
access to the Boca Raton Resort and Club grounds and recreational facilities,
<PAGE>
which are otherwise restricted to resort guests. Membership fees are recorded as
revenue over the estimated life of the membership. Unrecognized Premier Club
amounts are reflected as deferred revenue on the Consolidated Balance Sheets.
Adjusted EBITDA improved to $(458,000) for the three months ended September 30,
1998 from $(4.9) million for the three months ended September 30, 1997. The
improvement was primarily due to the increase in revenue and better profit
margins during the three months ended September 30, 1998 as compared to the
three months ended September 30, 1997.
Liquidity and Capital Resources
Cash and cash equivalents decreased to $11.5 million at September 30, 1998, from
$37.2 million at June 30, 1998. The major components of the change are discussed
below.
Cash Provided By Operating Activities
Cash provided by operating activities totaled $16.5 million and $15.5 million
during the three months ended September 30, 1998 and 1997, respectively. Because
of acquisitions, the Company received more cash flow from the core operations of
its resorts during the three months ended September 30, 1998. The increase in
cash flow from the resorts was substantially offset by additional interest paid
during the three months ended September 30, 1998.
Cash Used in Investing Activities
Cash used in investing activities amounted to $52.4 million and $74.5 million
during the three months ended September 30, 1998 and 1997, respectively.
The Company did not acquire any businesses during the three months ended
September 30, 1998. During the three months ended September 30, 1997, the
Company spent $63.0 million (net of cash acquired) on the acquisition of its
initial 68% ownership interest in the Registry Hotel at Pelican Bay.
Capital expenditures increased by $41.0 million, to $52.4 million during the
three months ended September 30, 1998 from $11.4 million during the three months
ended September 30, 1997. The Company spent about $29.7 million on the
acquisition of land in Naples and Plantation, Florida during the three months
ended September 30, 1998. The Company plans to use the parcels to construct
additional recreational amenities that would be available to guests of its
Naples' and Fort Lauderdale resorts. Other capital spending during the three
months ended September 30, 1998 related to continued development and
construction at Grande Oaks Golf Club, continued construction of the 122 guest
room addition at the Arizona Biltmore Hotel and other recurring furniture,
fixture and equipment maintenance at the resorts. During the three months ended
September 30, 1997, an expansion program was underway at the Boca Raton Resort
and Club. The expansion included an 18 court tennis club (that added to the
existing 12 courts located in a separate complex), a new Bates designed
championship golf course and a new 140,000 square foot conference center.
Under covenants contained in a senior note secured by the Boca Raton Resort and
Club, the Company is required to deposit excess operating cash into reserve
accounts which are accumulated and restricted to support future debt service,
facility expansion, furniture, fixture and equipment replacement and real estate
tax payments. Additionally, loan and/or management agreements for certain other
resorts require the maintenance of customary capital expenditure reserve funds
for the replacement of assets. These reserve funds are classified as restricted
cash on the Consolidated Balance Sheets.
Cash Provided By Financing Activities
Cash provided by financing activities amounted to $10.1 million and $73.6
million during the three months ended September 30, 1998 and 1997, respectively.
The Company received $10.2 million in borrowings, net of repayments, under
<PAGE>
credit facilities during the three months ended September 30, 1998. During the
three months ended September 30, 1997, the Company received $108.8 million of
net proceeds from the underwritten public offering of Class A Common Stock, $.01
par value, partially offset by the repayment of $35.0 million of debt.
Capital Resources
Management believes the Company can continue to obtain sufficient financial
resources to support ongoing operations.
The Company's capital resources are provided from both internal and external
sources. The primary capital resources from internal operations include revenue
from (1) room rentals, food and beverage sales, retail sales, golf, tennis and
marina services and conference services at the resorts, (2) Premier Club
memberships at the Boca Raton Resort and Club and (2) ticket, broadcasting,
sponsorship and other revenue derived from ownership of the Panthers. The
primary external sources of liquidity have been the issuance of equity
securities and borrowing under term loans and lines-of-credit.
The Company's short-term debt, which matures in December 1998, consists of a
bridge loan in the amount of $218.0 million and a note payable for $99.8 million
originated in connection with the acquisition of the Arizona Biltmore Hotel.
Management is currently reviewing financing alternatives, including extending
the bridge loan or encumbering certain of the resort and sports assets to raise
capital and retire its currently outstanding short-term indebtedness.
Financial Condition
Significant changes in balance sheet data from June 30, 1998 to September 30,
1998 are discussed below.
Restricted Cash
Restricted cash increased to $34.2 million at September 30, 1998 from $29.3
million at June 30, 1998. Restricted cash increased primarily because the
Company collected monies in its capacity as the operator of the National Car
Rental Center.
Property and Equipment
Property and equipment increased to $999.9 million at September 30, 1998 from
$959.2 million at June 30, 1998. The Company spent about $29.7 million on the
acquisition of land in Naples and Plantation, Florida. Other capital spending
during the three months ended September 30, 1998 related to continued
development and construction at Grande Oaks Golf Club, continued construction of
the 122 guest room addition at the Arizona Biltmore Hotel and other recurring
furniture, fixture and equipment maintenance at the resorts.
Other Assets
Other assets increased to $19.4 million at September 30, 1998 from $13.1 million
at June 30, 1998. Most of the increase relates to payment of signing bonuses to
Panther players. Signing bonuses are capitalized and amortized over the life of
a player's contract.
Current Portion of Deferred Revenue
Current portion of deferred revenue increased to $68.1 million at September 30,
1998 from $35.1 million at June 30, 1998. Approximately $24.0 million of the
increase relates to deposits for advance suite and seat sales at the National
Car Rental Center. Additionally, approximately $7.3 million of the increase
related to receipts of membership fees and annual dues of the Premier Club at
the Boca Raton Resort and Club. The membership fees are recognized as revenue
over the estimated life of the membership. The annual dues will be recognized as
revenue ratably over the membership year, which commenced on October 1.
<PAGE>
Long-Term Debt
Long-term debt increased to $228.3 million at September 30, 1998 from $217.8
million at June 30, 1998. The increase occurred because the Company borrowed
under its $35 million credit facility.
Year 2000
The Year 2000 issue relates to whether computer systems will properly recognize
and process information for dates in and after the year 2000. Systems unable to
adequately process dates beyond the year 1999 could fail or produce erroneous
results if they are not corrected. Significant uncertainty exists in the
software industry concerning the potential consequences that may result from the
failure of software to adequately address the Year 2000 issue.
The Company has reviewed all software and hardware used internally in its
support systems to determine whether such software and hardware is Year 2000
compliant. Most of the Company's software is Year 2000 compliant. Management
expects to have the remaining Year 2000 compliant systems in place by December
31, 1998. Management also intends to implement and test these Year 2000
solutions prior to any anticipated impact of the Year 2000 issue on the
Company's systems. To date, the Company has incurred costs of less than $100,000
in its Year 2000-compliance program. Management does not believe that the
aggregate cost for fully addressing the Year 2000 issue will be material.
Management cannot predict the effect of the Year 2000 issue on entities with
which the Company transacts business, and cannot assure the Company's
stockholders that the effect of the Year 2000 issue on such entities will not
have a material adverse effect on the Company's business, financial condition or
results of operations. Management is formulating a contingency plan with respect
to entities with which the Company does business.
Forward Looking Statements
Some of the information in this report may contain forward-looking statements.
Such statements can be identified by the use of forward-looking terminology such
as "may", "will", "expect", "anticipate", "estimate", "continue" or other
similar words. These statements discuss future expectations, contain projections
of results of operations or of financial condition or state other
"forward-looking" information. When considering such forward-looking statements,
you should keep in mind the risk factors and other cautionary statements in this
report. The risk factors noted in this section, including certain known and
unknown risks and uncertainties, could cause the Company's actual results to
differ materially from those contained in any forward looking statement.
These risk factors include, among others, the Company's ability to obtain
financing on acceptable terms to meet operating expenses and finance its growth,
competition in the Company's principal businesses, the Company's ability to
integrate and successfully operate acquired businesses and the risks associated
with these businesses, the Company's ability to develop and implement
operational and financial systems to manage rapidly growing operations, the
Company's limited history of operations in the leisure and recreation business,
the Company's dependence on key personnel and the Company's ability to properly
assess and capitalize on future business opportunities.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Not Applicable.
<PAGE>
Part II - Other Information
Item 1. Legal Proceedings
There has been no material change in the status of legal proceedings as
described under Item 3., Part I to the Company's Annual Report on Form
10-K for the year ended June 30, 1998.
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
Number Description
27.1 Financial Data Schedule
(b) Reports on Form 8-K
None.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.
FLORIDA PANTHERS HOLDINGS, INC.
Date: November 12, 1998 By:WILLIAM M. PIERCE
William M. Pierce
Senior Vice President, Treasurer and
Chief Financial Officer
(Principal Financial Officer)
By:STEVEN M. DAURIA
Steven M. Dauria
Vice President and Corporate Controller
(Principal Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-START> JUL-01-1998
<PERIOD-END> JUN-30-1999
<CASH> 45,700
<SECURITIES> 0
<RECEIVABLES> 43,278
<ALLOWANCES> 0
<INVENTORY> 7,269
<CURRENT-ASSETS> 97,898
<PP&E> 1,027,192
<DEPRECIATION> 27,265
<TOTAL-ASSETS> 1,161,100
<CURRENT-LIABILITIES> 444,260
<BONDS> 0
0
0
<COMMON> 352
<OTHER-SE> 410,134
<TOTAL-LIABILITY-AND-EQUITY> 1,161,100
<SALES> 52,278
<TOTAL-REVENUES> 52,715
<CGS> 30,982
<TOTAL-COSTS> 30,982
<OTHER-EXPENSES> 31,116
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 10,663
<INCOME-PRETAX> (20,046)
<INCOME-TAX> 0
<INCOME-CONTINUING> (20,046)
<DISCONTINUED> 0
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<CHANGES> 0
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