U. S. Securities and Exchange Commission
Washington, D.C. 20549
FORM 10-QSB
(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, 1998
Transition report pursuant to 13 or 15(d) of the Securities Exchange
Act of 1934 for the transition period from to
Commission File No. 1-4385
DUNES HOTELS AND CASINOS INC.
(Exact name of business issuer as specified in its charter)
NEW YORK 11-1687244
(State or other jurisdiction or I.R.S. Employer Identification No.
incorporation or organization)
4600 NORTHGATE BOULEVARD, SUITE 130, SACRAMENTO, CALIFORNIA 95834
(Address of principal executive offices)
(916) 929-2295
(Issuer's telephone number)
NOT APPLICABLE
(Former name, former address and former fiscal year, if changed since last
report)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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
State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date: 6,375,096 SHARES OF
COMMON STOCK, $.50 PAR VALUE AS OF AUGUST 3, 1998.
Transitional Small Business Disclosure Format (check one): Yes No X
<PAGE2>
DUNES HOTELS AND CASINOS INC.
QUARTERLY REPORT ON FORM 10-QSB
FOR THE PERIOD ENDED JUNE 30, 1998
INDEX
Page
Part 1. Financial Information
ITEM 1. FINANCIAL STATEMENTS
Consolidated Condensed Balance Sheets
June 30, 1998 and December 31, 1997 3
Consolidated Condensed Statements of Loss
for the three months ended June 30, 1998
and 1997 5
Consolidated Condensed Statements of Loss
for the six months ended June 30, 1998
and 1997 7
Consolidated Condensed Statements of Cash Flows
for the six months ended June 30, 1998
and 1997 9
Notes to Consolidated Condensed Financial
Statement, June 30, 1998 and 1997 10
ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS 14
Part II. Other Information
ITEM 1. LEGAL PROCEEDINGS 18
ITEM 2. CHANGES IN SECURITIES 18
ITEM 3. DEFAULTS UPON SENIOR SECURITIES 18
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF
SECURITY HOLDERS 18
ITEM 5. OTHER INFORMATION 18
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K 18
Signatures 19
<PAGE3>
DUNES HOTELS AND CASINOS INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
JUNE 30, 1998 AND DECEMBER 31, 1997
ASSETS
June December
30, 1998 31, 1997
(Unaudited)
(Dollars in thousands)
Cash and cash equivalents $ 3,161 $ 4,299
Marketable securities 911 673
Receivables
Trade 4 3
Related party, less allowance of $1,899 in 1998 37
Real estate sales 476 469
Other, including officer, $85,000 in 1998 and 1997 88 92
Inventory of real estate held for sale 4,114 4,359
Prepaid expenses 62 122
Property and equipment
Less accumulated depreciation and amortization,
1998, $533; 1997, $477 3,242 3,252
Investments 644 644
Deferred costs and other 3 124
----------- --------
$ 12,742 $ 14,037
=========== ========
<PAGE4>
DUNES HOTELS AND CASINOS INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
JUNE 30, 1998 AND DECEMBER 31, 1997
LIABILITIES AND SHAREHOLDERS' EQUITY
June December
30, 1998 31, 1997
(Unaudited)
(Dollars in thousands)
Accounts payable $ 11 $ 24
Accrued expenses 193 207
Deferred income 178
Income taxes 307 307
Short-term debt 60
Long-term debt and capitalized lease obligations 2,094 2,272
Accrued preferred stock dividends 1,209 1,173
----------- ---------
Total liabilities 3,814 4,221
Minority interest 320 320
Shareholders' equity
Preferred stock-authorized 10,750,000 shares
($.50 par); issued 10,512 shares Series B $7.50
cumulative preferred stock, outstanding 9,250
shares in 1998 and 1997, aggregate liquidation
value $2,337 including dividends in arrears 5 5
Common stock-authorized 25,000,000 shares ($.50
par); issued 7,799,780 shares, outstanding
6,375,906 shares in 1998 and 1997 3,900 3,900
Capital in excess of par 25,881 25,881
Deficit (19,178) (18,290)
-------- --------
10,608 11,496
Treasury stock at cost; Preferred-Series B,
902 shares, Common 1,424,684 shares in
1998 and 1997 2,000 2,000
-------- --------
Total shareholders' equity 8,608 9,496
-------- --------
$ 12,742 $14,037
======== =======
The accompanying notes are an integral part of these condensed financial
statements.
<PAGE5>
DUNES HOTELS AND CASINOS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
THREE MONTHS ENDED JUNE 30, 1998 AND 1997
1998 1997
(Dollars in thousands,
except per share)
Operating revenues:
Sales of real estate $ 172 $ 264
Cost of real estate sold 171 257
-------- --------
1 7
-------- --------
Rental income - agricultural properties 13 195
Cost and expense of rental income 1 36
-------- --------
12 159
-------- --------
Rice drying and storage revenues 26 35
Cost of rice drying and storage 89 87
--------- ---------
(63) (52)
Miscellaneous income - net 24
--------- ---------
(50) 138
--------- ---------
Operating expenses:
Selling, administrative and general
Corporate 188 288
Real estate operations 52 39
Bad debts, net of recoveries 1
Depreciation 32 18
--------- ---------
272 346
--------- ---------
Loss before other credits (charges), income taxes
and minority interests (322) (208)
--------- ---------
Other credits (charges):
Interest and dividend income 61 66
Interest expense (59) (40)
Securities gains (losses), net (6) 23
Other 14 (29)
--------- ---------
10 20
--------- ---------
<PAGE6>
DUNES HOTELS AND CASINOS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
THREE MONTHS ENDED JUNE 30, 1998 AND 1997
1998 1997
(Dollars in thousands,
except per share)
Loss before minority interest (312) (188)
Minority interest in income of the White Ranch (70)
--------- ---------
Net income (loss) $ (312) $ (258)
========= =========
Income (loss) per common share: $ (0.05) $ (0.04)
========= =========
The accompanying notes are an integral part of these condensed financial
statements.
<PAGE7>
DUNES HOTELS AND CASINOS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
SIX MONTHS ENDED JUNE 30, 1998 AND 1997
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1998 1997
(Dollars in thousands,
except per share)
Operating revenues:
Sales of real estate $ 256 $ 447
Cost of real estate sold 257 428
--------- ----------
(1) 19
--------- ----------
Rental income - agricultural properties 30 305
Cost and expense of rental income 2 83
--------- ----------
28 222
--------- ----------
Rice drying and storage revenues 56 70
Cost of rice drying and storage 220 191
--------- ----------
(164) (121)
--------- ----------
Miscellaneous income - net 37
--------- ----------
(137) 157
--------- ----------
Operating expenses:
Selling, administrative and general
Corporate 431 558
Real estate operations 101 93
Bad debts, net of recoveries 124
Depreciation 64 35
--------- ----------
596 810
--------- ----------
Loss before other credits (charges), income taxes
and minority interest (733) (653)
--------- ----------
Other credits (charges):
Interest and dividend income 120 116
Interest expense (89) (86)
Securities gains (losses), net (8) 16
Other (140) (113)
--------- ----------
(117) (67)
---------- ----------
-- --
<PAGE8>
DUNES HOTELS AND CASINOS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
SIX MONTHS ENDED JUNE 30, 1998 AND 1997
1998 1997
(Dollars in thousands,
except per share)
Loss before income taxes and minority interest (850) (720)
Income taxes (2) (53)
--------- ---------
Loss before minority interest (852) (773)
Minority interest in income of the White Ranch (85)
--------- ---------
Net income (loss) $ (852) $ (858)
========= =========
Income (loss) per common share: $ (0.13) $ (0.13)
========= =========
The accompanying notes are an integral part of these condensed financial
statements.
<PAGE9>
DUNES HOTES AND CASINOS INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 1998 AND 1997
UNAUDITED
1998 1997
(Dollars in thousands)
Cash flows from operating activities:
Net cash provided by (used in) operating activities $ (532) $ 60
--------- ---------
Cash flows from investing activities:
Decrease (increase) in investments (237) (316)
Decrease (increase) in notes receivable (73) 324
Purchase of equipment (58) (290)
--------- ---------
(368) (282)
--------- ---------
Cash flows from financing activities:
Decrease in long-term debt (178) (313)
Decrease in short-term debt (60) (69)
--------- ---------
(238) (382)
--------- ---------
Increase (decrease) in cash and cash equivalents (1,138) (604)
Cash and cash equivalents, beginning of period 4,299 1,283
--------- ---------
Cash and cash equivalents, end of period $ 3,161 $ 679
========= =========
The accompanying notes are an integral part of these condensed financial
statements.
<PAGE10>
DUNES HOTELS AND CASINOS INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION:
The financial information included herein is unaudited; however, such
information reflects all adjustments (consisting solely of normal
recurring adjustments) which are, in the opinion of management,
necessary for a fair statements of results for the interim period.
The results of operations for the six months ended June 30,1998, are
not necessarily indicative of the results to be expected for the full
year.
2. CONSOLIDATION:
The accompanying consolidated condensed financial statements include the
accounts of the Company and its wholly-owned subsidiaries Continental
California Corporation (Continental), M&R Corporation (MRC), and MRC's
subsidiary M&R Investment Company, Inc. (MRI) and MRI's subsidiaries
SHF Acquisition Corporation (SHF) and Southlake Acquisition
Corporation (Southlake)
3. RELATED PARTY TRANSACTIONS:
As of August 3, 1998, John B. Anderson (Anderson), the Company's
controlling stockholder and former Chairman of the Board of Directors
of the Company, and entities owned or controlled by him (Anderson
Entities) own approximately 67.2% of the Company which is pledged to
the FDIC.
On November 26, 1997, the Company entered into a Loan Purchase
Agreement (the Note Sale Agreement) with Anderson, as Trustee, of the
John J. Anderson Family Trust. The Note Sale Agreement is more fully
described in the Company's Form 10-K for the year ended December 31,
1997.
As previously reported, on March 27, 1998, the United States District
Court, District of Nevada (the Nevada District Court) held a hearing
regarding the Motion of the Special Master (1) to Set Aside Fraudulent
Transfer of Assets, and (2) to Freeze Assets held by
Transferee John J. Anderson Family Trust.
<PAGE11>
DUNES HOTELS AND CASINOS INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
3. RELATED PARTY TRANSACTIONS (CONTINUED):
On March 31, 1998, the Nevada District Court granted the Motion of
the Special Master and ordered that the transfer of assets be
rescinded and all parties return any of the assets transferred.
As a result of the foregoing Order (1) the Trust returned to the
Company the note issued by BGC to MRI which has an unpaid principal
balance of approximately $1,900,000 as of June 30, 1998, (2) the
Special Master returned to the Company 1,280,756 shares of the
Company's common stock which serve as collateral for the BGC Note and,
(3) the Company returned to the Trust the sum of $200,000 and in
addition released the sum of $120,000 that was held in escrow.
Because of the Nevada District Court's Order unwinding the Note Sale
Agreement, the Company has recorded a loss of approximately $162,500
in the accompanying Consolidated Condensed Statement of Income (Loss)
for the six months ended June 30, 1998.
As previously reported, the FDIC had agreed to sell the common stock
of BGC which owns 1,280,756 shares of the Company. The Company is
informed that the sale was not completed.
In June 1998, BGC filed a petition under Chapter 7 of the Bankruptcy
Code with the Bankruptcy Court in Las Vegas, Nevada. The trustee is
inventorying the assets of BGC, and the ultimate outcome of the
proceeding is not known at this time. The Company has reduced the
carrying value of the BGC note to the estimated value of the security
pledged.
The Company is informed that the FDIC is attempting to sell the
remaining collateral it holds, which includes the common stock of the
Company. The FDIC is required to receive the permission of the United
States District Court before it may sell the collateral. The Company
has submitted an offer to purchase the 3,000,000 shares of the Company
held by the FDIC as collateral.
<PAGE12>
DUNES HOTELS AND CASINOS INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
4. CONTINGENCIES:
(a) As of June 30, 1998, there were no material legal proceedings
pending against the Company. However, see footnote 3 and item b.
below regarding legal proceedings, not involving the Company,
that may have a material adverse effect on the Company.
(b) Anderson, Edith Anderson (Anderson's wife), Cedar Development
Co., J.A. Inc., and J.B.A. Investments, Inc. (collectively the
Anderson Parties) are involved in litigation (the Anderson
Litigation) with the Federal Deposit Insurance Corporation (the
FDIC). The Anderson Litigation is more fully described in the
Company's Form 10-K for the year ended December 31, 1997.
(c) SHF was advised of possible contamination on two sites at Sam
Hamburg Farm, a storage facility for diesel fuels and an old
airstrip which had been used for the loading and fueling of
aircraft applying agricultural chemicals to the surrounding farm
lands. The Company has completed the cleanup relating to the
diesel storage tanks at a cost of approximately $100,000 in 1996.
The Company has disposed of a large amount of the contaminated
earth at an approved site for the storage of toxic wastes.
However, approximately 5,000 cubic yards of contaminated earth
still remain to be disposed of. The Company, through its
chemical and toxic clean-up consultant, has been working with the
California State Environmental Protection Agency, in seeking
alternate means to the disposal in toxic dump sites of chemical
and toxic-laden soil. The State has participated in the funding
of several projects by a number of chemical treatment firms in
efforts to try other detoxification methods on the soil.
Because of the ongoing testing, the State has not imposed a
disposal date upon the Company. Cost of disposal is estimated at
$100 per cubic yard or approximately $500,000. However, if on-site
remediation can be achieved, it is estimated that the cost will be
between $90,000 and $115,000. The Company is unable to predict when
the ongoing testing will be complete or what the outcome of these
<PAGE13>
DUNES HOTELS AND CASINOS INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
4. CONTINGENCIES (CONTINUED)
(c) continued:
tests will be. As of June 30, 1998, the Company has paid
approximately $500,000, including the $100,000 expended for the
diesel storage tank, and accrued an estimated $174,000 relating
to the balance of the clean-up of the contaminated earth. That
estimate could change as the remediation work takes place.
(d) Company has received a notice from the State of California
Franchise Tax Board (FTB) wherein the FTB alleges that one of the
Company's subsidiaries owe California franchise tax of approximately
$316,000 plus approximately $250,000 in penalties and interest
resulting from the foreclosure sale of certain real property, owned
by the subsidiary, in San Diego, California. The Company has
appealed this matter to the California State Board of Equalization
(SBE) and the SBE has ruled the Company owes taxes of approximately
$183,000 and interest of $167,000. The Company and the FTB have
filed petitions for rehearing with the SBE and are currently
awaiting its decision.
5. LOSS PER COMMON SHARE:
Loss per common share has been computed by dividing the net loss, plus
the accrued dividends applicable to the Series B Preferred stock
($36,000), for the six months ended June 30, 1998 and 1997 by the number
of shares outstanding (6,375,096) as of June 30, 1998 and 1997. Dividends
on non-convertible preferred stock, Series B, are deducted from income or
added to the loss applicable to common shares. Dividends on the
Company's Series B Preferred stock have not been paid since the first
quarter of 1982. The Company is in arrears on such dividends in the
amount of approximately $1,209,000 as of June 30, 1998.
<PAGE14>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Certain information included herein contains statements that are
forward-looking, such as anticipated liquidity requirements for the coming
fiscal year, anticipated sources of liquidity for the coming fiscal year,
the impact of anticipated asset sales, proposed facilities construction and
potential changes in control of the Company. Such forward-looking
information involves important risks and uncertainties that could
significantly affect the Company's financial condition and future results
of operations, and, accordingly, such future financial condition and
results of operations may differ from those expressed in any forward-
looking statements made herein. These risks and uncertainties include, but
are not limited to, those risks relating to actual costs necessary to
clean-up certain real property chemical contamination, actual construction
costs and construction contingencies in connection with construction of any
new facilities, real estate market conditions and general economic
conditions, the abilities of certain third parties to obtain financing and
otherwise perform under real estate purchase agreements, and the outcome of
certain litigation and other risks. The Company cautions readers not to
place undue reliance on any such forward-looking statements, and, such
statements speak only as of the date made.
OVERVIEW
The Company's operating results for the quarter ended June 30, 1998
were adversely affected by the following:
1. On March 31, 1998, the Nevada District Court ordered that the
Note Sale Agreement dated November 27, 1997, between MRI and the
John J. Anderson Family Trust be unwound. As a result of that
order, the Company recorded a loss of approximately $163,000 in
the current period.
2. The failure of Farmers Rice Co-operative to remove the dried rice
from the West Sacramento drying facility. Because of this, the
Company incurred additional expenses, over and above those that
were anticipated, in connection with storing and maintaining the
dried rice.
3. The slow upper-end real estate market in Sacramento County,
California. During the period ended June 30, 1998, the Company
sold only 3 lots at The Fairways. However, Murieta Investors,
the Company that purchased 6 lots at The Fairways, has commenced
construction on 4 residential housing units. It is anticipated
that these units will be completed and sold during the third
quarter of 1998. If the units are sold, of which there can be no
assurance, the Company would receive the success payments as
provided for in the agreement between Murieta Investors and the
Company.
<PAGE15>
The Company is waiting for the ruling from the California State Board
of Equalization regarding the amount of Franchise Tax, if any, that
may be due as a result of the sale of certain real property in San
Diego, California.
The Company has no present intentions to pay dividends on either its
common or preferred stock.
OPERATING RESULTS
THREE MONTHS ENDED JUNE 30, 1998 VS. THE THREE MONTHS ENDED JUNE 30, 1997
Real Estate
The decrease in revenues from the sale of real estate for the three
months ended June 30,1998 when compared to the three months ended June 30,
1997 is due primarily to the slow down in the upper-end real estate market
in Sacramento County California.
Net rental income from agricultural properties for the three months
ended June 30,1998 decreased by approximately $182,000. This was all due
to the sale of the White Ranch in 1997.
AGRICULTURAL
The loss from the rice drying and storage operations for the three
months ended June 30, 1998 increased by approximately $11,000 when compared
with the three months ended June 30, 1997. This was due to the prolonged
operation of the West Sacramento drying facility and higher than
anticipated repairs to the new drying facility.
GENERAL
When compared with the three months ended June 30, 1997, operating
expenses decreased by approximately $74,000. This decrease consisted
primarily of a reduction in selling, administrative and general expenses
consisting primarily of a decrease in salaries ($46,000), a decrease in
office rent ($1,000) and a decrease in property taxes at The Fairways of
$6,000. The increase in depreciation expense is attributable to the new
rice dryer.
Interest expense for the three months ended June 30, 1998, increased
by approximately $19,000 when compared with the three months ended June 30,
1997. The increase consisted primarily of an increase in interest expense
relating to the new rice dryer financing offset by a reduction in interest
expense related to the Beal Bank loan.
<PAGE16>
SIX MONTHS ENDED JUNE 30, 1998 VS. THE SIX MONTHS ENDED JUNE 30, 1997.
REAL ESTATE
The decrease in revenues from the sale of real estate for the six
months ended June 30, 1998, resulted from only three lots sold compared
with five lots sold during the same period ended June 30, 1997.
Net rental income from agricultural properties decreased due to the
sale of the White Ranch in 1997.
AGRICULTURAL
The loss from the rice drying and storage operations for the six
months ended June 30, 1998 increased by $43,000 when compared with the six
months ended June 30, 1997. This was due primarily to Farmers' Rice
Cooperation not renewing their storage contract for the upcoming year,
which resulted in all rice in storage to be shipped out of the facility,
including the 1997 crop which usually remains in storage until the
following year. The loss of the lease renewal with Farmers' Rice
Cooperation has been supplemented with a four year contract with Adams
Grain Co. to store wheat and to dry and store corn in the facility. The
wheat and corn revenue will be realized in a future period, namely during
the month of July 1998 for wheat and corn during September through December
1998 as harvested.
GENERAL
When compared with the six months ended June 30,1997, operating
expenses decreased by approximately $214,000. The decrease consisted of a
reduction of corporate costs of $127,000, a decrease in bad debts of
$124,000 and a decrease in depreciation expense offset by an increase in
real estate operations. The decrease in corporate costs resulted from the
company relocating the corporate office from Las Vegas, NV to Sacramento,
CA. Depreciation expense increased due to the construction of the rice
drying facility in Davis, CA.
Other charges increased by approximately $50,000 when compared with
the six months ended June 30,1997. The increase was primarily due to bad
debt expense relating to the unwinding of the Note Sale Agreement with the
John J. Anderson Family Trust and net securities losses.
LIQUIDITY AND CAPITAL RESOURCES
During the six months ended June 30,1998, cash, cash equivalents and
marketable securities decreased by$900,000 from $4,972,000 at December
31,1997, to $4,072,000 at June 30, 1998. The most significant uses of cash
during the six months ended June 30, 1998, consisted of cash used in
operating activities ($532,000), payments on long-term and short-term debt
($238,000) and an increase in investments of $237,000.
<PAGE17>
The Company believes that its primary requirements for liquidity in
the coming fiscal year will be to fund ongoing expenses at The Fairways,
which include, among other things, association dues, water and sewer fees
and property taxes; to fund the required payments on the note to Beal Bank;
to fund the required payments due on the rice dryer financing; to fund
costs that may be incurred relating to the toxic clean-up at Sam Hamburg
Farm; to fund any tax payment that may be due to the California Franchise
Tax Board; and to fund general and administrative expenses. In addition,
the Company may be required to fund certain costs relating to a possible
stockholder meeting.
The Company believes that sources of required liquidity will be cash
generated from the rice drying and storage facilities, anticipated lot
sales at The Fairways, collection of notes receivable and Success Payments
related to the venture with Murieta Investors and the cash available at
June 30, 1998. Based on known commitments, the Company believes that the
sources of cash described and the cash available at June 30, 1998 will be
adequate to fund known liquidity requirements.
<PAGE18>
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDING
None, except for the discussion contained in footnote 3 in Notes to
Consolidated Condensed Financial Statements.
ITEM 2. CHANGES IN SECURITIES
Not applicable.
ITEM 3. DEFAULT UPON SENIOR SECURITIES
Dividends in arrears. See Note 4 of Notes to Consolidated Condensed
Financial Statements
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable
ITEM 5. OTHER INFORMATION
On July 16, 1998, James H. Dale a director and the Chief Financial
Officer of the Company passed away. On an interim basis Marvin P. Johnson
has been appointed Acting Chief Accounting Officer.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27.01 Financial Data Schedule
(b) Reports on Form 8-K
None
<PAGE19>
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934,
THE REGISTRANT HAS DULY CAUSE THIS REPORT TO BE SIGNED ON ITS BEHALF BY THE
UNDERSIGNED THEREUNTO DULY AUTHORIZED.
DUNES HOTELS AND CASINOS INC.
Registrant
Date: AUGUST 10 , 1998 By: EDWARD PASQUALE
Edward Pasquale, President
By: MARVIN P. JOHNSON
Marvin P. Johnson
Acting Chief Accounting Officer
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
This schedule contains summary financial information extracted from the
consolidated condensed balance sheet and the consolidated condensed
statements of income (loss) on pages 3 through 9 of the Company's quarterly
report on Form 10-QSB for the quarter ended June 30, 1998, and is qualified
in it's entirety by reference to such financial statements.
LEGEND
MULTIPLIER 1,000
TABLE
PRIOD-TYPE 3-MOS
FISCAL-YEAR-END DEC-31-1998
PERIOD-END JUN-30-1998
CASH 3,161
SECURITIES 911
RECEIVABLES 2,504
ALLOWANCES 1,899
INVENTORY 0
CURRENT-ASSET 0
PP&E 3,775
DEPRECIATION 533
TOTAL ASSETS 12,742
CURRENT-LIABILITIES 0
BONDS 0
PREFERRED-MANDATORY 0
PREFERRED 5
COMMON 3,900
OTHER-SE 4,703
TOTAL-LIABILITY-AND-EQ 12,742
SALES 172
TOTAL REVENUES 211
CGS 171
TOTAL COSTS 261
OTHER-EXPENSES 272
LOSS-PROVISION 0
INTEREST-EXPENSE 59
INCOME-PRETAX (312)
INCOME-TAX 0
INCOME-CONTINUING (312)
DISCONTINUED 0
EXTRAORDINARY 0
CHANGES 0
NET-INCOME (312)
EPS-PRIMARY (.08)
EPS-DILUTED (.08)
</TABLE>
