<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
{X} Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities
Exchange Act of 1934 for the period ended September 30, 1994.
OR
{ } Transition Report Pursuant to Section 13 or 15 (d) of the Securities
Exchange Act of 1934.
Commission file number: 1-8540
BALLY'S PARK PLACE, INC.
(Exact name of registrant as specified in its charter)
Delaware 36-3432384
(State or other jurisdiction (I.R.S. Employer
of incorporation or Identification No.)
organization)
Park Place & The Boardwalk
Atlantic City, New Jersey 08401
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (609) 340-2000
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
At November 1, 1994, all 100 outstanding shares of the registrant's common
stock were held by Bally's Casino Holdings, Inc.
The registrant meets the conditions set forth in General Instruction H (1)
(a) and (b) of Form 10-Q and, therefore, has presented its information
following the reduced disclosure format.
<PAGE>
BALLY'S PARK PLACE, INC.
(A Wholly Owned Subsidiary of Bally's Casino Holdings, Inc.)
FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 1994
INDEX
Page
Number
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements
Condensed Consolidated Balance Sheet (Unaudited)
September 30, 1994 and December 31, 1993. . . . . . . . 1
Consolidated Statement of Operations (Unaudited)
Nine Months Ended September 30, 1994 and 1993 . . . . . 2
Consolidated Statement of Operations (Unaudited)
Three Months Ended September 30, 1994 and 1993. . . . . 3
Consolidated Statement of Stockholder's Equity (Unaudited)
Nine Months Ended September 30, 1994. . . . . . . . . . 4
Consolidated Statement of Cash Flows (Unaudited)
Nine Months Ended September 30, 1994 and 1993 . . . . . 5
Notes to Condensed Consolidated Financial
Statements (Unaudited). . . . . . . . . . . . . . . . . 7
Item 2. Management's Discussion and Analysis of Results of
Operations . . . . . . . . . . . . . . . . . . . . . 11
PART II. OTHER INFORMATION:
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . 13
SIGNATURE PAGE. . . . . . . . . . . . . . . . . . . . . . . . . . 14
<PAGE>
<TABLE>
BALLY'S PARK PLACE, INC.
(A Wholly Owned Subsidiary of Bally's Casino Holdings, Inc.)
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
(Unaudited)
<CAPTION>
September 30, December 31,
1994 1993
------------- -------------
ASSETS
<S> <C> <C>
Current assets:
Cash and equivalents....................... $ 15,672 $ 12,295
Receivables, less allowance for doubtful
accounts of $1,300 and $1,265............ 5,577 5,988
Income taxes receivable.................... 5,587 ---
Inventories................................ 2,278 1,834
Deferred income taxes...................... 7,434 6,161
Other current assets....................... 1,858 1,025
-------- --------
Total current assets................... 38,406 27,303
Property and equipment, less accumulated
depreciation of $303,615 and $284,691...... 479,069 486,498
Deferred finance costs, less accumulated
amortization of $870 and $7,388............ 14,028 7,502
Casino Reinvestment Development Authority
investments................................ 11,253 11,314
Other assets ................................ 1,220 1,236
-------- --------
$543,976 $533,853
======== ========
LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities:
Accounts payable........................... $ 3,419 $ 5,423
Income taxes payable....................... --- 5,562
Accrued liabilities........................ 27,769 40,997
Current maturities of long-term debt....... 44 44
-------- --------
Total current liabilities.............. 31,232 52,026
Long-term debt, less current maturities...... 427,690 354,727
Deferred income taxes........................ 42,695 31,760
Pension liability............................ 8,898 9,089
Other long-term liabilities.................. 1,137 1,071
Stockholder's equity......................... 32,324 85,180
-------- --------
$543,976 $533,853
======== ========
<FN>
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
BALLY'S PARK PLACE, INC.
(A Wholly Owned Subsidiary of Bally's Casino Holdings, Inc.)
CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands)
(Unaudited)
<CAPTION>
Nine Months Ended September 30,
-------------------------------
1994 1993
-------- --------
<S> <C> <C>
Revenues:
Casino................................... $241,448 $225,951
Rooms.................................... 19,408 18,948
Food and beverage........................ 15,538 15,683
Other.................................... 7,592 6,540
-------- --------
283,986 267,122
Operating costs and expenses:
Casino................................... 96,431 87,555
Rooms.................................... 8,116 7,332
Food and beverage........................ 14,213 14,273
Other operating expenses................. 42,264 39,541
Selling, general and administrative...... 25,184 24,097
Depreciation and amortization............ 23,450 19,928
Allocations from Bally Entertainment
Corporation............................ 3,807 3,024
-------- --------
213,465 195,750
-------- --------
Operating income........................... 70,521 71,372
Interest expense........................... 31,547 33,891
-------- --------
Income before income taxes, extraordinary
item and cumulative effect on prior
years of change in accounting for
income taxes............................. 38,974 37,481
Provision for income taxes................. 15,500 16,098
-------- --------
Income before extraordinary item and
cumulative effect on prior years of
change in accounting for income taxes.... 23,474 21,383
Extraordinary loss on extinguishment of
debt..................................... (20,735) ---
Cumulative effect on prior years of change
in accounting for income taxes........... --- (11,377)
-------- --------
Net income................................. $ 2,739 $ 10,006
======== ========
<FN>
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
BALLY'S PARK PLACE, INC.
(A Wholly Owned Subsidiary of Bally's Casino Holdings, Inc.)
CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands)
(Unaudited)
<CAPTION>
Three Months Ended September 30,
--------------------------------
1994 1993
-------- --------
<S> <C> <C>
Revenues:
Casino.................................. $ 94,832 $ 84,733
Rooms................................... 8,154 8,332
Food and beverage....................... 5,922 5,933
Other................................... 2,642 2,524
-------- --------
111,550 101,522
Operating costs and expenses:
Casino.................................. 35,219 31,503
Rooms................................... 2,924 2,964
Food and beverage....................... 5,349 5,300
Other operating expenses................ 14,808 13,623
Selling, general and administrative..... 8,776 8,258
Depreciation and amortization........... 8,032 6,707
Allocations from Bally Entertainment
Corporation........................... 2,240 1,155
-------- --------
77,348 69,510
-------- --------
Operating income.......................... 34,202 32,012
Interest expense.......................... 10,269 11,114
-------- --------
Income before income taxes................ 23,933 20,898
Provision for income taxes................ 9,400 9,498
-------- --------
Net income................................ $ 14,533 $ 11,400
======== ========
<FN>
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
BALLY'S PARK PLACE, INC.
(A Wholly Owned Subsidiary of Bally's Casino Holdings, Inc.)
CONSOLIDATED STATEMENT OF STOCKHOLDER'S EQUITY
(In thousands, except share data)
(Unaudited)
<CAPTION>
Number Additional Total
of shares Common paid in Retained stockholder's
issued stock capital earnings equity
--------- ------- ---------- --------- -------------
<S> <C> <C> <C> <C> <C>
Balance at December 31, 1993 . . . . . 100 $ 1 $ 85,179 $ --- $ 85,180
Net income . . . . . . . . . . . . -- -- -- 2,739 2,739
Dividends paid . . . . . . . . . . -- -- (52,856) (2,739) (55,595)
----- ----- -------- -------- --------
Balance at September 30, 1994. . . . . 100 $ 1 $ 32,323 $ --- $ 32,324
===== ===== ======== ======== ========
<FN>
See accompanying notes.
/TABLE
<PAGE>
<TABLE>
BALLY'S PARK PLACE, INC.
(A Wholly Owned Subsidiary of Bally's Casino Holdings, Inc.)
CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands)
(Unaudited)
<CAPTION>
Nine Months Ended September 30,
-------------------------------
1994 1993
-------- --------
<S> <C> <C>
Operating:
Income before extraordinary item and
cumulative effect on prior years of
change in accounting for income taxes... $ 23,474 $ 21,383
Adjustments to reconcile to cash provided-
Depreciation and amortization........... 23,450 19,928
Amortization included in interest
expense............................... 1,192 1,284
Deferred income taxes................... 9,662 7,988
Change in operating assets and
liabilities........................... (13,317) (19,982)
Other................................... 98 (90)
-------- --------
Cash provided by operating
activities........................ 44,559 30,511
Investing:
Purchases of property and equipment....... (15,523) (8,270)
Proceeds from disposal of property and
equipment............................... 559 406
Purchase of Casino Reinvestment
Development Authority investments and
credits................................. (996) (1,322)
-------- --------
Cash used in investing activities... (15,960) (9,186)
Financing:
Debt transactions-
Decrease in revolving line of credit,
net................................... (2,000) (3,000)
Repayments to affiliate, net............ --- (9,000)
Proceeds from issuance of long-term
debt.................................. 425,000 ---
Repayments of long-term debt............ (350,037) (1,036)
Premium paid on early retirement of
debt.................................. (27,692) ---
Debt issuance costs..................... (14,898) ---
-------- ---------
Cash provided by (used in) debt
transactions...................... 30,373 (13,036)
Equity transactions-
Dividends paid to Bally's Casino
Holdings, Inc......................... (55,595) (11,000)
-------- --------
Cash used in financing activities... (25,222) (24,036)
-------- --------
Increase (decrease) in cash and equivalents. 3,377 (2,711)
Cash and equivalents, beginning of period... 12,295 12,275
-------- --------
Cash and equivalents, end of period......... $ 15,672 $ 9,564
======== ========
<FN>
(continued)
/TABLE
<PAGE>
<TABLE>
BALLY'S PARK PLACE, INC.
(A Wholly Owned Subsidiary of Bally's Casino Holdings, Inc.)
CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands)
(Unaudited)
<CAPTION>
Nine Months Ended September 30,
-------------------------------
1994 1993
-------- --------
<S> <C> <C>
SUPPLEMENTAL CASH FLOWS INFORMATION
Changes in operating assets and
liabilities were as follows:
Decrease in receivables.............. $ 313 $ 309
Increase in income taxes receivable.. (5,587) ---
(Increase) decrease in inventories... (444) 300
(Increase) decrease in other current
assets and other assets............ (817) 3,111
Decrease in accounts payable and
accrued liabilities................ (15,232) (10,538)
Increase in income taxes payable..... 8,575 2,223
Decrease in pension liability and
deferred compensation.............. (191) (15,469)
Increase in other long-term
liabilities........................ 66 82
-------- --------
$(13,317) $(19,982)
======== ========
Operating activities include cash
payments for interest and income
taxes as follows:
Interest paid........................ $ 44,542 $ 43,100
Income taxes paid (net of refunds)... 2,850 5,887
<FN>
See accompanying notes.
</TABLE>
<PAGE>
BALLY'S PARK PLACE, INC.
(A Wholly Owned Subsidiary of Bally's Casino Holdings, Inc.)
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands)
(Unaudited)
Basis of presentation
The accompanying condensed consolidated financial statements include the
accounts of Bally's Park Place, Inc., a Delaware corporation (the "Company")
and its subsidiaries. The Company was a direct wholly owned subsidiary of
Bally Entertainment Corporation ("BEC") until June 16, 1993, when BEC
contributed all of the capital stock of the Company to Bally's Casino
Holdings, Inc. ("Casino Holdings"). Casino Holdings was formed as a
subsidiary of BEC in April 1993 to serve as a holding company for the Company
and for acquiring and developing gaming operations, including those in newly
emerging gaming jurisdictions. Unless otherwise specified in the text,
references to the Company include the Company and its subsidiaries. The
accompanying condensed consolidated financial statements should be read in
conjunction with the consolidated financial statements included in the
Company's Annual Report on Form 10-K for the year ended December 31, 1993.
All adjustments have been recorded which are, in the opinion of
management, necessary for a fair presentation of the condensed consolidated
balance sheet of the Company at September 30, 1994, its consolidated
statements of operations for the three and nine months ended September 30,
1994 and 1993, its consolidated statement of stockholder's equity for the nine
months ended September 30, 1994, and its consolidated statement of cash flows
for the nine months ended September 30, 1994 and 1993. All such adjustments
were of a normal recurring nature, except for those adjustments in 1994 to
reflect the refinancing of indebtedness (see "Long-term debt") and in 1993 to
apply the provisions of Statement of Financial Accounting Standards ("SFAS")
No. 109, "Accounting for Income Taxes" (see "Income taxes").
Certain reclassifications have been made to prior period financial
statements to conform with the 1994 presentation.
Seasonal factors
The Company's operations are subject to seasonal factors and, therefore,
the results of operations for the three and nine months ended September 30,
1994 and 1993 are not necessarily indicative of the results of operations for
the full year.
Allocations from BEC and transactions with related parties
During the three and nine months ended September 30, 1994 and 1993, BEC
allocated costs to the Company consisting of the Company's allocable share of
BEC's corporate overhead including executive salaries and benefits, public
company reporting costs and other corporate headquarters' costs. While the
Company does not obtain a measurable direct benefit from these allocated
costs, management believes that the Company receives an indirect benefit from
BEC's oversight. BEC's method for allocating costs is designed to apportion
the majority of its costs to its subsidiaries and is generally based upon many
subjective factors including various measures of operational size and extent
of BEC's oversight requirements. During the third quarter of 1994, BEC
refined its allocation estimates retroactive to January 1, 1994, which
resulted in an increase of the amount initially allocated by BEC during the
first half of 1994. Management of BEC believes that the methods used to
allocate these costs are reasonable and expects similar allocations in future
years. Because of BEC's controlling relationship with the Company and the
allocation of certain BEC costs, the operating results of the Company could
be significantly different if the Company operated autonomously.
Certain executive officers of the Company function in a similar capacity
for GNAC, CORP. (a wholly owned subsidiary of BEC which owns and operates the
casino resort in Atlantic City known as "The Grand"), and exercise decision
making and operational authority over both entities. No allocation of cost
is made from the Company to The Grand for these executive officers as
management deems the direct allocable cost to be immaterial. In addition,
certain administrative and support operations of the Company and The Grand are
consolidated, including legal services, purchasing, limousine services and
certain aspects of human resources. Costs of these operations are allocated
to or from the Company either directly or using various formulas based on
estimates of utilization of such services. On a net basis, allocations from
the Company were $33 and $108 for the three months ended September 30, 1994
and 1993, respectively, and $126 and $996 for the nine months ended September
30, 1994 and 1993, respectively. The Company also leases surface area parking
lots to The Grand, and rental income was $174 and $522 for each of the three
and nine months ended September 30, 1994 and 1993, respectively.
The Company and The Grand have a cash management arrangement whereby The
Grand has advanced excess funds to the Company which the Company used to
reduce the outstanding balance under its revolving credit agreement. The
Company paid interest monthly on these advances (at the prime rate of its
agent bank) which totalled $75 and $431 for the three and nine months ended
September 30, 1993, respectively. No amounts were advanced during the nine
months ended September 30, 1994.
Executive Retirement and Separation Agreement
On January 8, 1993, the Company and BEC entered into a Retirement and
Separation Agreement with a former executive of the Company and BEC. The
Company paid this executive $14,500 on such date in full settlement of the
remaining amounts due under his employment contract and for the liability
under a previous settlement of his supplemental executive retirement plan,
which resulted in a gain of approximately $1,500 for the nine months ended
September 30, 1993.
Long-term debt
On March 8, 1994, the Company issued $425,000 principal amount of 9 1/4%
First Mortgage Notes due 2004 (the "9 1/4% Notes"). The Company used the net
proceeds from the sale of the 9 1/4% Notes to purchase and retire certain of
its 11 7/8% First Mortgage Notes due 1999 (the "11 7/8% Notes"), defease the
remaining 11 7/8% Notes at a price of 104.45% of their principal amount plus
accrued interest through the redemption date, thereby satisfying all
obligations thereunder, and pay a $30,000 dividend to Casino Holdings. In
addition, a $595 dividend was paid in February 1994, which was the amount
available at December 31, 1993 under the indenture for the 11 7/8% Notes. The
retirement and defeasance of the 11 7/8% Notes resulted in an extraordinary
loss of $20,735, net of an income tax benefit of $14,137. In connection with
the sale of the 9 1/4% Notes, the Company terminated its former credit
facility and entered into an agreement for a new $50,000 revolving credit
facility which expires on December 31, 1996, at which time all amounts
outstanding become due. The new credit facility provides for interest on
borrowings payable, at the Company's option, at the agent bank's prime rate
or the LIBOR rate plus 2%, each of which increases as the balance outstanding
increases. The Company pays a fee of 1/2% on the unused commitment. The
entire credit line was available at September 30, 1994.
The indenture for the 9 1/4% Notes and the new credit facility impose
restrictions on the Company's ability to incur debt and issue preferred stock,
make acquisitions and certain restricted payments, create liens, sell assets
or enter into transactions with affiliates. The new credit facility is, in
certain circumstances, more restrictive than the indenture for the 9 1/4%
Notes. In connection with the sale of the 9 1/4% Notes, the Casino Control
Commission (the "CCC") requires, among other things, that dividends paid by
the Company to Casino Holdings which are not paid pursuant to a net income
test (generally limited to 50% of aggregate consolidated net income, as
defined, earned since April 1, 1994) receive prior approval from the CCC. The
indenture for the 9 1/4% Notes limits these dividends to $50,000 in the
aggregate, of which $25,000 was paid in August 1994. At September 30, 1994,
$12,253 was available to pay dividends under the net income test.
Income taxes
Taxable income or loss of the Company is included in the consolidated
federal income tax return of BEC. Under agreements between the Company, BEC
and Casino Holdings, income taxes are allocated to the Company based on
amounts the Company would pay or receive if it filed a separate consolidated
federal income tax return, except that the Company receives credit from BEC
for the tax benefit of the Company's net operating losses and tax credits, if
any, that can be utilized in BEC's consolidated federal income tax return,
regardless of whether these losses or credits could be utilized by the Company
on a separate consolidated federal income tax return basis. Payments to BEC
are due at such time and in such amounts as payments are required to be made
for income tax purposes. Payments by BEC for such tax benefits are due at the
time BEC files the applicable consolidated federal income tax return. Under
the tax sharing agreement, the Company had income taxes receivable from BEC
of $5,312 at September 30, 1994 and income taxes payable to BEC of $5,013 at
December 31, 1993, which are included in income taxes receivable and income
taxes payable, respectively, on the accompanying condensed consolidated
balance sheet.
Effective January 1, 1993, the Company changed its method of accounting
for income taxes as required by SFAS No. 109. The cumulative effect on prior
years of this change in accounting for income taxes was a charge of $11,377.
For the three and nine months ended September 30, 1994 and 1993, the
effective rate of the provision for income taxes differed from the U.S.
statutory tax rate (35%) due principally to state income taxes. In addition,
for the three and nine months ended September 30, 1993, the provision for
income taxes was increased by $427 as a result of applying the change in the
U.S. statutory tax rate from 34% to 35% to deferred tax balances.
<PAGE>
BALLY'S PARK PLACE, INC.
(A Wholly Owned Subsidiary of Bally's Casino Holdings, Inc.)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
Nine Months Ended September 30, 1994 vs. Nine Months Ended September 30, 1993
Revenues of the Company for 1994 were $284.0 million compared to $267.1
million for 1993, an increase of $16.9 million (6%). Casino revenues for 1994
were $241.4 million compared to $226.0 million in 1993, an increase of $15.4
million (7%). Slot revenues increased $6.5 million (4%) due to a 14% increase
in slot handle (volume) offset, in part, by a decline in the win percentage
from 9.7% in 1993 (which includes the positive impact from the discontinuation
of certain progressive linked jackpots) to 8.9% in 1994. The Company added
265 slot machines (a 13% increase) since September 30, 1993. Slot revenue
represented 68% of the Company's casino revenues in 1994 compared to 70% in
1993. Table game revenues, excluding poker, increased $5.6 million (8%) from
1993 due to an increase in the hold percentage from 16.2% in 1993 to 17.0% in
1994 and a 3% increase in the drop (amount wagered). Poker operations, which
commenced in July 1993, generated revenues of $3.6 million for the nine months
ended September 30, 1994 compared to $1.3 million for 1993. Horse race
simulcasting and keno operations, which commenced mid-June 1994, contributed
$1.0 million to casino revenues for the 1994 period.
Rooms and food and beverage revenues remained essentially unchanged.
Other revenues increased $1.1 million (16%) due to higher entrance fees for
promotional events and dividends from a multi-casino linked progressive trust.
Atlantic City city-wide casino revenues for all operators for the nine
months ended September 30, 1994, excluding poker, horse race simulcasting and
keno, increased approximately 1% from the 1993 period due to a 2% increase in
slot revenues offset, in part, by a 1% decrease in table game revenues. The
1994 and 1993 first quarters were both negatively affected by severe weather
conditions in the northeastern United States, however management believes the
severity, duration and number of storms in 1994 had a more dramatic impact on
attendance and operating performance than in 1993. The number of slot
machines and table games, excluding poker tables, in Atlantic City increased
approximately 9% and 2%, respectively, since September 30, 1993. Slot
revenues represented 67% of total gaming revenues in Atlantic City for each
of the nine months ended September 30, 1994 and 1993.
Management believes that the reduced rate of slot revenue growth in
Atlantic City as compared to the last several years, in conjunction with the
expanded number of slot machines resulting in a lower win per slot machine,
has caused and will continue to cause intense promotional efforts to attract
slot players as both the Company and its competitors seek to expand their
share of slot revenues and maximize the utilization of their slot machine
inventory. Further, as a result of the aggressive competition for slot
patrons, the Atlantic City slot win percentage has declined. Management
believes that the slot win percentage will continue to be subject to
competitive pressure and may further decline. However, the addition of poker,
horse race simulcasting and keno over the last year has had a favorable impact
on the Atlantic City gaming environment. The Company believes it is well-
positioned to compete for its share of casino revenues by continuing to offer
attractive promotional slot and table game programs and special events and by
enhancing its gaming space. In June 1994, the Company expanded its gaming
space by 8,700 square feet to operate horse race simulcasting and keno, and
to relocate and expand its poker operations. In July 1994, the Company placed
in operation an additional 127 high denomination slot machines in the gaming
space formerly occupied by its poker operations. Further, by the end of 1994,
the Company will complete a slot machine upgrade, replacing the majority of
its slot machine inventory with state-of-the-art machines with embedded bill
acceptors.
Operating income of the Company for the nine months ended September 30,
1994 was $70.5 million compared to $71.4 million for the same period in 1993,
a decrease of $.9 million (1%) as the aforementioned revenue increase was
offset by a $17.8 million (9%) increase in operating expenses. Casino
expenses increased $8.9 million (10%) due to an increase in salaries, benefits
and other costs associated with the introduction and operation of horse race
simulcasting and keno in and the operation of poker throughout the 1994
period, and expanded marketing and promotional efforts. Rooms expense
increased $.8 million (11%) mainly due to increased salaries and benefits
associated with higher room occupancy. Food and beverage expenses remained
essentially unchanged. Other operating expenses increased $2.7 million (7%)
due to an overall increase in the cost of property operations and providing
ancillary services. Selling, general and administrative expenses increased
$1.1 million (5%) primarily due to an increase in marketing costs associated
with expanded advertising and promotional efforts and to a non-recurring
benefit realized in the first quarter of 1993 pursuant to the terms of a
Retirement and Separation Agreement with a former executive offset, in part,
by a decrease in legal, insurance and other costs. Depreciation and
amortization expense increased $3.5 million (18%) primarily due to accelerated
depreciation associated with the planned slot machine upgrade. In addition,
operating costs and expenses include allocations from BEC of its overhead
(including executive salaries and benefits, public company reporting costs and
other corporate headquarters' costs) of $3.8 million and $3.0 million for the
nine months ended September 30, 1994 and 1993, respectively. Management of
BEC believes that the methods used to allocate these costs are reasonable and
expects similar allocations (subject to changes in circumstances which may
warrant modification) in future years.
Interest expense was $31.5 million for the nine months ended September
30, 1994 compared to $33.9 million for the same period in 1993. The decrease
of $2.4 million (7%) reflects the March 1994 refinancing of the Company's
long-term debt at a more favorable rate, as well as lower average line of
credit and intercompany borrowings.
<PAGE>
BALLY'S PARK PLACE, INC.
(A Wholly Owned Subsidiary of Bally's Casino Holdings, Inc.)
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits.
Exhibit 27 Financial Data Schedule. (Filed electronically only.)
(b) Reports on Form 8-K.
None.
<PAGE>
SIGNATURE PAGE
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
Bally's Park Place, Inc.
Registrant
/s/ Joseph A. D'Amato
--------------------------
Joseph A. D'Amato
Vice President of Finance
and Administration
(Principal Financial Officer)
Dated: November 14, 1994
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED CONSOLIDATED BALANCE SHEET AT SEPTEMBER 30, 1994, AND THE
CONSOLIDATED STATEMENT OF OPERATIONS AND THE CONSOLIDATED STATEMENT OF
STOCKHOLDER'S EQUITY FOR THE NINE MONTHS ENDED SEPTEMBER 30,1994 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> SEP-30-1994
<CASH> 15,672
<SECURITIES> 0
<RECEIVABLES> 6,043<F1>
<ALLOWANCES> 1,300
<INVENTORY> 2,278
<CURRENT-ASSETS> 38,406
<PP&E> 782,684
<DEPRECIATION> 303,615
<TOTAL-ASSETS> 543,976
<CURRENT-LIABILITIES> 31,232
<BONDS> 427,690
<COMMON> 1
0
0
<OTHER-SE> 32,323
<TOTAL-LIABILITY-AND-EQUITY> 543,976
<SALES> 0
<TOTAL-REVENUES> 283,986
<CGS> 0
<TOTAL-COSTS> 118,662
<OTHER-EXPENSES> 42,264
<LOSS-PROVISION> 98<F2>
<INTEREST-EXPENSE> 31,547
<INCOME-PRETAX> 38,974
<INCOME-TAX> 15,500
<INCOME-CONTINUING> 23,474
<DISCONTINUED> 0
<EXTRAORDINARY> (20,735)
<CHANGES> 0
<NET-INCOME> 2,739
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F2>
EXCLUDES RECEIVABLE DUE FROM AFFILIATES.
<F2>
THE PROVISION FOR DOUBTFUL ACCOUNTS IS INCLUDED IN CASINO OPERATING COSTS AND
EXPENSES IN THE CONSOLIDATED STATEMENT OF OPERATIONS FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 1994.
</FN>
</TABLE>
