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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C.
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
December 17, 1999
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(Date of earliest event reported)
Fair Grounds Corporation
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(Exact name of registrant as specified in its charter)
Louisiana 0-7607 72-0361770
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(State or Other Juris- (Commission (IRS Employer
diction of Incorporation) File Number) Identification No.)
1751 Gentilly Boulevard, New Orleans, Louisiana 70119
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(Address of Principal Executive Offices) (Zip Code)
(504) 944-5515
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(Registrant's Telephone Number, including area code)
Not Applicable
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(Former Name or Former Address, if Changed Since Last Report)
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ITEM 5. OTHER EVENTS.
On December 17, 1999, the Fair Grounds Corporation issued the attached press
release.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(a) Financial Statements.
None.
(b) Pro Forma Financial Information.
None.
(c) Exhibits.
99.1 Press Release dated December 17, 1999.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
FAIR GROUNDS CORPORATION
By: /s/ Bryan G. Krantz
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Its: President
Date: December 20, 1999
EXHIBIT INDEX
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EXHIBIT NO. DESCRIPTION
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99.1 Press Release dated
December 17, 1999
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EXHIBIT 99.1
FAIR GROUNDS CORPORATION INTENDS TO RESTATE FISCAL 1998 AND 1999
FINANCIAL STATEMENTS
NEW ORLEANS -- (BUSINESS WIRE) -- December 17, 1999 -- Fair Grounds Corporation
(FGNO) reported today that it intends to restate its fiscal 1998 financial
statements due to an error in the calculation of deferred income taxes. The
Company's statement of operations for the fiscal year ended October 31, 1998
erroneously reflected a benefit for income taxes of $3,364,232 and net income
for fiscal 1998 of $8,973,671. The benefit for income taxes was associated with
the insurance and litigation recoveries arising out of a fire at the Company's
race track in 1993 and reinvestment of those recoveries in the Company's new
facilities. Management is currently recomputing the amount of deferred income
taxes and believes that the restatement for fiscal 1998 will reduce reported net
income by approximately $3.0 million, or $6.40 per share, to approximately $5.9
million, or $12.69 per share, and will reduce stockholders' equity at October
31, 1998 from $30,654,594 to approximately $27.7 million. Upon completion of the
recomputation, the Company expects to file an amended Form 10-K for the fiscal
year ended October 31, 1998. In addition, while the Company expects that the
restatement will not have a material impact on reported earnings for fiscal
1999, the Company plans to file amended Forms 10-Q for the first three quarters
of fiscal 1999 to reflect the reduction in stockholders' equity resulting from
the restatement for fiscal 1998.
Fair Grounds Corporation operates the Fair Grounds Race Course in New Orleans
where thoroughbred horse racing, pari-mutuel wagering and video-poker operations
are conducted. The Company has additional simulcast-wagering operations at
various locations in and around New Orleans.
CONTACT: Fair Grounds Corporation, New Orleans
JoAn Stewart, (504) 944-5515
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