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 June 30, 1996
or
[ ] Transition Report Pursuant to Section 13 or 15 (d) of the Securities
Exchange Act of 1934
Commission file number: 1-2500
BALLY'S GRAND, INC.
(Exact name of registrant as specified in its charter)
Delaware 13-0980760
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3645 Las Vegas Boulevard South
Las Vegas, Nevada 89109
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (702) 739-4111
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:
Indicate by a check mark whether the registrant has filed all documents and
reports required to be filed by Section 12, 13 or 15 (d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.
Yes: X No:
As of July 31, 1996, 8,441,590 shares of the registrant's common stock were
outstanding.
<PAGE>
BALLY'S GRAND, INC.
INDEX
Page
Number
------
PART I. FINANCIAL INFORMATION
Item 1. Financial statements:
Condensed consolidated balance sheet (unaudited)
June 30, 1996 and December 31, 1995......................... 1
Consolidated statement of income (unaudited)
Six months ended June 30, 1996 and 1995..................... 2
Consolidated statement of income (unaudited)
Three months ended June 30, 1996 and 1995................... 3
Consolidated statement of stockholders' equity (unaudited)
Six months ended June 30, 1996.............................. 4
Consolidated statement of cash flows (unaudited)
Six months ended June 30, 1996 and 1995..................... 5
Notes to condensed consolidated financial
statements (unaudited)...................................... 6 - 7
Item 2. Management's discussion and analysis of financial
condition and results of operations.................... 8 - 10
PART II. OTHER INFORMATION
Item 6. Exhibits and reports on Form 8-K.......................... 11
SIGNATURE PAGE...................................................... 12
<PAGE>
<TABLE>
BALLY'S GRAND, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
(Unaudited)
<CAPTION>
June 30 December 31
1996 1995
------------ ------------
<S> <C> <C>
ASSETS
Current assets:
Cash and equivalents.......................... $ 79,259 $ 64,750
Marketable securities, at fair value.......... 2,550 1,781
Receivables, less allowances of $6,968 and
$5,862...................................... 13,823 12,653
Inventories................................... 3,423 3,506
Deferred income taxes......................... 6,299 6,678
Other current assets.......................... 3,433 3,223
------------ ------------
Total current assets...................... 108,787 92,591
Property and equipment, less accumulated
depreciation of $58,939 and $48,010........... 405,986 409,441
Other assets.................................... 17,537 16,055
------------ ------------
$ 532,310 $ 518,087
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable.............................. $ 11,796 $ 13,613
Income taxes payable to Bally Entertainment
Corporation................................. 1,353
Accrued liabilities........................... 25,092 26,580
------------ ------------
Total current liabilities................. 38,241 40,193
Long-term debt.................................. 315,000 315,000
Deferred income taxes........................... 87,661 84,838
Other long-term liabilities..................... 2,120 761
Stockholders' equity............................ 89,288 77,295
------------ ------------
$ 532,310 $ 518,087
============ ============
<FN>
See accompanying notes.
</FN>
</TABLE>
1
<PAGE>
<TABLE>
BALLY'S GRAND, INC.
CONSOLIDATED STATEMENT OF INCOME
(In thousands, except share data)
(Unaudited)
<CAPTION>
Six months
ended June 30
---------------------
1996 1995
--------- ---------
<S> <C> <C>
Revenues:
Casino............................................. $ 78,890 $ 64,928
Rooms.............................................. 33,583 31,069
Food and beverage.................................. 23,052 21,552
Other.............................................. 24,213 22,157
--------- ---------
159,738 139,706
Costs and expenses:
Casino............................................. 40,999 37,220
Rooms.............................................. 9,855 9,458
Food and beverage.................................. 19,615 19,588
Other operating expenses........................... 24,189 24,232
Selling, general and administrative................ 17,010 16,938
Depreciation and amortization...................... 13,469 11,160
--------- ---------
125,137 118,596
--------- ---------
Operating income..................................... 34,601 21,110
Gain (loss) on sales of marketable securities........ (50) 318
Interest expense..................................... (16,774) (15,918)
--------- ---------
Income before income taxes........................... 17,777 5,510
Provision for income taxes........................... (6,286) (2,016)
--------- ---------
Net income........................................... $ 11,491 $ 3,494
========= =========
Net income per common and common equivalent share.... $ 1.30 $ .39
========= =========
Average common and common equivalent shares
outstanding........................................ 8,865,467 8,860,819
========= =========
<FN>
See accompanying notes.
</FN>
</TABLE>
2
<PAGE>
<TABLE>
BALLY'S GRAND, INC.
CONSOLIDATED STATEMENT OF INCOME
(In thousands, except share data)
(Unaudited)
<CAPTION>
Three months
ended June 30
---------------------
1996 1995
--------- ---------
<S> <C> <C>
Revenues:
Casino............................................. $ 38,777 $ 31,773
Rooms.............................................. 15,849 14,693
Food and beverage.................................. 10,966 10,120
Other.............................................. 12,045 10,784
--------- ---------
77,637 67,370
Costs and expenses:
Casino............................................. 21,232 18,642
Rooms.............................................. 4,837 4,672
Food and beverage.................................. 9,576 9,611
Other operating expenses........................... 12,372 12,135
Selling, general and administrative................ 8,226 8,463
Depreciation and amortization...................... 6,929 5,614
--------- ---------
63,172 59,137
--------- ---------
Operating income..................................... 14,465 8,233
Gain on sales of marketable securities............... 215
Interest expense..................................... (8,422) (7,873)
--------- ---------
Income before income taxes........................... 6,043 575
Provision for income taxes........................... (2,089) (141)
--------- ---------
Net income........................................... $ 3,954 $ 434
========= =========
Net income per common and common equivalent share.... $ .44 $ .05
========= =========
Average common and common equivalent shares
outstanding........................................ 8,930,856 8,775,878
========= =========
<FN>
See accompanying notes.
</FN>
</TABLE>
3
<PAGE>
<TABLE>
BALLY'S GRAND, INC.
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
(In thousands, except share data)
(Unaudited)
<CAPTION>
Total
Shares of common stock Additional Common stock-
---------------------- Common paid-in Retained stock in holders'
Issued Treasury stock capital earnings treasury equity
---------- ---------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at December 31, 1995.. 10,600,000 2,159,506 $ 106 $ 82,408 $ 20,116 $ (25,335) $ 77,295
Net income.................. 11,491 11,491
Change in unrealized gain/
loss on available-for-
sale securities........... 500 500
Exercise of warrants........ 179 2 2
---------- ---------- --------- --------- --------- --------- ---------
Balance at June 30, 1996...... 10,600,179 2,159,506 $ 106 $ 82,410 $ 32,107 $ (25,335) $ 89,288
========== ========== ========= ========= ========= ========= =========
<FN>
See accompanying notes.
</FN>
</TABLE>
4
<PAGE>
<TABLE>
BALLY'S GRAND, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands)
(Unaudited)
<CAPTION>
Six months
ended June 30
---------------------
1996 1995
--------- ---------
<S> <C> <C>
OPERATING:
Net income......................................... $ 11,491 $ 3,494
Adjustments to reconcile to cash provided -
Depreciation and amortization.................... 13,469 11,160
Other amortization included in interest expense.. 469 468
Provision for doubtful receivables............... 1,210 661
Deferred income taxes............................ 2,933 1,666
Loss (gain) on sales of marketable securities.... 50 (318)
Changes in operating assets and liabilities:
Decrease (increase) in receivables............. (2,380) 4,235
Increase in inventories, other
current assets and other assets.............. (434) (473)
Decrease in accounts payable, accrued
liabilities and other long-term liabilities.. (288) (7,430)
Increase in income taxes payable to Bally
Entertainment Corporation.................... 1,353
Other, net....................................... 14 (561)
--------- ---------
Cash provided by operating activities.......... 27,887 12,902
INVESTING:
Purchases and construction of property and
equipment........................................ (10,014) (26,747)
Increase (decrease) in construction-related
liabilities...................................... (2,061) 1,529
Purchases of marketable securities................. (7,141)
Net proceeds from sales of marketable securities... 2,435
Advance to nonconsolidated venture................. (3,000)
Other, net......................................... (75) (4)
--------- ---------
Cash used in investing activities.............. (12,150) (32,928)
FINANCING:
Purchases of common stock for treasury (includes
December 1995 purchases settled in January 1996). (1,230) (6,432)
Proceeds from exercise of warrants................. 2
--------- ---------
Cash used in financing activities.............. (1,228) (6,432)
--------- ---------
Increase (decrease) in cash and equivalents.......... 14,509 (26,458)
Cash and equivalents, beginning of period............ 64,750 86,359
--------- ---------
Cash and equivalents, end of period.................. $ 79,259 $ 59,901
========= =========
SUPPLEMENTAL CASH FLOWS INFORMATION:
Operating activities include cash payments for
interest and income taxes as follows -
Interest paid.................................. $ 16,358 $ 16,341
Interest capitalized........................... (53) (892)
Income taxes paid (net of refunds)............. 2,000 350
Investing activities exclude the following
non-cash transactions -
Purchases of marketable securities on margin... $ $ 9,227
Sales of margined marketable securities
(including unsettled sales).................. 9,148
<FN>
See accompanying notes.
</FN>
</TABLE>
5
<PAGE>
BALLY'S GRAND, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All dollar amounts in thousands)
(Unaudited)
BASIS OF PRESENTATION
The accompanying condensed consolidated financial statements include the
accounts of Bally's Grand, Inc., a Delaware corporation (the "Company") and its
subsidiaries. As of June 30, 1996, a wholly owned subsidiary of Bally
Entertainment Corporation ("BEC") owned approximately 85% (78% on a fully
diluted basis) of the outstanding common stock of the Company. The Company owns
and operates the casino hotel resort in Las Vegas, Nevada known as "Bally's Las
Vegas." The Company operates in one industry segment and all significant
revenues arise from its casino and supporting hotel operations. Unless otherwise
specified in the text, references to the Company include the Company and its
subsidiaries. These 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, 1995.
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 June 30, 1996, its consolidated statements of income for the
three and six months ended June 30, 1996 and 1995, its consolidated statement of
stockholders' equity for the six months ended June 30, 1996, and its
consolidated statement of cash flows for the six months ended June 30, 1996 and
1995. All such adjustments were of a normal recurring nature.
The accompanying condensed consolidated financial statements have been prepared
in conformity with generally accepted accounting principles which require the
Company's management to make estimates and assumptions that affect the amounts
reported therein. Actual results could vary from such estimates. In addition,
certain reclassifications have been made to prior period financial statements to
conform with the 1996 presentation.
ACQUISITION OF BEC BY HILTON HOTELS CORPORATION
In June 1996, BEC and Hilton Hotels Corporation ("Hilton") entered into an
agreement pursuant to which BEC will merge with and into Hilton. The
transaction, which has been approved by the Board of Directors of BEC and
Hilton, is subject to approval by the companies' shareholders and gaming
regulators of several states, and is expected to close by year-end 1996.
SEASONAL FACTORS
The Company's operations are somewhat seasonal and, therefore, the results of
operations for the three and six months ended June 30, 1996 and 1995 are not
necessarily indicative of the results of operations for the full year.
EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE
Earnings per common and common equivalent share is computed by dividing net
income by the weighted average number of shares of common stock and common stock
equivalents outstanding during each period. Common stock equivalents, which
represent the dilutive effect of the assumed exercise of outstanding warrants,
increased the weighted average number of shares outstanding by 490,183 shares
and 253,359 shares for the three months ended June 30, 1996 and 1995,
respectively, and by 424,804 shares and 176,974 shares for the six months ended
June 30, 1996 and 1995, respectively.
INCOME TAXES
For the period from January 1, 1995 through March 21, 1995 (the date BEC's
ownership percentage of outstanding common stock of the Company reached 80%),
the Company is required to file its own separate consolidated federal income tax
return. For periods subsequent to March 21, 1995, taxable income or loss of the
Company is included in the consolidated federal income tax return of
6
<PAGE>
BALLY'S GRAND, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
(All dollar amounts in thousands)
(Unaudited)
BEC. Under a tax sharing arrangement between BEC and the Company, 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. Payments to BEC
for tax liabilities are due at such time and in such amounts as payments would
be required to be made to the Internal Revenue Service. Payments from BEC for
tax benefits are due at the time BEC files the applicable consolidated federal
income tax return.
LONG-TERM DEBT
The indenture governing the Company's public indebtedness contains covenants
that (i) restrict mergers and asset sales and (ii) limit indebtedness,
restricted payments, transactions with affiliates, encumbrances and liens,
dividends and guarantees. As of June 30, 1996, $5,419 was unrestricted under the
indenture covenants for the payment of dividends.
TRANSACTIONS WITH BEC
In August 1993, the Company, BEC and Bally's Grand Management Co., Inc. (the
"Manager"), a Nevada corporation and a wholly owned subsidiary of BEC, entered
into a management agreement (the "Management Agreement") whereby the Manager
provides management services to the Company and BEC licenses the use of the
"Bally" name and certain computer software to the Company for a $3,000 annual
management fee. Pursuant to the Management Agreement, management fees for each
of the three and six month periods ended June 30, 1996 and 1995 were $750 and
$1,500, respectively. In addition, certain of the Company's insurance coverage
is obtained by BEC pursuant to corporate-wide programs. In these circumstances,
BEC charges the Company its proportionate share of the respective insurance
premiums.
In August 1996, the Company agreed to sell its wholly-owned subsidiary that owns
and is developing the 24 acre tract of land expected to be utilized for the
construction of the Paris Casino-Resort to BEC for consideration having an
aggregate value of approximately $60,000 ($40,000 in BEC common stock and the
balance in cash). The transaction was negotiated and approved by an independent
Special Committee of the Board of Directors of the Company. The Special
Committee retained independent legal counsel and financial advisors in
connection with the evaluation and negotiation of the transaction.
7
<PAGE>
BALLY'S GRAND, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Comparison of the three months ended June 30, 1996 and 1995
Revenues for the three months ended June 30, 1996 were $77.6 million compared to
$67.4 million for the 1995 quarter, an increase of $10.2 million (15%). Casino
revenues for the 1996 quarter were $38.8 million compared to $31.8 million for
1995, an increase of $7.0 million (22%) due, in part, to additional walk-in
business resulting from the June 1995 opening of a monorail system connecting
Bally's Las Vegas and MGM Grand. Table game revenues increased $3.6 million
(25%) due to a 22% increase in the drop (amount wagered) and an increase in the
hold percentage from 14.3% in the 1995 quarter to 14.6% in 1996. Slot revenues
increased $2.9 million (18%) due to a 31% increase in slot handle (volume)
offset, in part, by a decline in the win percentage from 6.0% in the 1995
quarter to 5.4% in 1996. On average, Bally's Las Vegas had 199 (13%) more slot
machines for the three months ended June 30, 1996 compared to the 1995 quarter.
Other casino revenues increased $.5 million (38%) due to additional revenues
generated by the relocated and expanded race and sports book room, which opened
in September 1995. Rooms revenue increased $1.2 million (8%) due to a higher
average room rate and an increase in the number of rooms occupied compared to
the 1995 quarter. Food and beverage revenues increased $.8 million (8%)
primarily due to increased convention business, and other revenues increased
$1.3 million (12%) due, in part, to increased entertainment revenues resulting
from additional shows in the 1996 quarter.
The expansion of existing casino hotel resorts and the development of new casino
hotel resorts in Las Vegas continues. In particular, two casino hotel resorts
opened in mid-1996 and another is expected to open later in 1996. These three
casino hotel resorts are adding a total of approximately 270,000 square feet of
gaming space and 6,500 guest rooms to the Las Vegas Strip. Management believes
that the additional casino and hotel room capacity resulting from the opening of
new casino hotels may have a short-term negative impact on the Company, but that
over the long term the Company benefits from the increase in the number of
visitors to Las Vegas that these new properties attract. To enhance its
competitiveness in the Las Vegas market, Bally's Las Vegas completed an
extensive capital improvement program over the last three years including, among
others, improvements to its frontage area along the Strip, the monorail system,
the renovation of all of its hotel rooms, the new race and sports book room and
a slot machine upgrade.
Operating income for the three months ended June 30, 1996 was $14.5 million
compared to $8.2 million for the 1995 quarter, an increase of $6.3 million (77%)
as the aforementioned 15% increase in revenues was offset, in part, by a 7%
increase in operating expenses. Casino operating expenses increased $2.6 million
(14%) due principally to increased promotional and marketing costs and to
increased gaming taxes associated with higher casino revenues. Depreciation and
amortization expense increased $1.3 million (23%) due to the major capital
improvements recently completed.
Interest expense, net of capitalized interest, was $8.4 million for the three
months ended June 30, 1996 compared to $7.9 million for the 1995 quarter, an
increase of $.5 million (6%) primarily due to a decrease in the amount of
capitalized interest.
8
<PAGE>
BALLY'S GRAND, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS -- (CONTINUED)
Comparison of the six months ended June 30, 1996 and 1995
Revenues for the six months ended June 30, 1996 were $159.7 million compared to
$139.7 million for the 1995 period, an increase of $20.0 million (14%). Casino
revenues for the 1996 period were $78.9 million compared to $64.9 million for
1995, an increase of $14.0 million (22%) due, in part, to additional walk-in
business resulting from the aforementioned monorail system which opened in June
1995. Table game revenues increased $6.7 million (21%) due to a 14% increase in
the drop and an increase in the hold percentage from 14.3% in the 1995 period to
15.2% in 1996. Slot revenues increased $5.4 million (18%) due to a 26% increase
in slot handle offset, in part, by a decline in the win percentage from 6.0% in
the 1995 period to 5.7% in 1996. On average, Bally's Las Vegas had 184 (12%)
more slot machines for the six months ended June 30, 1996 compared to the 1995
period. Other casino revenues increased $1.9 million (66%) due to additional
revenues generated by the relocated and expanded race and sports book room.
Rooms revenue increased $2.5 million (8%) primarily due to a higher average room
rate and an increase in the number of rooms occupied compared to the 1995
period. Food and beverage revenues increased $1.5 million (7%) primarily due to
increased convention business and the reinstatement of beverage service in the
showrooms in the second quarter of 1995. Other revenues increased $2.1 million
(9%) primarily due to increased entertainment revenues resulting from additional
shows in the 1996 period.
Operating income for the six months ended June 30, 1996 was $34.6 million
compared to $21.1 million for the 1995 period, an increase of $13.5 million
(64%) as the aforementioned 14% increase in revenues was offset, in part, by a
6% increase in operating expenses. Casino operating expenses increased $3.8
million (10%) due principally to increased promotional and marketing costs and
to increased gaming taxes associated with higher casino revenues. Depreciation
and amortization expense increased $2.3 million (21%) due to the aforementioned
major capital improvements.
Interest expense, net of capitalized interest, was $16.8 million for the six
months ended June 30, 1996 compared to $15.9 million for the 1995 period, an
increase of $.9 million (6%) due to a decrease in the amount of capitalized
interest.
For the six months ended June 30, 1996 and 1995, the effective rate of the
provision for income taxes differed from the U.S. statutory tax rate (35%) due
principally to certain nondeductible expenses.
9
<PAGE>
BALLY'S GRAND, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS -- (CONTINUED)
LIQUIDITY AND CAPITAL RESOURCES
The Company has no scheduled principal payments on its long-term debt until
2003. Management plans to make capital expenditures totalling approximately $15
million at Bally's Las Vegas over the next twelve months to renovate the
baccarat area and for various other improvements and equipment necessary to
maintain the casino hotel resort in first-class condition. The Company believes
that it will be able to satisfy its debt service (interest on its public
indebtedness is approximately $32.7 million per annum) and the aforementioned
capital expenditure requirements over the next twelve months out of existing
cash balances ($79.3 million at June 30, 1996) and cash flow from operations.
For the six months ended June 30, 1996 and the year ended December 31, 1995, the
Company's cash provided by operating activities totalled $27.9 million and $34.0
million, respectively, and its operating margin (before depreciation and
amortization) was 30% and 24%, respectively.
10
<PAGE>
BALLY'S GRAND, INC.
PART II. OTHER INFORMATION
Item 6. Exhibits and reports on Form 8-K
(a) Exhibits:
27 Financial Data Schedule (filed electronically only).
(b) Reports on Form 8-K:
None.
11
<PAGE>
SIGNATURE PAGE
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, thereunto duly authorized.
BALLY'S GRAND, INC.
--------------------------------------------
Registrant
/s/ Jerry A. Blumenshine
--------------------------------------------
Jerry A. Blumenshine
Vice President and Chief Financial Officer
(principal financial and accounting officer)
Dated: August 14, 1996
12
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED CONSOLIDATED BALANCE SHEET AT JUNE 30, 1996 AND THE CONSOLIDATED
STATEMENT OF INCOME AND STOCKHOLDERS' EQUITY FOR THE SIX MONTHS ENDED
JUNE 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 79,259
<SECURITIES> 2,550
<RECEIVABLES> 20,791
<ALLOWANCES> 6,968
<INVENTORY> 3,423
<CURRENT-ASSETS> 108,787
<PP&E> 464,925
<DEPRECIATION> 58,939
<TOTAL-ASSETS> 532,310
<CURRENT-LIABILITIES> 38,241
<BONDS> 315,000
0
0
<COMMON> 106
<OTHER-SE> 89,182
<TOTAL-LIABILITY-AND-EQUITY> 532,310
<SALES> 0
<TOTAL-REVENUES> 159,738
<CGS> 0
<TOTAL-COSTS> 93,448<F1>
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 1,210<F2>
<INTEREST-EXPENSE> 16,774
<INCOME-PRETAX> 17,777
<INCOME-TAX> 6,286
<INCOME-CONTINUING> 11,491
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 11,491
<EPS-PRIMARY> 1.30
<EPS-DILUTED> 0
<FN>
<F1>THIS AMOUNT IS THE SUM OF CASINO, ROOMS, FOOD AND BEVERAGE, AND OTHER
OPERATING EXPENSES UNDER COSTS AND EXPENSES IN THE CONSOLIDATED STATEMENT
OF INCOME FOR THE SIX MONTHS ENDED JUNE 30, 1996, LESS THE PROVISION
FOR DOUBTFUL RECEIVABLES INCLUDED THEREIN.
<F2>THIS AMOUNT IS INCLUDED IN CASINO AND ROOMS UNDER COSTS AND EXPENSES
IN THE CONSOLIDATED STATEMENT INCOME FOR THE SIX MONTHS ENDED
JUNE 30, 1996.
</FN>
</TABLE>
