SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For fiscal quarter ended January 31, 1997
Commission File Number: 0-24846
COLORADO CASINO RESORTS, INC.
(Exact name of Registrant as specified in its Charter)
Texas 84-1303693
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
304 South 8th Street
Suite 201
Colorado Springs, CO 80905
(719) 635-7047
(Address, including zip code, and telephone number, including
area code, of Registrant's principal executive offices)
SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE EXCHANGE ACT:
Common Stock, $0.001 Par Value
(Title of Class)
Check 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 the number of shares outstanding of each of the issuer's classes
of common stock as of the latest practicable date: 34,666,472 shares of common
stock, $0.001 par value per share.
DOCUMENTS INCORPORATED BY REFERENCE:
None.
<PAGE>
COLORADO CASINO RESORTS, INC. & SUBSIDIARIES
INDEX
Part I. Financial Information
Item 1. Financial Statements
Consolidated Balance Sheets - (unaudited) for
January 31, 1997 .................................... 3
Consolidated Statement of Operations - (unaudited) for
January 31, 1997 and January 31, 1996 .................. 5
Consolidated Statements of Cash Flows - (unaudited) for
January 31, 1997 and January 31, 1996 .................. 6
Notes to Consolidated Financial Statements ............... 7
Item 2. Management's Discussion and Analysis of Financial
Condition as well as Future Plans ................... 8
Part II. Other Information
Item 1. Legal Proceedings ......................................... 13
Item 2. Changes in Securities ..................................... 13
Item 3. Defaults upon Senior Securities ........................... 13
Item 4. Submission of Matters to a Vote of Security Holders........ 13
Item 5. Other Information ......................................... 13
Item 6. Exhibits and Reports ...................................... 13
Signatures ........................................................ 14
<PAGE>
<TABLE>
<CAPTION>
Colorado Casino Resorts, Inc.
CONSOLIDATED BALANCE SHEETS (Unaudited)
January 31 October 31,
1997 1996
---- ----
<S> <C> <C>
CURRENT ASSETS
Cash & cash equivalents $2,833,745 $2,828,994
Advances to officers --- 379,617
Inventory 187,513 251,662
Other 8,410 553,992
----- -------
TOTAL CURRENT ASSETS 3,029,668 4,014,265
--------- ---------
REAL ESTATE HELD FOR FUTURE DEVELOPMENT 4,504,970 4,504,970
PROPERTY, PLANT & EQUIPMENT
Land and improvements 7,071,644 7,071,644
Building 23,226,355 23,085,250
Furniture, fixtures & equipment 12,843,487 12,832,717
Accumulated depreciation & amortization (2,169,706) (1,520,102)
---------- ----------
TOTAL PROPERTY, PLANT & EQUIPMENT 40,971,780 41,469,509
---------- ----------
OTHER ASSETS 476,430 313,483
------- -------
TOTAL ASSETS 48,982,848 50,302,227
========== ==========
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements
<PAGE>
<TABLE>
<CAPTION>
Colorado Casino Resorts, Inc.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(CONTINUED)
January 31, October 31,
1997 1996
<S> <C> <C>
LIABILITIES & STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts payable 819,998 649,895
Accrued interest payable 1,461,381 1,142,000
Accrued other expenses 541,932 1,253,026
Progressive jackpot liabilities 2,059,969 1,995,388
Advances from officers 105,384 ---
Current portion, long-term debt 5,830,459 6,015,931
Current portion, long-term debt, related 115,116 7,676,209
party
Current portion, capital lease obligations 1,433,703 1,535,656
--------- ---------
TOTAL CURRENT LIABILITIES 12,367,942 20,268,105
---------- ----------
CONVERTIBLE DEBENTURES 2,350,000 2,500,000
--------- ---------
CONVERTIBLE DEBENTURES, RELATED PARTY 5,279,051 5,199,739
--------- ---------
LONG-TERM DEBT 8,045,096 8,238,993
--------- ---------
LONG-TERM DEBT, RELATED PARTY 7,976,999 412,125
--------- -------
OBLIGATION UNDER CAPITAL LEASE 6,519,150 5,785,285
--------- ---------
TOTAL LIABILITIES 42,538,238 42,404,247
---------- ----------
STOCKHOLDERS' EQUITY
Preferred convertible stock, Series One,
$10 par value, 2,500,000 2,500,000
5,000,000 shares authorized, 250,000
issued and outstanding
Common stock, $0.001 par value,
100,000,000 shares authorized, 34,666 34,537
34,666,472 and 34,537,711 issued and
outstanding, respectively
Paid-in capital 10,467,270 10,467,270
Retained earnings (accumulated deficit) (6,557,326) (5,103,827)
---------- ----------
TOTAL STOCKHOLDERS' EQUITY 6,444,610 7,897,980
--------- ---------
TOTAL LIABILITIES & STOCKHOLDERS' 48,982,848 50,302,227
EQUITY ========== ==========
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements
<PAGE>
<TABLE>
<CAPTION>
Colorado Casino Resorts, Inc.
CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
Quarter Quarter
Ended Ended
January 31, January 31,
1997 1996
---- ----
<S> <C> <C>
OPERATING REVENUE
Casino $3,657,372 $1,124,007
Hotel & gift shop 407,906 ---
Restaurant & bars 321,113 133,076
Other 1,430 ---
-----
TOTAL OPERATING REVENUE 4,387,821 1,257,083
--------- ---------
OPERATING EXPENSES
Casino 1,563,850 456,912
Hotel & gift shop 260,533 ---
Restaurant & bars 604,613 174,743
Marketing/General and administrative 1,625,733 485,313
Depreciation and amortization 650,715 107,468
------- -------
TOTAL OPERATING EXPENSE 4,705,444 1,224,436
--------- ---------
INCOME (LOSS) FROM OPERATIONS (317,623) 32,647
-------- ------
NONOPERATING INCOME (EXPENSE)
Interest expense 1,135,876 220,077
--------- -------
LOSS BEFORE INCOME TAXES (1,453,499) (187,430)
---------- --------
INCOME TAXES --- ---
NET LOSS $(1,453,499) $(187,430)
=========== =========
NET LOSS PER SHARE $(0.0420) $(0.0061)
======== ========
WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING 34,581,000 30,845,000
========== ==========
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements
<PAGE>
<TABLE>
<CAPTION>
Colorado Casino Resorts, Inc.
CONSOLIDATED STATEMENT OF CASHFLOWS (Unaudited)
Quarter Quarter
Ended Ended
January 31, January 31,
1997 1996
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss $(1,453,499) $(187,430)
Noncash items
Depreciation and amortization 650,715 107,468
Amortization of debt issue costs 125,250 8,493
Interest income added to restricted --- (1,130)
cash
Interest added to debt --- 98,215
(Increase) decrease in:
Inventory 64,149 442
Other current assets 545,582 (21,880)
Other assets (288,068) (4,518)
(Decrease) increase in:
Accounts payable 170,103 (33,116)
Construction costs payable --- 2,460,232
Interest payable 319,381 ---
Accrued other expenses (646,513) 98,610
-------- ------
Net cash provided (used) by (512,900) 2,525,386
operating activities -------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of land, building and equipment (152,986) (57,169)
Construction in process --- (4,246,530)
Cash and investments, restricted --- (5,250,000)
Advances to officers 379,617 ---
-------
Net cash provided (used) by 226,631 (9,553,699)
------- ----------
investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Advances from officers 105,384 ---
Repayments, note payable --- (500,000)
Borrowings, convertible debentures, net --- 1,794,866
of issue costs
Borrowings, long-term debt 185,636 ---
Borrowings, short-term, construction --- 7,000,000
Repayments, long-term debt --- (67,179)
Repayments, long-term debt, related party --- (5,201)
Net cash provided (used) by 291,020 8,222,486
financing activities ------- ---------
INCREASE (DECREASE) IN CASH AND 4,751 1,194,173
----- ---------
EQUIVALENTS
CASH AND EQUIVALENTS, BEGINNING 2,828,994 1,375,145
--------- ---------
CASH AND EQUIVALENTS, ENDING 2,833,745 2,569,318
========= =========
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements
<PAGE>
COLORADO CASINO RESORTS, INC. & SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note A: Summary of Significant Accounting Policies
- ------- ------------------------------------------
The Company's accounting policies are outlined in the audited financial
statements included with the Company's most recent 10KSB. There have been no
changes in accounting principles or practices in the current fiscal year. All
prior period amounts have been restated to include the result of Creeker's,
Inc., which was acquired in the first quarter of fiscal 1995. The acquisition
has been accounted for as a pooling-of-assets.
Note B: Deposits, Purchase Options
- ------- --------------------------
The Company has an option to purchase the parking lot behind Creeker's for
$750,000 through the expiration of the agreement in April 1997.
Note C: Long Term Debt
- ------- --------------
During the quarter, the Company borrowed an aggregate of $1,000,000 and
issued unsecured promissory notes bearing an interest rate of 18% due in January
1999.
The maturity of related-party notes, with an aggregate total of $7,976,000,
was extended for a two-year period.
Note D: Advances to/from Officers
- ------- -------------------------
During the quarter, the officers advanced a total of $755,000 to the
Company, $379,617 of which was used to repay the outstanding receivable as of
October 31, 1996. The balance of $375,383 was also used to repay a $270,000
advancement during the quarter, with the balance of $105,383 remaining as a
payable to the Company.
Note E: Stockholders' Equity
The Company issued 128,761 shares of common stock on the partial conversion
of $2,500,000 convertible debenture.
The Company has outstanding stock options to directors to purchase 240,000
shares of common stock at $1.00 per share and outstanding stock options to
officers and key employees to purchase 817,500 shares of common stock at $2.00
per share.
Note F: Income Taxes
The Company has an estimated deferred tax benefit of $575,000 for the
fiscal quarter which has been offset in full by a valuation allowance due to the
availability of a net operating loss carryforwards at January 31, 1997.
<PAGE>
COLORADO CASINO RESORTS, INC. & SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND PLANS FOR FUTURE OPERATIONS
OVERVIEW AND PLAN OF OPERATION
Colorado Casino Resorts, Inc., ("CCRI" and/or the "Company") is in the
business of developing and operating casino and hotel resort properties. Through
its wholly owned subsidiaries, Creeker's Inc. and Double Eagle Resorts, Inc.,
CCRI is the owner of Creeker's Casino ("Creeker's") and the Double Eagle Hotel &
Casino (the "Double Eagle"), both located in Cripple Creek, Colorado.
During the quarter, CCRI reported a significant increase in total revenues
compared to one year ago, primarily as a result of the first full quarter of
operations of the Double Eagle Hotel & Casino. The Company reported net
operating revenues of $4,387,821, an increase of $3,130,738, or 249% from the
$1,257,083 reported during the same period in 1996. Although the Company
recorded a loss from operations of $(317,623) compared to an income of $32,647
in 1996, EBITDA (earnings before interest taxes depreciation and amortization)
totaled $333,092, an increase of $192,977, or 138% compared to the same period
last year.
The Company reported a net loss of $(1,453,499) for the quarter compared to
a net loss of $(187,430) reported last year. Although the Company's business is
not considered to be seasonal, the highest levels of business activity in
Colorado occur during the tourist season (i.e., from May through September). Its
base level (i.e., November through May) is fairly constant although weather
conditions during this period could have a significant impact on business levels
in Colorado. During the first quarter, snow and poor weather conditions
contributed to an overall reduction in gaming revenues in Cripple Creek as well
as Blackhawk/Central City which also had an adverse effect on the Company's
revenues. However, revenues for the Double Eagle were well within forecast
expectations.
A significant portion of the expenses incurred in the operations of the
Company's subsidiaries and corporate offices were related to the implementation
and improvement of computer systems, local and wide area networks and associated
software. These expenses also included labor costs in connection with the
staffing and training of additional accounting and information systems
personnel. The management of the Company believes that by making capital
investments in information technology today it will be in a better position to
reap the benefits of improved operating efficiencies in the future. Significant
improvements in efficiency are currently being realized in the operations and
management of the Company's two properties through technology and the reduction
in overhead. For example, all accounting and marketing functions take place from
a centralized office located at the Double Eagle while utilizing a computer
network with voice and data communications to connect the casinos to the
corporate offices.
The introduction of the Double Eagle in the City of Cripple Creek produced
a significant initial impact with the addition of gaming devices and hotel
rooms. Within the first 90 days of opening two casinos have ceased operations,
reducing the number of gaming devices by approximately 300 machines. However,
with aggressive marketing and through word-of-mouth, the Double Eagle has
realized an increasing demand from new and return patrons.
<PAGE>
Creeker's Casino
Creeker's continues to produce consistent revenues for the Company.
During the first quarter, revenues were up slightly over the first
quarter in 1996 in spite of almost six weeks of disruptions during a
comprehensive remodeling in November and December. During this time,
at least half of the slot machines were removed from the floor
reducing gaming revenues. However, as a result of the remodel,
Creeker's was transformed into one of the more appealing mid-size
gaming properties in Cripple Creek. New, high-quality (Axminster)
carpet and tile was installed throughout the casino. A lighter shade
of high quality wall covering was also installed along with mirrored
ceiling tiles, lighting fixtures and wall-size mirrors. The newer,
fresher atmosphere was well received by the patrons and employees
alike.
Marketing. After carefully analyzing the busing program, the
management decided to pool its marketing budget with the Double Eagle
and develop a strategy to capture the high-dollar gaming patron,
primarily through the use of database marketing and its own bus
programs targeting niche market groups. Although Creeker's
discontinued full participation with Ramblin Express bus lines, it
will participate in future limited bus promotions on an as-needed
basis. Also, by accepting all other casinos' bus coupons, Creeker's
continues to attract a large percentage of patrons from the city's bus
traffic.
Creeker's is continuing to increase its market share in Cripple Creek
by providing the gaming patron with a higher level of customer
service, along with a clean, safe, and attractive gaming environment.
New Projects. The Company has begun preliminary design and
feasibility studies on the Creeker's hotel and casino expansion. The
new expansion would be located directly south of the existing building
and would include approximately 50-60 hotel rooms and 240-260
additional gaming devices and table games. Parking for will be
provided by a parking lot, slated for development at the Myers Avenue
site located approximately 50 yards from Creeker's.
Accompanying the hotel and casino expansion, the Company anticipates
adding the same level of information technology improvements to
Creeker's. This improvement in infrastructure includes a new digital
phone system, advanced point of sale systems, and local/wide area
computer networks connected to the Double Eagle and the Company's
corporate location via dedicated T-1 trunk lines. Related support
software and additional staffing requirements are anticipated with
this expansion.
Double Eagle Hotel & Casino
The Double Eagle Hotel & Casino has become the anchor in the Cripple
Creek gaming market. With its prominent presence and highly visible
location, the Double Eagle is the first casino and hotel property one
encounters at the entrance of Cripple Creek. Being the largest single
structure in Teller county, this property has garnered the interest of
many players and visitors alike. The Double Eagle was designed from
the ground up with every convenience and amenity in mind. As the only
hotel and casino in its class in the Southern Colorado region, it has
formed a loyal customer base with the up-scale gaming patron.
General Description. Unlike existing gaming facilities in the Cripple
Creek area, which offer limited or no overnight accommodations,
inconvenient parking and few non-gaming amenities, the Double Eagle
features 158 hotel rooms and suites, a 400-space parking lot with free
<PAGE>
valet parking and shuttle transportation, and a 45,000-square foot
casino offering 746 slot machines and five blackjack tables. The
facility also includes a 100-seat restaurant, Lombard's, two bars and
a gift shop.
The Double Eagle Hotel & Casino was designed to be a modern, state-of-
the-art hotel and casino with the grandeur of Las Vegas in mind. This
facility employs the latest in lodging and gaming network systems for
reservations and hotel guest check-in, player tracking, inter-linked
voice and data communications, and computerized ventilation and
environment controls. The exterior of the building is designed to be
reminiscent of the historic structures which adorned the city of
Cripple Creek during the pre-World War I era while the interior is
themed to present the glamour and splendor of the "Roaring 20's."
With its simulated stained glass barrel ceiling, elegant winding
staircases, and colorful three-dimensional casino signs, the Double
Eagle offers its guests a unique and unforgettable gaming experience.
Located on southwest corner of Bennett Avenue and 5th Street, where
Route 67 and Bennett Avenue intersect, the Double Eagle provides
superior access and visibility to motorists entering and exiting the
City of Cripple Creek.
Lombard's Restaurant, located on the ground level of the Double Eagle,
has established a name for itself as Cripple Creek's only fine dining
restaurant. Featuring an extensive wine list, elegant ambiance, and a
selection of dishes featuring choice cut meats, poultry and seafood
prepared by its gourmet chef, Lombard's offers the gaming patron an up-
scale dinning experience. The restaurant also began offering room
service to hotel guests during this quarter. Catering to special
events, banquets and meetings, the restaurant has come to establish a
viable income base for the Double Eagle.
Marketing. The Double Eagle is committed to a high growth strategy by
continuously improving its overall image and effectiveness through new
and innovative marketing programs. A large part of the strategy for
the Double Eagle is to build the customer base through the use of the
Winners Circle slot club. The Winners Circle, and use of a player
tracking system, provides the Company with an important tool for
understanding its customer base. Information from the computerized
tracking system assists management to plan and direct marketing
efforts to its customers. As members of the Winners Circle, patrons
are encouraged to insert their frequent player card into slot, keno,
and video poker machines while playing in the casino to earn points.
Using the tracking system to track wagering, management rewards
members of the Winners Circle based on their point totals with various
cash and gift prizes.
During the first five months of operation, the management of Double
Eagle has spent a considerable amount of time and effort to increase
membership in the Winners Circle, which now consists of 25,000
members. The Double Eagle has successfully used a variety of
promotions, including cash giveaways, cash coupons, and in-house fun
books to attract and retain its gaming customers.
The Double Eagle has also started marketing to the surrounding five-
state area on the eastern slope (Kansas, Nebraska, Oklahoma, Texas,
and New Mexico). Overnight bus trips from Denver have also proven to
be a viable market for the Double Eagle. Management expects to expand
these types of promotions over the next twelve months to increase mid-
week attendance. Special day trip packages are also being scheduled
with groups while offering return-trip incentives.
New Projects. The Company has embarked on an aggressive expansion
strategy which, the management believes, will make the Double Eagle
the first four-star hotel in Cripple Creek. The first project planned
for completion by this Labor Day is the addition of a 150-seat meeting
and conference center within the center section of the building. .
This facility will include state-of-the-art audio and visual equipment
as well as bar and kitchen facilities. The Double Eagle has already
made several reservations for its anticipated conference center, with
many requests coming daily.
<PAGE>
Also planned for 1997 is the development of the Myers Avenue property.
The Company is presently working with the city of Cripple Creek and
appropriate Federal agencies to enhance the property, making it
suitable for future casino and hotel development. Plans for this
infrastructure development is expected to commence as early as the
third quarter of 1997.
The Company is currently conducting a feasibility study for the
development of a multi-level parking structure which will include a
health club facility (including a spa, steam room, exercise room,
swimming pool, and restaurant). This structure, slated for completion
in Summer '98, will be erected directly behind the Double Eagle.
Technology Infrastructure. Management considers the timely
compilation and analysis of information to be essential to the future
success of the Company. In line with this belief, the Company has
made a significant capital investment in technology in order to
optimize the movement and management of information throughout the
Company's properties. From a digital phone system, to local/wide area
networks linked to an IBM AS/400 mini-mainframe, extensive
consideration has been placed in the design and implementation of the
communication infrastructure. Data collection and analysis processes
and procedures have been developed, and continue to be refined, in
effort to achieve a highly automated system of information management
to further enhance the decision making process and revenue generating
capability of the Company.
COMPANY REVENUE
Casino revenues for the quarter were up significantly compared to the
same period twelve months ago. Operating revenues for the quarter
ending January 31, 1997 totaled $4,387,821 compared to revenues of
$1,257,083 for the same period in 1995, representing an increase of
over 249%. The Company attributes the increase in revenues to the
addition of the Double Eagle, as well as a continued increase in
Creeker's revenues.
Operating expenses for this quarter also rose from $1,224,436 to
$4,705,444 representing a 284% increase from one year ago. This
increase in expenses is primarily due to the additional labor costs
associated with Double Eagle operations, as well as increases in
marketing and related general and administrative expenses. Additional
expenses were also incurred with increase in cost of goods sold at
Lombard's Restaurant (which now offers room service to hotel guests),
as well as an initial increase in labor and training costs associated
with bringing the valet service in house. These immediate changes are
expected to improve the future revenue generating capacity of the
Double Eagle.
Acquisitions
There were no acquisitions of any significance during this quarter.
Sale of Stock
During the quarter, $150,000 of non-related party debenture principal
was converted into 128,761 shares of common stock.
<PAGE>
Results of Operations
For the three months ending January 31, 1997, the Company reported
revenues from casino operations of $3,657,372 compared to $1,124,007
for the same period from one year ago, representing a 225% increase.
During this period the Company had increased charges in labor,
marketing and related general and administrative expenses associated
with staffing of the Double Eagle. Furthermore, during this quarter,
Creeker's had undergone remodeling which required the closure of
sections of the casino for approximately six weeks. Taking into
account these two factors, the Company incurred a net consolidated
loss from operations of $(317,623) compared to a profit of $32,647 in
1996. Interest expense amount to $1,135,876 ($745,000 of which was
related to construction financing for the Double Eagle project and
$390,876 associated with capital leases) further reduced earnings to a
quarter net loss of $(1,453,499).
Total operating expenses increased by 283%, up $3,461,008 to
$4,705,444 for the quarter due primarily to increased labor expenses
and depreciation and amortization related to the acquisition of
capital equipment. Additional cost of labor and merchandising
material used during the same period also accounted for the increase
in expenses.
Restaurant and bar revenues improved by 141%, up $181,037 to $321,113
in the first quarter. Food and beverage costs and expenses rose by
246%, up $429,870 to $604,613, with restaurant and bar operations at
the Double Eagle accounting for 90% of the increase.
General and administrative expenses increased 235%, up $1,140,420 to
$1,625,733 for this quarter. Approximately $865,881, or 75% of the
increase, was directly attributable to the new operations at the
Double Eagle. Marketing and promotional expenses of $250,000 at
Creeker's constituted another 22% of the total increase, with the
balance attributable to increases in payroll and certain overhead
costs at the corporate offices.
Depreciation expense increased 505%, up $543,247 to $650,715 for the
quarter, with 97% of the increase, approximately $527,000, primarily
due to capital spending associated with the Double Eagle. Interest
expense increased by $915,800, or 416% from the same quarter last
year. This increase was attributable to the additional debt related
to Double Eagle construction financing and equipment leasing.
The accompanying unaudited condensed consolidated financial statements
have been prepared in accordance with generally accepted accounting
principles for interim financial information and with the instructions
to Form 10-QSB 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, all adjustments (consisting of normally
recurring accruals) considered necessary for a fair presentation have
been included.
Operating results for the quarter ending January 31, 1997 are not
necessarily indicative of the results that may be expected for the
year ending October 31, 1997. For further information, refer to the
consolidated statements and footnotes included in the Registrant's
annual report on Form 10-KSB for the year ending October 31, 1996.
<PAGE>
COLORADO CASINO RESORTS, INC. & SUBSIDIARIES
OTHER INFORMATION
PART II. Other Information
Item 1. Legal Proceedings
The Company is party to various lawsuits relating to routine
matters incidental to its business. Management does not
believe that the outcome of any such litigation, in
aggregate, will have a material adverse effect on the
Company.
Item 2. Changes in Securities - None.
Item 3. Defaults Upon Senior Securities - None.
Item 4. Submission of Matters to Vote of Security Holders - None.
Item 5. Other Information - None.
Item 6. Exhibits and Reports - None.
<PAGE>
COLORADO CASINO RESORTS, INC. & SUBSIDIARIES
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Act
of 1934, as amended, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized this 13th day of March,
1997.
COLORADO CASINO RESORTS, INC.
March 13, 1997 By: /s/ Rudy S. Saenz
--------------------
Rudy S. Saenz
President and Chief Executive Officer,
Director (Principal Executive Officer)
March 13, 1997 /s/ Farid E. Tannous
-----------------------
Farid E. Tannous
Treasurer and Chief Financial Officer
(Principal Financial Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<CURRENCY> U.S.
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> JAN-31-1997
<EXCHANGE-RATE> 1
<CASH> 2,833,745
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 187,513
<CURRENT-ASSETS> 3,029,668
<PP&E> 40,971,780
<DEPRECIATION> 2,169,706
<TOTAL-ASSETS> 48,982,848
<CURRENT-LIABILITIES> 12,367,942
<BONDS> 0
0
2,500,000
<COMMON> 34,666
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 48,982,848
<SALES> 4,387,821
<TOTAL-REVENUES> 4,387,821
<CGS> 4,705,444
<TOTAL-COSTS> 4,705,444
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,135,876
<INCOME-PRETAX> (1,453,499)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,453,499)
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<CHANGES> 0
<NET-INCOME> (1,453,499)
<EPS-PRIMARY> (0.04)
<EPS-DILUTED> (0.04)
</TABLE>
