<PAGE>
FORM 10-QSB
SECURITIES & EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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(MARK ONE)
X
----- Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act
of 1934
For the Quarterly period ended June 30, 1995
or
Transition Report Pursuant to Section 13 or 15(d) of the Securities
----- Exchange Act of 1934
For the Transition period from to
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Commission File Number 0-18864
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DEBBIE REYNOLDS HOTEL & CASINO, INC.
(Exact name of registrant as specified in its charter)
NEVADA 88-0335924
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(State or other jurisdition of (I.R.S. Employer
incorporation or organization) Identification No.)
305 CONVENTION CENTER DRIVE, LAS VEGAS, NEVADA 89109
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(Address of principal executive offices-Zip Code)
(702) 734-0711
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(Registrant's telephone number, including are code)
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(Former name, former address, or fiscal year, if charged since last report)
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
----- -----
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
8,272,646 common shares were outstanding as of August 18, 1995
This filing consists of 15 sequentially numbered pages. The exhibit index is
located at sequentially numbered pages 13 and 14.
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FORM 10-QSB
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DEBBIE REYNOLDS HOTEL & CASINO, INC.
Form 10-QSB for the Quarter ended June 30, 1995
Table of Contents
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Page
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PART I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
Consolidated Balance Sheets:
As of June 30, 1995 (unaudited) and December 31, 1994 3
Consolidated Statement of Operations:
For the six months ended June 30, 1995 (unaudited) and 1994 4
For the three months ended June 30, 1995 (unaudited) and
1994 (unaudited) 5
Consolidated Statements of Cash Flows:
For the six months ended June 30, 1995 (unaudited) and 1994 6
Notes to Unaudited Consolidated Financial Statements 7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION 10
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 ON FORM 8-K 14
SIGNATURES 15
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FORM 10-QSB
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Part I. Item 1. FINANCIAL STATEMENTS
DEBBIE REYNOLDS HOTEL & CASINO, INC.
Consolidated Balance Sheets
June 30, 1995 and December 31, 1994
<TABLE>
<CAPTION>
June 30, December 31,
ASSETS 1995 1994
------------- ---------------
(Unaudited)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 35,000 $ 112,000
Accounts receivable 1,438,000 1,131,000
Other 587,000 455,000
---------- ----------
Total current assets 2,060,000 1,698,000
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Land and building 6,769,000 5,057,000
Furniture and equipment 4,545,000 2,342,000
Construction in progress -- 2,917,000
---------- ----------
11,314,000 10,316,000
Less accumulated depreciation 1,400,000 889,000
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Net property and equipment 9,914,000 9,427,000
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Other assets:
Deposits and other 1,753,000 1,399,000
---------- ----------
Total assets $ 13,727,000 $ 12,524,000
---------- ----------
---------- ----------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $ 701,000 $ 535,000
Accounts payable and accrued liabilities 3,241,000 1,804,000
Other 449,000 433,000
---------- ----------
Total current liabilities 4,391,000 2,772,000
Long-term debt, net of current maturities 8,195,000 6,627,000
---------- ----------
Total liabilities 12,586,000 9,399,000
---------- ----------
Commitments and contingencies
Shareholders' equity:
Preferred stock, $.0001 par value.
Authorized 50,000,000 shares, 2,000,000
designated Series AA, 667,904 issued and
outstanding -- --
Common stock, $.0001 par value. Authorized
25,000,000 shares, 8,272,646 and 8,083,904
shares issued and outstanding, respectively 1,000 1,000
Additional paid-in capital 9,878,000 9,547,000
Accumulated deficit (8,738,000) (6,423,000)
---------- ----------
Total shareholders' equity 1,141,000 3,125,000
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Total liabilities and shareholders' equity $ 13,727,000 $ 12,524,000
---------- ----------
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</TABLE>
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FORM 10-QSB
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DEBBIE REYNOLDS HOTEL & CASINO, INC.
Consolidated Statements of Operations
Six months ended June 30, 1995 and 1994
<TABLE>
<CAPTION>
1995 1994
------------ -------------
(Unaudited)
<S> <C> <C>
Revenue:
Timeshare $ 2,394,000 $ --
Rooms 1,305,000 1,399,000
Showroom 960,000 768,000
Restaurant -- 191,000
Museum 184,000 --
Other 398,000 335,000
--------- ---------
Total revenue 5,241,000 2,693,000
--------- ---------
Operating expenses:
Timeshare 1,749,000 --
Rooms 837,000 777,000
Showroom 1,309,000 926,000
Restaurant -- 312,000
Museum 105,000 --
General and administrative costs 2,243,000 2,871,000
Depreciation and amortization 511,000 419,000
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Total operating expenses 6,754,000 5,305,000
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Loss from operations (1,513,000) (2,612,000)
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Other income (expense):
Relief of debt -- 5,000
Interest expense (802,000) (192,000
--------- ---------)
Total other income (expense) (802,000) (187,000)
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Net loss $ (2,315,000) $ (2,799,000)
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Loss per weighted-average common and common share
equivalents outstanding:
Net loss per share $ (.28) $ (.48)
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Weighted-average number of common shares and
common share equivalents outstanding 8,112,063 5,777,751
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</TABLE>
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FORM 10-QSB
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DEBBIE REYNOLDS HOTEL & CASINO, INC.
Consolidated Statements of Operations
Three months ended June 30, 1995 and 1994
(Unaudited)
<TABLE>
<CAPTION>
1995 1994
------------ -------------
<S> <C> <C>
Revenue:
Timeshare $ 1,295,000 $ --
Rooms 593,000 800,000
Showroom 475,000 389,000
Restaurant -- 191,000
Museum 184,000 --
Other 196,000 101,000
--------- ---------
Total revenue 2,743,000 1,481,000
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Operating expenses:
Timeshare 737,000 --
Rooms 415,000 484,000
Showroom 594,000 488,000
Restaurant -- 312,000
Museum 105,000 --
General and administrative costs 1,065,000 1,438,000
Depreciation and amortization 292,000 199,000
--------- ---------
Total operating expenses 3,208,000 2,921,000
--------- ---------
Loss from operations (465,000) (1,440,000)
--------- ---------
Other income (expense):
Interest income -- 4,000
Interest expense (427,000) (108,000)
--------- ---------
Total other income (expense) (427,000) (104,000)
--------- ---------
Net loss $ (892,000) $ (1,544,000)
--------- ---------
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Loss per weighted-average common and common share
equivalents outstanding:
Net loss per share $ (.11) $ (.20)
--------- ---------
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Weighted-average number of common shares and common
share equivalents outstanding 8,130,222 7,640,203
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</TABLE>
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FORM 10-QSB
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DEBBIE REYNOLDS HOTEL & CASINO, INC.
Consolidated Statements of Cash Flows
Six months ended June 30, 1995 and 1994
<TABLE>
<CAPTION>
1995 1994
------------- -------------
(Unaudited)
<S> <C> <C>
Cash flows from operating activities:
Net loss for the period $ (2,315,000) $ (2,799,000)
Adjustments to reconcile net income to net cash
provided by operations 1,668,000 191,000
---------- ----------
Net cash used in operating activities (647,000) (2,608,000)
---------- ----------
Cash flows from investing activities:
Purchases of property and equipment (998,000) (1,591,000)
---------- ----------
Net cash used in investing activities (998,000) (1,591,000)
---------- ----------
Cash flows from financing activities:
Additional investments from shareholder -- 1,944,000
Net increase in long-term debt 1,568,000 2,622,000
---------- ----------
Net cash provided by financing activities 1,568,000 4,566,000
---------- ----------
Net increase (decrease) in cash (77,000) 367,000
Cash at beginning of period 112,000 306,000
---------- ----------
Cash at end of period $ 35,000 $ 673,000
---------- ----------
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Supplemental disclosures of cash flow information:
Interest paid on borrowings $ 802,000 $ 171,000
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</TABLE>
Supplemental disclosures of noncash investing and financing activities:
In March 1994, a subsidiary of the Company acquired Debbie Reynolds Hotel &
Casino, Inc. (DRHC) in exchange for issuing 2,350,833 shares of common
stock.
The Company fully divested itself of its wholly-owned subsidiary, SWTV
Production Services, Inc., (SWTV) in exchange for the 2,126,540 shares of
the Company's common stock owned by the Company's former President. The
2,126,540 shares were canceled on March 31, 1994.
In March 1994, an officer, director and principal shareholder made an
additional capital contribution through the conversion of $1,761,000 of
debt to equity.
In March 1994, a subsidiary of the Company acquired Maxim Properties Company
(Maxim) in exchange for issuing 2,850,833 shares of common stock valued at
$400,000.
In March 1994, certain of the Company's lenders and related parties converted
debt of $3,264,000 in exchange for 1,284,842 shares of common stock.
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DEBBIE REYNOLDS HOTEL & CASINO, INC.
Notes to Unaudited Financial Statements
June 30, 1995 and December 31, 1994
(1) Basis of Presentation
(a) CORPORATE ORGANIZATION
The accompanying consolidated financial statements include the
accounts of Debbie Reynolds Hotel & Casino, Inc., formerly Halter
Venture Corporation (Halter) and its wholly-owned subsidiaries Debbie
Reynolds Management Company, Inc., formerly Debbie Reynolds Hotel &
Casino, Inc. (DRHC) and Debbie Reynolds Resorts, Inc. (DRRI)
(collectively the Companies). The December 31, 1994 balance sheet
data was derived from audited financial statements of the Debbie
Reynolds Hotel & Casino, Inc., but does not include all disclosures
required by generally accepted accounting principles. Users of
financial information provided for interim periods should refer to the
annual financial information and footnotes contained in the Annual
Report on Form 10-KSB when reviewing the interim financial results
presented herein. All intercompany accounts and transactions have been
eliminated in consolidation.
In the opinion of management, the accompanying unaudited interim
financial statements are prepared in accordance with the instructions
on Form 10-QSB and contain all material adjustments, consisting only
of normal recurring adjustments, necessary to present fairly the
financial condition, results of operations and cash flows of the
Company for the respective interim periods presented. The current
period results of operations are not necessarily indicative of results
which ultimately will be reported for the full year ending December
31, 1995.
On November 18, 1994, the shareholders of the Company elected at their
annual shareholders' meeting to change the name of the Company from
Halter Venture Corporation to Debbie Reynolds Hotel & Casino, Inc.
(b) MERGER
Effective February 11, 1994, Halter entered into an Agreement of
Merger and Plan of Reorganization, as amended and restated on March
10, 1994 (Agreement), with Maxim Properties Company (Maxim), a
privately held Colorado corporation, DRHC and Hamlett Production, Ltd.
(HPL), both privately held Nevada corporations, and others. The
mergers contemplated by the Agreement were consummated as of March 22,
1994. Under the Agreement, HPL Acquisition Corporation, a wholly-
owned subsidiary of Halter, merged with and into DRHC, formerly HPL,
the surviving corporation (the DRHC Merger). In addition, MPC
Acquisition Corporation, another wholly-owned subsidiary of Halter,
merged with and into Maxim, the surviving corporation (the Maxim
Merger). The DRHC Merger and the Maxim Merger are referred to herein
collectively as the "Mergers."
Pursuant to the Mergers, Halter acquired all of the outstanding
securities of DRHC and Maxim in exchange for the issuance of 2,850,833
shares of Halter's common stock to the Maxim shareholders and other
related parties and 2,350,833 shares of Halter's common
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DEBBIE REYNOLDS HOTEL & CASINO, INC.
Notes to Unaudited Financial Statements, Continued
stock to the DRHC shareholder. Prior to the closing, DRHC merged with
and into HPL, and HPL changed its name to Debbie Reynolds Hotel &
Casino, Inc. In connection with the Mergers, DRHC obtained financing
consisting of convertible promissory notes in the amount of $2,553,500
and one other note of $800,000. In conjunction with the Mergers, the
convertible notes were converted into 851,167 shares of Halter's
common stock. In connection with the Maxim merger, $300,000 of the
other note was contributed to the Company.
In conjunction with the Mergers, pursuant to a Divestiture Agreement
dated March 23, 1994, Halter divested itself of its wholly-owned
subsidiary, SWTV Production Services, Inc. (SWTV), to Halter's former
President in exchange for the 2,126,540 shares of common stock of
Halter owned by the former President. The 2,126,540 shares were then
canceled on March 31, 1994. SWTV was acquired by Halter on April 22,
1993 and from that time until divestiture conducted the sole business
operations of Halter.
For accounting purposes, the Mergers were accounted for as a
recapitalization of DRHC, with DRHC the acquirer and the surviving
corporation. The Company continued to operate under the Halter name
until the shareholders meeting in November 1994, when it was changed
to DRHC.
(c) DESCRIPTION OF BUSINESS
DRHC owns and operates a hotel, gift shop and showroom and leases
space to a third party for the operation of a gambling casino and
leases space to an affiliate for the operation of a bar and restaurant
located on Convention Center Drive in Las Vegas, Nevada (collectively,
the Property). Additionally, during the quarter ended March 31, 1995,
the Company completed construction on the Debbie Reynolds Hollywood
Movie and Memorabilia Museum (Museum), which opened on April 1, 1995.
The Company's operations also include the development and sale of
timesharing units in the Debbie Reynolds Hotel (Hotel) through DRRI.
The Company obtained a timeshare license which was granted by the
Nevada Real Estate Board on June 28, 1994.
On April 20, 1994, DRHC entered into an agreement with Hollywood
Restaurant, Inc. to terminate the existing restaurant lease and began
operating the restaurant, "Celebrity Cafe". In August 1994, the
restaurant was leased to the affiliate that operates the bar and
liquor operations.
(2) CAPITAL STOCK TRANSACTIONS
See (Item 2) Management's Discussion and Analysis, (2) Liquidity and
Capital Resources, for additional discussions of the Company's capital
stock transactions.
(3) BORROWINGS
On March 22, 1994, the Company obtained a $2,500,000 loan from Bennett
Management & Development Corp. (Bennett), the proceeds of which have been
used to replace an existing
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DEBBIE REYNOLDS HOTEL & CASINO, INC
Notes to Unaudited Financial Statements, Continued
mortgage on the Hotel and for general corporate purposes. The loan bears
interest at 13% and is due March 22, 1997. The loan requires principal
and interest payments equal to $1,200 per timeshare interval sold. In
consideration of the loan the Company issued Bennett 25,000 shares of its
common stock. Ms. Reynolds, a stockholder and chairman of the board of
directors of the Company has personally guaranteed the loan. Bennett has
waived the principal and interest payments for three months beginning May
15, 1995.
In June 1994, the Company obtained a $1,000,000 loan from TPM
Financial/Source Capital, the proceeds were principally used to continue
construction of the Museum and for general corporate purposes. The loan
bears interest at 13%. The loan requires principal and interest payments
equal to $1,000 per timeshare interval sold. The loan is secured by a
second deed of trust. The loan is due June 15, 1996.
In December 1994, the Company obtained a $1,100,000 loan from TPM
Financial/Source, the proceeds were principally used to continue
construction of the Museum and for general corporate purposes. The loan
bears interest at the greater of 12% or 4% over prime and is due December
1, 1996. The loan is secured by a third deed of trust. The loan requires
principal and interest payments equal to $1,500 per time share interval
sold.
In January 1995, World Venture Trust, an unaffiliated company, loaned the
Company $275,000. The loan bears interest at 10% and was due on April 26,
1995. The loan is secured by the Company's real and personal property,
including the Debbie Reynolds Hotel & Casino. The loan is convertible, at
the option of the holder, after maturity, into 200,000 shares of the
Company's common stock. The principal amount outstanding on the loan as
of June 30, 1995 was approximately $289,000. This loan is currently in
default.
In February 1995, the Company obtained a $525,000 loan from Bennett, the
proceeds of which were principally used in the construction of the museum,
timeshare conversions and for general corporate purposes. The loan bears
interest at 13% and is due on March 22, 1997.
In April 1995, the Company obtained a $500,000 loan from TPM
Financial/Source Capital, the proceeds of which were principally used in
the construction of the museum and for general corporate purposes. The
loan bears interest at 13% and was due June 25, 1995. This loan was
issued as an addition to the lenders second mortgage. This loan is
currently in default.
(4) CONTINGENCIES
One of the Company's subsidiaries is a defendant in litigation currently
pending. The lawsuit alleges breach of brokers agreement. The Company's
subsidiary filed an answer to the allegations on February 28, 1994.
Management and legal counsel for the Company are of the opinion that the
plaintiff's claim is without merit and the Company will prevail in
defending the suit.
See Part II (Other Information), Item 1 (Legal Proceedings) for additional
lawsuits against the Company.
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PART I. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS
(1) OVERVIEW
The accompanying consolidated financial statements include the accounts of
Debbie Reynolds Hotel & Casino, Inc. (the Company), formerly Halter
Venture Corporation (Halter) and its present wholly-owned subsidiaries,
Debbie Reynolds Management Company, Inc., formerly Debbie Reynolds Hotel &
Casino, Inc. (DRHC) and its wholly-owned subsidiary, Debbie Reynolds
Resorts, Inc. (DRRI). The accompanying consolidated financial statements
reflect the historical operations of DRHC and DRRI only and do not include
the financial results of Halter's former wholly owned subsidiary, SWTV
Production Service, Inc., which comprised substantially all of the
operating results reported in Halter's 1993 Annual Report on Form 10-KSB.
The mergers discussed below have been accounted for as a recapitalization
of the Company with DRHC as the acquiror and survivor.
Effective February 11, 1994, Halter entered into an agreement of merger
and plan of reorganization as amended and restated on March 10, 1994 with
DRHC and others. Under the agreement HPL Acquisition Corporation, a
wholly-owned subsidiary of the Company merged with and into DRHC with the
surviving corporation being DRHC and its subsidiary, DRRI. Pursuant to
the merger, Halter acquired all of the outstanding securities of DRHC. In
conjunction with the mergers and pursuant to a divestiture agreement,
Halter divested itself of its wholly-owned subsidiary SWTV Production
Services, Inc.
On November 18, 1994, the shareholders of the Company elected at their
annual shareholders' meeting to change the name of the Company from Halter
Venture Corporation to Debbie Reynolds Hotel & Casino, Inc.
(2) LIQUIDITY AND CAPITAL RESOURCES
In January 1995, World Venture Trust, an unaffiliated company, loaned the
Company $275,000. The loan bears interest at 10% and was due on April 26,
1995. The loan is secured by the Company's real and personal property,
including the Debbie Reynolds Hotel & Casino. The loan is convertible, at
the option of the holder, after maturity, into 200,000 shares of the
Company's common stock. The principal amount outstanding on the loan as
of June 30, 1995 was approximately $289,000. This loan is currently in
default.
In February 1995, the Company obtained a $525,000 loan from Bennett
Management & Development (Bennett), the proceeds of which were principally
used in the construction of the museum, timeshare conversions and for
general corporate purposes. The loan bears interest at 13% and is due on
March 22, 1997.
In April 1995, the Company obtained a $500,000 loan from TPM
Financial/Source Capital, the proceeds of which were principally used in
the construction of the museum and for general corporate purposes. The
loan bears interest at 13% and was due June 25, 1995. This loan was
issued as an addition to the lenders second mortgage. This loan is
currently in default.
In May 1995, the Company obtained an additional $340,000 loan from
Bennett, the proceeds of which were principally used in the construction
of timeshare and general corporate purposes. The
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MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION, CONTINUED
loan bears interest at 14% and is due on demand. Ms. Reynolds, a
stockholder and chairman of the board of the Company, has personally
guaranteed the loan.
The Company is currently in default in the payment of various
accounts payable aggregating approximately $1,500,000.
The Company had a working capital deficiency of $2,331,000 at June 30,
1995, compared with a working capital deficiency of $1,074,000 at December
31, 1994, an increase of $1,257,000. This increase is attributable to
operating expenses incurred during the first six months of 1995.
With the Company's recurring losses from operations, working capital
deficit, and debt service obligations, its ability to continue as a going
concern is dependent on its ability to obtain additional financing.
Management of the Company is seeking additional sources of financing to
reduce its debt service obligations, complete certain capital projects and
fund its working capital needs for the 1995 fiscal year. In addition,
management is implementing cost control measures to improve the cash flow
of the Company. However, there can be no assurance that these additional
sources of funding will continue to occur.
(3) REVENUES
Revenues for the quarter ended June 30, 1995 totaled $2,743,000 as
compared to $1,481,000 for the six months ended June 30, 1994,
representing an 85% increase for 1995. This increase is attributable, in
large part, to the addition of $1,295,000 timeshare sales for the quarter
ended June 30, 1995.
The loss from operations for the second quarter 1995 totaled $465,000 as
compared to $1,440,000 for the second quarter 1994. Included in the 1995
net loss is $125,000, which represents a settlement expense to a director
and officer of the Company. Timeshare sales during the first six months
of 1995 were not sufficient to generate substantial profits due to the
seasonality of the business. Additionally, the Company incurred
considerable showroom operating expenses which resulted in the showroom
generating a loss of $119,000 for the quarter ended June 30, 1995. The net
loss for the quarter ended June 30, 1995 totaled $892,000 as compared to
$1,544,000 for the quarter ended June 30, 1994.
Revenue for the six months ended June 30, 1995 totaled $5,241,000 as
compared to $2,693,000 for the six months ended June 30, 1994, repre-
senting an 95% increase for 1995. This increase is attributable, in large
part, to the addition of $2,394,000 timeshare sales for the six months
ended June 30, 1995.
The loss from operations for the six months ended 1995 totaled $1,513,000
as compared to $2,612,000 for the six months ended June 30, 1994. The
Company incurred considerable showroom operating expenses which resulted
in the showroom generating a loss of $349,000 for the six months ended
June 30, 1995. The net loss for the six months ended June 30, 1995
totaled $2,315,000 as compared to $2,799,000 for the six months ended June
30, 1994.
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MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION, CONTINUED
(4) INTEREST EXPENSE
Interest expense increased from $108,000 for the six months ended June 30,
1994 to $427,000 for six months ended June 30, 1995 as a result of the
increase in borrowings.
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PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
On April 28, 1995, Ronald D. Nitzberg and Ron Nitzberg Associates,
Inc., an unaffiliated corporation, filed a lawsuit against the Company
and others in the District Court of Clark County, Nevada, alleging
breach of contract, slander and other claims, relating to his
employment with the Company. The plaintiffs seek damages in the
amount of approximately $245,000 and an unspecified amount of money
damages. The Company has filed a counterclaim against the plaintiff
alleging breach of fiduciary duty and breach of contract asking for
declaratory relief from consulting and stock agreements.
On April 14, 1995, Edward S. Coleman filed a lawsuit against the
Company and others in the District Court of Clark County, Nevada,
alleging breach of covenant of good faith and fair dealing based on
certain services. The plaintiff seeks unspecified money damages in
excess of $10,000.
On January 26, 1995, American Interval Marketing, Inc., filed a
lawsuit in the District Court of Clark County, Nevada, against the
Company and others, alleging breach of contract and reasonable value
of services. The plaintiff seeks damages of approximately $45,000.
On July 14, 1995, Grand Nevada Hotel Corp., filed a lawsuit in the
District Court of Clark County, Nevada, against the Company, alleging
breach of contract and breach of implied duty of good faith. The
plaintiff seeks damages in excess of $10,000.
On July 27, 1995, Norman Eugene Watson, filed a lawsuit against the
Company and others in the District Court of Clark County Nevada,
alleging breach of contract, fraud and misrepresentation and other
claims. The plaintiff seeks damages in excess of $10,000.
ITEM 2. CHANGES IN SECURITIES
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
The Company is in default in respect to the payment of interest on its
8-3/4% senior subordinated convertible debentures due in October 1996
and November 1998. The total amount of the default as of August 15,
1995 is approximately $150,000.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 5. OTHER INFORMATION
The Company is currently in default under the service agreement with
Raymax Productions, a company wholly-owned by Debbie Reynolds, in the
amount of $300,000.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) EXHIBITS
None
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PART II. OTHER INFORMATION, CONTINUED
(b) REPORTS ON FORM 8-K
During the quarter ended June 30, 1995 the Registrant filed the
following reports on Form 8-K:
Current report on Form 8-K dated June 30, 1995, reporting Item 5-
Other Events.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
DEBBIE REYNOLDS HOTEL & CASINO, INC.
By: /S/ Todd Fisher
-----------------------------------
Todd Fisher, Chief Executive Officer
Date: August 18, 1995
By: /S/ Todd Fisher
-----------------------------------
Todd Fisher, Chief Financial Officer
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<PAGE>
<ARTICLE> 5
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