Form 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File No. 1-4748
Sun International North America, Inc.
(Exact name of registrant as specified in its charter)
Delaware 59-0763055
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1415 E. Sunrise Blvd., Ft. Lauderdale, FL 33304
(Address of principal executive offices) (Zip Code)
(954) 713-2500
(Registrant's telephone number,
including area code)
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 check mark whether the registrant has filed all documents
and reports required to be filed by Sections 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
- continued -
Exhibit Index is presented on page 16
Total number of pages 18
Number of shares outstanding of registrant's common stock as of June
30, 1997: 100, all of which are owned by one shareholder.
Accordingly there is no current market for any of such shares.
The registrant meets the conditions set forth in General Instruction
H(1)(a) and (b) of Form 10-Q and is therefore filing this Form 10-Q
with the reduced disclosure format permitted by that General
Instruction.
SUN INTERNATIONAL NORTH AMERICA, INC.
FORM 10-Q
INDEX
Page Number
Part I. Financial Information
Item 1. Financial Statements
Consolidated Balance Sheets
at June 30, 1997 and
December 31, 1996 4
Consolidated Statements of
Operations for the Quarters
and Six Months Ended June 30,
1997 and 1996 5
Consolidated Statements of
Cash Flows for the Six Months
Ended June 30, 1997 and 1996 6
Notes to Consolidated
Financial Statements 7
Item 2. Management's Discussion and
Analysis of Financial
Condition and Results of
Operations 10
Part II. Other Information
Item 1. Legal Proceedings 14
Item 6. Exhibits and Reports on
Form 8-K 14
PART I. - FINANCIAL INFORMATION
Item 1. Financial Statements
SUN INTERNATIONAL NORTH AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands of Dollars, except par value)
June 30, December 31,
1997 1996
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 72,978 $ 29,267
Restricted cash equivalents 4,639 4,538
Receivables, less allowance for
doubtful accounts of $3,806 and $3,758 13,412 7,468
Inventories 1,254 1,194
Prepaid expenses 2,569 2,055
Total current assets 94,852 44,522
Land held for investment, development
or resale 149,169 185,769
Property and equipment, net of accumulated
depreciation of $5,342 and $0 246,941 210,961
Deferred charges and other assets 18,568 12,673
Goodwill, net of amortization 96,850 98,923
$ 606,380 $ 552,848
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities:
Current maturities of long-term debt $ 608 $ 636
Accounts payable and accrued liabilities 53,234 51,669
Due to affiliates 6,457
Total current liabilities 60,299 52,305
Long-term debt, including unamortized
premiums (discounts) 311,251 261,543
Deferred income taxes 43,957 46,000
Shareholder's equity:
Common stock-$.01 par value
Capital in excess of par 193,368 193,000
Accumulated deficit (2,495)
190,873 193,000
$ 606,380 $ 552,848
See notes to consolidated financial statements.
SUN INTERNATIONAL NORTH AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands of Dollars)
(Unaudited)
Quarter Ended Half Ended
June 30, June 30,
1997 1996 1997 1996
Revenues:
Casino $64,917 $68,386 $124,364 $127,247
Rooms 4,254 4,044 7,218 7,014
Food and beverage 6,904 6,955 13,177 12,839
Other casino/hotel revenues 2,562 2,317 4,519 4,249
78,637 81,702 149,278 151,349
Less promotional allowances (7,070) (6,341) (12,545) (11,401)
Net casino and resort revenues 71,567 75,361 136,733 139,948
Tour operations 3,913 - 8,425 -
Real estate related 2,262 2,266 4,463 4,406
77,742 77,627 149,621 144,354
Expenses:
Casino 39,722 41,684 77,145 79,380
Rooms 802 952 1,673 1,992
Food and beverage 4,158 4,261 7,791 7,793
Other casino/hotel operating expense 7,754 8,270 16,791 17,352
Tour operations 3,530 7,712
Selling, general and administrative 10,472 9,095 18,828 19,041
Depreciation and amortization 3,356 3,240 6,658 6,205
69,794 67,502 136,598 131,763
Operating income 7,948 10,125 13,023 12,591
Other income (expense):
Interest income 1,005 801 1,635 1,570
Interest expense, net (6,986) (6,091) (13,523) (12,393)
Amortization of debt premiums,
discounts and issue costs (82) (1,037) 68 (2,083)
Other 314 314
Earnings (loss) before income taxes
and extraordinary item 2,199 3,798 1,517 (315)
Income tax expense (1,055) (1,055)
Earnings (loss) before
extraordinary item 1,144 3,798 462 (315)
Extraordinary item-loss on
extinguishment of debt (net of
income tax benefit of $2,043) (2,957)
Net earnings (loss) $ 1,144 $ 3,798 $ (2,495) $ (315)
See notes to consolidated financial statements.
SUN INTERNATIONAL NORTH AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands of Dollars)
(Unaudited)
Half Ended June 30,
1997 1996
Cash flows from operating activities:
Reconciliation of net loss to net cash
provided by operating activities:
Net loss $ (2,495) $ (315)
Extraordinary loss on extinguishment of
debt, net of income tax benefit 2,957
Depreciation and amortization 6,877 6,205
Decrease in goodwill for tax benefit
acquired 836
Amortization of debt premiums,
discounts and issue costs (68) 2,083
Provision for doubtful receivables 540 255
Provision for discount on CRDA
obligations, net of amortization 707 723
Deferred tax benefit (75)
Gain on asset disposition (314) (65)
Changes in assets and liabilities, net
of SIRI contribution:
Net change in receivables (5,548) (139)
Net change in inventories, prepaid
expenses and other assets (77) 602
Net change in accounts payable and
accrued liabilities 3,019 2,648
Net cash provided by operating activities 6,434 11,922
Cash flows from investing activities:
Payments for operating capital expenditures (1,832) (4,891)
Acquisition of other fixed assets (8,866) (144)
Proceeds from the sale of land 7,435 65
CRDA deposits and bond purchases (1,480) (1,455)
Advances from affiliates 8,610
Net cash provided by (used in) investing
activities 3,867 (6,425)
Cash flows from financing activities:
Proceeds from issuance of debt 199,084
Payments to secure borrowings (5,802)
Purchase of long-term debt pursuant to Offer (153,712)
Payments of Merger costs (6,902)
SIRI cash and equivalents at date of
contribution 1,159
Other debt repayments (316) (286)
Net cash provided by (used in)
financing activities 33,511 (286)
Net increase in cash and cash equivalents 43,812 5,211
Cash and cash equivalents at beginning of period 33,805 55,572
Cash and cash equivalents at end of period $ 77,617 $ 60,783
See notes to consolidated financial statements.
SUN INTERNATIONAL NORTH AMERICA, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
A. General:
The accompanying consolidated interim financial statements, which
are unaudited, include the operations of Sun International North
America, Inc. ("SINA") and its subsidiaries. SINA was known as
Griffin Gaming & Entertainment, Inc. until February 6, 1997. "SINA"
is used herein to refer to the corporation both before and after its
name change. The term "Company" as used herein includes SINA and its
subsidiaries.
On December 16, 1996, SINA became a wholly owned subsidiary of
Sun International Hotels Limited ("SIHL"), a corporation organized
under the laws of the Commonwealth of The Bahamas, through a merger
transaction (the "Merger"). At the time of the Merger, SINA was a
holding company through which it operated the Resorts Casino Hotel in
Atlantic City, New Jersey. As a result of the Merger, SINA's
consolidated assets and liabilities were adjusted to their estimated
fair values as of December 31, 1996. The Merger and related basis
adjustments are discussed in detail in Note 1 of Notes to Consolidated
Financial Statements in SINA's Annual Report on Form 10-K for the year
ended December 31, 1996 (the "SINA 1996 Form 10-K").
Effective January 1, 1997, SIHL contributed the capital stock of
Sun International Resorts, Inc. ("SIRI"), a wholly owned subsidiary of
SIHL, to SINA. SIRI, along with its subsidiaries, is a tour operator
and wholesaler of tour packages and provides reservation services. In
addition, SIRI provides certain support services for SIHL's operations
in The Bahamas. As of January 1, 1997, SIRI's consolidated assets,
liabilities and shareholder's equity amounted to $6,097,000,
$5,729,000 and $368,000, respectively. SIRI's consolidated revenues
and net income for the year ended December 31, 1996 totaled
$15,009,000 and $617,000, respectively.
As a result of these transactions, SINA is a holding company
through which SIHL owns and operates the Resorts Casino Hotel and
certain U.S. properties that support SIHL's business in The Bahamas.
While the accompanying interim financial information is
unaudited, management of the Company believes that all adjustments
necessary for a fair presentation of these interim results have been
made and all such adjustments are of a normal recurring nature. The
seasonality of the business is described in Management's Discussion
and Analysis of Financial Condition and Results of Operations in the
SINA 1996 Form 10-K. The results of operations for the three and six
month periods presented are not necessarily indicative of the results
to be expected for the entire fiscal year ended December 31, 1997.
The notes presented herein are intended to provide supplemental
disclosure of items of significance occurring subsequent to December
31, 1996 and should be read in conjunction with the Notes to
Consolidated Financial Statements contained in pages 45 through 67 of
the SINA 1996 Form 10-K.
B. Reverse Repurchase Agreements:
Cash equivalents at June 30, 1997 included $35,733,000 of reverse
repurchase agreements (federal government securities purchased under
agreements to resell those securities) with Prudential Securities,
Inc. under which the Company had not taken delivery of the underlying
securities. These agreements matured during the first week of July
1997.
C. Refinancing:
In February 1997, Resorts International Hotel Financing, Inc., a
wholly owned subsidiary of SINA ("RIHF"), offered (the "Offer") to
purchase its outstanding $125,000,000 principal amount of 11% Mortgage
Notes due 2003 (the "Mortgage Notes") and $35,000,000 principal amount
of 11.375% Junior Mortgage Notes due 2004 (the "Junior Mortgage
Notes"). In connection with the Offer, RIHF sought the consent of the
holders (the "Consents") to amend the relevant indentures to, among
other things, release the collateral for the Mortgage Notes and Junior
Mortgage Notes. Pursuant to the Offer, RIHF acquired $119,645,000
principal amount of Mortgage Notes and $21,001,000 principal amount of
Junior Mortgage Notes, for a total purchase price (including payments
relating to the Consents) of $153,712,000. There remains outstanding
$5,355,000 principal amount of Mortgage Notes and $1,100,000 principal
amount of Junior Mortgage Notes, which, as a result of the amendments
to the indentures, are now unsecured obligations of RIHF. The
remaining Junior Mortgage Notes continue to trade as part of units
consisting of $1,000 principal amount of Junior Mortgage Notes and
.1928 of an ordinary share of SIHL.
In connection with the Offer, SIHL and SINA (the "Issuers")
issued $200,000,000 principal amount of 9% Senior Subordinated Notes
due 2007 (the "Senior Notes") which, after costs, resulted in net
proceeds to the Company of approximately $194,000,000. The majority
of these proceeds were used to fund the Offer; the balance of the
proceeds will be used for general corporate purposes.
D. Capitalized Interest and Real Estate Taxes:
At the beginning of 1997, the Company ceased the capitalization
of interest and real estate taxes on its Atlantic City expansion
project adjacent to the Resorts Casino Hotel as the project conceived
by management of the Company prior to the Merger with SIHL was
essentially abandoned. Management of SIHL is in the process of
planning a redevelopment of the existing Resorts Casino Hotel. See
further discussion in Management's Discussion and Analysis of
Financial Condition and Results of Operations.
E. Statements of Cash Flows:
Supplemental disclosures required by Statement of Financial
Accounting Standards No. 95 "Statement of Cash Flows" are presented
below.
Six Months Ended
June 30,
(In Thousands of Dollars) 1997 1996
Interest paid $11,976 $12,345
Income taxes paid $ 142 $ 79
Non-cash investing and financing
activities - increase in liabilities
for additions to other assets $ 74 $ 88
F. Reclassifications
Certain reclassifications have been made to the 1996 balances to
conform with the current year presentation.
G. Commitments and Contingencies:
Casino Reinvestment Development Authority ("CRDA")
As previously reported, certain issues have been raised by the
CRDA and the State of New Jersey Department of the Treasury (the
"Treasury") concerning the satisfaction of investment obligations for
the years 1979 through 1983 by RIH. These matters were dormant for an
extensive period of time until late 1995 when the Company was
contacted by the CRDA. CRDA legal representatives have recently
indicated that Treasury may take a position that RIH owes additional
investment alternative taxes including interest and possibly
penalties. If these issues are determined adversely, RIH could be
required to pay the relevant amount in cash. Management of the
Company intends to contest these issues and believes a negotiated
settlement that would not involve a material monetary cost to the
Company is possible.
Litigation
SINA and certain of its subsidiaries are defendants in certain
litigation. In the opinion of management, based upon advice of
counsel, the aggregate liability, if any, arising from such litigation
will not have a material adverse effect on the accompanying
consolidated financial statements.
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
FINANCIAL CONDITION
Liquidity
At June 30, 1997 the Company's working capital amounted to
$34,553,000 including unrestricted cash and equivalents of
$72,978,000. A portion of the unrestricted cash and equivalents is
required for day-to-day operations, including approximately
$10,000,000 of currency and coin on hand which amount varies by days
of the week, holidays and seasons, as well as additional cash balances
necessary to meet current working capital needs.
Capital Expenditures and Resources
In March 1997, RIHF purchased certain of its Mortgage Notes and
Junior Mortgage Notes for a total of $153,712,000, excluding accrued
interest. In connection with the Offer, SIHL and SINA issued
$200,000,000 principal amount of Senior Notes which, after costs,
resulted in net proceeds to the Company of approximately $194,000,000.
The majority of these proceeds were used to fund the Offer; the
balance of the proceeds will be used for general corporate purposes.
See Note C of Notes to Consolidated Financial Statements for further
discussion of these transactions.
RIH is in the process of planning a redevelopment of the existing
Resorts Casino Hotel into a highly themed resort (the
"Redevelopment"). The planning for the Redevelopment has not yet been
completed and the costs and schedule therefor have not yet been
determined. The ability to carry out the Redevelopment depends on a
number of factors, including receipt of adequate financing and certain
state and local approvals.
After completion of the Redevelopment, RIH may consider
undertaking a large scale expansion of the Resorts Casino Hotel on
the land adjacent thereto. The size and scope of any expansion
depends, in part, upon the results achieved by the redeveloped Resorts
Casino Hotel, improvement to existing transportation infrastructure
and the acquisition of additional land. For the first six months of
1997, SINA acquired approximately $8,500,000 of land that could be
used for the expansion.
RESULTS OF OPERATIONS - Second Quarter and Six Months of 1997
Compared to 1996
Revenues
Casino and Resort Revenues
Second Quarter
Gaming revenues were $64,917,000 for the three months ended June
30, 1997, a decrease of $3,468,000 or 5.1% from gaming revenues of
$68,385,000 for the comparable period in 1996. This decrease in
gaming revenues consisted of a reduction in both table games and slot
revenues.
Slot revenues were $45,820,000 for the three months ended June
30, 1997, a decrease of $2,297,000 or 4.8% from $48,117,000 for the
comparable period in 1996. This decrease was due to a decrease in
slot handle (dollar amounts wagered) by $31,295,000 or 5.8% to
$511,600,000 for the three months ended June 30, 1997 from
$542,895,000 for the comparable period in 1996.
Table games revenues were $17,679,000 for the three months ended
June 30, 1997, a decrease of $786,000 or 4.3% from $18,465,000 for
the comparable period in 1996. This decrease was due to a combination
of a reduction in table games drop (the dollar amount of chips
purchased) by $2,373,000 or 2.0% to $113,627,000 for the three months
ended June 30, 1997 from $116,000,000 for the comparable period in
1996, and a reduction in hold percentage (ratio of casino win to total
amount of chips purchased) of 0.4 percentage points to 15.6% for the
three months ended June 30, 1997 from 16.0% for the comparable period
in 1996.
Poker, simulcast and keno revenues were $1,418,000 for the three
months ended June 30, 1997, a decrease of $385,000 or 21.4% from
$1,803,000 for the comparable period in 1996.
Other revenues were $13,721,000 for the three months ended June
30, 1997, an increase of $406,000 or 3.0% from other revenues of
$13,315,000 for the comparable period of 1996. Other revenues include
revenues from rooms, food and beverage, and miscellaneous items. The
increase primarily reflects a $210,000 or 5.2% increase in room
revenues due to a $4.38 increase in the average room rate per night to
$76.15 in 1997 from $71.77 in 1996 partially offset by a 1.7
percentage point decrease in occupancy rate to 92.5% in 1997 from
94.2% in 1996.
Six Months
Gaming revenues were $124,364,000 for the six months ended June
30, 1997, a decrease of $2,883,000 or 2.3% from gaming revenues of
$127,247,000 for the comparable period in 1996. This decrease in
gaming revenues consisted of a reduction in both table games and slot
revenues.
Slot revenues were $85,812,000 for the six months ended June 30,
1997, a decrease of $2,713,000 or 3.1% from $88,525,000 for the
comparable period in 1996. This decrease was due to a decrease in
slot handle (dollar amounts wagered) by $35,000,000 or 3.5% to
$968,244,000 for the six months ended June 30, 1997 from
$1,003,244,000 for the comparable period in 1996.
Table games revenues were $35,633,000 for the six months ended
June 30, 1997, an increase of $429,000 or 1.2% from $35,204,000 for
the comparable period in 1996. This increase was primarily due to an
increase in table games drop (the dollar amount of chips purchased) by
$3,358,000 or 1.5% to $223,754,000 for the six months ended June 30,
1997 from $220,396,000 for the comparable period in 1996. This was
partially offset by a hold percentage (ratio of casino win to total
amount of chips purchased) decrease of 0.1 percentage points to 15.9%
for the six months ended June 30, 1997 from 16.0% for the comparable
period in 1996.
Poker, simulcast and keno revenues were $2,919,000 for the six
months ended June 30, 1997, a decrease of $598,000 or 17.0% from
$3,517,000 for the comparable period in 1996.
Other revenues were $24,915,000 for the six months ended June 30,
1997, an increase of $814,000 or 3.4% from other revenues of
$24,101,000 for the comparable period of 1996. Other revenues include
revenues from rooms, food and beverage, and miscellaneous items. The
increase primarily reflects a $338,000 or 2.6% increase in food &
beverage revenues due to a 32,810 or 3.5% increase in food covers to
982,671 for the six months ended June 30, 1997 from 949,861 for the
comparable period in 1996. There was also a $0.10 or 0.9% increase in
the average food check to $11.12 for the six months ended June 30,
1997 from $11.02 for the comparable period in 1996. The increase also
reflects a $204,000 or 2.9% increase in lodging revenues due to a
$2.14 increase in the average room rate per night to $66.05 in 1997
from $63.91 in 1996 partially offset by a 1.0 percentage point
decrease in occupancy rate to 91.0% in 1997 from 92.0% in 1996.
Tour Operations
These revenues in 1997 are from operations of SIRI and its
subsidiaries, which entities were contributed to SINA by SIHL
effective January 1, 1997.
Real Estate Related
Real estate related revenues consist of lease payments under a
99-year net lease of approximately 10 acres of Boardwalk property in
Atlantic City (the "Showboat Lease"). Lease payments received under
the Showboat Lease are passed-through (subject to certain adjustments)
as interest to holders of SINA's First Mortgage Non-Recourse Pass-
Through Notes due June 30, 2000 (the "Showboat Notes"). Thus, the
casino/hotel operations do not fund the interest on the Showboat
Notes.
The lease payments under the Showboat Lease are adjusted
annually, as of April 1, for changes in the consumer price index. For
the lease year commencing April 1, 1997 annual lease payments
increased from $8,805,000 to $9,047,000.
Expenses
Casino and Resort Expenses
Second Quarter
Gaming costs and expenses were $40,235,000 for the three months
ended June 30, 1997, a decrease of $1,449,000 or 3.5% from expenses of
$41,684,000 for the comparable period in 1996. This represents costs
and expenses associated with table games, slot operations, win
contribution expense, and promotional expenses given to patrons. The
decrease is primarily due to management's implementation of various
cost containment efforts that will continue throughout the year.
Six Months
Gaming costs and expenses were $77,658,000 for the six months
ended June 30, 1997, a decrease of $1,722,000 or 2.2% from expenses of
$79,380,000 for the comparable period in 1996. This represents costs
and expenses associated with table games, slot operations, win
contribution expense, and promotional expenses given to patrons. The
decrease is primarily due to management's implementation of various
cost containment efforts during the second quarter of 1997 that will
continue throughout the year.
Tour Operations
These expenses in 1997 are from operations of SIRI and its
subsidiaries, which entities were contributed to SINA by SIHL
effective January 1, 1997.
Depreciation and Amortization
These expenses were up slightly as the net decrease in
depreciation expense ($500,000 in the second quarter and $800,000 in
the first half) resulting primarily from the changes in remaining
depreciable lives assigned in conjunction with the Merger was more
than offset by the amortization of goodwill ($600,000 in the second
quarter and $1,200,000 in the first half).
Forward Looking Statements
The statements contained herein include forward looking
statements based on management's current expectations of the Company's
future performance. Predictions relating to future performance are
inherently uncertain and subject to a number of risks. Consequently,
the Company's actual results could differ materially from the
expectations expressed in the preceding paragraphs. Factors that
could cause the Company's actual results to differ materially from the
expected results include, among other things: the intensely
competitive nature of the casino gaming industry; increases in the
number of competitors in the markets in which the Company operates;
the seasonality of the industry in certain markets in which the
Company operates; the susceptibility of the Company's operating
results to adverse weather conditions and natural disasters; the risk
that certain governmental approvals may not be obtained; changes in
governmental regulations governing the Company's activities and other
risks detailed in the Company's filings with the Securities and
Exchange Commission.
PART II. - OTHER INFORMATION
Item 1. Legal Proceedings
The following is an update of the status of certain litigation
which was previously described in "Item 3. Legal Proceedings" of the
SINA 1996 Form 10-K and in "Item 1. Legal Proceedings" of SINA's
Quarterly Report on Form 10-Q for the quarter ended March 31, 1997.
U.S. Bankruptcy Court Action - Rogers
The motion for summary judgment, which was previously reported as
returnable on May 28, 1997, was adjourned by the New Jersey Bankruptcy
Court (the "NJ Bankruptcy Court") and will be heard in August 1997.
U.S. District Court Action - SINA v. Lowenschuss
In this previously reported action pending before the NJ
Bankruptcy Court where a trial was held on November 2 and 3, 1995, on
April 22, 1997, the NJ Bankruptcy Court issued a final opinion in
SINA's favor, finding that the trustee for two Individual Retirement
Accounts and the Fred Lowenschuss Associates Pension Plan committed
fraud against SINA and that SINA was entitled to restitution. The NJ
Bankruptcy Court awarded SINA $3,800,000 plus prejudgment interest and
$250,000 punitive damages, for a total award of approximately
$5,600,000. The defendant has filed an appeal. SINA is pursuing
collection of the judgment.
Item 6. Exhibits and Reports on Form 8-K
a. Exhibits
The following Part I exhibits are filed herewith:
Exhibit
Number Exhibit
(27)(a) Financial data schedule as of June 30, 1997.
(27)(b) Restated financial data schedule as of June 30, 1996.
b. Reports on Form 8-K
No Current Report on Form 8-K was filed by SINA covering an event
during the second quarter of 1997. No amendments to previously filed
Forms 8-K were filed during the second quarter of 1997.
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 thereunto duly authorized.
SUN INTERNATIONAL NORTH AMERICA, INC.
(Registrant)
_____________________________________
John Allison
Executive Vice President - Finance
(Authorized Officer of Registrant
and Chief Financial Officer)
Date: August 12, 1997
SUN INTERNATIONAL NORTH AMERICA, INC.
Form 10-Q for the quarterly period
ended June 30, 1997
EXHIBIT INDEX
Exhibit
Number Exhibit Page Number in Form 10-Q
(27)(a) Financial data schedule Page 17
as of June 30, 1997.
(27)(b) Restated financial data Page 18
schedule as of June 30,
1996.
15
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<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM SUN
INTERNATIONAL NORTH AMERICA, INC.'S CONSOLIDATED FINANCIAL STATEMENTS AND
NOTES THERETO INCLUDED IN THE FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 1997,
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
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<CHANGES> 0
<NET-INCOME> $(2,495)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>INCLUDES NON-RESTRICTED CASH EQUIVALENTS OF $61,876 AND RESTRICTED CASH
EQUIVALENTS OF $4,639.
<F2>NET OF UNAMORTIZED (DISCOUNTS) PREMIUMS.
<F3>INCLUDES DEPRECIATION EXPENSE OF $5,421 AND AMORTIZATION OF GOODWILL
OF $1,237.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM SUN
INTERNATIONAL NORTH AMERICA, INC.'S CONSOLIDATED FINANCIAL STATEMENTS AND
NOTES THERETO INCLUDED IN THE FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 1996,
EXCEPT AS NOTED BELOW IN FOOTNOTE 3, AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> $60,783<F1>
<SECURITIES> 0
<RECEIVABLES> $8,218
<ALLOWANCES> $3,306
<INVENTORY> $2,109
<CURRENT-ASSETS> $77,323
<PP&E> $224,693
<DEPRECIATION> $67,032
<TOTAL-ASSETS> $342,594
<CURRENT-LIABILITIES> $44,558
<BONDS> $219,129<F2>
<COMMON> $79
0
0
<OTHER-SE> $25,553
<TOTAL-LIABILITY-AND-EQUITY> $342,594
<SALES> 0
<TOTAL-REVENUES> $144,354<F3>
<CGS> 0
<TOTAL-COSTS> $106,517<F3>
<OTHER-EXPENSES> $6,205<F4>
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> $14,476
<INCOME-PRETAX> $(315)
<INCOME-TAX> 0
<INCOME-CONTINUING> $(315)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> $(315)
<EPS-PRIMARY> $(.04)
<EPS-DILUTED> $(.04)
<FN>
<F1>INCLUDES NON-RESTRICTED CASH EQUIVALENTS OF $41,197 AND RESTRICTED CASH
EQUIVALENTS OF $4,454.
<F2>NET OF UNAMORTIZED DISCOUNTS.
<F3>CERTAIN RECLASSIFICATIONS HAVE BEEN MADE TO THE 1996 BALANCES TO CONFORM
WITH CURRENT YEAR PRESENTATION.
<F4>DEPRECIATION EXPENSE
</FN>
</TABLE>
