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, 1998
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,
1998: 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, 1998 and
December 31, 1997 4
Consolidated Statements of
Operations for the Three Months
and Six Months Ended June 30,
1998 and 1997 5
Consolidated Statements of
Cash Flows for the Six Months
Ended June 30, 1998 and 1997 6
Notes to Consolidated
Financial Statements 7
Item 2. Management's Discussion and
Analysis of Financial
Condition and Results of
Operations 9
Part II. Other Information
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,
1998 1997
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 22,224 $ 46,912
Restricted cash equivalents 98 3,902
Receivables, less allowance for
doubtful accounts of $2,663
and $3,074 7,322 8,691
Inventories 1,547 1,730
Prepaid expenses 3,205 1,961
Due from affiliates 22,277 4,528
56,673 67,724
Land held for investment,
development or resale 51,797 155,368
Property and equipment, net of
accumulated depreciation of $17,400
and $11,630 254,093 249,166
Deferred charges and other assets, net 22,114 21,536
Goodwill, net 100,084 101,410
$484,761 $595,204
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities:
Current maturities of long-term debt $ 1,779 $ 282
Accounts payable and accrued
liabilities 41,640 46,677
43,419 46,959
Long-term debt, net of current
maturities 206,553 311,258
Deferred income taxes 45,065 46,000
Shareholder's equity:
Common stock - $.01 par value - -
Capital in excess of par 193,008 193,008
Accumulated deficit (3,284) (2,021)
189,724 190,987
$484,761 $595,204
See notes to consolidated financial statements.
SUN INTERNATIONAL NORTH AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands of Dollars)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1998 1997 1998 1997
Revenues:
Casino $59,257 $64,917 $118,998 $124,364
Rooms 4,064 4,254 7,006 7,218
Food and beverage 6,625 6,904 12,940 13,177
Other casino/hotel 2,535 2,562 5,315 4,519
72,481 78,637 144,259 149,278
Less promotional allowances (6,946) (7,070) (13,440) (12,545)
Net casino and resort
revenues 65,535 71,567 130,819 136,733
Tour operations 3,591 3,913 7,016 8,425
Management fees 935 - 1,870 -
Real estate related - 2,262 754 4,463
70,061 77,742 140,459 149,621
Expenses:
Casino 37,164 39,722 74,979 77,145
Rooms 780 802 1,708 1,673
Food and beverage 4,029 4,158 7,799 7,791
Other casino/hotel 7,648 7,754 15,375 16,791
Tour operations 3,311 3,530 6,455 7,712
Selling, general and
administrative 8,343 10,472 19,449 18,828
Depreciation and amortization 3,774 3,356 7,331 6,658
65,049 69,794 133,096 136,598
Operating income 5,012 7,948 7,363 13,023
Other income (expense):
Interest income 556 1,005 2,652 1,635
Interest expense, net (4,875) (7,068) (11,278) (13,455)
Other - 314 - 314
Earnings (loss) before income
taxes and extraordinary item 693 2,199 (1,263) 1,517
Income tax benefit (expense) 294 (1,055) - (1,055)
Earnings (loss) before
extraordinary item 987 1,144 (1,263) 462
Extraordinary item-loss on
extinguishment of debt (net of
income tax benefit of $2,043) - - - (2,957)
Net earnings (loss) $ 987 $ 1,144 $ (1,263) $ (2,495)
See notes to consolidated financial statements.
SUN INTERNATIONAL NORTH AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands of Dollars)
(Unaudited)
Six Months Ended June 30,
1998 1997
Cash flows from operating activities:
Reconciliation of net loss to net
cash provided by operating activities:
Net loss $ (1,263) $ (2,495)
Extraordinary loss on extinguishment of
debt, net of income tax benefit - 2,957
Depreciation and amortization 7,724 7,645
Provision for doubtful receivables 305 540
Provision for discount on CRDA
obligations, net of amortization 288 707
Gain on asset disposition - (314)
Net change in working capital accounts (5,329) (2,606)
Net cash provided by operating activities 1,725 6,434
Cash flows from investing activities:
Payments for operating capital expenditures (6,865) (1,832)
Acquisition of other fixed assets (6,429) (8,866)
Proceeds from the sale of land 110,000 7,435
Payments for expenses of merger (711) (6,902)
CRDA deposits and bond purchases (1,420) (1,480)
Advances from (repayments to) affiliates (17,791) 8,610
Net cash provided by (used in) investing
activities 76,784 (3,035)
Cash flows from financing activities:
Proceeds from issuance of debt - 199,084
Debt issue costs - (5,802)
Purchase of long-term debt - (153,712)
Repayment of debt (107,001) (316)
Subsidiary cash and equivalents at date of
contribution - 1,159
Net cash provided by (used in)
financing activities (107,001) 40,413
Net increase (decrease)in cash and cash
equivalents (28,492) 43,812
Cash and cash equivalents at beginning of
period 50,814 33,805
Cash and cash equivalents at end of period $ 22,322 $ 77,617
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. ("GGE") 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. SINA is a
wholly owned subsidiary of Sun International Hotels Limited ("SIHL").
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 1997 Form 10-K. The results of operations
for the three month and six month periods presented are not necessarily
indicative of the results to be expected for the entire fiscal year ending
December 31, 1998.
The notes presented herein are intended to provide supplemental
disclosure of items of significance occurring subsequent to December 31, 1997
and should be read in conjunction with the Notes to Consolidated Financial
Statements contained in pages 40 through 54 of the SINA 1997 Form 10-K.
B. Reverse Repurchase Agreements:
Cash equivalents at June 30, 1998 included $8.1 million 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 1998.
C. Management Fees:
Effective January 1, 1998, the Company entered into an agreement to
provide management services to certain affiliated companies.
D. Sale of Showboat Land and Redemption of Showboat Notes:
Prior to January 1998, the Company leased (the "Showboat Lease") 10
acres of land (the "Showboat Land") to a subsidiary of Showboat, Inc., a
resort and casino operator. Lease payments received pursuant to the Showboat
Lease were passed through to the holders of the Company's $105.3 million
First Mortgage Non-Recourse Pass-Through Notes due June 30, 2000 (the
"Showboat Notes"). On January 29, 1998, the Company sold the Showboat Land
for proceeds of $110.0 million. The majority of the proceeds were used to
redeem the Showboat Notes effective February 28, 1998.
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) 1998 1997
Interest paid $14,851 $11,976
Income taxes paid (refunded), net 1,198 (142)
Noncash investing and financing
activities:
Increase due to contributed subsidiary:
Assets 6,097
Liabilities 5,729
Shareholder's equity 368
Increase in liabilities
for additions to other assets 71 74
F. Reclassifications
Certain reclassifications have been made to the 1997 balances to conform
with the current year presentation.
G. Commitments and Contingencies:
Casino Reinvestment Development Authority ("CRDA")
The New Jersey Casino Control Act, as amended, requires SINA to purchase
bonds issued by the CRDA, or to make other investments authorized by the
CRDA, in an amount equal to 1.25% of its gross gaming revenues, as defined.
The CRDA bonds have interest rates ranging from 3.9% to 7.0% and have
repayment terms of between 20 and 50 years.
At June 30, 1998, SINA had $10.5 million face value of bonds issued by
the CRDA and had $15.0 million on deposit with the CRDA.
These bonds and deposits, net of an estimated discount to reflect the
below-market interest rates payable on the bonds, are included in deferred
charges and other assets in the accompanying Consolidated Balance Sheets.
Litigation
SINA and certain of its subsidiaries are defendants in certain
litigation. Except for items disclosed in the 1997 SINA 10-K, 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.
It has come to the Company's attention that a complaint was filed in
December 1997, on behalf of a plaintiff and a purported class of GGE
shareholders against SIHL, GGE and various affiliates, directors and officers
of SIHL and GGE. The complaint alleges that the Proxy Statement and
Prospectus issued by SIHL and GGE in November 1996, in connection with their
merger, was false and misleading with regard to statements made about a
License and Services Agreement entered into between GGE and The Griffin
Group. The Company believes that the case is without merit and intends to
vigorously defend its actions.
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
FINANCIAL CONDITION
Liquidity
At June 30, 1998 the Company's working capital amounted to $13.3 million
which included unrestricted cash and equivalents of $22.2 million.
Unrestricted cash is required for day-to-day operations of the Resorts Casino
Hotel, including approximately $15.0 million of currency and coin on hand
which amount varies by days of the week, holidays and seasons.
At June 30, 1998 the Company had advanced a net $22.3 million to
affiliated companies. Such amounts are payable on demand by the Company.
In January 1998, the Company sold the land under the Showboat Casino
Hotel in Atlantic City for proceeds of $110.0 million. The majority of the
proceeds were used to redeem the $105.3 million Showboat Notes, effective
February 28, 1998.
Capital Expenditures and Resources
Previously announced plans to redevelop the Resorts Casino Hotel have
been revised and will be limited to the renovation of the existing 500-room
hotel tower as well as completing modest enhancements to the public areas.
It is anticipated that the cost of this renovation will be approximately
$20.0 million and that the work will be completed by the summer of 1999.
Although the Company is evaluating the possibility of developing a larger
project on its undeveloped real estate in Atlantic City, the planning of any
future expansion is still in the preliminary stages and the scope and timing
of such development is uncertain.
Management believes that existing cash balances, available borrowing
facilities and operating cash flows will provide the Company with sufficient
resources to meet its existing debt obligations and foreseeable capital
expenditure requirements with respect to current operations for at least the
next twelve months. In addition, the Company may request reimbursement of
amounts advanced to affiliated companies.
RESULTS OF OPERATIONS - Three Months and Six Months Ended June 30, 1998
Compared to 1997
Revenues
Casino and Resort Revenues
Three Months Ended June 30
Gaming revenues were $59.3 million for the three months ended June 30,
1998, a decrease of $5.6 million or 8.7% from gaming revenues of $64.9
million for the comparable period in 1997. This decrease in gaming revenues
consisted of decreases in slot revenues and in table games revenues.
Slot revenues were $44.4 million for the quarter in 1998, a decrease of
$1.4 million or 3.1% from $45.8 million for the comparable quarter in 1997.
This decrease was due to a decrease in slot handle (dollar amounts wagered)
by $42.0 million or 8.2% to $469.6 million. Management is continuing the
process of upgrading its slot product. During the month of June 1998, the
gaming floor was reconfigured to improve efficiency and add additional slot
machines. The net affect of the change was an addition of 60 slot machines
and a loss of 4 table games. As a result of the reconfiguration of table
games and changes made in the high-end slot lounge, approximately 130 new
slot machines were added during the quarter, replacing older, less popular
ones. These new machines can be replaced at no cost with new product if
customer demand should change.
Table game revenues were $14.4 million for the quarter in 1998, a
decrease of $3.3 million or 18.6% from $17.7 million for the comparable
period in 1997. This decrease was due to a combination of a reduction in
table games drop (the dollar amount of chips purchased) by $9.1 million or
8.0% to $104.5 million for the quarter in 1998 and a reduction in hold
percentage (ratio of casino win to total amount of chips purchased) of 1.9
percentage points to 13.7%.
Simulcast revenues were $0.5 million for the quarter in 1998, a decrease
of $0.2 million or 25.0% from $0.7 for the comparable period in 1997.
There were no poker or keno revenues for the quarter in 1998. In March
1998, management elected to eliminate both poker and keno as a result of less
than desired operating results and low customer demand.
Other resort revenues were $13.2 million for the quarter in 1998, a
decrease of $500,000 or 3.6% from other revenues of $13.7 million for the
comparable period of 1997. Other revenues include revenues from rooms, food
and beverage, and miscellaneous items. The decrease is primarily
attributable to a $300,000 or 4.3% decrease in food and beverage revenues to
$6.6 million from $6.9 million for the comparable period in 1997. This
decrease is primarily due to a decrease in food covers of 34,000 to 479,000
covers from 513,000 covers for the comparable period of 1997.
Six Months Ended June 30
Gaming revenues were $119.0 million for the six months ended June 30,
1998, a decrease of $5.4 million or 4.3% from gaming revenues of $124.4
million for the comparable period in 1997. This decrease in gaming revenues
consisted of a reduction in table games revenues with an increase in slot
revenues.
Slot revenues were $87.1 million for the first half of 1998, an increase
of $1.3 million or 1.5% from $85.8 million for the comparable period in 1997.
This increase was due to an increase in slot hold percentage (ratio of casino
win to total amount of chips purchased) by 0.4 percentage points to 9.3%.
Management is continuing the process of upgrading its slot product. During
the month of June 1998, the gaming floor was reconfigured to improve
efficiency and add additional slot machines. The net affect of the change
was an addition of 60 slot machines and a loss of 4 table games. As a result
of the reconfiguration of table games and changes made in the high-end slot
lounge, approximately 200 new slot machines were added in the first half of
the year, replacing older, less popular ones. These new machines can be
replaced at no cost with new product if customer demand should change.
Table games revenues were $30.7 million for the first half of 1998, a
decrease of $4.9 million or 13.8% from $35.6 million for the comparable
period in 1997. This decrease was due to a combination of a reduction in
table games drop by $13.3 million or 5.9% to $210.5 million and a reduction
in hold percentage of 1.3 percentage points to 14.6%.
Simulcast revenues were $1.0 million for the first half of 1998, a
decrease of $400,000 or 28.6% from $1.4 million for the comparable period in
1997.
Poker and keno revenues were $134,000 for the first half of 1998 as
compared to $1.6 million for the comparable period in 1997. In March 1998,
management elected to eliminate both poker and keno as a result of less than
desired operating results and low customer demand.
Other resort revenues were $25.3 million for the first half of 1998, an
increase of $400,000 or 1.6% from other revenues of $24.9 million for the
comparable period of 1997. Other revenues include revenues from rooms, food
and beverage, and miscellaneous items. The increase is primarily
attributable to a $700,000 or 25.9% increase in total entertainment revenues
to $3.4 million for the first half of 1998.
Tour Operations
Through a wholly owned subsidiary, the Company operates as a tour
operator and wholesaler of tour packages and provides reservations services,
which includes services to affiliated properties in The Bahamas. Revenues
were lower in the second quarter and the first half of 1998 as reduced
advertising resulted in lower call volumes. The first half of 1998 was also
adversely impacted by mild weather in the US northeast during the first
quarter of the year which also resulted in lower customer volumes and reduced
revenues.
Management Fees
Effective January 1, 1998, the Company entered into an agreement to
provide management services to certain affiliated companies. Management fees
are earned based upon the level of services provided to such affiliates.
Real Estate Related
Real estate related revenues consisted of lease receipts related to the
land under the Showboat Casino Hotel. As the Company sold this land
effective January 28, 1998, only one month's rent was included in the first
half of 1998.
Expenses
Casino and Resort Expenses
Gaming costs and expenses were $37.2 million for the three months ended
June 30, 1998, a decrease of $2.5 million or 6.3% from expenses of $39.7
million for the comparable period in 1997. For the six month period ended
June 30, 1998 gaming costs and expenses were $75.0 million, a decrease of
$2.1 million or 2.7% from expenses of $77.1 million for the comparable period
last year. This represents costs and expenses associated with table games,
slot operations, win contribution expense, and promotional items and services
provided to patrons. The decrease in both periods is primarily due to
management's continuing cost reductions associated with discontinued
marketing segments that did not provide incremental profit.
Tour Operations
The reduced tour operation expenses reflect the reduced volume of
business during the quarter and the half year.
Selling General and Administrative
Selling, general and administrative costs were $2.1 million lower in the
second quarter of 1998 as compared to 1997. The decrease was primarily due
to management's continuing policy of cost containment and maintenance of
operating costs in accordance with volume. This favorable variance was
partially offset by the opening in January 1998 of a marketing and public
relations office in New York. For the six month period in 1998, costs
increased by $621,000 as compared with the prior year as the costs savings at
the operating property were offset by the costs associated with the New York
office.
Interest Expense
Interest expense is lower in the second quarter and first half of 1998
due primarily to the repayment of the Showboat Notes.
Year 2000 Issues
The Company is currently working to resolve the potential impact of the
year 2000 on its information processing systems. The year 2000 issue relates
to the ability of the systems to properly distinguish between the years 1900
and 2000. Based on preliminary information, the cost of addressing potential
problems is not anticipated to have a material adverse impact on the
Company's financial position, results of operations or cash flows in future
periods. The Company plans to devote the necessary resources to resolve all
significant year 2000 issues in a timely manner.
Forward Looking Statements
The statements contained herein include forward looking statements based
on management's current expectations of SINA's future performance.
Predictions relating to future performance are inherently uncertain and
subject to a number of risks. Consequently, SINA's actual results could
differ materially from the expectations expressed in the preceding
paragraphs. Factors that could cause SINA'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 market in which SINA operates; the seasonality
of the industry in the market in which SINA operates; the susceptibility of
SINA's operating results to adverse weather conditions and natural disasters;
changes in governmental regulations governing SINA's activities and other
risks detailed in SINA's filings with the Securities and Exchange Commission.
PART II. - OTHER INFORMATION
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, 1998.
(27)(b) Restated financial data schedule as of December 31, 1997.
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 1998. No amendments to previously filed Forms 8-K were
filed during the second quarter of 1998.
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)
/s/ John Allison
John Allison
Executive Vice President - Finance
(Authorized Officer of Registrant
and Chief Financial Officer)
Date: August 13, 1998
SUN INTERNATIONAL NORTH AMERICA, INC.
Form 10-Q for the quarterly period
ended June 30, 1998
EXHIBIT INDEX
Exhibit
Number Exhibit Page Number in Form 10-Q
(27)(a) Financial data schedule Page 17
as of June 30, 1998.
(27)(b) Restated financial data Page 18
schedule as of December 31,
1997.
<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, 1998,
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-31-1998
<PERIOD-END> JUN-30-1998
<CASH> $22,322<F1>
<SECURITIES> 0
<RECEIVABLES> $6,805
<ALLOWANCES> $2,663
<INVENTORY> $1,547
<CURRENT-ASSETS> $56,673
<PP&E> $271,493
<DEPRECIATION> $17,400
<TOTAL-ASSETS> $484,761
<CURRENT-LIABILITIES> $43,419
<BONDS> $206,553<F2>
<COMMON> 0
0
0
<OTHER-SE> $189,724
<TOTAL-LIABILITY-AND-EQUITY> $484,761
<SALES> 0
<TOTAL-REVENUES> $140,459
<CGS> 0
<TOTAL-COSTS> $106,316
<OTHER-EXPENSES> $7,331<F3>
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> $11,278
<INCOME-PRETAX> $(1,263)
<INCOME-TAX> 0
<INCOME-CONTINUING> $(1,263)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> $(1,263)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>INCLUDES NON-RESTRICTED CASH EQUIVALENTS OF $22,224 AND RESTRICTED CASH
EQUIVALENTS OF $98.
<F2>NET OF UNAMORTIZED DISCOUNTS.
<F4>DEPRECIATION AND AMORTIZATION EXPENSE.
</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-K FOR THE YEAR ENDED DECEMBER 31, 1997,
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> DEC-31-1997
<CASH> $50,814<F1>
<SECURITIES> 0
<RECEIVABLES> $7,317
<ALLOWANCES> $3,074
<INVENTORY> $1,730
<CURRENT-ASSETS> $67,724<F2>
<PP&E> $222,482
<DEPRECIATION> $11,630
<TOTAL-ASSETS> $595,204
<CURRENT-LIABILITIES> $46,959
<BONDS> $311,258<F3>
<COMMON> $0
0
0
<OTHER-SE> $190,987
<TOTAL-LIABILITY-AND-EQUITY> $595,204
<SALES> 0
<TOTAL-REVENUES> $297,633
<CGS> 0
<TOTAL-COSTS> $220,775
<OTHER-EXPENSES> $14,372<F4>
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> $27,726
<INCOME-PRETAX> $5,276
<INCOME-TAX> $(4,340)
<INCOME-CONTINUING> $936
<DISCONTINUED> 0
<EXTRAORDINARY> $(2,957)
<CHANGES> 0
<NET-INCOME> $(2,021)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>INCLUDES NON-RESTRICTED CASH EQUIVALENTS OF $32,508 AND RESTRICTED CASH
EQUIVALENTS OF $3,902.
<F2>RESTATED DUE TO CERTAIN RECLASSIFICATION.
<F3>NET OF UNAMORTIZED (DISCOUNTS) PREMIUMS.
<F4>INCLUDES DEPRECIATION EXPENSE OF $11,705 AND AMORTIZATION OF $2,667.
</FN>
</TABLE>
