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Previous: SAFETY KLEEN CORP, S-8, 1996-06-12 |
Next: SEMTECH CORP, 10-Q, 1996-06-12 |
<PAGE> 1
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 April 30, 1996
----------------------------------
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 Number 0-1365
----------------------------------
SCIOTO DOWNS, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
OHIO 31-4440550
- -------------------------------- ---------------------------------
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
6000 SOUTH HIGH STREET, COLUMBUS, OHIO 43207
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(614) 491-2515
- --------------------------------------------------------------------------------
(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 and (2) has been subject to such filing requirements for
the past 90 days.
Yes X No
------------ ---------------
The number of common shares outstanding at April 30, 1996:
595,767, par value $1.05
------------------------
<PAGE> 2
SCIOTO DOWNS, INC.
INDEX
<TABLE>
<CAPTION>
PAGES
<S> <C> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements:
Balance Sheets at April 30, 1996 (Unaudited), October 31, 1995,
and April 30, 1995 (Unaudited) 2-3
Statements of Operations for the three-month and six-month
periods ended April 30, 1996 and 1995 (Unaudited) 4
Statements of Cash Flows for the six-month periods ended
April 30, 1996 and 1995 (Unaudited) 5
Notes to the Financial Statements (Unaudited) 6
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 7
PART II. OTHER INFORMATION 8
Item 1. Legal Proceedings
Item 2. Changes in Securities
Item 3. Defaults Upon Senior Securities
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
SIGNATURES 9
Exhibit 27 -- Financial Data Schedule 10
</TABLE>
<PAGE> 3
PART I.FINANCIAL INFORMATION
Item 1. Financial Statements
Scioto Downs, Inc.
Balance Sheets
at April 30, 1996 (Unaudited), October 31, 1995, and April 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
April 30, April 30,
ASSETS 1996 October 31, 1995
(Unaudited) 1995 (Unaudited)
----------------- ----------------- ----------------
<S> <C> <C> <C>
Current assets:
Cash and cash equivalents $ 284,235 $ 787,786 $ 5,001
Accounts receivable, affiliate 24,189 45,506 41,557
Accounts receivable, other 1,000 25,554
Prepaid expenses and other 94,443 77,950 141,864
Investment in joint venture 59,101 59,101 43,396
----------------- ----------------- ----------------
Total current assets 462,968 995,897 231,818
----------------- ----------------- ----------------
Property and equipment, at cost 19,131,995 19,078,911 18,854,759
Less accumulated depreciation 11,621,018 11,279,018 10,928,435
----------------- ----------------- ----------------
Total property and equipment 7,510,977 7,799,893 7,926,324
Construction in progress 98,943
----------------- ----------------- ----------------
7,510,977 7,799,893 8,025,267
----------------- ----------------- ----------------
Net deferred income taxes 158,705 94,679
----------------- ----------------- ----------------
Total assets $ 8,132,650 $ 8,795,790 $ 8,351,764
================= ================= ================
</TABLE>
The accompanying notes are an integral part of the unaudited financial
statements.
CONTINUED
2
<PAGE> 4
PART I.FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
SCIOTO DOWNS, INC.
BALANCE SHEETS
<TABLE>
<CAPTION>
April 30, April 30,
LIABILITIES AND STOCKHOLDERS' EQUITY 1996 October 31, 1995
-----------------
(Unaudited) 1995 (Unaudited)
----------------- ----------------- ----------------
<S> <C> <C> <C>
Current liabilities:
Accounts payable, trade $ 35,962 $ 167,392 $ 38,458
Dividends payable 29,789
Accrued expenses 211,825 208,715 194,514
Deferred revenue 101,200 158,750
Short-term borrowings 415,000 255,000
Current maturities, term debt 3,186,735 3,247,411 100,000
Deferred income taxes 4,449 11,880 18,231
----------------- ----------------- ----------------
Total current liabilities 3,955,171 3,665,187 764,953
----------------- ----------------- ----------------
Minimum pension liability 78,566 78,566 83,123
----------------- ----------------- ----------------
Net deferred income taxes 180,864
-----------------
Term debt, net of current maturities 3,206,017
----------------
Stockholders' equity:
Common stock, $1.05 par value; issued and
outstanding, 595,767 shares 625,555 625,555 625,555
Capital in excess of par value 2,037,300 2,037,300 2,037,300
Retained earnings 1,475,533 2,247,793 1,675,849
Pension liability adjustment, net of taxes (39,475) (39,475) (41,033)
----------------- ----------------- ----------------
Total stockholders' equity 4,098,913 4,871,173 4,297,671
----------------- ----------------- ----------------
Total liabilities and stockholders' equity $ 8,132,650 $ 8,795,790 $ 8,351,764
================= ================= ================
</TABLE>
The Accompanying notes are an integral part of the unaudited financial
statements.
3
<PAGE> 5
SCIOTO DOWNS, INC.
STATEMENTS OF OPERATIONS
for the three-month and six-month periods ended April 30, 1996 and 1995
(Unaudited)
<TABLE>
<CAPTION>
FOR THE THREE-MONTH PERIODS FOR THE SIX-MONTH PERIODS ENDED
ENDED APRIL 30, APRIL 30,
--------------------------------- ---------------------------------
1996 1995 1996 1995
--------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Operating revenues:
Admissions $ 30,120 $ 27,784 $ 30,120 $ 28,094
Concessions, program, and other 37,899 25,111 44,856 29,653
--------------- ---------------- ---------------- ----------------
68,019 52,895 74,976 57,747
--------------- ---------------- ---------------- ----------------
Operating expenses:
Salaries and wages 121,218 107,505 234,822 221,589
Depreciation 171,000 171,500 342,000 343,000
Other operating and general
expense 300,244 304,208 498,428 496,909
--------------- ---------------- ---------------- ----------------
592,462 583,213 1,075,250 1,061,498
--------------- ---------------- ---------------- ----------------
Loss from operations (524,443) (530,318) (1,000,274) (1,003,751)
Interest expense, net (61,500) (70,019) (118,986) (130,586)
--------------- ---------------- ---------------- ----------------
Loss before income tax benefit (585,943) (600,337) (1,119,260) (1,134,337)
Income tax benefit of operating loss
(Note 3) 170,000 193,000 347,000 373,000
--------------- ---------------- ---------------- ----------------
Net loss $ (415,943) $ (407,337) $ (772,260) $ (761,337)
=============== ================ ================ ================
Net loss per common share
(Note 2) $ (.70) $ (.68) $ (1.30) $ (1.28)
=============== ================ ================ ================
Weighted-average common
shares outstanding 595,767 595,767 595,767 595,767
=============== ================ ================ ================
</TABLE>
The accompanying notes are an integral part of the unaudited financial
statements.
4
<PAGE> 6
SCIOTO DOWNS, INC.
STATEMENTS OF CASH FLOWS
for the six-month periods ended April 30, 1996 and 1995
(Unaudited)
<TABLE>
<CAPTION>
1996 1995
<S> <C> <C>
Cash flows from operating activities:
Net loss $ (772,260) $ (761,337)
----------------- ----------------
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 350,736 360,472
Change in accounts receivable 45,871 (11,593)
Change in prepaid expenses and other (25,229) (38,332)
Change in accounts payable (131,430) (97,188)
Change in deferred revenue 101,200 158,750
Change in accrued expenses 3,110 (10,766)
Change in deferred income taxes (347,000) (373,000)
----------------- ----------------
Total adjustments (2,742) (11,657)
----------------- ----------------
Net cash used in operating activities (775,002) (772,994)
----------------- ----------------
Cash flows from investing activities:
Purchase of property and equipment, net (53,084) (25,673)
Additions to construction in progress (49,430)
----------------- ----------------
Net cash used in investing activities (53,084) (75,103)
----------------- ----------------
Cash flows used in financing activities:
Payments on term debt (60,676) (57,198)
Cash dividends (29,789) (29,789)
Proceeds from short-term borrowings 415,000 255,000
----------------- ----------------
Net cash provided by financing activities 324,535 168,013
----------------- ----------------
Net decrease in cash and cash equivalents (503,551) (680,084)
Cash and cash equivalents, beginning of period 787,786 685,085
----------------- ----------------
Cash and cash equivalents, end of period $ 284,235 $ 5,001
================= ================
Supplemental disclosures of cash flow information:
Cash paid during the period for interest $ 113,536 $ 116,094
================= ================
</TABLE>
The accompanying notes are an integral part of the unaudited financial
statements.
5
<PAGE> 7
SCIOTO DOWNS, INC.
NOTES TO THE FINANCIAL STATEMENTS
(Unaudited)
1. BASIS OF PRESENTATION:
The information furnished reflects all adjustments which are, in the
opinion of management, necessary to present a fair statement of the
results for the interim periods on a basis consistent with that of prior
periods.
The accompanying unaudited financial statements are presented in
accordance with the requirements of Form 10-Q and, consequently, do not
include all the disclosures normally required by generally accepted
accounting principles or those normally made in Scioto Downs, Inc.'s (the
Company) annual Form 10-K filing. Reference should be made to the
Company's 1995 Form 10-K for additional disclosures, including a summary
of the Company's accounting policies.
The year-end condensed balance sheet was derived from audited financial
statements, but does not include all disclosures required by generally
accepted accounting principles.
2. LOSS PER SHARE:
Net loss per share is derived by dividing net loss by the average number
of shares outstanding during the period.
6
<PAGE> 8
SCIOTO DOWNS, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
THE THREE-MONTH AND SIX-MONTH PERIODS ENDED APRIL 30, 1996 COMPARED TO THE
THREE-MONTH AND SIX-MONTH PERIODS ENDED APRIL 30, 1995
The majority of the racing season at Scioto Downs annually falls within the
third quarter ending July 31. As a result, the Company historically experiences
net operating losses during the first two quarters of the fiscal year. Income
during the current periods consists mainly of advanced sales of nonrefundable
reserved grandstand seats, box seats and parking.
Concessions, program, and other income increased by $15,203 due to a slight
increase in off-season party commission from the concessionaire, as well as
leasing of the facilities to certain groups. The increase in salaries expense by
$13,233 is due mainly to utilization of a full maintenance crew in the
off-season. Other operating and general increased by approximately $1,500 due
mainly to the timing of certain expenditures.
APRIL 30, 1996 COMPARED TO OCTOBER 31, 1995
Due to the seasonal nature of the business, the Company experienced net
operating losses during the first two quarters of the fiscal year. Cash and
short-term borrowings were used during the first two quarters of fiscal 1996,
primarily to pay for operating expenses incurred. Additionally, deferred revenue
increased as the Company received cash that will subsequently be paid as purses
to horsemen in the third quarter.
The majority of the rental income from leasing the racing facility to
Mid-America Racing Association is earned during the fourth quarter of the year,
ending in October. It is anticipated that the high depreciation and interest
expense relating to the clubhouse facility will result in a net loss for the
year ending October 31, 1996.
7
<PAGE> 9
PART II. OTHER INFORMATION
SCIOTO DOWNS, INC.
Item 1. Legal Proceedings - None
Item 2. Changes in Securities - None
Item 3. Defaults Upon Senior Securities - None
Item 4. Submission of Matters to a Vote of Security Holders - None
Item 5. Other Information - None
Item 6. Exhibits and Reports on Form 8-K:
(a) Exhibits - None
(b) Reports on Form 8-K - No reports on Form 8-K were filed during the
quarter ended April 30, 1996.
8
<PAGE> 10
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.
SCIOTO DOWNS, INC.
------------------------------
Registrant
DATE: June 12, 1996 BY: /s/ Robert S. Steele
------------------------ ------------------------------
Robert S. Steele, President
DATE: June 12, 1996 BY: /s/ Timothy V. Luther
------------------------ ------------------------------
Timothy V. Luther, Controller
9
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
<CASH> 284,235
<SECURITIES> 0
<RECEIVABLES> 25,189
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 462,968
<PP&E> 19,131,995
<DEPRECIATION> 11,621,018
<TOTAL-ASSETS> 8,132,650
<CURRENT-LIABILITIES> 3,955,171
<BONDS> 0
<COMMON> 625,555
0
0
<OTHER-SE> 3,473,358
<TOTAL-LIABILITY-AND-EQUITY> 8,132,650
<SALES> 2,631
<TOTAL-REVENUES> 74,976
<CGS> 219
<TOTAL-COSTS> 1,075,250
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 118,986
<INCOME-PRETAX> (1,119,260)
<INCOME-TAX> (347,000)
<INCOME-CONTINUING> (772,260)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (772,260)
<EPS-PRIMARY> (1.30)
<EPS-DILUTED> (1.30)
</TABLE>
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