FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1997
Commission file number 0-8133
UNION PLAZA HOTEL AND CASINO INC.
(Exact name of registrant as specified in its charter)
Nevada 88-0110085
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
No. 1 Main Street 89125
Las Vegas, Nevada (Zip Code)
(Address of principal
executive offices)
(702) 386-2110
(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 [ ]
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the close of the period covered by
this report:
Outstanding at
Class of Common Stock June 30, 1997
$.50 par value 758,419 shares
<PAGE>
The Securities and Exchange Commission
Washington D.C.
The financial information included herein is unaudited. In
addition, the financial information does not include all
disclosures required under generally accepted accounting
principles because certain note information included in the
Company's annual report has been omitted; however, such
information reflects all adjustments (consisting entirely of normal
recurring adjustments) which are, in the opinion of Management,
necessary to a fair statement of the results for the interim
period.
/s/ JOHN D. GAUGHAN
John D. Gaughan, President
Las Vegas, Nevada
August 12, 1997
<PAGE>
PART 1. - Financial Information
Item 1. Financial Statements
<PAGE>
UNION PLAZA HOTEL AND CASINO, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
[CAPTION]
JUNE 30, 1997 AND DECEMBER 31, 1996
ASSETS
JUNE 30, DECEMBER 31,
1997 1996
[S] [C] [C]
Current Assets:
Cash $ 2,757 $ 2,982
Accounts receivable 557 883
Inventories of food, beverage
and supplies 436 528
Prepaid expense 964 997
Total current assets 4,714 5,390
Property and equipment:
Land 7,012 7,012
Buildings 56,748 56,746
Leasehold improvements 3,514 3,484
Furniture and equipment 34,433 34,176
101,707 101,418
Less accumulated depreciation
and amortization 61,322 59,253
Net property and equipment 40,385 42,165
Other assets 1,983 1,762
$ 47,082 $ 49,317
The accompanying notes are an integral
part of these financial statements.
<PAGE>
LIABILITIES AND STOCKHOLDERS' EQUITY
JUNE 30, DECEMBER 31,
1997 1996
[S] [C] [C]
Current liabilites:
Accounts payable $ 1,547 $ 2,323
Accrued liabilities 1,495 2,143
Checks issued against future deposits 330
Current portion of long-term debt 320 320
Current portion of obligations under
capital leases 714 714
Total current liabilities 4,076 5,830
Long-term debt, less current portion 19,280 18,970
Obligations under capital leases, less
current portion 3,180 3,525
Deferred income taxes 4,023 4,015
30,559 32,340
Commitments and contingencies
Stockholders' equity:
Common stock, $.50 par value; authorized
20,000,000 shares; issued 1,500,000
shares; Outstanding 758,469 shares at
December 31, 1996 and 758,419 shares
at June 30, 1997. 750 750
Additional paid-in capital 5,462 5,462
Retained earnings 24,183 24,635
30,395 30,847
Less treasury stock, at cost, 741,351
shares at December 31, 1996 and 741,581
shares at June 30, 1997. 13,872 13,870
Total stockholders' equity 16,523 16,977
$ 47,082 $ 49,317
The accompanying notes are an integral
part of these financial statements.
<PAGE>
UNION PLAZA HOTEL AND CASINO, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
[CAPTION]
SIX MONTHS AND THREE MONTHS ENDED JUNE 30, 1997 AND 1996
Amounts in thousands except per share data
SIX MONTHS ENDED THREE MONTHS ENDED
JUNE 30, JUNE 30,
1997 1996 1997 1996
[S] [C] [C] [C] [C]
REVENUES:
Casino $ 17,021 $19,646 $ 8,147 $ 9,024
Food and Beverage 4,890 4,989 2,316 2,391
Rooms 5,864 6,117 2,854 2,970
Other 1,221 1,185 634 582
GROSS REVENUES 28,996 31,937 13,951 14,967
Less promotional complimentaries 3,668 3,800 1,693 1,696
NET REVENUES 25,328 28,137 12,258 13,271
OPERATING EXPENSES:
Casino 7,012 7,537 3,631 3,753
Food and Beverage 7,527 6,943 3,658 3,457
Rooms 2,841 2,788 1,420 1,387
General & Administrative 1,959 2,121 795 876
Entertainment 243 247 122 121
Advertising & Promotion 122 173 104 102
Utilities & Maintenance 2,658 2,789 1,366 1,448
Depreciation & Amortization 2,110 2,194 1,043 1,097
Provisions for Doubtful Accts. 20 26 1 35
Other Costs and Expenses 615 723 295 362
TOTAL OPERATING EXPENSES 25,107 25,541 12,435 12,638
OPERATING INCOME (LOSS) 221 2,596 (177) 633
OTHER INCOME (EXPENSE):
Interest Income 5 17 4 12
Interest Expense (1,084) (1,172) (549) (569)
Total other income (expense) (1,079) (1,155) (545) (557)
INCOME (LOSS) BEFORE INCOME TAXES (858) 1,441 (722) 76
PROVISION (BENEFIT) INCOME TAXES (405) 466 (332) 2
NET INCOME (LOSS) (453) 975 (390) 74
EARNINGS PER COMMON SHARE ($0.60) $1.28 ($0.52) $0.10
The accompanying notes are an integral
part of these financial statements.
<PAGE>
UNION PLAZA HOTEL AND CASINO, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR SIX MONTHS ENDED JUNE 30, 1997 AND 1996
INCREASE IN CASH AND CASH EQUIVALENTS
1997 1996
[S] [C] [C]
Cash flows from operating activities:
Cash received from customers $ 25,507,000 $ 28,319,000
Cash paid to suppliers and employees (24,327,000) (23,900,000)
Interest received 5,000 24,000
Interest paid (1,084,000) (1,172,000)
Income taxes paid 0 0
Net cash provided by operating activities 101,000 3,271,000
Cash flows from investing activities:
Proceeds from sale of property & equipment 0 0
Proceeds from sale of bonds 0 0
Purchase of property and equipment (290,000) (698,000)
Net cash used in investing activities (290,000) (698,000)
Cash flows from financing activities:
Proceeds from note payable to Stockholder 500,000 0
Principal payments on capital lease (345,000) (301,000)
Principal payments on long-term debt (190,000) (1,910,000)
Purchase of Treasury Stock (1,000) 0
Net cash used in financing activities (36,000) (2,211,000)
Net increase (decrease) in cash &
cash equivalents (225,000) 362,000
Cash and cash equivalents
at 12/31/96 & 12/31/95 2,982,000 2,959,000
Cash and cash equivalents,
at 6/30/97 & 6/30/96 2,757,000 3,321,000
RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY OPERATING
ACTIVITIES
Net income for period ended
6/30/97 and 6/30/96 $ (453,000) $ 975,000
Adjustments to reconcile net income to
Net cash provided by operating activities:
Depreciation and amortization 2,090,000 2,241,000
Gain on sale of assets 0 0
Bad debt expense (15,000) (26,000)
(Increase) decrease in assets:
Accounts receivable 342,000 347,000
Interest receivable 0 7,000
Inventories 92,000 26,000
Prepaid expenses (112,000) 149,000
Other assets (103,000) 30,000
Increase (decrease) in liabilities:
Accounts payable and accrued expenses (1,335,000) (914,000)
Interest payable 0 0
Income Tax Payable (405,000) 436,000
Total adjustments 554,000 2,296,000
Net cash provided by operating activities $ 101,000 $ 3,271,000
The accompanying notes are an integral
part of these financial statements.
<PAGE>
UNION PLAZA HOTEL AND CASINO, INC. AND SUBSIDIARIES
UNAUDITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation
The accompanying consolidated financial statements include
the accounts of Union Plaza Hotel and Casino, Inc. (the Company)
and its wholly-owned subsidiaries. All material intercompany
balances and transactions have been eliminated in consolidation.
Nature of the Operations and Basis of Accounting
The Company's wholly-owned subsidiary, Union Plaza Operating
Company, operates hotel and gaming operations in downtown Las
Vegas, Nevada. A substantial portion of the operating revenues
of the Company's subsidiary is derived from gaming operations
which are subject to extensive regulations in the State of Nevada
by the Gaming Commission, the Gaming Control Board and local
regulatory agencies. The Company does not anticipate any material
changes in which the financial results are reported due to the
adoption of new or proposed accounting pronouncements.
In 1994, the Company organized Union Plaza Experience, Inc.
as a wholly owned subsidiary to participate with other downtown
Las Vegas casino enterprises and the City of Las Vegas
Redevelopment Agency, in a redevelopment project known as the
Fremont Street Experience. Investment at June 30, 1997 was
$858,000 and $716,000 at December 31. 1996. The Company has
no other materially important subsidiaries or operations.
Management believes that the Company's procedures for
supervising casino operations, recording casino and other
revenues and for granting credit comply in all material respects
with applicable regulations.
Casino Receivables and Revenue
Credit is extended to certain casino customers and the
Company records all unpaid advances as casino receivables on the
date credit was granted. Allowances for estimated uncollectible
casino receivables are provided to reduce the receivables to
amounts anticipated to be collected. The Company recognizes as
casino revenue the net win (which is the difference between
amounts wagered and amounts paid to winning patrons) from gaming
activities.
Promotional Allowances
Gross revenues include the retail value of complimentary
food and beverage and hotel services furnished to customers. The
retail value of these promotional allowances is deducted to
arrive at net revenues.
Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect certain reported amounts and disclosures.
Property and Equipment
Property and equipment are stated at cost. Expenditures for
additions, renewals and betterments are capitalized; expenditures
for maintenance and repairs are charged to expenses as incurred.
Upon retirement or disposal of assets, the cost and accumulated
depreciation are eliminated from the accounts and the resulting
gain or loss is included in income. Depreciation, including
amortization of a capitalized lease, is computed using the
straight-line method. Leasehold improvements (distinguished from
unamortized leasehold costs) are amortized over the lives of the
leases.
<PAGE>
UNION PLAZA HOTEL AND CASINO, INC. AND SUBSIDIARIES
UNAUDITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Property and Equipment (Continued)
Property and equipment, including capitalized leases, are
depreciated over their estimated useful lives of 3 to 20 years
for land improvements, 20 to 40 years for buildings, 5 to 30
years for leasehold improvements and 3 to 10 years for furniture
and equipment.
Other Assets
Leasehold costs are being amortized on a straight-line basis
over the initial 30-year term of the lease. Expansion of gaming
rights is being amortized on a straight line basis over 20 years.
Subordination of security interest in lease is being amortized on
a straight-line basis over 15 years.
Progressive Slot Liability
The Company has installed a number of progressive slot
machines. As coins are played the amount available to win
increases and will be paid out when the appropriate jackpot is
hit. In accordance with common industry practice, the Company
has recorded the liability and has charged this amount against
casino revenue.
Earnings Per Common Share
Earnings per common share was computed by dividing net
income by the weighted average number of shares of common stock
outstanding during each period.
Inventories
Inventories are valued at the lower of cost, (first-in,
first-out) or market. Maintenance and other operating supplies
are stated at estimated amounts considered by management to be
necessary to conduct full operations. Subsequent replacements
are charged to expense.
Income Taxes
The Company and its subsidiaries file a consolidated Federal
Income Tax return. Deferred income taxes are provided to reflect
the tax effect of timing differences between financial and tax
reporting, principally related to depreciation, slot machine
revenue, interest costs, accrued expenses, capitalization of
leases, capitalization of property costs and write-down of
facilities and other investments to estimated recoverable value.
The Company accounts for the investment tax credit as a
reduction of income tax expense in the year in which such credits
are utilized. Carryforwards of this credit, as well as the tax
effect of net operating loss carryforwards, are shown as a
reduction to deferred income taxes.
<PAGE>
UNION PLAZA HOTEL AND CASINO, INC. AND SUBSIDIARIES
UNAUDITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Statement of Cash Flows
The Statements of Cash Flows classify changes in cash and
cash equivalents according to operating, investing and financing
activities. For purposes of the statement of cash flows, the
Company considers all highly liquid debt instruments purchased
with a maturity of three months or less to be cash equivalents.
NOTE 2 - ACCOUNTS RECEIVABLE
Accounts receivable consists of the following:
June 30 December 31
1997 1996
Casino $236,000 $595,000
Hotel 102,000 262,000
Other 247,000 69,000
585,000 926,000
Less allowance for
doubtful accounts 28,000 43,000
$557,000 $883,000
NOTE 3 - OTHER ASSETS
Other assets consist of the following:
June 30, December 31,
1997 1996
Expansion of gaming rights, less
accumulated amortization of $ 162,000 $ 182,000
$648,000 and $628,000
Investment in Nevada Pari-Mutuel
Association less accumulated 9,000
amortization of $1,000 in 1997
Net investment in direct financing
lease, net of current portion (Note 7) 168,000 186,000
Leasehold costs, less accumulated
amortization of $386,000 and
$378,000 57,000 65,000
Investment in Fremont Street
Experience 858,000 716,000
Deposits and other 729,000 613,000
$ 1,983,000 $ 1,762,000
NOTE 4 - ACCRUED LIABILITIES
Accrued liabilities consist of the following:
June 30, December 31,
1997 1996
Salaries and Wages $ 564,000 $1,083,000
Union back wages 66,000 82,000
Taxes, other than tax on income 301,000 325,000
Other 564,000 653,000
$1,495,000 $2,143,000
<PAGE>
UNION PLAZA HOTEL AND CASINO, INC. AND SUBSIDIARIES
UNAUDITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
NOTE 5 - INCOME TAXES
The Internal Revenue Service has examined the Company's
Federal income tax returns through 1991. Management is of the
opinion that all taxes have been paid or provided for through
June 30, 1997.
NOTE 6 - LONG-TERM DEBT
June 30, December 31,
Long-term debt consists of the following: 1997 1996
Note Payable to Exber, Inc. at the Prime
Interest Rate payable in monthly
installments of $158,265 including
principal and interest, until July 6,
2004 at which time the balance is due.
The note is secured by a first deed of
trust in land and building (See Note 9). 19,600,000 19,290,000
Less current portion 320,000 320,000
$19,280,000 $18,970,000
Principal payments on long-term debt during the succeeding
five years are as follows:
1997 (Remaining six months) 114,000
1998 252,000
1999 275,000
2000 299,000
2001 326,000
Thereafter $18,334,000
<PAGE>
Maturities were calculated based upon interest rates in
effect at June 30, 1997.
NOTE 7 - LEASES
The Company leases equipment and hotel and bus depot
property under long-term lease agreements which are classified as
capital leases. The lease with Exber, Inc. (See Note 9) covering
the hotel and bus depot property expires in 2001 with renewals.
The hotel and bus depot property lease contains one renewal
option of twenty-five years and four renewal options of ten
years. The bus depot property is sublet to Greyhound Lines Inc.
under a lease expiring in 2001, with two ten-year renewal
options available. The value of the lease with Exber, Inc. is as
follows:
June 30, December 31,
1997 1996
Land and Buildings $9,242,000 $9,242,000
Less accumulated amortization 8,529,000 8,441,000
713,000 801,000
<PAGE>
UNION PLAZA HOTEL AND CASINO, INC. AND SUBSIDIARIES
UNAUDITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
NOTE 7 - LEASES (CONTINUED)
The following is a schedule of future minimum lease payments
as of June 30, 1997.
1997 (Remaining six months) $ 625,000
1998 1,250,000
1999 1,250,000
2000 1,250,000
2001 729,000
Total minimum lease payments 5,104,000
Less amount representing interest 1,210,000
Present value of net minimum
lease pmts under capital leases 3,894,000
Less current portion 714,000
Long-term obligations under
capital leases 3,180,000
SUBLEASES
The bus depot property under a capital lease is sublet as
follows:
June 30, December 31,
1997 1996
Minimum future rents receivable $270,000 $303,000
Less amount representing interest 64,000 79,000
Minimum future rents receivable 206,000 224,000
Less current portion (included in
accounts receivable) 38,000 38,000
Net investment in direct
financing lease (See Note 3) 168,000 186,000
<PAGE>
UNION PLAZA HOTEL AND CASINO, INC. AND SUBSIDIARIES
UNAUDITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
Other sublet rental property:
The Company rents building space to several retail stores
under various short-term leases. Income from these
subleases, included in other income, was $156,000 and $191,000
at June 30, 1997 and December 31, 1996, respectively.
NOTE 8 - EMPLOYEE BENEFIT PLANS
Although the Company contributes to a discretionary executive
bonus plan, there were no contributions for the first six months
on 1997 compared to 1996 when the Company contributed $314,000.
The Company also has a qualified profit sharing plan for
eligible employees. Contributions to this plan are made at the
discretion of the Board of Directors and benefits are limited to
the allocated interests in fund assets. Contributions for the
first six months of 1997 and 1996 were $150,000 for each period.
NOTE 9 - RELATED PARTIES
On December 18, 1991, Exber, Inc., a 45.21% stockholder as
of June 30, 1997, loaned the Company $1,800,000, payable
interest only in monthly installments at 10% per annum, with
principal due in full December 19, 1996. During February 1992
this loan was increased to $3,000,000 subject to the same terms
and maturity date of the original borrowing. During February
1993 this loan was refinanced to $18,000,000, interest only
at the prime rate published in the Wall Street Journal until
February 14, 1999. On February 14, 1994 an additional $1,500,000
was added to this loan bringing the loan balance to $19,500,000
with the same terms and maturity date. On June 3, 1994 an
additional $3,700,000 was borrowed and the balance refinanced
payable in monthly installments of $158,265 including principal
and interest, until July 6, 2004. The majority of the proceeds
of the note were used to retire the outstanding debt to Bank of
America. On June 20, 1997 the Company borrowed an additional
$500,000 from Exber, Inc. to use for general purposes. The
outstanding balance of the note at June 30, 1997 was $19,600,000.
Exber, Inc. also leases to the Company land and buildings in
Las Vegas, Nevada. Annual payments by the Company and its
subsidiaries are approximately $1,250,000. The leases extend
through 2001 with renewal options.
NOTE 10 - CONTINGENCIES
The Company has contingent liabilities with respect to
lawsuits and other matters arising in the ordinary course of
business. In the opinion of management, no material liability
exists with respect to these contingencies.
<PAGE>
PART 1. - FINANCIAL INFORMATION
ITEM 2. - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
The Company had total cash assets amounting to $2,757,000
(5.9% of total assets) at June 30, 1997 and $2,982,000 (6.0%
of total assets) at December 31, 1996. The ratio of current
assets to current liabilities was 1.2 to 1 at June 30, 1997
and .9 to 1 at December 31, 1996. Long-term debt obligations,
including current maturities was $19,600,000 at June 30, 1997
and $19,290,000 at December 31, 1996. Long term debt
obligations increased during the first six months as the
Company borrowed $500,000 from its majority shareholder to
increase its cash position prior to the typically slow summer
season. At June 30, 1997 the Company had not used any of the
cash recently borrowed from Exber, Inc. While the nature of
the gaming business generally provides sufficient cash flows
for operations, a prolonged or severe downturn in the gaming
industry or in the Company's business could affect the
ability to satisfy existing debt obligations. If an extended
decline in business were to occur, Management is confident
that the existing long-term debt could be renegotiated on terms
that would allow the Company to continue to operate.
As of June 30, 1997, outstanding receivables were
$557,000 compared to $883,000 at December 31, 1996. The
decline in receivables is largely attributed to a decline
in the amount of casino credit issued and the increase of
items aged more than one year deemed to be uncollectible.
Inventories declined to $436,000 from $528,000 at
December 31, 1996 due to fewer food and beverage items on hand
at the end of June. Inventories at the end of the period
remain basically unchanged when compared to the same period
in 1996. Other assets rose by $221,000 (12.6%) due to an
increase in the investment in The Fremont Street Experience
for the first six months of the year. During the first six
months of 1997, accounts payable liabilities declined by
$776,000 attributed to fewer customer deposits on hand and the
provision for income taxes included in the accounts payable
figure. Based on results reported for the first six months of
1997, the provision for income taxes reflects an estimated
refund due to the Company. Accrued Liabilities and Expenses
also declined compared to December 31, 1996 due to timing
differences associated with payroll dates, profit sharing
contribution accruals, and liabilities for outstanding wagers
accepted in the race and sports books.
Investing activities for the Company were limited to
periodic investments in the Fremont Street Experience
through the Union Plaza Experience subsidiary. There were
no significant share buy back transactions in the first
six months of 1997. Capital expenditures were also minimal
for the first six months of the year as asset purchases were
limited to minor improvements and general refurbishment
at the Company's hotel and casino complex. The Company
does not anticipate any material capital spending in the
near future.
RESULTS OF OPERATIONS
Operating revenues continue to suffer from the vast
competition in the Las Vegas valley as well as the
proliferation of gaming operations outside of Clark County.
While Las Vegas continues to grow in population, competition
for gaming patrons has also been increasing. The competition
for the "locals" market has become very intense in the past
couple of years and continues to reflect in the Company's
results.
Casinos located near the residential areas in Las Vegas
have become a significant diversion for cusomers who used to
patronize downtown casinos. Competing casinos operating
beyond the downtown area are effectively more competitive
due to various factors. The most significant of those factors
is the non-union labor status of their operations which allows
for sub-contracted restaurants and greater efficiencies in
operations and cost effective employee benefit plans. The
establishments operating beyond downtown and the strip also offer
movie theaters, bowling, dancing and other attractions which
appeal to entertainment minded patrons. In addition, the
competition from gaming establishments located outside Nevada
are also reducing the gambling dollars of the Company's customers.
The Company's gross revenues declined by $2,941,000
(9.2%) in the first six months compared to the same
period in 1996. Continued declines in the gaming sector was
the primary factor during the period as casino revenues fell
$2,625,000 (13.4%). Table game and slot machine results
accounted for $2,230,000 of the decline as those departments
were down 27% and 23% respectively in the period. Race and
sports revenues also declined by 39% and keno revenue fell
by 7%. The overall results of operations reveal that gaming
revenues are down by a greater percentage than the results
provided by food, beverage and hotel operations. Two factors
contribute to this disrepancy. Customers staying at our hotel
are drawn form our property to the Fremont Street Experience
or other attractions and tend to return only to eat and sleep.
Customers who normally visit three or more times annually are
coming to Las Vegas fewer times with less money.
Gross food and beverage revenues were down nearly $100,000
from 1996 reflecting the overall softness in the Company's
operations. Hotel occupancy levels declined by 1.5% through
the second quarter, reducing room revenue by $253,000. The
Company continues to focus on marketing primarily to repeat
customers in the midwest and value minded customers from
California. In order attract these customers, the Company
continues to price its rooms aggressively through various sales
and ad campaigns during the seasonal slow periods. Management
believes that keeping the hotel at maximum occupancy is vital
to the casino operation.
For the six months ended June 30, 1997, total operating expenses
declined by $434,000 or 1.7%. Casino operating costs declined by
$525,000, General Administrative and other costs fell $270,000,
Utility and maintenance costs dropped $131,000 and advertising and
promotional expenses fell $51,000. These improvements were
partially offset by increased expenses of $584,000 in the food and
beverage operations and a $53,000 increase in hotel expenses.
While most of the Company's operations were able to reduce costs
through work force reductions and less expenditures, increased wages
and higher cost-of-goods sold contibuted to the rise in costs of
the hotel and food and beverage service operations.
For the second quarter, the Company reported an operating loss
of $177,000 compared to operating income of $633,000 in the year
ago period. For the first six months of 1997, operating income
was $221,000 compared to $2,596,000 in 1996.
The net loss for the second quarter was $390,000 or $.52 a share
versus net income of $74,000 or $.10 a year ago. For the first
six months of 1997 the net loss was $453,000 or $.60 a share
compared to net income of $975,000 or $1.28 in 1996.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934 the registrant had duly caused this report to be
signed on its behalf by the undersigned thereunto duly
authorized.
UNION PLAZA HOTEL AND CASINO, INC.
(REGISTRANT)
Date: August 12, 1997 /SS/ JOHN D. GAUGHAN
JOHN D. GAUGHAN, President
Date: August 12, 1997 /SS/ LARRY DOLESH
LARRY DOLESH, Vice President
of Finance
Date: August 12, 1997 /SS/ JOHN P. JONES
JOHN P. JONES, Vice President &
Treasurer
Date: August 12, 1997 /SS/ ALAN J. WOODY
ALAN J. WOODY, Controller
16
[ARTICLE] 5
<TABLE>
<S> <C>
[PERIOD-TYPE] 3-MOS
[FISCAL-YEAR-END] DEC-31-1997
[PERIOD-END] JUN-30-1997
[CASH] $ 2757000
[SECURITIES] 0
[RECEIVABLES] 557000
[ALLOWANCES] 0
[INVENTORY] 436000
[CURRENT-ASSETS] 4714000
[PP&E] 101707000
[DEPRECIATION] 61322000
[TOTAL-ASSETS] 47082000
[CURRENT-LIABILITIES] 4076000
[BONDS] 19600000
[PREFERRED-MANDATORY] 0
[PREFERRED] 0
[COMMON] 750000
[OTHER-SE] 16523000
[TOTAL-LIABILITY-AND-EQUITY] 47082000
[SALES] 2316000
[TOTAL-REVENUES] 13951000
[CGS] 3658000
[TOTAL-COSTS] 6970000
[OTHER-EXPENSES] 2704000
[LOSS-PROVISION] 20000
[INTEREST-EXPENSE] 549000
[INCOME-PRETAX] (722000)
[INCOME-TAX] (332000)
[INCOME-CONTINUING] (332000)
[DISCONTINUED]
[EXTRAORDINARY]
[CHANGES]
[NET-INCOME] (332000)
[EPS-PRIMARY] ( .52)
[EPS-DILUTED] ( .52)
</TABLE>
