<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) December 31, 1996
-------------------------------
HOLLYWOOD CASINO CORPORATION
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 33-48887 75-2352412
- --------------------------------------------------------------------------------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
Two Galleria Tower, Suite 2200, 13455 Noel Road, Dallas, Texas 75240
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (972) 392-7777
-----------------------------
- --------------------------------------------------------------------------------
(Former name or former address, if changed since last report.)
1
<PAGE>
ITEM 2. DISPOSITION OF ASSETS
On December 31, 1996, Hollywood Casino Corporation ("HCC" or the "Company")
distributed to its shareholders the common stock owned by HCC of Greate Bay
Casino Corporation ("GBCC", formerly known as Pratt Hotel Corporation), which
amounted to approximately 80% of the total outstanding stock of GBCC.
Shareholders of record on December 24, 1996 received approximately .167852 of a
share of GBCC common stock for each share of HCC stock owned. As a result of the
dividend, GBCC is no longer a subsidiary of HCC. GBCC's principal assets and
sources of revenues are the Sands Hotel and Casino in Atlantic City, New Jersey
and management and consulting contracts with entertainment facilities operated
under the service mark Hollywood Casino(R) in Aurora, Illinois and Tunica
County, Mississippi which are owned by HCC. GBCC's assets represented
approximately 45% of the consolidated assets of HCC at September 30, 1996.
ITEM 7. PRO FORMA FINANCIAL STATEMENTS
Hollywood Casino Corporation and Subsidiaries
Introductory Notes to Unaudited Pro Forma Consolidated Financial Statements
Effective December 31, 1996, HCC distributed to its shareholders all of the
common stock owned by HCC of GBCC (which amounted to approximately 80% of the
total outstanding stock of GBCC). As a result of this distribution, GBCC is no
longer a subsidiary of HCC. The following unaudited pro forma consolidated
balance sheet of Hollywood Casino Corporation and Subsidiaries as of September
30, 1996 has been prepared assuming that the distribution had occurred on
September 30, 1996. The unaudited pro forma consolidated statements of
operations for the nine months ended September 30, 1996 and for the year ended
December 31, 1995 have been prepared assuming that the distribution had occurred
on January 1, 1995. Such information presents, as of the dates and for the
periods described, the consolidated financial position and results of operations
of HCC including GBCC, the separate balances and amounts attributable to GBCC,
additional pro forma adjustments and the resulting HCC financial information
exclusive of GBCC's activities.
The unaudited pro forma financial statements are presented for
informational purposes only and do not purport to present what the consolidated
balance sheet would have been had the distribution, in fact, occurred on
September 30, 1996 or what the consolidated statements of operations for the
nine months ended September 30, 1996 or for the year ended December 31, 1995
would have been had the distribution, in fact, occurred on January 1, 1995 or to
project the results of operations for any future period.
2
<PAGE>
Hollywood Casino Corporation and Subsidiaries
Unaudited Pro Forma Consolidated Balance Sheet
September 30, 1996
(Dollars in thousands)
<TABLE>
<CAPTION>
HCC Eliminate
Consolidated GBCC, Net of Other Pro Forma
Pre-GBCC Intercompany Pro Forma HCC
Spinoff Adjustments(1) Adjustments Consolidated
- ------------------------------------------------ -------------- -------------- ------------- ------------
<S> <C> <C> <C> <C>
Assets
Current assets:
Cash and cash equivalents $ 57,182 $ (26,920) $ - $ 30,262
Accounts receivable 15,154 (11,442) - 3,712
Receivables from GBCC - 1,273 - 1,273
Other current assets 18,793 (7,058) (1,395) (2) 10,340
--------- --------- --------- --------
Total current assets 91,129 (44,147) (1,395) 45,587
--------- --------- --------- --------
Property and equipment:
Property and equipment 567,484 (317,721) - 249,763
Less - accumulated depreciation and
amortization (203,789) 158,607 - (45,182)
--------- --------- --------- --------
363,695 (159,114) - 204,581
--------- --------- --------- --------
Cash restricted for construction projects 232 - - 232
--------- --------- --------- --------
Other assets:
Deferred financing costs 14,718 (7,924) - 6,794
Land rights 7,709 - - 7,709
Receivables from GBCC - 1,000 - 1,000
Other noncurrent assets 25,905 (9,752) - 16,153
--------- --------- --------- --------
Total other assets 48,332 (16,676) - 31,656
--------- --------- --------- --------
$ 503,388 $(219,937) $ (1,395) $282,056
========= ========= ========= ========
Liabilities and Shareholders' Equity (Deficit)
Current liabilities:
Current maturities of long-term debt and
capital leases $ 10,149 $ (2,735) $ - $ 7,414
Accounts and notes payable 15,884 (10,561) - 5,323
Payable to GBCC - 2,286 - 2,286
Other current liabilities 54,458 (28,228) - 26,230
--------- --------- --------- --------
Total current liabilities 80,491 (39,238) - 41,253
--------- --------- --------- --------
Long-term debt 471,261 (269,007) - 202,254
Capital lease obligations 22,098 - - 22,098
Other current liabilities 10,102 (4,983) - 5,119
--------- --------- --------- --------
Total other liabilities 503,461 (273,990) - 229,471
--------- --------- --------- --------
Stockholders' equity (deficit) (80,564) 93,291 (1,395) (2) 11,332
--------- --------- --------- -------
$ 503,388 $(219,937) $ (1,395) $ 282,056
========= ========= ========= =========
</TABLE>
The accompanying explanatory notes are
an integral part of these consolidated statements.
3
<PAGE>
Hollywood Casino Corporation and Subsidiaries
Unaudited Pro Forma Consolidated Statement of Operations
For the Nine Months Ended September 30, 1996
(Dollars in thousands, except per share amounts)
<TABLE>
<CAPTION>
HCC Eliminate
Consolidated GBCC, Net of Other Pro Forma
Pre-GBCC Intercompany Pro Forma HCC
Spinoff Adjustments(1) Adjustments Consolidated
------------- --------------- ------------ -------------
<S> <C> <C> <C> <C>
Revenues
Casino $ 374,609 $ (188,735) $ - $ 185,874
Rooms 14,311 (11,107) - 3,204
Food and beverage 46,868 (27,693) - 19,175
Other 10,480 (5,798) - 4,682
----------- ----------- ----------- -----------
446,268 (233,333) - 212,935
Less - promotional allowances (38,648) 21,616 - (17,032)
----------- ----------- ----------- -----------
Net revenues 407,620 (211,717) - 195,903
----------- ----------- ----------- -----------
Expenses:
Casino 302,584 (169,156) - 133,428
Rooms 4,424 (3,644) - 780
Food and beverage 15,310 (9,749) - 5,561
Other 5,382 (3,773) - 1,609
General and administrative 28,217 (14,156) - 14,061
Management and consulting fees - 7,710 - 7,710
Depreciation and amortization 31,797 (15,763) - 16,034
Development 721 - - 721
----------- ----------- ----------- -----------
Total expenses 388,435 (208,531) - 179,904
----------- ----------- ----------- -----------
Income from operations 19,185 (3,186) - 15,999
----------- ----------- ----------- -----------
Non-operating expenses:
Interest expense, net (41,332) 21,902 - (19,430)
Loss on assets held for sale (658) 612 - (46)
----------- ----------- ----------- -----------
Total non-operating expense (41,990) 22,514 - (19,476)
----------- ----------- ----------- -----------
Loss before income taxes and
nonrecurring charges (22,805) 19,328 - (3,477)
Income tax provision (526) 51 (334) (3) (809)
----------- ----------- ----------- -----------
Net loss before nonrecurring charges $ (23,331) $ 19,379 $ (334) $ (4,286)
=========== =========== =========== ===========
Net loss per share before nonrecurring charges $(0.94) $.78 $ (0.01) $(0.17)
=========== =========== =========== ===========
Number of shares used for loss per
share calculation 24,719,968 24,869,961 24,719,968 24,719,968
=========== =========== =========== ===========
</TABLE>
The accompanying explanatory notes are
an integral part of these consolidated statements.
4
<PAGE>
Hollywood Casino Corporation and Subsidiaries
Unaudited Pro Forma Consolidated Statement of Operations
For the Year Ended December 31, 1995
(Dollars in thousands, except per share amounts)
<TABLE>
<CAPTION>
HCC Eliminate
Consolidated GBCC, Net of Other Pro Forma
Pre-GBCC Intercompany Pro Forma HCC
Spinoff Adjustments(1) Adjustments Consolidated
------------- --------------- ------------ -------------
<S> <C> <C> <C> <C>
Revenues
Casino $ 498,618 $ (264,048) $ - $ 234,570
Rooms 17,950 (14,763) - 3,187
Food and beverage 56,225 (34,856) - 21,369
Other 12,459 (6,100) - 6,359
----------- ----------- ----------- -----------
585,252 (319,767) - 265,485
Less - promotional allowances (45,309) 27,083 - (18,226)
----------- ----------- ----------- -----------
Net revenues 539,943 (292,684) - 247,259
----------- ----------- ----------- -----------
Expenses:
Casino 364,933 (209,282) - 155,651
Rooms 6,596 (4,985) - 1,611
Food and beverage 19,091 (11,662) - 7,429
Other 5,537 (3,737) - 1,800
General and administrative 36,914 (21,023) - 15,891
Management and consulting fees - 10,632 - 10,632
Depreciation and amortization 40,955 (20,523) - 20,432
Development 6,765 - - 6,765
----------- ----------- ----------- -----------
Total expenses 480,791 (260,580) - 220,211
----------- ----------- ----------- -----------
Income from operations 59,152 (32,104) - 27,048
----------- ----------- ----------- -----------
Non-operating expenses:
Interest expense, net (51,850) 34,936 - (16,914)
Loss on assets held for sale (514) (56) - (570)
----------- ----------- ----------- -----------
Total non-operating expense (52,364) 34,880 - (17,484)
----------- ----------- ----------- -----------
Income before income taxes and
nonrecurring charges 6,788 2,776 - 9,564
Income tax provision (268) (3,933) (399) (3) (4,600)
----------- ----------- ----------- -----------
Net income before nonrecurring charges $ 6,520 $ (1,157) $ (399) $ 4,964
=========== =========== =========== ===========
Net income per share before
nonrecurring charges $0.26 $(0.05) $ (0.01) $0.20
=========== =========== =========== ===========
Number of shares used for income per
share calculation 24,849,965 24,849,965 24,849,965 24,849,965
=========== =========== =========== ===========
</TABLE>
The accompanying explanatory notes are
an integral part of these consolidated statements.
5
<PAGE>
Hollywood Casino Corporation and Subsidiaries
Explanatory Notes to Unaudited Pro Forma Consolidated Financial Statements
(1) The amounts shown for GBCC include the elimination of intercompany balances
with HCC resulting from the distribution of GBCC stock and associated
transactions as if they had occurred on September 30, 1996. The accompanying pro
forma consolidated statements of operations for the nine months ended September
30, 1996 and for the year ended December 31, 1995 have eliminated the
recognition of interest income on such intercompany balances for each of the
periods presented except to the extent collected.
(2) The estimated tax effect of the distribution and its impact on HCC's
consolidated net deferred tax asset has been reflected in the accompanying pro
forma balance sheet at September 30, 1996.
(3) As a result of the distribution, certain advantageous state tax elections
are no longer available. An adjustment has been reflected in the accompanying
pro forma consolidated statements of operations to reflect the estimated
additional tax provision for each of the nine months ended September 30, 1996
and the year ended December 31, 1995.
6
<PAGE>
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 hereunto duly authorized.
HOLLYWOOD CASINO CORPORATION
----------------------------
Registrant
Date January 14, 1997 /s/ John C. Hull
---------------- ----------------------------
John C. Hull
Corporate Controller and
Principal Accounting Officer
7
