=======================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1997
--------------
[ ] 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 0-20712
CASINO MAGIC CORP.
------------------------
(Exact name of registrant as specified in its charter)
MINNESOTA 64-0817483
----------------- ----------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
711 CASINO MAGIC DRIVE, BAY ST. LOUIS, MS 39520
-------------------------------------------------
(Address of principal executive offices) (Zip Code)
(601) 467-9257
------------------
(Registrant's telephone number, including area code)
NOT APPLICABLE
------------------
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Sections 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 the number of shares outstanding of the issuer's classes of common
stock, as of the latest practicable date.
35,637,083 shares common stock outstanding as of May 14, 1997.
========================================================================
<PAGE>
CASINO MAGIC CORP. AND SUBSIDIARIES
INDEX
PART I FINANCIAL INFORMATION PAGE NO.
Item 1. Financial Statements.
Condensed Consolidated Statements of Operations -
For the three months ended
March 31, 1997 and 1996........................ 1-2
Condensed Consolidated Balance Sheets -
March 31, 1997 and December 31, 1996........... 3
Condensed Consolidated Statements of Cash Flows -
For the three months ended
March 31, 1997 and 1996........................ 4
Notes to Condensed Consolidated Financial Statements 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations............... 6-11
PART II OTHER INFORMATION
Item 1. Legal Proceedings................................. 12
Item 2. Changes in Securities............................. 12
Item 3. Default Upon Senior Securities.................... 12
Item 4. Submission of Matters to a Vote of Security Holders..12
Item 5. Other Information................................. 12
Item 6. Exhibits and Reports on Form 8-K.................. 12
SIGNATURES........................................ 13
<PAGE>
CASINO MAGIC CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
PART I - FINANCIAL INFORMATION
Three months ended
March 31,
-------------------------
1997 1996
----------- -----------
REVENUES:
Casino $ 61,673,683 $39,759,682
Food and beverage 2,507,043 1,551,836
Rooms 547,431 437,683
Royalty and management fees -- 924,528
Other operating income 1,052,721 450,838
----------- -----------
65,780,878 43,124,567
----------- -----------
COSTS AND EXPENSES:
Casino 26,535,455 16,392,180
Food and beverage 4,889,882 2,289,047
Rooms 426,247 418,219
Other operating costs and expenses 1,173,317 472,990
Advertising and marketing 13,154,697 4,818,083
General and administrative 7,317,546 5,415,591
Property operation, maintenance and
energy cost 3,010,008 1,544,054
Rents, property taxes and insurance 1,954,642 1,461,782
Development expenses 282,289 500,261
Depreciation and amortization 5,039,654 4,247,227
---------- ----------
63,783,737 37,559,434
---------- -----------
INCOME FROM OPERATIONS 1,997,141 5,565,133
---------- -----------
OTHER (INCOME) EXPENSE:
Equity income from unconsolidated
casino operations -- (663,095)
Interest expense, net 7,505,465 3,820,515
Other 98,387 55,750
----------- ----------
7,603,852 3,213,170
--------- -----------
INCOME BEFORE INCOME TAXES: (5,606,711) 2,351,963
INCOME TAXES Expense (benefit) (1,935,000) 708,289
------------ ----------
NET INCOME (loss) $ (3,671,711) $ 1,643,674
=========== ==========
See notes to condensed consolidated financial statements.
1
<PAGE>
CASINO MAGIC CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (continued)
(Unaudited)
Three months ended
March 31,
1997 1996
------------ -------------
NET INCOME (loss) PER COMMON SHARE:
Primary $ (0.10) $ .05
=========== ===========
Fully-diluted $ (0.10) $ .05
=========== ===========
Average shares and equivalents outstanding:
Primary 35,637,083 36,181,329
=========== ===========
Fully-diluted 35,637,083 36,414,089
=========== ===========
See notes to condensed consolidated financial statements.
2
<PAGE>
CASINO MAGIC CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
March 31, December 31,
1997 1996(*)
----------- -----------
(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents including
restricted cash of $2,848,076 and
$16,984,654, respectively $20,185,739 $ 34,546,166
Other current assets 14,125,293 7,410,331
----------- -----------
Total current assets 34,311,032 41,956,497
----------- -----------
PROPERTY AND EQUIPMENT, NET 247,982,406 243,692,571
----------- -----------
OTHER LONG-TERM ASSETS 77,971,671 84,952,623
----------- -----------
$360,265,109 $370,601,691
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES 39,711,668 48,448,985
----------- -----------
OTHER LONG-TERM LIABILITIES 266,760 266,761
---------- -----------
LONG-TERM DEBT, NET OF CURRENT MATURITIES 260,046,522 258,261,231
----------- -----------
SHAREHOLDERS' EQUITY:
Common stock, $0.01 par, 50,000,000 shares
authorized, 35,637,083 issued and
outstanding at March 31, 1997 and outstanding
at December 31, 1996 356,371 356,371
Undesignated stock, 2,500,000 shares
authorized, none issued -- --
Additional paid-in capital 67,123,702 67,123,702
Retained deficit (6,184,773) (2,513,062)
Unrealized holding loss on securities (620,156) (850,156)
Less unearned compensation (434,985) (492,141)
----------- -----------
Total shareholders' equity 60,240,159 63,624,714
----------- -----------
$360,265,109 $370,601,691
=========== ===========
* Derived from audited financial statements
See notes to condensed consolidated financial statements.
3
<PAGE>
CASINO MAGIC CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three months ended
March 31,
-------------------------
1997 1996
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $(3,671,711) $ 1,643,674
Adjustments for non-cash charges 7,984,066 3,922,188
Changes in assets and liabilities (6,923,953) (654,469)
----------- -----------
Net cash provided by(used in) operating
activities (2,611,598) 4,911,393
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisitions of property and equipment (15,537,976) (4,289,339)
Other, net 2,816,685 (377,979)
----------- -----------
Net cash used in
investing activities (12,721,291) (4,667,318)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on notes payable
and long-term debt (5,259,870) (575,634)
Net proceeds from issuance of long-term debt 6,350,000 --
Other, net (117,668) 1,431,313
----------- -----------
Net cash provided by financing activities 972,463 855,679
----------- -----------
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (14,360,427) 1,099,754
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 34,546,166 30,755,698
----------- -----------
CASH AND CASH EQUIVALENTS, END OF PERIOD $20,185,739 $31,855,452
============ ============
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the period for:
Interest (net of amount capitalized) $7,032,156 $ (115,391)
Income taxes (net of refunds) -- --
Supplemental schedule of non-cash investing and financing activities:
Property and equipment and other asset
acquisitions included in accounts and
construction payable and accrued expenses $3,959,982 $ 103,754
See notes to condensed consolidated financial statements.
4
<PAGE>
CASINO MAGIC CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Information with respect to the Three Months Ended
March 31, 1997 and 1996 is Unaudited)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
ORGANIZATION AND BASIS OF PRESENTATION:
The consolidated financial statements include the accounts of Casino Magic
Corp. and its wholly-owned subsidiaries ("the Company"). All significant
intercompany accounts and transactions have been eliminated. Investments in
unconsolidated affiliates are accounted for using the equity method of
accounting. The Company conducts casino gaming operations in Bay Saint Louis,
Mississippi, Biloxi, Mississippi, Bossier City, Louisiana and in the Argentina
Province of Neuquen in the cities of Neuquen City and San Martin de los Andes.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted.
The accompanying unaudited consolidated financial statements contain all
adjustments which are, in the opinion of management, necessary for a fair
statement of the results of the interim periods. The results of operations
for the interim periods are not indicative of results of operations for an
entire year. It is suggested that these consolidated financial statements be
read in conjunction with the consolidated financial statements and the notes
thereto included in the Company's Annual Report on Form 10-K for the year
ended December 31, 1996.
Certain reclassifications have been made to 1996 amounts to conform with the
March 31, 1997 presentation.
2. EARNINGS PER SHARE:
In February 1997, the Financial Accounting Standards Board issued Statement
No. 128 (FAS 128), "Earnings Per Share", which simplifies the computation of
earnings per share. FAS 128 is effective for financial statements issued for
periods ending after December 15, 1997 and requires restatement for all prior
period earnings per share data presented. Basic earnings per share and
diluted earnings per share calculated in accordance with FAS 128 would remain
unchanged at $(0.10) per share for the first quarter of 1997 and $0.05 per
share for the first quarter of 1996.
5
<PAGE>
CASINO MAGIC CORP. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The discussions regarding proposed Company developments and operations
included in "MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS" contain forward looking statements that involve a
number of risks and uncertainties. These proposed developments and operations
include: (i) completion of a hotel in 1998, at Casino Magic-Biloxi and (ii)
the Company's ability to fund planned developments and debt service
obligations over the next twelve months with currently available cash and
marketable securities, and with cash flow from operations. In addition to the
risks and uncertainties discussed below, other factors that could cause actual
results to differ materially are detailed from time to time in the Company's
reports filed with the Securities and Exchange Commission, including without
limitation in Note 1 of Notes to the Consolidated Financial Statements filed
with the Annual Report on Form 10-K for Casino Magic Corp. for the year ended
December 31, 1996.
RESULTS OF OPERATIONS
The following table sets forth for the periods indicated certain operating
information for the Company on a consolidated basis and for its existing
properties. The principal operating entities are Mardi Gras Casino Corp.
("Casino Magic-BSL") and Biloxi Casino Corp. ("Casino Magic-Biloxi") both
dockside casinos operating on the Gulf Coast of Mississippi (together referred
to collectively as the "Casino Magic-Gulf Coast"), Casino Magic of Louisiana,
Corp. ("Casino Magic-Bossier City") and Casino Magic-Neuquen SA, which
operates gaming facilities at two casino sites in Neuquen and San Martin de
los Andes, Argentina. The Company also owned a 49% interest in Porto Carras
Casino S.A. ("Porto Carras") which managed a casino at the Porto Carras resort
approximately 60 miles south of Thesseloniki, Greece. The Company sold all
interest in Porto Carras in December 1996.
6
<PAGE>
CASINO MAGIC CORP. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)
Quarter ended March 31,
(Dollars in Thousands)
-------------------------
1997 1996
----------- -----------
Revenues:
Casino Magic-BSL (1)....................... $ 22,066 $ 21,044
Casino Magic-Biloxi (2).................... 16,092 16,833
Casino Magic Bossier City (3).............. 23,206 --
Casino Magic-Neuquen (4)................... 4,415 3,944
Corporate and Other (5).................... -- 1,304
-------- ----------
Total revenues........................... 65,779 43,125
Costs and expenses:
Casino Magic-BSL........................... 18,248 16,234
Casino Magic-Biloxi........................ 14,711 14,133
Casino Magic Bossier City.................. 25,305 --
Casino Magic-Neuquen....................... 3,083 3,183
Corporate and Other........................ 2,435 4,009
--------- ----------
Total costs and expenses................. 63,782 37,559
EBITDA:
Casino Magic-BSL........................... 5,372 6,266
Casino Magic-Biloxi........................ 2,833 4,123
Casino Magic Bossier City.................. (740) --
Casino Magic-Neuquen....................... 1,642 1,058
Corporate and Other........................ (2,072) (1,634)
-------- ---------
Total EBITDA............................. 7,035 9,813
Income (loss) from operations:
Casino Magic-BSL........................... 3,818 4,810
Casino Magic-Biloxi........................ 1,381 2,700
Casino Magic Bossier City.................. (2,099) --
Casino Magic-Neuquen....................... 1,332 761
Corporate and Other........................ (2,435) (2,706)
--------- ----------
Total income from operations............. 1,997 $ 5,565
=========== ==========
7
<PAGE>
CASINO MAGIC CORP. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)
(1) Began operations September 30, 1992; expanded casino capacity
December 31, 1992.
(2) Began operations June 5, 1993; expanded casino capacity
December 16, 1993.
(3) Began operations October 4, 1996; opened permanent facility on
December 31, 1996.
(4) Began operations on January 1, 1995.
(5) Includes management fees and royalty fees from Porto Carras which
began operations May 18, 1995. Equity in earnings with respect to
Porto Carras is reported as non-operating income. The Company
ceased recording management fees and royalty fees from Porto
Carras on October 1, 1996.
Three months ended March 31, 1997 compared to three months ended March 31,
1996.
Consolidated revenues increased $22.7 million, or 52.5%, to $65.8 in 1997
compared to $43.1 in 1996. The increase in consolidated revenues is
attributable to $23.2 million in revenues from the Company's new facility,
Casino Magic-Bossier City, which opened in late 1996, increased revenues at
Casino Magic-BSL of $1.0 million or 4.7%, increased revenues of $0.5 million
or 12.0% at Casino Magic-Neuquen, with offsetting declines in revenue at
Casino Magic-Biloxi of $0.7 million, the loss of $0.4 in revenues from
Goldiggers due to its sale in June 1996 and the loss of $1.0 million in
royalties and management fees due to the divesting of all Company operations
in Greece during 1996, where all royalties and management fee revenues were
generated. Casino Magic-Biloxi's revenues decline is primarily the result of
competing hotel/casino operations on both sides of the Casino Magic-Biloxi
with significantly greater amenities than Casino Magic-Biloxi. Competitive
pressures will likely continue to effect Casino Magic-Biloxi revenues and
operating margins until such time as the hotel currently under construction is
completed. Completion of the hotel at Casino Magic-Biloxi is expected in
1998. Additionally, Casino Magic-Biloxi will continue to experience reduced
revenues in 1997 during the construction of the hotel due to inconveniences to
the customer to enter the casino during the construction phase of the casino
and hotel entrance and lobby areas. Management believes that the hotel
currently under construction at Casino Magic-Biloxi will help offset or
reverse these declines in revenues at Casino Magic-Biloxi.
Operating costs and expenses increased $26.2 million or 70.0% to $63.8 million
in the first quarter of 1997. Of this increase $25.3 million is related to
the Company's new facility, Casino Magic-Bossier City, which opened in late
1996, the remainder of the increase is the result of various fluctuations in
operating costs and expenses, both increases and decreases, at various gaming
facilities owned by the Company and the Company's corporate office. Excluding
8
<PAGE>
CASINO MAGIC CORP. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)
the effects of Casino Magic-Bossier City, operating costs and expenses
increased $0.9 million or 2.5% from 1996 to 1997. These increases were the
direct result of increased marketing, advertising and promotional efforts at
both properties on the Gulf Coast. Additionally, increased costs were
incurred as a result of the opening of a golf course at Casino Magic-BSL in
February 1997.
Earnings before income taxes, depreciation and amortization (EBITDA) decreased
$2.8 million or 39.4% in the first quarter of 1997 as compared to the same
period in 1996. The first quarter 1996 results include revenues of $1.3
million and EBITDA of $0.8 million from operations in South Dakota and Greece
which were sold during 1996. The remaining declines in EBITDA in the first
quarter of 1997 as compared to the first quarter of 1996 are the result of the
following: (i) a negative EBITDA contribution of $0.7 million from Casino
Magic-Bossier City due to lower than expected revenues and high marketing and
promotional expenditures as well as a level of overall expenses consistent
with operating a property at higher revenue levels; (ii) a decrease in EBITDA
at Casino Magic-BSL to $5.4 million from $6.3 million, primarily as a result
of increased costs in marketing and advertising expense, and maintenance costs
associated with the new golf course which opened in February 1997; and (iii) a
decrease in EBITDA at Casino Magic-Biloxi to $2.8 million compared with $4.1
million during the same period in 1996, which was primarily the result of
increased marketing and advertising costs of $0.9 million. EBITDA at Casino
Magic-Neuquen increased $0.6 million in the first quarter of 1997 as compared
to the first quarter of 1996. This increase is the result of increases in
slot machine revenues. Casino Magic-Neuquen has continued to grow the slot
machine player base and American style gaming continues to attract more
customers.
Income from operations decreased $3.6 million to $2.0 million in the first
quarter of 1997 compared to $5.6 million in the same period in 1996. In
addition to the items describing the fluctuations in EBITDA, depreciation and
amortization increased $0.8 million as the result of the Company's new gaming
facility in Casino Magic-Bossier City.
Other (income) expense (non-operating income and expense) increased $4.4
million over the comparative quarters. Approximately $3.7 million of this
increase is the result of the addition of the $115 million in first mortgage
notes in August 1996 related to the development of Casino Magic-Bossier City.
The remainder of the increase is due to the loss of income from an
unconsolidated subsidiary, Porto Carras Casino S.A., which was sold in
December 1996.
The Company had a net loss of $3.7 million, or $0.10 per share in the current
year first quarter compared to net income of $1.6 million, or $0.05 per share
in the first quarter of the preceding year. The majority of this decline in
9
<PAGE>
CASINO MAGIC CORP. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued):
net income between the periods is due to the increase in interest expense of
$3.7 million and the lack of contribution to operating income from the
Company's new gaming facility in Casino Magic-Bossier City.
Liquidity and Capital Resources
At March 31, 1997, the Company had unrestricted cash and marketable securities
of $17.3 million compared to unrestricted cash and marketable securities of
$17.6 million at December 31, 1996. In addition, the Company had $2.8 million
in restricted cash relating to the $115,000,000 First Mortgage Notes
("Louisiana First Mortgage Notes") issued to fund the construction of Casino
Magic-Bossier City. For the quarter ended March 31, 1997, the Company
expended $2.6 million of cash flow from operating activities and received $6.4
million of proceeds from the incurrence of long term debt. The Company spent
$15.6 million for the acquisitions of property, equipment and other long-term
assets, and reduced long term debt by $5.2 million.
The Company expended approximately $8.1 million in capital improvements at its
Gulf Coast properties and $7.0 million in capital expenditures at Casino
Magic-Bossier City during the first quarter of 1997. The Company plans
additional investments in 1997 at its Gulf Coast properties and Casino
Magic-Bossier City, much of which is subject to the cash flows of the Company
or the availability of financing. There are no assurances that adequate
funding will be available for these planned investments.
The Company opened Casino Magic-Bossier City on October 4, 1996, using a
temporary boarding facility, and on December 31, 1996, opened the permanent
facility. The Company's plans for the development of Casino Magic-Bossier
City are divided into two phases. The first phase (which was completed on
December 31, 1996) includes a 30,000 square foot floating dockside casino
space, with 986 slots and 44 table games; a 37,000 square foot entertainment
and food and beverage pavilion, with 1,550 covered parking spaces and surface
parking spaces for 400 cars. The second phase plans include the construction
of a 60,000 square foot entertainment facility and a 400-room convention hotel
and related amenities, including restaurants, banquet space, a theater, a
swimming pool, a health club and a child-care facility. The development and
construction of the second phase improvements are largely dependent upon
receipt of proceeds from a future sale of the Crescent City Queen (a gaming
riverboat owned by Casino Magic-Bossier City) and future operating cash flow
of Casino Magic-Bossier City. it is unlikely that the second phase will be
undertaken in the near future, and no assurances can be given that funds for
such development will become available or that such hotel and related
facilities will ever be developed.
10
<PAGE>
CASINO MAGIC CORP. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued):
As of May 1997, Casino Magic-Bossier City had complied with all aspects of the
Cash Collateral and Disbursement Agreement (as defined in the indenture
concerning the $115,000,000 First Mortgage Notes used for the development of
Casino Magic-Bossier City) and all restricted cash has been released.
The Company is currently constructing a hotel tower at Casino Magic-Biloxi
atop of the eight-story parking garage adjacent to the casino. The hotel will
consist of approximately 378 rooms, including approximately 86 suites and will
include standard amenities such as a swimming pool and modest conference
space. The hotel structure, when completed, is expected to be one of the
tallest buildings in Biloxi. Construction on the hotel commenced in December
1996, and completion is estimated for 1998. However, the hotel construction
costs are being funded solely out of the cash flow of Casino Magic-BSL and
Casino Magic-Biloxi, and the current lack of cash flow may deny or prevent
completion at the hotel as planned.
In February 1997, the Company engaged an investment banking firm to assist the
Company in exploring alternatives of a merger, joint venture or strategic
alliance with a third party to assist the Company in the future development of
the Company's gaming facilities.
Under the terms of the Indenture associated with the $135,000,000 First
Mortgage Notes, Casino Magic Corp., Mardi Gras Casino Corp., Biloxi Casino
Corp. and Casino Magic Finance Corp. have certain restrictions relative to
additional borrowings and guarantees. Jefferson Corp and Louisiana Corp. have
certain restrictions relative to additional borrowings and cash flow under the
terms of the Louisiana Indenture associated with the Louisiana First Mortgage
Notes.
The Company will have a significant need for cash in 1997 and beyond in order
to continue its planned pursuit of gaming opportunities and the continued
development of its existing properties. The Company believes that cash and
marketable securities at March 31, 1997, together with cash flows from
operations and an anticipated tax refund of approximately $6,000,000 will be
sufficient to service its operating and debt service requirements through at
least the next twelve months, but may not be sufficient to fund the planned
1997 construction activities relating to the Casino Magic-Biloxi hotel, and
are not sufficient to engage in any other development activities without
additional debt or equity financing.
11
<PAGE>
CASINO MAGIC CORP. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued):
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Reference is made to the Company's Annual Report on Form 10-K for the
year ended December 31, 1996 on file with the Securities and Exchange
Commission. During the quarter ended March 31, 1997, the Company was not a
party to any newly instituted legal proceedings and there have been no
material developments during such period to existing legal proceedings.
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:
None.
12
<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 thereunto duly authorized.
CASINO MAGIC CORP.
Registrant
Date: May 14, 1997 /s/ JAMES E. ERNST
---------------- --------------------------------------
James E. Ernst, President
and Chief Executive Officer
Date: May 14, 1997 /s/ JAY S. OSMAN
---------------- --------------------------------------
Jay S. Osman, Chief Financial Officer
and Treasurer (principal financial
and accounting officer)
13
<PAGE>
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<PERIOD-END> MAR-31-1997
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<COMMON> 356371
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