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 July 16, 1998
CASINO RESOURCE CORPORATION
Minnesota 0-22242 41-0950482
(State or other (Commission File Number) (IRS Employer
jurisdiction of incorporation) Identification No.)
707 Bienville Blvd, Ocean Springs, Mississippi 39564
(Address of Principal Executive Office)
Registrant's telephone number, including area code (601) 872-5558
<PAGE>
Item 7. Financial Statements
The Company completed the sale of the hospitality segment
(Grand Hinckley Inn) on June 29,1998.
The Company's unaudited pro forma condensed consolidated financial
statements give effect to the sale of the hospitality segment( Grand
Hinckley Inn) as if such transaction had occurred for balance sheet
and statement of operations purposes as of October 1, 1996. These
unaudited pro forma consolidated financial statements should be read in
conjunction with the Company's consolidated financial statements
and notes thereto as filed on Form 10-KSB for the fiscal year ended
September 30, 1997 and the Company's unaudited condensed consolidated
financial statements on Form 10-QSB for the quarter ended March 31, 1998
The pro forma information is not necessarily indicative of
the results that would have been reported had such event occurred
on the date specified nor is it indicative of the Company's future
results. The sale of the hospitality segment was reported as a
discontinued operation in the historical financial statements for the
quarter ended March 31, 1998.
Casino Resource Corporation
Unaudited Pro Forma Condensed Consolidated Balance Sheet
September 30,1997
(Dollars in thousands, except per share data)
Historical Adjustments Pro Forma
For
Disposition
ASSETS
CURRENT ASSETS
Cash and cash equivalents $3,097 $ 433 (2) $3,530
Accounts Receivable 531 (175)(1) 356
Inventory 298 ( 11)(1) 287
Prepaid Expenses 1,124 ( 35)(1) 1,089
--------- --------- ---------
Total Current Assets 5,050 212 5,262
--------- --------- ---------
Property and equipment-net 16,231 (5,071) 11,160
NONCURRENT ASSETS
Costs in excess of fair
value of assets acquired-net 551 551
Deferred development costs 1,230 1,230
Due from Related Parties 754 754
Notes receivable 221 221
Preopening Costs 1,501 1,501
Other 907 ( 22)(1) 885
--------- --------- ---------
TOTAL NONCURRENT ASSETS 5,164 ( 22) 5,142
--------- --------- ---------
$26,445 $(4,881) $21,564
========= =========
LIABILITIES AND STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts payable $1,125 $ (295)(1) $ 830
Accrued Expenses 1,221 (114)(1) 1,107
Line of credit and current
maturities of long-term debt 1,174 (280)(1) 894
-------- -------- --------
Total Current Liabilities 3,520 (689) 2,831
Long-term debt 13,159 (3,037)(2) 10,122
Other 179 179
-------- -------- --------
Total Liabilities 16,858 (3,726) 13,132
Minority interest in subsidiary
STOCKHOLDER's EQUITY
Common stock 97 97
Paid-in-capital 22,793 22,793
Deficit (13,303 (1,155) (14,458)
-------- -------- -------
Total Stockholder's equity 9,587 (1,155) 8,432
-------- -------- -------
$26,445 $(4,881) $21,564
======== =======
Casino Resource Corporation
Unaudited Pro Forma Condensed Consolidated Statement of Operations
Year Ended September 30, 1997
(Dollars in thousands except per share data)
Historical Adjustments Pro Forma
for
Disposition
REVENUE
Entertainment $11,734 $ $11,734
Hospitality 3,966 (3,966)(3) 0
-------- -------- --------
Total Revenue 15,700 (3,966) 11,734
COSTS AND EXPENSES
Operating Costs-Entertainment 9,246 9,246
Operating Costs-Hospitality 2,636 (2,636)(3) 0
General and administrative 2,056 2,056
Other income ( 156) 102 (3) ( 54)
Interest expense-net 1,021 ( 277)(4) 744
Loss on abandonment of
gaming projects-net 438 438
Allowance for impaired
receivable 791 791
-------- -------- --------
TOTAL COSTS AND EXPENSES 16,032 (2,811) 13,221
Income(loss)before
minority interest (332) (1,155) (1,487)
Minority interest in net loss
of consolidated subsidiary 341 341
------- ------- --------
Net income(loss) 9 (1,155) (1,146)
Net income(loss) per
common share $ 0.00 $ (0.11)
Weighted average number of
common shares outstanding 10,016 10,016
Casino Resource Corporation
Unaudited Pro Forma Condensed Consolidated Balance Sheet
March 31,1998
(Dollars in thousands, except per share data)
Historical Adjustments Pro Forma
For
Disposition
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 583 $( 2)(2) $ 581
Accounts Receivable 471 (104)(1) 367
Inventory 290 ( 9)(1) 281
Prepaid Expenses 847 ( 25)(1) 822
--------- --------- ---------
Total Current Assets 2,191 (140) 2,051
--------- --------- ---------
Property and equipment-net 16,574 (4,884)(1) 11,690
NONCURRENT ASSETS
Costs in excess of fair
value of assets acquired-net 551 551
Deferred development costs 1,232 1,232
Due from Related Parties 713 713
Notes receivable 232 232
Preopening costs & other 1,678 (16)(1) 1,662
--------- --------- ---------
TOTAL NONCURRENT ASSETS 4,406 (16) 4,390
--------- --------- ---------
$23,171 $(5,040) $18,131
========= ========= =========
LIABILITIES AND STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts payable $1,120 $(139) (1) $ 981
Accrued Expenses 1,718 (138) (1) 1,580
Line of credit and current
maturities of long-term debt 1,924 (395) (2) 1,529
-------- -------- --------
Total Current Liabilities 4,762 (672) 4,090
Long-term debt 12,026 (2,922)(2) 9,104
-------- -------- --------
Total Liabilities 16,788 (3,594) 13,194
Minority interest in subsidiary
STOCKHOLDER's EQUITY
Common stock 97 97
Paid-in-Capital 22,578 22,578
Deficit (16,292) (1,446) (17,738)
-------- -------- -------
Total Stockholder's equity 6,383 (1,446) 4,937
-------- -------- -------
$ 23,171 $(5,040) $18,131
======== =======
Casino Resource Corporation
Unaudited Pro Forma Statement of Operations
Six Months Ended March 31, 1998
(Dollars in thousands except per share data)
Historical Adjustments Pro Forma
for
Disposition
REVENUE
Entertainment $ 4,174 $ $ 4,174
Gaming 1,076 1,076
Hospitality 1,494 (1,494)(3) 0
-------- -------- --------
Total Revenue 6,744 (1,494) 5,250
COSTS AND EXPENSES
Operating Costs-Entertainment 4,053 4,053
Operating Costs-Gaming 2,772 2,772
Operating Costs-Hospitality 987 ( 987)(3) 0
General and administrative 1,484 1,484
Other expense-net 728 ( 216)(4) 512
-------- -------- --------
TOTAL COSTS AND EXPENSES 10,024 (1,203) 8,821
Loss before minority
interest (3,280) ( 291) (3,571)
Minority interest in net loss
of consolidated subsidiary
295 295
------- ------- --------
Net loss $ (2,985) $( 291) (3,276)
Net loss per
common share $ ( 0.30) $ (0.33)
Weighted average number of
common shares outstanding 9,847 9,847
Notes To Pro Forma Financial Statements
(1) Collection of asset balances and payment of outstanding
liabilities of Grand Hinckley Inn
(2) Proceeds from sale will be utilized to retire $3,317 in debt
with the remainder added to cash balances
(3) Elimination of revenue and operating expenses of Grand Hinckley
Inn
(4) Decrease in interest expense due to reduction of debt.
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.
CASINO RESOURCE CORPORATION
July 16, 1998
/s/ Maurice P. Gaudet
--------------------------------
Maurice P. Gaudet
Chief Financial Officer
