<PAGE>
UNITED STATES
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
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 0-21732
PRIMADONNA RESORTS, INC.
(Exact name of registrant as specified in its charter)
Nevada 88-0297563
(State or other jurisdiction of (IRS employer identification
incorporation or organization) number)
P.O. Box 95997 , Las Vegas, Nevada 89193-5997
(address of principal executive offices)
(702) 382 - 1212
(Registrant's telephone number, including area code)
__________________________________________________
(Former name, former address and former fiscal year,
if change since last report)
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 (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 each of the issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding at April 30, 1997
Common Stock, $.01 par value 29,263,900 Shares
Total No. of Pages 17 Exhibit Index on page 16
1
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PRIMADONNA RESORTS, INC. AND SUBSIDIARIES
Form 10 - Q
INDEX
Page No.
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements:
Consolidated Balance Sheets at March 31, 1997
(Unaudited) and December 31, 1996..................... 3 - 4
Consolidated Statements of Income (Unaudited) for the
Three Months Ended March 31, 1997 and 1996............ 5
Consolidated Statements of Cash Flows (Unaudited) for
the Three Months Ended March 31, 1997 and 1996........ 6 - 7
Notes to Consolidated Financial Statements (Unaudited)... 8 - 11
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations................... 12 - 15
Part II. OTHER INFORMATION 15
2
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PRIMADONNA RESORTS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
(Amounts in Thousands)
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
_________ ___________
(Unaudited)
<S>
<C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 9,855 $ 10,027
Accounts and notes receivable 1,212 1,170
Income tax refund receivable - 221
Inventories 2,491 2,713
Prepaid expenses and other 5,134 5,790
________ ________
Total current assets 18,692 19,921
________ ________
PROPERTY AND EQUIPMENT:
Buildings and improvements 187,881 187,756
Land improvements 91,983 90,950
Furniture, fixtures and equipment 130,941 130,169
________ ________
410,805 408,875
Less: accumulated depreciation
and amortization (123,092) (116,183)
________ ________
287,713 292,692
Land 4,274 4,274
Construction in progress 9,525 3,949
________ ________
301,512 300,915
________ ________
INVESTMENT IN JOINT VENTURE 87,759 68,593
________ _______
NOTES RECEIVABLE, net of current portion 2,934 2,926
________ ________
OTHER ASSETS 7,843 7,616
________ ________
$418,740 $399,971
======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
PRIMADONNA RESORTS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY
(Amounts in Thousands Except Share Data)
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
_________ __________
(Unaudited)
<S>
<C> <C>
CURRENT LIABILITIES:
Accounts payable-trade $ 6,775 $ 5,599
Accrued expenses 14,291 10,684
Current portion of long-term debt 1,500 1,100
________ ________
Total current liabilities 22,566 17,383
________ ________
LONG-TERM DEBT 174,500 168,200
________ ________
DEFERRED INCOME TAXES PAYABLE 14,109 13,370
________ ________
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par value;
10,000,000 shares authorized; no
shares issued and outstanding
Common stock, $.01 par value;
100,000,000 shares authorized;
29,816,800 and 30,002,975 shares
issued and outstanding in 1997
and 1996, respectively 308 308
Additional paid - in capital 128,376 128,236
Retained earnings 95,878 85,767
Less: treasury stock, at cost (16,997) (13,293)
________ ________
207,565 201,018
________ ________
$418,740 $399,971
======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
PRIMADONNA RESORTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in Thousands Except Share Data)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
____________________________
1997 1996
_________ ___________
(Unaudited)
<S>
<C> <C>
REVENUES:
Casino $ 40,524 $ 43,123
Food and beverage 7,070 7,372
Hotel 5,130 5,677
Entertainment 2,415 2,509
Service station 3,741 3,188
Other 1,586 1,770
Operating income from New York-New York 14,631 -
________ ________
75,097 63,639
Less: promotional allowances (3,601) (3,795)
________ ________
Net revenues 71,496 59,844
________ ________
COSTS AND EXPENSES:
Casino 13,028 13,366
Food and beverage 6,192 6,608
Hotel 2,681 2,666
Entertainment 1,474 1,237
Service station 3,466 3,028
Other 711 693
Selling, general and administrative 11,194 10,543
Property costs 4,300 4,326
Depreciation and amortization 7,161 6,722
________ ________
50,207 49,189
________ ________
Income from operations 21,289 10,655
OTHER INCOME (EXPENSE)
Interest expense, net (3,074) (1,496)
Interest expense, net from New York-New York (2,465) -
________ ________
Income before taxes 15,750 9,159
INCOME TAXES:
Income tax provision 5,639 3,241
________ ________
NET INCOME: $ 10,111 $ 5,918
======== ========
Earnings per share $0.34 $0.19
======== ========
Weighted average number of shares of
common stock outstanding 30,090,364 30,596,040
========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
PRIMADONNA RESORTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in Thousands)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
____________________________
1997 1996
_________ __________
(Unaudited)
<S>
<C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 10,111 $ 5,918
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 7,161 6,722
Amortization of debt issuance costs 92 106
Equity income from New York-New York (12,166) -
Increase in life insurance cash
surrender value (57) (122)
Gain on sale of assets (78) (239)
Deferred income taxes 742 350
Change in current assets and liabilities
due to operating activities:
(Increase) decrease in accounts and
notes receivable (42) 514
Decrease in income tax refund receivable 221 994
Decrease in inventories 222 156
Decrease in prepaid
expenses and other 652 223
Decrease (increase) in accounts
payable-trade 1,176 (1,165)
Increase in accrued expenses 3,607 1,765
________ ________
Total adjustments 1,530 9,304
________ ________
Net cash provided by operating activities 11,641 15,222
________ ________
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (7,771) (10,417)
Investment in joint venture (7,000) (1,022)
Increase in other assets (338) (212)
Proceeds from disposal of other assets 160 231
________ ________
Net cash used in investing activities (14,949) (11,420)
________ ________
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
PRIMADONNA RESORTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in Thousands)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
____________________________
1997 1996
_________ __________
(Unaudited)
<S>
<C> <C>
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of common stock $ 140 $ 366
Purchase of treasury stock (3,704) (3,886)
Proceeds from issuance of long-term debt 33,800 1,900
Principal payments of long-term debt (27,100) (2,900)
________ ________
Net cash provided by (used in)
financing activities 3,136 (4,520)
________ ________
Net decrease in cash and
cash equivalents (172) (718)
Cash and cash equivalents, beginning of year 10,027 9,148
________ ________
Cash and cash equivalents, end of period $ 9,855 $ 8,430
======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
PRIMADONNA RESORTS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. Organizational Structure and Basis of Presentation
The consolidated financial statements of Primadonna Resorts, Inc., a Nevada
corporation, include the accounts of its wholly-owned subsidiaries, The
Primadonna Corporation, PRMA Land Development Company, and PRMA Las Vegas, Inc.
(collectively the "Company"). The Company owns and operates three hotel-
resort/casinos; Whiskey Pete's Hotel & Casino ("Whiskey Pete's"), Primadonna
Resort & Casino ("Primadonna"), and Buffalo Bill's Resort & Casino ("Buffalo
Bill's"). The Company owns and operates the Primm Valley Golf Club in
California, and has a 50% investment in a joint venture with MGM Grand, Inc.,
which owns and operates the NEW YORK-NEW YORK Hotel & Casino
("NEW YORK-NEW YORK"). Investments in unconsolidated affiliates which are 50%
or less owned are accounted for under the equity method.
Information as of December 31, 1996 included in the accompanying consolidated
financial statements and the notes thereto, has been audited. Information with
respect to the three month periods ended March 31, 1997 and 1996, included in
these consolidated financial statements and notes thereto, is unaudited. These
unaudited consolidated financial statements have been prepared in accordance
with the rules and regulations of the Securities and Exchange Commission, and
do not contain all of the information and disclosures required by generally
accepted accounting principles. However, the accompanying unaudited
consolidated financial statements do contain all adjustments which, in the
opinion of management, are necessary to fairly present the financial position
and results of operations for the three month periods presented. Interim
results are not necessarily indicative of results to be expected for any future
interim period or for the entire fiscal year.
The accompanying consolidated financial statements should be read in
conjunction with the financial statements and notes thereto included in the
Company's Annual Report on Form 10-K for the year ended December 31, 1996.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets, liabilities, revenues and expenses.
Actual results may differ from those estimates. Significant intercompany and
interdivision accounts and transactions have been eliminated.
8
<PAGE>
2. Statements of Cash Flows
The following supplemental disclosures are provided as part of the
accompanying consolidated statements of cash flows:
<TABLE>
<CAPTION>
Three Months Ended
March 31,
________________________
1997 1996
_____ _____
(In thousands)
<S>
<C> <C>
Cash payments made for interest
(net of amounts capitalized) $ 3,061 $ 1,580
======== ========
Cash payments made for income taxes - -
======== ========
</TABLE>
3. Investment in Joint Venture
On December 28, 1994 the Company and MGM Grand, Inc.("MGM"), formed a joint
venture to own and operate the NEW YORK-NEW YORK Hotel & Casino. The hotel/
casino opened on January 3, 1997. The Company holds a 50% interest in the joint
venture. The Company has contributed cash of $69.5 million and certain rights
to the New York theme acquired from a third party licensor. MGM has contributed
land (valued at $41.2 million) on which the property is located and cash of
$29.5 million. The joint venture has secured limited recourse bank financing of
$285 million, and term loan financing of $20 million. The joint venture
partners have executed Keep-Well Agreements in conjunction with the financing.
Summary condensed financial information for the joint venture is as follows:
<TABLE>
<CAPTION>
Three Months Ended
March 31,
1997
_____
(In thousands)
<S>
<C>
Net Revenues $ 67,868
Operating income 29,261
Interest expense, net 4,930
Net income 24,331
Total assets $479,202
Long-term debt 297,535
Member equity 149,994
</TABLE>
4. Long-Term Debt
As of March 31, 1997, the Company had an outstanding balance of $174,500,000,
and at December 31, 1996, $167,800,000, on its Reducing Revolving Bank Credit
Agreement ("Agreement"). The Agreement entered into on December 28, 1993, was
amended and restated on July 17, 1995, and amended on March 27, 1996. The
Agreement provides for a maximum principal balance of $250,000,000, with
scheduled reductions that reduce the maximum permitted balance to $212,500,000
9
<PAGE>
as of August 18, 1997, $175,000,000 as of February 18, 1999, $125,000,000 as of
February 18, 2000, with the remaining principal balance due July 18, 2000.
The Agreement provides for interest payments at least quarterly, at the prime
rate or LIBOR, plus a sliding margin, based upon the Company's debt to earnings
before interest, taxes, depreciation and amortization ("EBITDA") ratio. The
margin, effective April 1, 1996, for the prime rate ranges between 0% and 1.0%,
while the margin for LIBOR ranges between 1.0% and 2.0%. The weighted average
interest rate at March 31, 1997 was 8.3%, and at December 31, 1996, 7.8%.
The Company incurs commitment fees of .35% to .5% for the unused portion of the
Agreement, depending upon the debt to EBITDA ratio achieved by the Company.
The obligation is secured by all real property, leasehold interests in real
property, and personal property of the Company. The Agreement contains certain
restrictive covenants relating to the use of proceeds, sale or transfer of
assets, the incurrence of additional debt over a specified level, capital
expenditures, maintenance of certain minimum financial ratios, and a minimum
tangible net worth.
The Company incurred a liability in connection with the acquisition of the
NEW YORK-NEW YORK theme rights of $1,100,000, due January 6, 1997, and
$400,000 due January 7, 1998. At March 31, 1997, the $1,500,000 due for the
theme rights is reflected as a current obligation. In accordance with the terms
of the theme rights agreement, the payment of $1,100,000 is being withheld
pending resolution of outstanding disputes.
5. Earning Per Share
The Company is adopting Statement of Financial Accounting Standards ("SFAS")
No. 128- "Earnings per Share", effective for fiscal years ending after December
15, 1997. Pro forma earnings per share under SFAS No. 128 are as follows:
<TABLE>
<CAPTION>
Three Months Ended
March 31,
1997 1996
__________________________ __________________________
Income Shares Per-Share Income Shares Per-Share
Amount Amount
__________________________ __________________________
(Dollars in thousands, except per share amounts)
<S>
<C> <C> <C> <C> <C> <C>
Basic EPS
Income available to
common shareholders $10,111 29,946,866 $ .34 $ 5,918 30,572,340 $ .19
Effect of Dilutive Securities
Stock options 143,498 - 23,700 -
_______ ___________ ____ _______ _________ ______
Diluted EPS
Income available to
common shareholders and
assumed conversions $10,111 30,090,364 $ .34 $ 5,918 30,596,040 $ .19
======= ========== ===== ======= ========== =====
</TABLE>
Options to purchase 335,000 and 59,500 shares of common stock at March 31, 1997
and 1996, respectively at prices of $19.50-$31.25 and $16.38-$31.25,
10
<PAGE>
respectively, were outstanding during the period but not included in the
computation of diluted earnings per share because their exercise price was in
excess of the average market price of the common shares for the periods
presented. Subsequent to March 31, 1996, the Company has acquired an additional
566,000 shares of treasury stock.
6. Commitments and Contingencies
a. Southwest Investment
On January 16, 1995, the Company and Southwest Casino & Hotel Corp.
("Southwest") entered into an agreement to fund the construction of a casino
for the Kickapoo Traditional Tribe of Texas in Eagle Pass, Texas, which began
operation in August 1996. The Company has invested in Southwest in the form of
a $1.6 million Convertible Term Promissory Note, which has been fully reserved
including $252,000 of interest due. Additionally the Company has made a $2.2
million Demand Promissory Note to Southwest. At March 31, 1997 and 1996, the
amounts advanced, including accrued interest, were $2.4 million and $634,000,
respectively. Southwest has not made payments on the Demand Promissory Note
since December 1996. The Demand Promissory Note is secured by the management
contract on the Kickapoo gaming facility, a deed of trust, and a UCC-1
financing statement.
Southwest was required to post a letter of credit for $800,000 in favor
of the Kickapoo Tribe, which the Company posted on behalf of Southwest.
Southwest is reimbursing the Company for the costs incurred. At March 31, 1997
the balance under the letter of credit had been reduced to $480,000.
c. Litigation
Currently, there are lawsuits pending against the Company arising in the normal
course of business. In management's opinion, the ultimate outcome of these
matters will not have a material adverse effect on the results of operations or
the financial position of the Company.
11
<PAGE>
Item 2, Management's Discussion and Analysis of Financial Condition and Results
of Operations (Unaudited)
SUMMARY OF OPERATIONS
For the three months ended March 31, 1997, net revenues increased to $71.5
million, and operating income nearly doubled to $21.3 million. Net income
increased to $10.1 million or $.34 per share, compared to $5.9 million or $.19
per share in 1996. These increases were primarily attributable to the Company's
share of earnings from NEW YORK-NEW YORK.
January 3, 1997 marked the opening of the Company's 50% owned NEW YORK-NEW YORK
Hotel & Casino in Las Vegas. This opening, along with other new properties and
expansions in Las Vegas during 1996, has created supply pressures in the market
that is only beginning to be absorbed. Business levels at the Company's
properties at Primm were, among other things, impacted by the ongoing
construction at Primadonna and the monorail being shut down for improvements.
These projects disrupted the casino and restaurants, and impeded the flow of
customers between properties. The Company experienced decreased business levels
during the first quarter partially as a result of these pressures. Although the
Company was able to maintain occupancy levels by reducing room rates, the
number of bus patrons declined as did the traffic exiting the highway to visit
the Company's casinos.
REVENUES
Casino revenue declined $2.6 million primarily due to the reduced business
volumes and the weekend capacity constraints associated with the Primadonna
remodeling project. Slot revenue declined $1.9 million while table game revenue
declined $.7 million. Hotel revenue declined $.5 million although the number of
occupied rooms increased slightly. The revenue decrease was due to an
approximate 10% decrease in rates. Food and beverage revenue declined by $.3
million primarily as a result of the decline in overall business volume.
Entertainment revenue declined approximately $100,000 due to reduced levels of
business in the arcade and amusement rides ($100,000) and reduced revenue due
to a lighter headliner schedule in the Star of the Desert Arena ($110,000),
offset by $100,000 in revenue from the Primm Valley Golf Club which had a soft
opening on February 7, 1997. The Company's newest thrill ride, the Turbo Drop,
opened April 7, 1997.
Service station revenue increased $.6 million due primarily to a 9% increase in
volume coupled with a 7% increase in prices. Other revenue declined
approximately $200,000 primarily due to asset sales in the first quarter of
1996 that were not duplicated in 1997.
Operating income of $14.6 million from NEW YORK-NEW YORK is the Company's 50%
share of the pre-tax, pre-interest earnings of this property. NEW YORK-NEW YORK
generated $67.9 million of revenue and produced $35.1 million of EBITDA.
Occupancy levels at the property were 99.5% at an average room rate of
approximately $100 per night.
12
<PAGE>
COSTS AND EXPENSES
Casino costs decreased $.3 million primarily due to reduced gaming taxes and
payroll, both of which were attributable to the decreased revenue volume. Hotel
expenses were relatively unchanged from the prior year due to the number of
occupied rooms being comparable. Food and beverage costs declined by $.4
million, reflecting the decrease in business volume.
Entertainment costs increased approximately $250,000 primarily due to the added
expenses associated with the golf course ($500,000) offset by declines in
entertainer costs ($100,000) and increased promotional allowances which are
charged to casino costs ($150,000). The golf course expenses reflect a full
quarter of operations despite not being opened to the public until February 7,
1997.
Service station costs increased $.4 million, primarily due to the 9% increase
in volume coupled with a 5% increase in product cost.
Selling, general and administrative expenses increased $.6 million. This is
primarily due to an increase in advertising and marketing of $900,000 offset by
a decrease of $400,000 in bus programs.
Depreciation increased $400,000 due to $190,000 for the golf course and
$200,000 for the rooms refurbishment at Primadonna which was completed in 1996.
INTEREST EXPENSE
Interest expense, net, increased $4.0 million from $1.5 million in 1996 to $5.5
million in 1997. The increase is primarily due to the interest expense of NEW
YORK-NEW YORK which is the Company's share of the interest expense of the joint
venture. Also, interest capitalized on construction projects decreased to
$131,000 from $1.3 million in the prior year, primarily due to the completion
of NEW YORK-NEW YORK. Additionally, higher outstanding balances and increased
rates contributed to the increase.
INCOME TAXES
Income taxes increased to $5.6 million compared to $3.2 million in 1996. The
increase in taxes is due to higher earning before taxes. Tax rates were
substantially unchanged.
LIQUIDITY AND CAPITAL RESOURCES
The Company held cash and cash equivalents of $9.9 million as of March 31,
1997. Net cash provided by operations during the three months ended March 31,
1997 was $11.6 million as compared to $15.2 million in the prior year.
The Company funds its daily operations through cash flow from operations. The
Company borrows funds for significant capital expenditures and investments,
such as a portion of its equity investment in NEW YORK-NEW YORK, which can not
be fully funded out of operating cash flows.
The Company has a $250 million Reducing Revolving Credit Facility, amended and
restated July 1995, and amended March 1996. ("Agreement" see Note 4)
13
<PAGE>
In November 1996, the Board of Directors expanded the stock repurchase program
authorizing the Company to acquire up to $50.0 million worth of its outstanding
shares. The Company has acquired an aggregate of 1,595,500 shares at a cost of
$27.9 million as of April 30, 1997.
The Company is constructing a second golf course, and club house at the Primm
Valley Golf Club, with expected completion of the course by the end of 1997,
and the club house in mid-1997.
The Company is expanding and upgrading the Primadonna, soon to be renamed Primm
Valley Resort & Casino, to include an additional 15,000 square feet of casino
space and a 21,400 square foot conference center. The bars, restaurants and
buffet are being renovated to include design elements to reinforce the golf
theme. The conference center is expected to be completed in mid-1997, with the
balance of the public area renovation completed by the fall of 1997. By mid-
1998, the Primadonna casino will be expanded by another 15,000 square feet to
connect directly to the Fashion Outlets of Las Vegas, the highly themed,
upscale factory outlet mall discussed below.
In September 1995, the Company, announced that Sheldon Gordon and Randy Brant,
developers of the Forum shops at Caesar's Palace, along with the TrizecHahn
centers, intended to develop, in two phases, up to a one million square foot
themed shopping facility on 100 acres of land owned by Primm South Real Estate
Company and adjacent to the Primadonna Resort & Casino. The Company expects to
incur approximately $1.5 million for infrastructure costs to accommodate the
Fashion Outlets of Las Vegas development. The facility is to be built and
financed by the developers, with groundbreaking scheduled for May 15, 1997. The
first phase of approximately 600,000 square feet is expected to be completed by
the fall of 1998.
Southwest was required to post a letter of credit for $800,000 in favor
of the Kickapoo Tribe, which the Company posted on behalf of Southwest.
Southwest is reimbursing the Company for the costs incurred. At March 31, 1997
the balance under the letter of credit had been reduced to $480,000.
Capital expenditures for the three months ended March 31, 1997 were $14.8
million, as compared to $11.4 million for the three months ended March 31,
1996. Of the $14.8 million, $3.4 million was for the golf course, $7.0
million for the NEW YORK-NEW YORK investment, $2.4 million for the Primadonna
expansion and upgrade, $800,000 for the expanded and upgraded monorail, and
$1.2 million for the maintenance of existing facilities. For the balance of the
year, capital requirements are expected to include $18.6 million for the
Primadonna expansion and upgrade, $10.1 million for the second golf course,
$4.6 million for the monorail, and $8.8 million for the maintenance of existing
facilities.
The Company believes that its current cash flow, coupled with its reducing
revolving credit facility, provide the resources and flexibility to meet
existing obligations and to fund its commitments on the projects discussed
above. The Company continues to pursue other gaming opportunities, and if
successful in securing another location, depending upon the amount of funding
required, the Company may need to obtain additional bank or vendor financing,
or issue public or private debt or equity, or a combination thereof.
14
<PAGE>
FORWARD LOOKING INFORMATION
Information contained in this Form 10-Q contains "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995,
which can be identified by the use of forward-looking terminology such as
"believes", "intend", "may," "expect"," or "continue," or the negative thereof,
or other variations thereon, or comparable terminology. As with any
construction projects, the Primadonna expansion and upgrade, the golf course
and club house, and the outlet mall, involve many risks and uncertainties,
including but not limited to material and labor shortages, work stoppages,
design changes, and weather. Further, engineering, environmental, or geological
problems and governmental regulations and approvals could give rise to delays
or cost overruns. For additional factors which could cause forward looking
statements to be materially different than actual results, see "Business Risks"
section of Annual Report Form 10-K at December 31, 1996.
PART II. OTHER INFORMATION
Items 1 through 5. Are not applicable.
Item 6. Exhibits and Reports on Form 8 - K.
(a) Exhibits.
27. Financial Data Schedule as of March 31, 1997.
See exhibit index on page 16 for exhibits filed with this report
(b) Reports on Form 8 - K. No report of Form 8 - K was filed during the
quarter for which this report is filed.
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 under-
signed thereunto duly authorized.
PRIMADONNA RESORTS, INC.
________________________
(Registrant)
Date: May 13, 1997 By /s/Michael P. Shaunnessy
__________________________
Michael P. Shaunnessy
Chief Accounting Officer
15
<PAGE>
EXHIBIT INDEX
Exhibit Sequentially
No. Description Numbered
Pages
_______ ___________________________________________ ____________
27 Financial Data Schedule as of March 31, 1997 17
16
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM QUARTERLY
FORM 10-Q AS OF MARCH 31, 1997, AND ANNUAL REPORT FORM 10-K AS OF DECEMBER 31,
1996, CONSOLIDATED FINANCIAL STATEMENTS, AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
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