<PAGE>
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):
October 14, 1997 (October 13, 1997)
ANCHOR GAMING
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(Exact name of registrant as specified in its charter)
Nevada 000-23124 88-0304253
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(State or Other (Commission (IRS Employer
Jurisdiction of File Number) Identification No.)
Incorporation)
815 Pilot Road, Suite G, Las Vegas, Nevada 89119
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (702) 896-7568
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ITEM 5. OTHER EVENTS
On October 13, 1997, the Registrant released the press release attached hereto
as Exhibit 20.1, which press release is incorporated in its entirety herein by
reference. See "Index to Exhibits."
2
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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 hereto duly authorized.
Date: October 14, 1997
ANCHOR GAMING
By: /s/ Geoffrey A. Sage
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Name: Geoffrey A. Sage,
Corporate Controller and
principal accounting officer
3
<PAGE>
INDEX TO EXHIBITS
Sequentially
Description of Exhibit Numbered Page
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20.1 Press Release dated October 13, 1997 --
4
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Exhibit 20.1
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[LOGO]
FOR IMMEDIATE RELEASE FOR INFORMATION CONTACT
October 13, 1997 Michael D. Rumbolz, President &
Chief Operating Officer or
Geoffrey A. Sage, Corporate Controller
(702) 896-7568
ANCHOR GAMING REPORTS RECORD FIRST QUARTER RESULTS
LAS VEGAS, NEVADA - Anchor Gaming (NASDAQ-SLOT) today reported record revenues,
net income and earnings per share for the first quarter ended September 30,
1997, as shown in the following table. The results reflect the twenty-first
consecutive quarter in which revenue, net income and earnings per share
increased over the prior year.
For the quarter ended September 30, 1997, net income increased 103% to
$16,742,000, revenues increased 55% to $54,481,000 and earnings per share
increased 105% to $1.23. For the first quarter of the previous year net income
was $8,242,000, revenues were $35,176,000 and earnings per share was $.60.
The Company's cash balance at September 30, 1997 was approximately $70 million
in addition to an unused bank line of credit of $10 million. As of September
30, 1997, the Company had repurchased 514,000 shares of stock at a cost of
approximately $24 million under the Company's proviously announced repurchase
program.
Anchor Gaming is a diversified gaming company that capitalizes on its experience
as an operator and developer of gaming machines and casinos by developing gaming
oriented businesses. Anchor Gaming currently develops and distributes unique
proprietary games, operates two casinos in Colorado, and operates one of the
largest gaming machine routes in Nevada.
- More -
###
815 Pilot Road, Suite G, Las Vegas, Nevada 89119
Phone: (702) 896-7568 - Fax: (702) 896-6221
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ANCHOR GAMING
SUMMARY OF EARNINGS
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended
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September 30,
-------------
Percent
1997 1996 Increase
---- ---- --------
<S> <C> <C> <C>
Revenues $ 54,481,000 $ 35,176,00 55%
Net Income $ 16,742,000 $ 8,242,00 103%
Earnings Per Common and Common Equivalent Share $ 1.23 $.6 105%
Weighted Average Common and Common Equivalent
Shares Outstanding 13,636,000 13,737,000
</TABLE>
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ANCHOR GAMING QUARTERS ENDED SEPTEMBER 30,
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CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) 1997 1996
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Revenues:
Proprietary games operations $ 24,967,818 $ 9,212,611
Casino operations 20,046,846 17,586,357
Route operations 9,015,530 8,016,151
Other operations 451,044 360,713
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Total revenues 54,481,238 35,175,832
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Costs and expenses:
Proprietary games operations 3,236,193 3,074,148
Casino operations 8,108,391 6,939,265
Route operations 5,388,044 4,780,086
Other operations 420,543 396,399
Selling, general and administrative 8,417,631 6,287,428
Depreciation and amortization 2,860,772 1,481,016
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Total costs and expenses 28,431,574 22,958,342
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Income from operations 26,049,664 12,217,490
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Other income (expense):
Interest income 823,003 1,011,373
Interest expense (56,694) (97,107)
Other income 152,907 84,932
Minority interest in earnings of
consolidated subsidiary (182,055) (103,696)
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Total other income (expense) 737,161 895,502
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Income before provision for income taxes 26,786,825 13,112,992
Income tax provision (10,045,059) (4,871,396)
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Net income $ 16,741,776 $ 8,241,596
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Weighted average common and common equivalent
shares outstanding 13,636,263 13,737,290
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Earnings per common share and common
equivalent share $ 1.23 $ 0.60
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ANCHOR GAMING SEPTEMBER 30, JUNE 30,
CONSOLIDATED BALANCE SHEETS (UNAUDITED) 1997 1997
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ASSETS
Current assets:
Cash and cash equivalents $ 69,958,080 $ 66,427,369
Accounts receivable 7,084,987 6,358,052
Inventory 2,091,145 3,196,918
Prepaid expenses 1,615,955 1,835,913
Other current assets 472,464 445,799
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Total current assets 81,222,631 78,264,051
Property and equipment, net 89,864,854 85,033,436
Long-term notes receivable, net 1,606,280 1,543,159
Intangible assets, net 2,075,479 2,128,306
Investments in unconsolidated affiliates 18,207,361 7,570,712
Other long-term assets 14,698,319 14,336,705
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Total assets $ 207,674,924 $ 188,876,369
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liablilities:
Accounts payable 4,619,381 2,663,156
Accured salaries, wages and vacation pay 3,446,518 2,712,764
Income tax payable 7,567,641 2,138,934
Other current liabilites 7,495,172 6,103,394
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Total current liabilities 23,128,712 13,618,248
Long-term notes payable, related parties 2,800,000 2,800,000
Other long-term liabilities 107,766 143,691
Minority interest in consolidated subsidiary 1,094,481 983,562
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Total liabilities and minority interest in
consolidated subsidiary 27,130,959 17,545,501
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Stockholders' equity:
Preferred stock, $.01 par value, 1,000,000
shares authorized; 0 issued and outstanding
at September 30, 1997 and June 30, 1997
Common stock, $.01 par value, 50,000,000
shares authorized; 13,662,850 issued and
12,958,107 outstanding at September 30, 1997,
13,579,575 issued and 13,052,807 outstanding
at June 30, 1997 136,628 135,796
Additional paid-in capital 110,144,609 107,267,684
Treasury stock at cost, 704,743 shares at
September 30, 1997 and 526,768 shares at
June 30, 1997 (26,975,754) (16,569,329)
Retained earnings 97,238,482 80,496,717
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Total stockholders' equity 180,543,965 171,330,868
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Total liabilities and stockholders' equity $ 207,674,924 $ 188,876,369
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