SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
DATE OF REPORT: AUGUST 15, 1997
-------------------------------
AMERICAN BINGO & GAMING CORP.
-----------------------------
(Exact name of small business issuer as specified in its charter)
DELAWARE 1-13530 74-2723809
- -------------------------------- ----------- -------------------
(State or other jurisdiction of Commission (I.R.S. Employer
incorporation or organization) File Number Identification No.)
515 CONGRESS AVENUE, SUITE 1200, AUSTIN, TEXAS 78701
----------------------------------------------- -----
(Address of principal executive offices)
(512) 472-2041
--------------
(Registrant's telephone number)
<PAGE>
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
- --------------------------------------------------
GOLD STRIKE, INC. ACQUISITION
- --------------------------------
On August 14, 1997 the Company entered into a contract with Michael Mims, a
non-affiliate, to acquire Gold Strike, Inc., a South Carolina corporation in
the video gaming machine business, pursuant to completion of the Company's
final due diligence on Gold Strike. This acquisition is intended to close on
August 25, 1997. Upon closing, Mr. Mims will become an officer and director of
the Company.
This acquisition will be consummated in a stock-for-stock exchange, with
American Bingo exchanging approximately 828,000 of its common shares for 100%
of all outstanding shares of Gold Strike. The Company believes that the value
of this consideration, $5.4 million, is approximately three times Gold
Strike's annual cash flows. There is no cash consideration involved in this
acquisition.
The Company will acquire all of Gold Strike's assets used in the gaming
industry business, including equipment, machinery, real property, fixtures,
leasehold interests, inventory, prepaid expenses, contractual and leasehold
rights and all other tangible and intangible assets. The Company will likewise
assume all liabilities related to these assets. The Company will continue to
use all acquired assets in the gaming industry business.
The Company intends to account for this acquisition as a pooling, assuming
that the transaction qualifies; otherwise, this transaction will be accounted
for as a purchase. If the transaction is treated as a purchase, the Company
will value this acquisition at the current fair market value of its issued
securities, less a discount for lack of marketability, pursuant to a
three-year Company lock-up on the sale of the securities.
This acquisition involves consideration in excess of 10% of the Company's
total assets. The Company has provided herein all required financial
statements and exhibits.
ITEM 5. OTHER EVENTS
- -----------------------
EQUITY FINANCING
- -----------------
On August 4, 1997 the Company completed a $2.0 million equity financing with
Plazacorp Inc. The Company issued 2,000 Preferred Series A shares, $.01 par
value, at the price of $1,000 per share. After financing commissions and legal
and accounting fees, the Company netted approximately $1.82 million from this
financing. The Company plans to use these funds primarily for acquisition
costs.
The Company intends to register these securities under Form S-3. The Preferred
Shares bear interest at 7% per annum and are convertible into common shares
under a variable pricing formula between $4.00 and $5.50 per share. Under this
formula, the Company expects to issue a minimum of 363,636 shares and a
maximum of 500,000 shares. The shares are convertible in four blocks as
follows:
<TABLE>
<CAPTION>
Date Percent Amount
- ----------------- -------- ----------
<S> <C> <C>
November 2, 1997. 15% $ 300,000
December 17, 1997 25% $ 500,000
January 31, 1998. 30% $ 600,000
April 1, 1998 . . 30% $ 600,000
- ----------------- -------- ----------
TOTAL . . . . . . 100% $2,000,000
</TABLE>
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
a) Annexed as Exhibit A are Palmetto Games' audited financial statements
for the years ended December 31, 1996 and 1995.
b) Annexed as Exhibit B are the Company's Pro-Forma condensed balance
sheet and statement of operating and explanatory notes, giving effect to the
combined accounts of the Company and Gold Strike as required by the
instructions to Form 8-K.
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.
AMERICAN BINGO & GAMING CORP.
(Registrant)
October 31, 1997 By: /s/Greg Wilson
---------------
Greg Wilson, Principal Executive Officer
<TABLE>
<CAPTION>
PALMETTO GAMES
I N D E X
---------
Page No.
--------
<S> <C>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS. . . . . . . . . . . . . . . . . . . . 2
PALMETTO GAMES FINANCIAL STATEMENTS:
- -----------------------------------------------------------------------------------------
Balance Sheets as of June 30, 1997 (Unaudited), December 31, 1996, and December 31, 1995. 3
Statements of Operations For the Six-Month Period Ended June 30, 1997 (Unaudited) and
Years Ended December 31, 1996 and 1995. . . . . . . . . . . . . . . . . . . . . . . . . 4
Statements of Owner's Equity For the Six-Month Period Ended June 30, 1997 (Unaudited) and
Years Ended December 31, 1996 and 1995. . . . . . . . . . . . . . . . . . . . . . . . . 5
Statements of Cash Flows For the Six-Month Period Ended June 30, 1997 (Unaudited) and
Years Ended December 31, 1996 and 1995. . . . . . . . . . . . . . . . . . . . . . . . . 6
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-9
AMERICAN BINGO & GAMING CORP. and GOLD STRIKE, INC.
UNAUDITED PRO-FORMA FINANCIAL STATEMENTS:
- ------------------------------------------
Introductory Paragraph. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Consolidated Balance Sheet as of June 30, 1997. . . . . . . . . . . . . . . . . . . . . . 11
Consolidated Statements of Operations For the Six-Month Period Ended June 30, 1997 and
Years Ended December 31, 1996 and 1995. . . . . . . . . . . . . . . . . . . . . . . . . 12-14
</TABLE>
<PAGE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
--------------------------------------------------
To Mr. Michael Mims
d/b/a Palmetto Games
We have audited the accompanying balance sheets of Palmetto Games as of
December 31,1996 and 1995 and the related statements of operations, owner's
equity and cash flows for the years then ended. These financial statements are
the responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material aspects, the financial position of Palmetto Games as of December
31, 1996 and 1995 and the results of operations and its cash flows for the
years then ended in conformity with generally accepted accounting principles.
KING GRIFFIN & ADAMSON, P.C.
Dallas, Texas
September 4, 1997
<TABLE>
<CAPTION>
PALMETTO GAMES
BALANCE SHEETS
June 30, 1997 December 31, 1996 December 31, 1995
--------------- ------------------ ------------------
(Unaudited)
<S> <C> <C> <C>
ASSETS
- -------------------------------------------------
Current assets:
Cash and cash equivalents . . . . . . . . . . . $ 1,077 $ 39,572 $ 8,052
Accounts receivable . . . . . . . . . . . . . . 40,222 4,762 14,792
Prepaid licenses. . . . . . . . . . . . . . . . 176,424 149,533 210,066
--------------- ------------------ ------------------
Total current assets. . . . . . . . . . . . . . . 217,723 193,867 232,910
Property and equipment at cost, net of
accumulated depreciation. . . . . . . . . . . . 219,525 112,946 116,932
--------------- ------------------ ------------------
Total assets. . . . . . . . . . . . . . . . . . . $ 437,248 $ 306,813 $ 349,842
=============== ================== ==================
LIABILITIES AND OWNER'S EQUITY
- -------------------------------------------------
Current liabilities:
Accounts payable and accrued expenses . . . . . $ 107,755 $ 78,647 $ 37,274
Note payable - current portion 5,399 5,137 ---
--------------- ------------------ ------------------
Total current liabilities . . . . . . . . . . . . 113,154 83,784 37,274
Note payable - net of current portion 6,490 9,257 ---
Commitments and contingencies (Notes 3, 4, and 6)
Owner's equity. . . . . . . . . . . . . . . . . . 317,604 213,772 312,568
--------------- ------------------ ------------------
Total liabilities and owner's equity. . . . . . . $ 437,248 $ 306,813 $ 349,842
=============== ================== ==================
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
PALMETTO GAMES
STATEMENTS OF OPERATIONS
For the Six-Month For the Years Ended
Period Ended December 31,
------------------------
June 30, 1997 1996 1995
--------- ----------- -----------
(Unaudited)
<S> <C> <C> <C>
Revenues . . . . . . . . . . . . . . . $954,655 $1,260,694 $1,754,896
Cost of revenues:
- --------------------------------------
Machine licenses . . . . . . . . . . 63,087 221,477 263,568
Location expenses. . . . . . . . . . 360,122 362,447 778,384
Depreciation . . . . . . . . . . . . 27,432 77,145 185,022
--------- ----------- -----------
Total cost of revenues . . . . . . . . 450,641 651,069 1,226,974
Gross profit . . . . . . . . . . . . . 504,014 599,625 527,922
General and administrative expenses. . 201,749 513,676 586,603
Other income (expense):
- --------------------------------------
Interest expense . . . . . . . . . . (682) (6,287) (1,809)
Interest income. . . . . . . . . . . 189 340 1,498
Gain (loss) on sale of fixed assets --- 14,660 (1,518)
--------- ----------- -----------
Total other income (expense) . . . . . (493) 8,713 (1,829)
Net income (loss). . . . . . . . . . . $301,772 $ 94,662 ($60,510)
========= =========== ===========
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
PALMETTO GAMES
STATEMENTS OF OWNER'S EQUITY
For the Six-Month For the Years Ended
December 31,
Period Ended ----------------------
June 30, 1997 1996 1995
----------------- ---------- ----------
(Unaudited)
<S> <C> <C> <C>
Balance at beginning of period. $ 213,772 $ 312,568 $ 684,423
========== ========== ==========
Net income(loss). . . . . . . . 301,772 94,662 (60,510)
Proprietor distributions. . . . (197,941) (193,458) (311,345)
Balance at end of period. . . . $ 317,604 $ 213,772 $ 312,568
========== ========== ==========
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
PALMETTO GAMES
STATEMENTS OF CASH FLOWS
For the Six-Month For the Years Ended
December 31,
Period Ended --------------------
June 30, 1997 1996 1995
---------- ---------- ----------
(Unaudited)
<S> <C> <C> <C>
Cash flows from operating activities:
- -----------------------------------------------------
Net income (loss) . . . . . . . . . . . . . . . . . $ 301,772 $ 94,662 ($60,510)
---------- ---------- ----------
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depreciation. . . . . . . . . . . . . . . . . . 27,432 77,145 185,022
Loss (gain) on sale of assets --- (14,660) 1,518
Changes in accounts receivable. . . . . . . . . (35,460) 10,030 121,852
Changes in prepaid/other assets . . . . . . . . (26,891) 60,533 (8,568)
Changes in accounts payable/other liabilities . 29,108 41,373 17,152
Net cash provided by operating activities . . . . . . 295,961 264,563 256,465
---------- ---------- ----------
Cash flows from investing activities:
- -----------------------------------------------------
Capital expenditures. . . . . . . . . . . . . . . . (134,011) (75,130) (14,025)
Proceeds from sale of assets --- 16,632 ---
Net cash used in investing activities . . . . . . . . (134,011) (58,498) (14,025)
---------- ---------- ----------
Cash flows from financing activities:
- -----------------------------------------------------
Payments on long-term debt (2,504) --- ---
Proceeds from long-term debt financing --- 14,393 ---
Proprietor distributions. . . . . . . . . . . . . . (197,941) (193,458) (311,345)
Net cash used for financing activities: . . . . . . . (200,445) (179,065) (311,345)
---------- ---------- ----------
Net increase (decrease) in cash and cash equivalents. (38,495) 31,520 (68,904)
Cash and cash equivalents, beginning. . . . . . . . . 39,572 8,052 76,956
---------- ---------- ----------
Cash and cash equivalents, ending . . . . . . . . . . $ 1,077 $ 39,572 $ 8,052
========== ========== ==========
Supplemental Disclosures of Cash Flow Information:
- -----------------------------------------------------
Cash payments for:
Interest. . . . . . . . . . . . . . . . . . . . . . $ 682 $ 6,287 $ 1,809
</TABLE>
See notes to financial statements.
PALMETTO GAMES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997 (UNAUDITED), DECEMBER 31, 1996, AND DECEMBER 31, 1995
NOTE 1 - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES.
(a) Description of the Business:
The accompanying financial statements include the accounts of
Palmetto Games ("Palmetto"), a sole proprietorship owned by Michael Mims
("Owner"). Palmetto owns and operates a video gaming machine route business in
South Carolina. The financial statements presented herein do not include the
personal accounts of the owner or those of any other operation in which he is
engaged.
(b) Use of Estimates and Assumptions:
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect certain reported amounts and disclosures.
Accordingly, actual results could differ from those estimates.
(c) Cash and Cash Equivalents:
Palmetto considers all highly liquid debt instruments purchased
with a maturity of three months or less to be cash equivalents. Palmetto
places its cash investments with high credit quality financial institutions.
At times, such investments may be in excess of the FDIC insurance limit.
(d) Property and Equipment:
The cost of equipment, furniture and fixtures is depreciated over
the estimated useful lives of the assets of between three and five years,
using the straight-line method. Upon sale, retirement or abandonment of
assets, the related cost and accumulated deprecia-tion are eliminated from the
accounts and gains or losses are re-flected in income. Repairs and maintenance
expenditures which do not extend asset lives are expensed as incurred.
(e) Licenses:
Video game operators in South Carolina are required to obtain
licenses from the state to operate video gaming machines. Generally, licenses
are granted for a two-year period. As such, Palmetto expenses the costs of
its licenses over a two-year license period. Palmetto periodically reviews
its license portfolio to ensure that the future economic benefits of its
licenses are consistent with their recorded values.
(f) Income Taxes:
The financial statements do not include a provision for income taxes
because the proprietorship does not incur federal or state income taxes.
Instead, income from the proprietorship and the proprietor's income and
expenses from other sources are included in his individual income tax returns.
PALMETTO GAMES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997 (UNAUDITED), DECEMBER 31, 1996, AND DECEMBER 31, 1995
NOTE 1 - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued).
(g) Unaudited Period:
The financial information as of June 30, 1997 and for the six
months ended June
30, 1997 is unaudited. In the opinion of management, such information contains
all adjustments, consisting of normal recurring adjustments, necessary for
fair presentation of the results of such period. The results of operations for
the interim period is not necessarily
indicative of the results of operations for the full fiscal year.
NOTE 2 - PROPERTY AND EQUIPMENT.
Property and equipment consists of the following:
<TABLE>
<CAPTION>
June 30, 1997 December 31, 1996 December 31, 1995
--------------- ------------------- -------------------
(Unaudited)
<S> <C> <C> <C>
Machines. . . . . . . . . . . $ 680,547 $ 546,535 $ 512,595
Office furniture/equipment. . 19,988 19,988 19,988
Automobiles and trucks. . . . 124,725 124,725 117,941
--------------- ------------------- -------------------
Total . . . . . . . . . . . . 825,260 691,248 650,524
less Accumulated Depreciation (605,734) (578,302) (533,592)
Net Property and Equipment. . $ 219,525 $ 112,946 $ 116,932
=============== =================== ===================
</TABLE>
NOTE 3 - NOTE PAYABLE.
Note payable is as follows:
<TABLE>
<CAPTION>
June 30, 1997 December 31, 1996 December 31, 1995
--------------- ------------------ -----------------
(Unaudited)
<S> <C> <C> <C>
Current $ 5,399 $ 5,137 ---
Non-current 6,490 9,257 ---
--------------- ------------------ -----------------
Total Notes Payable $ 11,889 $ 14,394 ---
=============== ================== =================
</TABLE>
Note payable represents an obligation due to a South Carolina
commercial bank. The note bears interest at prime + .75% and matures
on July 12, 1999, and is secured by an automobile.
PALMETTO GAMES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997 (UNAUDITED), DECEMBER 31, 1996, AND DECEMBER 31, 1995
NOTE 4 - LEASE COMMITMENTS.
Palmetto is obligated under various operating leases, which are
renewable in the ordinary course of business. Generally, the leases provide
for minimum annual rentals as well as a proportionate share of the real estate
taxes and certain common area charges which may be applicable. Minimum annual
rentals under these leases are as follows:
<TABLE>
<CAPTION>
Years Ending December 31, Amount
- ------------------------------ -----------
<S> <C>
1998 . . . . . . . . . . . 158,292
1999 . . . . . . . . . . . 158,292
2000 . . . . . . . . . . . 158,292
2001 . . . . . . . . . . . 158,292
2002 . . . . . . . . . . . 86,792
Thereafter. . . . . . . . . 1,043,796
-----------
Total minimum annual rentals $ 1,763,756
===========
</TABLE>
Rent expense for the six-month period ended June 30, 1997
(Unaudited) and years
ended December 31, 1996 and 1995, amounted to $26,971, $15,150, and
$21,972, respectively.
NOTE 5 - RELATED PARTY TRANSACTIONS.
In 1996 and 1995, Palmetto purchased video gaming machines in the
amounts of $18,026
and $12,574, respectively, from Palmetto State Distribution Company,
a firm owned and
controlled by the owner's father.
NOTE 6 - SUBSEQUENT EVENTS.
In August of 1997 the assets and liabilities of Palmetto were
transferred to Gold Strike, Inc. a South Carolina corporation wholly owned by
Michael Mims. In September of 1997 Gold Strike Inc. was acquired in a
stock-for-stock transaction by American Bingo & Gaming Corp. (ABG), a public
company engaged in the charitable bingo and gaming business. ABG exchanged
827,680 of its shares for 100% of Gold Strike Inc. shares in a transaction to
be accounted for as a pooling of interests. The market value of ABG shares on
this date was approximately $5.6 million. There was no cash or other
consideration in this transaction.
AMERICAN BINGO & GAMING CORP. AND GOLD STRIKE, INC.
UNAUDITED PRO-FORMA CONSOLIDATED FINANCIAL STATEMENTS
INTRODUCTORY PARAGRAPH
Effective in September 1997, American Bingo & Gaming Corp. ("ABG")
completed a stock-for-stock acquisition of Gold Strike, Inc. ("Gold Strike").
In August 1997, Gold Strike acquired all of the assets and liabilities of
Palmetto Games, a sole proprietorship, through a capital contribution from
Michael Mims, the owner. Mr. Mims was also the sole owner of Gold Strike,
which has had no other activity prior to this acquisition. ABG's acquisition
of Gold Strike was accounted for as a pooling of interests.
The pro-forma unaudited consolidated balance sheet at June 30, 1997 gives
effect to the acquisition of Gold Strike as if it had occurred on that date.
The pro-forma unaudited statements of operations for the six-month period
ended June 30, 1997 and the years ended December 31, 1996 and 1995 reflect the
combined results of operations as if the acquisition had occurred on January
1, 1995.
The unaudited pro-forma consolidated financial information is not
necessarily indicative of the results of operations that would have been
reported had such events occurred on the dates specified, nor is it
necessarily indicative of the future results of the consolidated entities. The
unaudited consolidated pro forma financial statements should be read in
conjunction with the historical financial statements of the Company.
<TABLE>
<CAPTION>
AMERICAN BINGO & GAMING CORP. AND GOLD STRIKE, INC.
UNAUDITED PRO-FORMA CONSOLIDATED BALANCE SHEETS
JUNE 30, 1997
- Historical - Pro-Forma
ASSETS American Bingo Gold Strike, Inc. Adjustments Consolidated
- ------------------------------------------------ ---------------- ------------------ ----------- --------------
<S> <C> <C> <C> <C>
Current assets:
Cash and cash equivalents. . . . . . . . . . . $ 681,736 $ 1,077 $ 682,813
Accounts receivable. . . . . . . . . . . . . . 216,980 40,222 257,202
Notes receivable - current portion 331,255 --- 331,255
Other current assets . . . . . . . . . . . . . 98,406 176,424 274,830
---------------- ------------------ --------------
Total current assets . . . . . . . . . . . . . . 1,328,377 217,723 1,546,100
Property and equipment-at cost, net of
accumulated depreciation . . . . . . . . . . . 3,007,994 219,525 3,227,519
Other assets:
Notes receivable - current portion 556,461 --- 556,461
Intangible assets, net of accum. amortization 1,252,243 --- 1,252,243
Deposits, other 184,150 --- 184,150
---------------- ------------------ --------------
Total other assets 1,992,854 --- 1,992,854
Total Assets . . . . . . . . . . . . . . . . . . $ 6,329,225 $ 437,248 $ 6,766,473
================ ================== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------------------
Current liabilities:
Accounts payable and accrued expenses. . . . . $ 229,546 $ 107,755 $ 337,301
Notes payable - current portion. . . . . . . . 126,870 5,399 132,269
Lease obligations 73,551 --- 73,551
---------------- ------------------ --------------
Total current liabilities. . . . . . . . . . . . 429,967 113,154 543,121
Long-term liabilities:
Notes payable - net of current portion . . . . 582,501 6,490 588,991
Obligations under capital leases 189,564 --- 189,564
---------------- ------------------ --------------
Total long-term liabilities. . . . . . . . . . . 772,065 6,490 778,555
Commitments and contingency --- --- ---
Owners' equity:
Preferred stock - $.01 par value --- --- ---
Authorized and unissued - 1,000,000 shares
Common stock - $.001 par value 4,646 --- 4,646
Authorized - 20,000,000 shares
Issued and outstanding - 4,645,919 shares
Additional paid-in capital 11,548,547 --- 11,548,547
Retained earnings (accumulated deficit). . . . (6,426,000) 317,604 (6,108,396)
---------------- ------------------ --------------
Total owners' equity . . . . . . . . . . . . . . 5,127,193 317,604 5,444,797
Total liabilities and owners' equity . . . . . . $ 6,329,225 $ 437,248 $ 6,766,473
================ ================== ==============
</TABLE>
<TABLE>
<CAPTION>
AMERICAN BINGO & GAMING CORP. AND GOLD STRIKE, INC.
UNAUDITED PRO-FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 1997
- Historical - Pro-Forma
American Bingo Gold Strike, Inc. Adjustments Consolidated
---------------- ------------------- ------------ --------------
<S> <C> <C> <C> <C>
Revenues:
Rental $ 1,222,929 --- $ 1,222,929
Gaming, concession and other . . . . 1,123,270 $ 954,655 2,077,925
---------------- ------------------- --------------
Total Revenues . . . . . . . . . . . . 2,346,199 954,655 3,300,854
Cost of revenues:
Rent and supplies. . . . . . . . . . 535,185 27,505 562,690
Depreciation and amortization. . . . 165,176 27,432 192,608
Other operating costs. . . . . . . . 381,398 395,704 777,102
Assumed Salary --- --- 125,000(a) 125,000
---------------- ------------------- ------------ --------------
Total revenues . . . . . . . . . . . . 1,081,759 450,641 125,000 1,657,400
Operating income . . . . . . . . . . . 1,264,440 504,014 (125,000) 1,643,454
Operating expenses:
General and administrative expenses. 610,589 201,749 812,338
Total operating expenses 610,589 --- 812,338
Other income (expense):
Interest expense . . . . . . . . . . (34,983) (682) (35,665)
Interest income. . . . . . . . . . . 113,168 189 113,357
---------------- ------------------- --------------
Total other income (expense) . . . . . 78,185 (493) 77,692
Income before taxes. . . . . . . . . . 732,036 301,772 (125,000) 908,808
Provision for income taxes --- --- 52,191(b) 52,191
---------------- ------------------- ------------ --------------
Net Income . . . . . . . . . . . . . . $ 732,036 $ 301,772 ($177,191) $ 856,617
================ =================== ============ ==============
Net income per share - primary . . . . $ 0.18 $ 0.17
================ ==============
Net income per share - fully diluted . $ 0.17 $ 0.16
================ ==============
Weighted average shares outstanding. . 4,167,360 4,995,040
Weighted average shares outstanding -
assuming full dilution . . . . . . . 4,427,298 5,254,978
<FN>
(a) Includes $125,000 for pro-forma assumed salary for Gold Strike VP-Gaming for first six months of 1997.
(b) Includes $52,191 for pro-forma taxes on Gold Strike net income for first six months of 1997 at current
statutory rates.
</TABLE>
<TABLE>
<CAPTION>
AMERICAN BINGO & GAMING CORP. AND GOLD STRIKE, INC.
UNAUDITED PRO-FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1996
- Historical - Pro-Forma
American Bingo Gold Strike, Inc. Adjustments Consolidated
---------------- ------------------- ------------ --------------
<S> <C> <C> <C> <C>
Revenues:
Rental $ 2,062,737 --- $ 2,062,737
Gaming, concession and other. 1,585,525 1,260,694 2,846,219
---------------- ------------------- --------------
Total Revenues. . . . . . . . . 3,648,262 1,260,694 4,908,956
Cost of revenues:
Rent and supplies . . . . . . 844,602 58,623 903,225
Depreciation and amortization 414,448 72,625 487,073
Other operating costs . . . . 876,414 525,301 1,401,715
Assumed salary --- --- 250,000(a) 250,000
---------------- ------------------- ------------ --------------
Total cost of revenues. . . . . 2,135,464 656,549 250,000 3,042,013
Operating income. . . . . . . . 1,512,798 604,145 (250,000) 1,866,943
Operating expenses:
General and administrative. . 1,012,653 518,196 1,530,849
Total operating expenses. . . . 1,012,653 518,196 1,530,849
Other income (expense):
Interest expense. . . . . . . (19,644) (6,287) (25,931)
Interest/other income . . . . 413,142 340 413,482
Gain (loss) on sale of assets --- 14,660 14,660
---------------- ------------------- --------------
Total other income. . . . . . . 393,498 8,713 402,211
Income before taxes . . . . . . 893,643 94,662 (250,000) 738,305
Provision for income taxes 40,977 --- (43,832)(b) (2,855)
---------------- ------------------- ------------ --------------
Net Income. . . . . . . . . . . $ 852,666 $ 94,662 ($206,168) $ 741,160
================ =================== ============ ==============
Net income (loss) per share . . $ 0.21 $ 0.15
================ ==============
Weighted average number
of shares outstanding . . . . . 4,140,026 4,967,706
<FN>
(a) Includes $250,000 for pro-forma assumed salary for Gold Strike VP-Gaming for 1996.
(b) Includes $43,832 for pro-forma assumed tax benefit on Gold Strike net loss for 1996 at then
current statutory tax rates.
</TABLE>
<TABLE>
<CAPTION>
AMERICAN BINGO & GAMING CORP. AND GOLD STRIKE, INC.
UNAUDITED PRO-FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
- Historical - Pro-Forma
American Bingo Gold Strike, Inc. Adjustments Consolidated
---------------- ------------------ ------------ --------------
<S> <C> <C> <C> <C>
Revenues:
Rental $ 2,568,869 --- $ 2,568,869
Gaming, concession and other . . . . 782,808 1,754,896 2,537,704
---------------- ------------------ --------------
Total Revenues . . . . . . . . . . . . 3,351,677 1,754,896 5,106,573
Cost of revenues:
Rent and supplies. . . . . . . . . . 844,238 93,774 938,012
Depreciation and amortization. . . . 397,044 185,022 582,066
Other operating costs. . . . . . . . 2,794,821 948,178 3,742,999
Assumed salary --- --- 250,000(a) 250,000
---------------- ------------------ ------------ --------------
Total cost of revenues . . . . . . . . 4,036,103 1,226,974 250,000 5,513,077
Operating income (loss). . . . . . . . (684,426) 527,922 (250,000) (406,504)
Operating expenses:
General and administrative expenses. 1,794,465 586,603 2,381,068
Total operating expenses . . . . . . . 1,794,465 586,603 2,381,068
Other income (expense):
Interest expense . . . . . . . . . . ( 6,308) (1,809) (8,117)
Interest/other income. . . . . . . . 116,979 1,498 118,477
Gain (loss) on sale of assets --- (1,518) (1,518)
---------------- ------------------ --------------
Total other income (expense) . . . . . 110,671 (1,829) 108,842
Income (loss) before taxes . . . . . . (2,368,220) (60,510) (250,000) (2,678,730)
Provision for income taxes 1,061 --- (104,349)(b) (103,288)
---------------- ------------------ ------------ --------------
Net Income (loss). . . . . . . . . . . ($2,369,281) ($60,510) (145,651) ($2,575,442)
================ ================== ============ ==============
Net income (loss) per share. . . . . . ($0.58) ($0.52)
================ ==============
Weighted average number
of shares outstanding. . . . . . . . . 4,090,000 4,917,680
<FN>
(a) Includes $250,000 for pro-forma assumed salary for Gold Strike VP-Gaming for 1995.
(b) Includes $104,349 for pro-forma assumed tax benefit on Gold Strike net loss for 1995 at then current
statutory tax rates.
</TABLE>
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.
AMERICAN BINGO & GAMING CORP.
(Registrant)
October 31, 1997 By: /s/Greg Wilson
---------------
Greg Wilson, Principal Executive Officer
