Resorts International Inc. Reports First Quarter 1995 Operating Results

Strategic Insights -

Resorts International Inc., the parent company of the Merv Griffin's Resorts Casino Hotel in Atlantic City, New Jersey, announced its operating results for the first quarter of 1995. Despite a challenging comparison to the prior year, which included the results of its Paradise Island operation, the company reported improved earnings before depreciation, interest, and income taxes (EBDIT) at its remaining operating property. The company attributes this progress to better cost management and stronger revenues related to mild winter weather.

Key Takeaways:

  • The company reported net earnings of $20,000 in 1995, compared to a net loss of $23,734,000 in 1994.
  • Earnings before depreciation, interest, and income taxes (EBDIT) at Merv Griffin's Resorts Casino Hotel increased to $5,998,000 in 1995 from $1,581,000 in 1994.
  • The company reduced its debt through a restructuring in May 1994, which included the divestiture of Paradise Island.
  • Resorts International plans to seek shareholder approval to change its name to "Griffin Gaming & Entertainment, Inc." and to perform a reverse stock split of one for five shares at its annual meeting on June 27, 1995.
  • The company will satisfy the interest payment due June 15, 1995 on its 11.375% Junior Mortgage Notes due 2004 with a cash payment.

Statistics:

  • Net earnings: $20,000 in 1995, compared to a net loss of $23,734,000 in 1994.
  • EBDIT at Merv Griffin's Resorts Casino Hotel: $5,998,000 in 1995, up from $1,581,000 in 1994.
  • Intercompany charge for a parent services fee: $2,200,000 in 1995, compared to $1,933,000 in 1994.

Sources:

  • Business Wire, May 11, 1995
  • Resorts International Inc. news release, May 11, 1995