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American Vantage Companies Announces Q3 Results15 June 2000LAS VEGAS--(Press Release)--June 14, 2000--American Vantage Companies (Nasdaq:AVCS - news; the``Company'') announced today the results of its operations for the three months ended April 30, 2000, the third quarter of its fiscal year ending July 31, 2000 (``Fiscal 2000''). Due to the premature termination by the Table Mountain Tribe (``Tribe'') of agreements the Company had for providing consulting services to the Table Mountain Casino, revenues for the third quarter of Fiscal 2000 decreased. The Company had filed a lawsuit against the Tribe to recover damages as a result of the termination and the Tribe had filed a counter action against the Company. In March 2000, the lawsuit was dismissed from the U.S. District Court for lack of subject matter jurisdiction. The Company is currently awaiting the opinion of a U.S. District Court judge to determine whether the suit can proceed in U.S. District Court. If the case cannot proceed in U.S. District Court, the Company intends to file a similar suit in the California Superior Court and will vigorously pursue its litigation against the Tribe to enforce the provisions of its contracts with the Tribe. In the third quarter of Fiscal 2000, the Company recorded revenues of $889,000 as compared to revenues of $2,490,000 in the same period in Fiscal 1999. Revenues in the third quarter of Fiscal 1999 were comprised of casino consulting fees. The third quarter of Fiscal 2000 included restaurant revenues of $744,000 from the WCW Nitro Grill, which opened in May 1999 and is located in the Excalibur Hotel and Casino in Las Vegas, Nevada. The Company's new 80% owned subsidiary, Placement 2000.Com, Inc. (``Placement 2000'') reported recruitment and Internet revenues of $145,000 for the third quarter. Placement 2000 is developing a website for a resume and job-posting database for information technology candidates as well as resume forwarding and recruitment ``split'' marketing websites. Placement 2000 also operates a traditional job recruitment business. The Company's net loss for the third quarter of Fiscal 2000 was $610,000 or $0.12 per basic share compared to net income of $1,204,000 or $0.24 per basic share and $0.23 on a diluted basis for the third quarter of Fiscal 1999. The net loss for the nine months ended April 30, 2000 totaled $2,228,000 or $0.46 per basic share compared to net income of $2,921,000 or $0.58 per basic and $0.55 per diluted share for the nine months ended April 30, 1999. FINANCIAL INFORMATION American Vantage Companies Consolidated Balance Sheets April 30, 2000 and July 31, 1999 April 30, July 31, 2000 1999 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 6,462,000 $12,626,000 Accounts receivable 149,000 191,000 Mortgage notes receivable and accrued interest 3,183,000 1,500,000 Refundable income taxes 1,410,000 219,000 Deferred income tax asset 75,000 135,000 Inventories 214,000 153,000 Prepaid expenses 49,000 376,000 Total current assets 11,542,000 15,200,000 Property and equipment, net 1,976,000 2,029,000 Land held for investment or development 4,894,000 5,105,000 Investment in unconsolidated subsidiary 1,907,000 592,000 Deferred income tax asset 123,000 191,000 Goodwill, net 277,000 36,000 Other assets - principally restricted cash in 2000 561,000 53,000 $21,280,000 $23,206,000 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 317,000 $ 558,000 Accrued expenses 239,000 166,000 Current portion of capitalized lease obligations 27,000 -- Total current liabilities 583,000 724,000 Long-term liabilities: Capitalized lease obligations, less current portion 13,000 -- Minority interest in consolidated subsidiary 153,000 -- Commitments and contingency -- -- Stockholders' equity: Common stock, $.01 par; 30,000,000 shares authorized; 4,887,000 shares issued and outstanding 49,000 49,000 Preferred stock, $.01 par; 10,000,000 shares authorized; shares issued and outstanding - none -- -- Capital in excess of par 2,974,000 2,974,000 Capital in excess of par - stock options 277,000 -- Retained earnings 17,231,000 19,459,000 20,531,000 22,482,000 $21,280,000 $23,206,000 -0- American Vantage Companies Consolidated Statements of Income (Loss) Three Months Ended April 30, 2000 and 1999 (Unaudited) 2000 1999 Revenues: Casino consulting fees $ -- $ 2,490,000 Restaurant sales 744,000 -- Fees and commissions - recruitment and Internet 145,000 -- 889,000 2,490,000 Costs and expenses: Casino consulting 130,000 438,000 Restaurant operations 987,000 86,000 Death care operations 15,000 -- Recruitment and Internet operations 343,000 -- General and administrative 488,000 265,000 Amortization and depreciation 78,000 9,000 Minority interest in consolidated subsidiary (40,000) -- Loss of unconsolidated subsidiary 43,000 -- 2,044,000 798,000 Income (loss) from operations (1,155,000) 1,692,000 Other income (expense): Interest income 251,000 252,000 Interest expense (2,000) (44,000) Miscellaneous 8,000 10,000 257,000 218,000 Income (loss) before income taxes (898,000) 1,910,000 Income tax benefit (expense): Current: State (9,000) (81,000) Federal 308,000 (625,000) Deferred: State (1,000) -- Federal (10,000) -- 288,000 (706,000) Net income (loss) $ (610,000) $ 1,204,000 Earnings (loss) per common share: Basic $ (0.12) $ 0.24 Diluted $ (0.12) $ 0.23 Weighted average number of common shares and common share equivalents: Basic 4,887,000 5,019,000 Stock options and warrants 101,000 239,000 Diluted 4,988,000 5,258,000 -0- American Vantage Companies Consolidated Statements of Income (Loss) Nine Months Ended April 30, 2000 and 1999 (Unaudited) 2000 1999 Revenues: Casino consulting fees $ -- $ 6,660,000 Restaurant sales 2,537,000 -- Fees and commissions - recruitment and Internet 282,000 -- 2,819,000 6,660,000 Costs and expenses: Casino consulting 470,000 1,402,000 Restaurant operations 3,472,000 207,000 Death care operations 293,000 31,000 Recruitment and Internet operations 569,000 -- General and administrative 1,617,000 991,000 Amortization and depreciation 222,000 25,000 Minority interest in consolidated subsidiary (56,000) -- Loss of unconsolidated subsidiary 235,000 -- 6,822,000 2,656,000 Income (loss) from operations (4,003,000) 4,004,000 Other income (expense): Interest income 708,000 745,000 Interest expense (2,000) (44,000) Miscellaneous 9,000 10,000 715,000 711,000 Income (loss) before income taxes (3,288,000) 4,715,000 Income tax benefit (expense): Current: State (3,000) (222,000) Federal 1,191,000 (1,572,000) Deferred: State (49,000) -- Federal (79,000) -- 1,060,000 (1,794,000) Net income (loss) $(2,228,000) $ 2,921,000 Earnings (loss) per common share: Basic $ (0.46) $ 0.58 Diluted $ (0.46) $ 0.55 Weighted average number of common shares and common share equivalents: Basic 4,887,000 5,030,000 Stock options and warrants 67,000 276,000 Diluted 4,954,000 5,306,000 |