-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RB47WddYIAszbeSLtc8sl//y7BAZJuQig2vmsPFuGLGAdXpt7sJdGNkBD0O06jqV vIdgqwURRe9G7jrX8oZtEA== 0000912057-97-005506.txt : 19970222 0000912057-97-005506.hdr.sgml : 19970222 ACCESSION NUMBER: 0000912057-97-005506 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19970214 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: BOOMTOWN INC CENTRAL INDEX KEY: 0000891552 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MISCELLANEOUS AMUSEMENT & RECREATION [7990] IRS NUMBER: 943044204 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-20648 FILM NUMBER: 97535239 BUSINESS ADDRESS: STREET 1: INTERSTATE 80 BOOMTOWN ROAD CITY: VERDI STATE: NE ZIP: 89439-0399 BUSINESS PHONE: 7023858625 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 For the quarter ended December 31, 1996 Commission File Number 0-20648 BOOMTOWN, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 94-3044204 ------------------------------ ------------------------------ (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) P.O. Box 399, Verdi, Nevada 89439-0399 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (702) 345-8643 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 --- --- On February 13, 1997, the registrant had outstanding 9,278,405 shares of its common stock, $.01 par value. BOOMTOWN, INC. PART I. FINANCIAL INFORMATION Item 1. Consolidated Financial Statements (Unaudited) Consolidated Balance Sheets, September 30, 1996 and December 31, 1996. . . . . . . . . . . . . . . . . . . . . . . .3 Consolidated Statements of Operations for the Three Months Ended December 31, 1995 and 1996 . . . . . . . . . . . . . . . . . .4 Consolidated Condensed Statements of Cash Flows for the Three Months Ended December 31, 1995 and 1996. . . . . . . . . .5 Notes to Consolidated Financial Statements . . . . . . . . . . . . .6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. . . . . . . . . . . . . . . . 13 PART II. OTHER INFORMATION Item 1. Legal Proceedings. . . . . . . . . . . . . . . . . . . . . . . . . 17 Item 2. Changes in Securities. . . . . . . . . . . . . . . . . . . . . . . 17 Item 3. Defaults upon Senior Securities. . . . . . . . . . . . . . . . . . 17 Item 4. Submission of Matters to a Vote of Security Holders . . . . . . . 17 Item 5. Other Information. . . . . . . . . . . . . . . . . . . . . . . . . 17 Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . . . 17 SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 SCHEDULE OF EXHIBITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 2 PART I - FINANCIAL INFORMATION ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS BOOMTOWN, INC. CONSOLIDATED BALANCE SHEETS September 30, December 31, 1996 1996 ------------ -------------- ASSETS: (unaudited) Current assets: Cash and cash equivalents $ 23,100,628 $ 20,105,495 Accounts receivable, net 941,657 1,080,541 Income taxes receivable 1,814,767 253,857 Inventories 1,725,086 1,896,039 Prepaid expenses 7,333,578 5,529,253 Other current assets 1,761,874 1,784,741 ------------ ------------ Total current assets 36,677,590 30,649,926 Property, plant and equipment at cost, net 145,330,557 147,117,548 Goodwill, net 6,267,473 10,192,053 Notes receivable from related parties 8,685,772 8,685,772 Other assets 9,026,506 10,643,229 ------------ ------------ $205,987,898 $ 207,288,528 ------------ ------------ ------------ ------------ LIABILITIES AND STOCKHOLDERS' EQUITY: Current liabilities: Accounts payable $ 3,812,207 $ 3,294,713 Accrued compensation 3,610,527 4,844,316 Other accrued liabilities 8,823,737 14,025,485 Accrued interest payable 5,004,669 2,054,638 Income taxes payable 750,891 1,048,659 Long-term debt due within one year 5,031,803 6,325,447 ------------ ------------ Total current liabilities 27,033,834 31,593,258 Long-term debt due after one year 103,729,330 103,316,094 Deferred income taxes 3,183,322 3,305,737 Deferred gain on sale leaseback 112,270 -- Minority interest 1,541,904 -- Contingencies (Note3) Stockholders' equity: Common stock, $.01 par value, 20,000,000 shares authorized, 9,266,193 and 9,276,132 issued and outstanding at September 30, 1996, and December 31, 1996 respectively, net of a note receivable from stockholder of $221,000 103,652,658 103,705,796 Deficit (33,265,420) (34,632,357) ------------ ------------ Total stockholders' equity 70,387,238 69,073,439 ------------ ------------ $205,987,898 $207,288,528 ------------ ------------ ------------ ------------ See accompanying notes. 3 BOOMTOWN, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Three Months Ended December 31, 1995 1996 ------------ ----------- REVENUES: Gaming/hotel operations: Gaming $ 44,993,136 $ 45,567,120 Family entertainment center 1,357,632 1,241,999 Food and beverage 3,713,444 4,007,888 Hotel and recreational vehicle park 1,760,446 1,898,195 Showroom 203,597 271,731 Truckstop, service station and mini-mart 2,796,707 3,254,487 Other income 794,996 448,773 - ----------- ------------ 55,619,958 56,690,193 COSTS AND EXPENSES: Gaming/hotel operations: Gaming 18,785,251 19,206,742 Gaming equipment leases 1,669,244 1,517,273 Family entertainment center 835,149 901,221 Food and beverage 5,354,683 5,461,197 Hotel and recreational vehicle park 805,183 847,543 Showroom 149,351 192,338 Truckstop, service station and mini-mart 2,538,315 2,943,264 Marketing 5,451,240 6,052,787 General and administrative 13,664,110 14,155,472 Property Rent 2,319,414 2,315,690 Depreciation and amortization 2,556,592 2,817,971 Discontinued projects/Future development -- 325,156 ------------ ------------ 54,128,532 56,736,654 ------------ ------------ Income (loss) from operations 1,491,426 (46,461) Interest expense, net of capitalized interest (3,340,627) (3,490,495) Interest income 795,288 806,138 Other income -- -- (Loss) gain on sale of assets (30,890) 2,010 ------------ ------------ Loss before minority interest in consolidated partnerships and income taxes (1,084,803) (2,728,808) Minority interest in operations of consolidated partnerships 384,848 (95,699) ------------ ------------ Loss before income taxes (699,955) (2,824,507) Benefit (provision) for income taxes 342,978 1,457,564 ------------ ------------ Net loss ($ 356,977) ($ 1,366,943) ------------ ------------ ------------ ------------ Net loss per share of Common Stock ($ .04) ($ .15) ------------ ------------ ------------ ------------ Shares used in calculating net loss per share of Common Stock 9,238,316 9,271,054 ------------ ------------ ------------ ------------ See accompanying notes. 4 BOOMTOWN, INC. CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS Increase (decrease) in cash and cash equivalents (unaudited)
Three Months Ended December 31, 1995 1996 ------------ ------------ Cash flows from operating activities: Net loss ($ 356,977) ($ 1,366,943) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Depreciation and amortization 2,556,592 2,817,971 Deferred income taxes -- 47,415 Minority interests in operations of consolidated partnerships (384,848) 95,699 Changes in operating assets and liabilities: Accounts receivable, net (288,633) (138,884) Inventories (146,673) (170,953) Prepaid expenses 942,933 1,804,325 Other current assets (493,498) 1,538,043 Other assets (1,560,425) (1,116,724) Accounts payable (362,743) (517,494) Accrued compensation 1,564,043 1,233,789 Other accrued liabilities (883,910) 103,748 Accrued interest payable (2,975,625) (2,950,031) Income taxes payable 175,000 297,768 Pre-payment of property lease (2,480,387) -- Other adjustments, net 2,649,106 (594,316) ------------ ------------ Net cash (used in) provided by operating activities (2,046,045) 1,083,413 ------------ ------------ Cash flows from investing activities Proceeds from sale of property, plant and equipment 92,047 (2,780) Payments for purchases of property, plant and equipment (724,454) (2,322,867) Payment to purchase interest in Louisiana Partnership -- (500,000) Change in construction related payables (74,188) -- ------------ ------------ Net cash used in investing activities (706,595) (2,825,647) ------------ ------------ Cash flows from financing activities: Net proceeds from additions to long-term debt 130,279 -- Principal payments on long-term debt (929,950) (1,252,899) ------------ ------------ Net cash provided by financing activities (799,671) (1,252,899) ------------ ------------ Net decrease in cash and cash equivalents (3,552,311) (2,995,133) Cash and cash equivalents: Beginning of period 20,775,459 23,100,628 ------------ ------------ End of period $ 17,223,148 $ 20,105,495 ------------ ------------ ------------ ------------
See accompanying notes. 5 BOOMTO0WN, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICES BASIS OF PRESENTATION AND NATURE OF BUSINESS - The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles and should be read in connection with the Company's 1996 Annual Report filed with the Securities and Exchange Commission on Form 10-K for the fiscal year ended September 30, 1996. The accounting polices utilized in the preparation of the consolidated financial information herein are the same as set forth in such annual report except as modified for interim accounting policies which are within the guidelines established in Accounting Principles Board Opinion No. 28. INTERIM FINANCIAL INFORMATION - The consolidated balance sheet at September 30, 1996 has been taken from the audited financial statements at that date. The interim financial information is unaudited. In the opinion of management, all adjustments considered necessary for a fair presentation of its financial position at December 31, 1996, the results of operations and cash flows for the three months ended December 31, 1996 and 1995 have been included. The Company's operations are seasonal and thus operating results for the three months ended December 31, 1996 should not be considered indicative of the results that may be expected for the fiscal year ending September 30, 1997. RECLASSIFICATIONS - Certain reclassifications have been made to the fiscal 1996 financial statements to conform to the fiscal 1997 presentation which are primarily comprised of overhead costs being charged to the functional departments beginning in fiscal 1997. The accompanying consolidated financial statements include the accounts of the Company and all of its subsidiary companies. All significant intercompany accounts and transactions have been eliminated. 2. LONG-TERM DEBT Long-term debt consists of the following (in thousands): September 30, December 31, 1996 1996 ------------- ------------ 11.5% first mortgage notes (net of unamortized discount of approximately $2,448,000 and $2,391,000 as of September 30, 1996 and December 31, 1996, respectively) $ 101,052 $ 101,109 13% note payable 3,227 2,926 11.5% notes payable 1,300 988 12.25% note payable 448 392 Capital lease obligations 2,734 4,226 ------------- ------------ 108,761 109,641 Less amounts due within one year 5,032 6,325 ------------- ------------ $ 103,729 $ 103,316 ------------- ------------ ------------- ------------ 6 BOOMTOWN, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 2. LONG-TERM DEBT (CONTINUED) The Company's 13%, 11.5% and 12.25% notes payable are secured by certain furniture, fixtures and equipment of the Company's subsidiaries. The notes mature in January 1999, September 1997 and January 1998, respectively. The capital lease obligations are secured by equipment and mature between September 1997 and August 1998. 3. CONTINGENCIES On November 24, 1993, Boomtown completed the private placement of $103.5 million of 11.5% First Mortgage Notes due November 2003 (the "Notes"). Interest on the Notes is payable semi-annually. The Notes will be redeemable at the option of the Company, in whole or in part, on or after November 1, 1998, at a premium to the face amount ($103.5 million) which decreases on each subsequent anniversary date, plus accrued interest to the date of redemption. The Notes are secured by substantially all of the Company's assets. The Indenture governing the Notes places certain business, financial and operating restrictions on the Company and its subsidiaries including, among other things, the incurrence of additional indebtedness, issuance of preferred equity interests and entering into operating leases; limitations on dividends, repurchase of capital stock of the Company and redemption's of subordinated debt; limitations on transactions with affiliates; limitations on mergers, consolidations and sale of assets; limitations on amending existing partnership and facility construction agreements; and the use of proceeds from the issuance of Notes. The Company will solicit consent of the Noteholders in connection with the proposed merger with Hollywood Park and intends to solicit consent of the Noteholders in connection with the termination of the Las Vegas lease (both items are described in Note 6). In October 1994, the Mississippi Gaming Commission adopted a regulation which requires, as a condition of license or license renewal, for a gaming establishment's plan to include various expenditures including parking facilities and infrastructure facilities amounting to at least 25% of the casino cost. Although the Company believes it has satisfied this requirement at the Mississippi property, there can be no assurance the Mississippi Gaming Commission will not require further development on the casino site including hotel rooms and additional parking facilities. Additionally, there can be no assurance that the Company will be successful in completing such a project or that the Company would be able to obtain a waiver if the Company decides not to build. 4. COMMON STOCK OUTSTANDING AND NET LOSS PER SHARE Net loss per share is computed using the weighted average number of shares of common stock outstanding and common equivalent shares from stock options and warrants are excluded from the computation because their effect is antidilutive. Fully diluted per share amounts are the same as primary per share amounts for the periods presented. 7 BOOMTOWN, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 5. SUMMARIZED CONSOLIDATING FINANCIAL INFORMATION In connection with the First Mortgage Notes issued in November, 1993, the subsidiaries of the Company (guarantor entities) have guaranteed the Notes. Summarized consolidating financial information is as follows: SUMMARIZED CONSOLIDATING FINANCIAL INFORMATION As of and for the three months ended December 31, 1996 (in thousands, unaudited)
Guarantor Entities ------------------------------------------ Boomtown, Blue Diamond Boomtown Elimination's & Boomtown Inc. Hotel & Hotel & Other Reclassifications Inc. (parent co.) Casino, Inc. Casino, Inc. Subsidiaries Dr(Cr) (consolidated) ------------ ------------ ------------ ------------ ------------ -------------- (1) (2) (3) (4) Current assets $ 17,002 $ 5,594 $ 9,213 $ 10,584 ($ 11,743) $ 30,650 Advances to affiliates 119,256 -- -- -- (119,256) -- Non-current assets 47,104 2,847 59,275 102,278 (34,865) 176,639 ------------ ------------ ------------ ------------ ------------ ------------ $183,362 $ 8,441 $68,488 $112,862 ($165,864) $207,289 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Current liabilities $ 9,050 $12,276 $ 4,140 $ 17,870 ($ 11,743) $ 31,593 Non-current liabilities 104,490 -- 216 1,916 -- 106,622 Advances from parent -- 34,953 15,119 69,184 (119,256) -- Equity 69,822 (38,788) 49,013 23,892 (34,865) 69,074 ------------ ------------ ------------ ------------ ------------ ------------ $183,362 $8,441 $68,488 $112,862 ($165,864) $207,289 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Revenues $ -- $12,270 $14,048 $30,372 $ -- $ 56,690 Income (loss) from operations ($ 594) ($ 1,565) ($ 1,406) $ 3,519 $ -- ($ 46) Equity in earnings (loss) of consolidated subsidiaries and partnerships ($ 1,663) $ -- $ -- $ -- $ 1,663 $ -- Net loss $ 296 ($ 1,785) ($ 1,129) $ 1,347 ($ 96) ($ 1,367) ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Net cash provided by (used in) operating activities ($ 3,844) ($ 242) ($ 220) $ 5,389 $ -- $ 1,083 Net cash used in investing activities (501) (33) (591) (1,701) -- (2,826) Net cash provided by (used in) financing activities (2,941) 994 3,570 (2,876) -- (1,253) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in cash and cash equivalents (7,286) 719 2,759 812 -- (2,996) Cash and cash equivalents: Beginning of year 10,457 2,563 3,662 6,419 -- 23,101 ------------ ------------ ------------ ------------ ------------ ------------ End of period $ 3,171 $ 3,282 $6,421 $7,231 $-- $20,105 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
8 BOOMTOWN, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 5. SUMMARIZED CONSOLIDATING FINANCIAL INFORMATION (CONTINUED) (1) Blue Diamond Hotel & Casino, Inc. is a wholly-owned subsidiary that is consolidated in the accompanying consolidated financial statements. (2) Boomtown Hotel and Casino, Inc. is a wholly-owned subsidiary that is consolidated in the accompanying consolidated financial statements. These amounts do not include the operations of the Company's wholly-owned subsidiaries which are general partners of the Company's other subsidiaries. The operations of such subsidiaries are insignificant and have been included in the column "Other Subsidiaries". (3) "Other Subsidiaries" include Boomtown, Inc's. wholly-owned subsidiary in Louisiana, its majority owned partnership in Mississippi and 100% of the assets, liabilities and equity of the limited partnerships formed to operate the subsidiaries in those states. (4) Eliminations consist of Boomtown, Inc.'s (a) investment in the guarantor entities, (b) advances to the guarantor and non-guarantor entities and subsidiaries and (c) equity in earnings (loss) of consolidated subsidiaries and partnerships. The advances are subordinated in right of payment to the guarantees of the Notes. 6. OTHER EVENTS PROPOSED MERGER WITH HOLLYWOOD PARK, INC. ("HOLLYWOOD PARK") - On April 23, 1996, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with Hollywood Park relating to the strategic combination of Hollywood Park and the Company. Pursuant to the Merger Agreement and subject to the terms and conditions set forth therein, the Company would become a wholly- owned subsidiary of Hollywood Park (the "Merger"). Pursuant to the Merger Agreement, at the effective date of the Merger (the "Effective Date"), each issued and outstanding share of Boomtown Common Stock will be converted into the right to receive 0.625 (the "Exchange Ratio"), of a share of Hollywood Park Common Stock. The Merger is intended to be structured as a tax-free reorganization. As of April 23, 1996, the Company had approximately 11,602,432 shares of Common Stock outstanding and Hollywood Park had approximately 21,093,957 shares of Common Stock outstanding (in each case assuming the exercise of all outstanding options, warrants, rights or conversion privileges relating to Common Stock). Upon the consummation of the Merger, it is expected that former Boomtown stockholders will own approximately 25.6% of the outstanding shares of Hollywood Park Common Stock (assuming the exercise of all outstanding options, warrants, rights or conversion privileges relating to the Company's Common Stock). At the Effective Date, Hollywood Park's Board of Directors will be expanded from seven (7) to eleven (11) members and will be comprised of seven (7) directors selected by Hollywood 9 BOOMTOWN, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 6. OTHER EVENTS (CONTINUED) Park (the "Hollywood Park Directors") and four (4) directors selected by the Company (the Boomtown Directors"). Hollywood Park will nominate the initial Company Directors (or replacements elected by a majority of the Boomtown Directors) for re-election at the first three annual stockholder meetings following the Effective Date. Upon the Effective Date and for a period of three years thereafter the Executive Committee of Hollywood Park's Board of Directors will consist of four (4) Hollywood Park Directors and two (2) Boomtown Directors, including R.D. Hubbard, Chief Executive Officer of Hollywood Park, Timothy J. Parrott, Chairman of the Board and Chief Executive Officer of Boomtown, Richard J. Goeglein, a current member of the Board of Directors of Boomtown and three designees of Hollywood Park. In addition, Hollywood Park will establish a three (3) person Office of the Chairman comprised of Hollywood Park's and Boomtown's Chief Executive Officers and Hollywood Park's President of Sports and Entertainment. The closing of the Merger is subject to numerous conditions precedent, including (i) the approval of the stockholders of the Company and Hollywood Park, (received in November 1996) (ii) the approval of requisite governmental authorities, including the necessary gaming authorities in the jurisdictions in which the parties conduct business, and the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (Hart-Scott-Rodino completed on June 20, 1996), (iii) the availability of sufficient financing of up to $163.5 million to fund up to $60 million of future gaming projects and to fund the repurchase of Boomtown's outstanding 11.5% First Mortgage Notes (the "Notes") if put to Boomtown by the holders of the Notes as a consequence of the Merger and (iv) the consent to the Merger by the holders of a majority of the outstanding principal amount of the Notes. There can be no assurance that any or all of these conditions precedent will be satisfied or that the proposed merger with Hollywood Park will be consummated. Certain additional matters relating to the signing of the Merger Agreement and a complete description of the Merger Agreement are more fully described in the Company's Form 8-K dated April 23, 1996, including the Agreement and Plan of Merger filed as exhibit 2.1 thereto, and filed with the Securities and Exchange Commission on May 3, 1996. TERMINATION OF LAS VEGAS PROPERTY LEASE - On August 12, 1996, Boomtown, Blue Diamond, Hollywood Park, Roski, IVAC and Majestic Realty entered into the Blue Diamond Swap Agreement (the "Swap Agreement") pursuant to which the parties agreed that, upon consummation of the Merger, and contingent upon the closing of the Merger, Boomtown and Blue Diamond (or any transferee thereof as set forth in the Swap Agreement) would exchange their entire interest in the Blue Diamond Resort (the "Resort") (including the IVAC Loans), and effectively transfer all interest in the Resort to Roski, in exchange for a $5.0 million unsecured promissory note (the "First Note") and an unsecured promissory note (the "Second Note") valued at approximately $3.5 million and assumption by Roski, IVAC or an affiliate of certain liabilities (the "Swap"). The First Note has an interest rate equal to the prime rate plus one and one half percent (1.5%) per annum and provides for annual principal payments of one million dollars 10 BOOMTOWN, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 6. OTHER EVENTS (CONTINUED) ($1,000,000) plus accrued interest and maturing on the date that is five years after the Exchange Date (as such term is defined in the Swap Agreement). The Second Note has an interest rate equal to the prime rate plus one-half percent (.5%) per annum and provides for a payment of all principal plus accrued interest on the date that is three (3) years after the Exchange Date. Consummation of the Swap is subject to obtaining all necessary Governmental approvals, including gaming approval. In exchange for its interest in the Resort, Boomtown will receive notes payable to Boomtown with an estimated value totaling $8.5 million, an estimated cash payment of $2.1 million, release from lease obligations under the resort lease, Roski's assumption of certain liabilities and note obligations totaling approximately $3.8 million and the ongoing expenses of the Resort. Additionally, Roski will assume all operating leases including any residual balances due under such leases. The Swap Agreement requires approvals from applicable gaming authorities and Boomtown intends to seek the consent of the holders of a majority of the outstanding principal amount on the Notes (see Note 3). The Swap would be effected immediately following the Company's Merger with Hollywood Park which is expected to be during the second quarter of calendar 1997. In accordance with the terms of the Swap Agreement, with certain exceptions set forth in the Swap Agreement, the Company will continue to operate the property until consummation of the Merger. Boomtown and Blue Diamond will be responsible for the liabilities of the Resort accruing prior to the Swap and Roski will be responsible for the liabilities of the Resort accruing subsequent to the Swap. In addition, Roski will resign from Boomtown's Board of Directors, effective as of the Exchange Date. Subject to certain conditions set forth in the Swap Agreement, the Swap may be effectuated through any structure agreed upon by Boomtown and Hollywood Park. If the Swap were not consummated for any reason, Boomtown would continue to operate the property through the expiration of the lease term in July 1999, and the IVAC Notes would be required to be repaid to Boomtown at such time. On August 12, 1996, Hollywood Park and Roski further entered into a Stock Purchase Agreement (the "Stock Purchase Agreement") pursuant to which Hollywood Park will, concurrently with the Swap, purchase the stock in Boomtown held by Roski ("the Roski Stock") for an estimated purchase price of approximately $3.5 million paid for by an unsecured promissory note having an interest rate equal to the prime rate plus one percent (1%) per annum and providing for four equal annual principal payments plus accrued interest and maturing on the date that is four years after the Exchange Date. The Stock Purchase Agreement may also be terminated by Hollywood Park in the event that Boomtown and Hollywood Park, in accordance with the provisions set forth in the Swap Agreement, elect to utilize a structure to effect the Swap which would require Roski to retain the Roski Stock. MINORITY PURCHASE AGREEMENT - On November 18, 1996 the Company entered into an agreement with Eric Skrmetta in which the Company agreed to pay $5,673,000 in return for Skrmetta's 7.5% interest in the Partnership in addition to releasing the Company from any and all 11 BOOMTOWN, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 6. OTHER EVENTS (CONTINUED) claims, liabilities and causes of action of any kind arising from or related to the Partnership agreement. The terms set forth thereto required Boomtown to pay a down payment of $500,000 on or before December 5, 1996 and the remaining $5,173,000 to be paid not later than August 10, 1997. Additionally, the $5,173,000 shall be reduced by a discount for the time that the amount or any portion thereof is paid in full prior to August 10, 1997. For a full discussion of the terms of the minority purchase agreement as described above see exhibit number 10.3(4) incorporated by reference to Boomtown, Inc's. Form 10(K) for the year ended September 30, 1996. 12 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS The following table sets forth certain items from the Company's statements of operations as a percentage of total revenues for the three month periods ended December 31, 1995 and 1996 (unaudited): Three Months Ended December 31, 1995 1996 ------ ------ Revenues: Gaming 80.9% 80.4% Non-gaming 19.1 19.6 ----- ----- 100.0 100.0 Operating expenses: Gaming 36.7 36.6 Non-gaming 17.4 18.2 Marketing, general & administrative 34.4 35.6 Property rent 4.2 4.1 Discontinued projects/future development -- .6 Depreciation and amortization 4.6 5.0 ----- ----- 97.3 100.1 Income (Loss) from operations 2.7 (.1) Interest expense, net (4.6) (4.7) ----- ----- Loss before minority interest and income taxes (1.9) (4.8) Minority interest .7 (.2) ----- ----- Loss before income taxes (1.2) (5.0) Benefit for income taxes .6 2.6 ----- ----- Net income (loss) (.6)% (2.4)% ----- ----- ----- ----- Total revenues for the Company's fiscal quarter ending December 31, 1996 were $56.7 million as compared to $55.6 million in the prior year period, an increase of 1.9%. The increase in consolidated revenues was primarily due to a 1.3% increase in the Company's gaming revenues from $45.0 million to $45.6 million during the current year quarter. Boomtown's Las Vegas, Biloxi and New Orleans properties showed improvements in gaming revenues of 5.2%, 13.9% and 3.2%, respectively. The consolidated increase in gaming revenues was offset by a decline of 17.0% in gaming revenues at the Company's Reno casino property due to severe weather conditions in Reno's geographic markets including the Reno area, the Pacific Northwest and Northern California. The weather during the quarter had a particularly negative impact on Interstate 80 on which Boomtown Reno is heavily dependent and on the weekends which account for a majority of the Reno property's revenue volume. The increase in gaming revenues at the Company's Biloxi, Mississippi property resulted from growth in slot machines revenue due to the expansion of its bus tour, direct mail and other direct marketing programs in an effort to increase local patronage at the Biloxi property. Gaming revenues at the Company's Las Vegas casino property were higher from enhanced marketing efforts including a major marketing promotion 13 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED) titled "Wake the Dragon" which was very popular at increasing local patronage at the Las Vegas property. Non-gaming revenues were $11.1 million for the quarter ended December 31, 1996 as compared to $10.6 million, an increase of 5% over the prior year quarter. Non-gaming revenues consist of earnings from food and beverage sales, hotel and full service recreational parks at the Company's Reno and Las Vegas properties, family entertainment centers at all properties and fuel and mini- mart sales at the Company's Reno property. The increase in non-gaming revenues primarily resulted from higher food and beverage sales at the Boomtown properties due to efforts to enhance food quality to attract additional gaming patronage, as well as higher fuel sales at the Company's Reno truckstop and mini-mart. The Company's consolidated margin was $25.6 million as compared to $25.5 million for the quarters ended December 31, 1996 and 1995, respectively. During the current year quarter the gaming margin and non-gaming margin as a percentage of revenue was 54.5% and 7.0%, respectively as compared to 54.6% and 8.9%, respectively during the prior year quarter. Marketing expenses were $6.1 million for the quarter ended December 31, 1996 as compared to $5.5 million the period ended December 31, 1995, an increase of 11%. Marketing expenses included costs associated with the Company's gaming promotions; printed, radio, outdoor and television advertising and other costs associated with attracting patronage at the Company's casino properties. The increase in marketing expenses resulted from promotions at the Company's Reno and Las Vegas properties, higher cash redemption fees related to those promotions, additional radio and outdoor advertising, higher commissions paid to bus tour operators to transport casino patrons primarily to the Biloxi property, higher direct mail program and other administrative expenses. General and administrative expenses ("G&A") were $14.2 million during the first fiscal quarter of 1997 approximately 3.6% higher than the $13.7 million recorded during the prior year period. G&A expenses grew at the Company's Reno, Biloxi, and New Orleans properties offset by lower G&A expenses from the Company's Las Vegas property. The overall increase in G&A expenses resulted primarily from costs associated with the Company's campaigning efforts during the recent gaming referendum presented in Louisiana, higher workman's compensation insurance and other medical related benefit programs at the Company's southern properties and additional maintenance and security payroll costs in order to comply with new gaming requirements in Louisiana. The Company also incurred future development charges of $325,000 during the current year quarter related to the Company's gaming license application in the state of Indiana and its pending merger with Hollywood Park, Inc. in which Boomtown would become a wholly-owned subsidiary of Hollywood Park, Inc. During the quarter ended December 31, 1996 the Company incurred property rent expenses of $2.3 million, consisting of $1.4 million at its Las Vegas property to lease the land and building facilities as well as $951,000 at its Biloxi property to lease the land on which the Boomtown facility lies. 14 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED) Depreciation and amortization expense rose 10.2% to $2.8 million during the quarter ended December 31, 1996 resulting from an increase in the asset base of $4.6 million. The additions to property and equipment was primarily due to the restructuring of certain operating leases at the Company's Biloxi property, whereby the Company effectively converted the leases to capital leases. The associated equipment was then capitalized and is being depreciated over the remaining useful lives. Interest expense for the quarter ended December 31, 1996 and 1995 was $3.5 million and $3.3 million, respectively of which interest on Boomtown's first mortgage notes comprised $3.2 million and $3.1 million for the quarters, respectively. Additionally, during the quarter the Company generated interest income of $806,000 as compared to $796,000 during the prior year period, primarily from interest on the outstanding notes receivable from the owner and lessor of the Boomtown Las Vegas property. During the quarter ended December 31, 1996, the Company recorded $96,000 in minority interest expense associated solely with the Louisiana partnership's minority partners share of income through November 18, 1996 (the date the company purchased his interest). The company is no longer able on a consolidated basis to allocate a pro-rata share of losses from the Mississippi partnership to the minority partner since it would cause his capital account to become negative. In the Past the Company was able to allocate losses to this minority partner (who was also the Company's landlord in Biloxi, Mississippi) since he received his ownership interest in the partnership in exchange for forgiving two years of property rent on the facility. During each of the first two years rent expense ($2 million per year) and a capital account credit for this minority partner were recorded which allowed the Company to allocate $4 million in losses to the minority partner during that two year period. LIQUIDITY AND CAPITAL RESOURCES The Company's principal source of liquidity at December 31, 1996 was cash and cash equivalents of approximately $20.1 million, a decrease of approximately $3.0 million from September 30, 1996. For the first three months of fiscal 1997, the Company generated cash from operating activities of $1,083,000. The net cash provided from operating activities during the first three months of the current fiscal year were derived from a net loss of $1.4 million, net changes in operating assets and liabilities of ($510,000), depreciation and amortization expense of $2.8 million and other uses of $143,000. The Company used net cash of $2.8 million, in investing activities during the first three months of fiscal 1997, primarily related to the purchases of property and equipment. Net cash used in financing activities for the three months ended December 31, 1996 were $1.3 million related to the principal payments of long term debt. At December 31, 1996, the Company's debt was comprised principally of the $103.5 million principal amount of 11.5% First Mortgage Notes due 2003. Interest on the notes is payable semiannually in arrears each May 1 and November 1. The Company additionally has five notes payable in the aggregate amount of $4.3 million. Three of the notes totaling $988,000 are secured by equipment, furniture and fixtures, bear interest at 11.5% and mature in September 15 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED) LIQUIDITY AND CAPITAL RESOURCES (CONTINUED) 1997. The fourth note, with a balance of $2.9 million at December 31, 1996, is secured by the gaming vessel in Harvey, Louisiana, bears interest at 13% and matures in January 1999. The fifth note, with a balance of $392,000 at December 31, 1996, is secured by gaming equipment, bears interest at 12.25% and matures in December 1997. The Company also has seven capital lease obligations for equipment with a balance of $4.2 million at December 31, 1996. During November 1996, the Company converted an operating lease on certain furniture, fixtures and equipment to a capital lease obligation whereby the residual balance on the operating lease was funded and the remaining outstanding balance was converted to a capital lease. As of December 31, 1996 the outstanding balance on the lease was $1.7 million and matures in September 1997. The Company believes that its current available cash and cash equivalents and anticipated cash flow from operations will be sufficient to fund the Company's working capital and normal recurring capital expenditures through the end of fiscal 1997. The Company does not believe such sources of liquidity will be sufficient to fund any of its proposed expansion projects at its current gaming facilities or in any new gaming jurisdiction. The Company believes that such expansion of its existing facilities is important for continued growth. If any of the Company's current proposed expansion projects were to proceed, the Company anticipates that such financing subject to certain restrictions set forth in the First Mortgage Notes, would come from one or more of a number of sources, including cash flow from operations, bank financing, vendor financing or debt, joint ventures, equity financing or other long-term debt. Alternatively, in the event the Hollywood Park merger were to be consummated, the Company believes that additional sources of financing will become available. However, there can be no assurance that such financing will be available, or available on terms acceptable to the Company or that any proposed expansion projects by the Company will ever be completed. Further, given the rapidly changing national competitive and legal environments related to gaming, the Company's future operating results are highly conditional and could fluctuate significantly. Should cash flow from the Company's operations in all locations be below expectations, the Company may have difficulty in satisfying capital requirements. The statements set forth above regarding the Company's estimates of its liquidity and capital expenditure requirements, the sufficiency of its resources and , any expectation that the Swap would be consummated are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby. Future operating results of the Company may be adversely affected as a result of a number of factors, including without limitation, seasonality (historically, the Company's operating results have been strongest in the summer months, and weakest in the winter months), weather conditions (severe winter storms have in the past had a significant adverse effect on the Company's operating results), the general level of demand for casino gaming and entertainment facilities, competition in the gaming industry and uncertainties in general economic, regulatory and political conditions affecting the gaming industry, difficulties in integrating the businesses of the Company and Hollywood Park following the proposed merger and lack of financing following the proposed merger with Hollywood Park and failure to satisfy any conditions to the Swap. Any of the above factors, among others, could cause the Company's operating results to be weaker than expected, and could cause the Company's cash requirements to differ materially from the Company's current estimates. 16 PART II - OTHER INFORMATION Item 1. Legal Proceedings. Boomtown is named defendant in a class action suit in the United States District Court in New Jersey in which the plaintiffs have alleged that numerous companies operating casinos in the United States have conspired to exclude card counters from their establishments. (HYLAND V. GRIFFIN INVESTIGATIONS, ET.AL.) A class has not yet been certified in the action. Motions to dismiss are in the process of being filed by the Company and other defendants. Item 2. Changes in Securities. NONE Item 3. Defaults Upon Senior Securities. NONE Item 4. Submission of Matters to a Vote of Security Holders. NONE Item 5. Other Information. NONE Item 6. Exhibits and Reports on Form 8-K. Exhibits enclosed herein are detailed on the Schedule of Exhibits on page 19. 17 SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunder duly authorized. Boomtown, Inc. Registrant Date: February 14, 1997 /s/ Phil E. Bryan ---------------------------------------- Phil E. Bryan, President; Chief Operating Officer Date: February 14, 1997 /s/ Jon L. Whipple ---------------------------------------- Jon L. Whipple, Vice President of Finance; Principal Accounting and Financial Officer 18 SCHEDULE OF EXHIBITS EXHIBIT NUMBER DESCRIPTION 3.1(5) Amended and Restated Certificate of Incorporation of Registrant. 3.2(11) Amended and Restated Bylaws of Registrant. 3.3(10) Amended and Restated Articles of Incorporation of Boomtown Hotel & Casino, Inc. 3.4(10) Revised and Restated Bylaws of Boomtown Hotel & Casino, Inc. 3.5(10) Articles of Incorporation of Blue Diamond Hotel & Casino, Inc. 3.6(10) Bylaws of Blue Diamond Hotel & Casino, Inc. 3.7(10) Articles of Incorporation of Louisiana Gaming Enterprises, Inc. 3.8(10) Articles of Incorporation of Bayview Yacht Club, Inc. 3.9(10) Bylaws of Bayview Yacht Club, Inc. 3.10(11) Articles of Organization of Boomtown Iowa, L.C. 3.11(11) Articles of Incorporation of Boomtown Council Bluffs, Inc. 3.12(11) Bylaws of Boomtown Council Bluffs, Inc. 3.13(11) Articles of Incorporation of Boomtown Indiana, Inc. 3.14(11) Bylaws of Boomtown Indiana, Inc. 3.15(11) Articles of Incorporation of Boomtown Riverboat, Inc. 3.16(11) Articles of Incorporation of Boomtown Missouri, Inc. 3.17(11) Bylaws of Boomtown Missouri, Inc. 4.1(1) Form of Warrant issued to the lead Underwriters of Boomtown, Inc.'s initial public offering. 4.2(7) Form of Private Placement Note. 4.3(7) Form of Exchange Note. 19 SCHEDULE OF EXHIBITS (CONTINUED) EXHIBIT NUMBER DESCRIPTION 4.4(7) Form of Subsidiary Guaranty. 4.5(7) Form of Addendum to Subsidiary Guaranty. 4.6(9) Registration Rights Agreement dated November 10, 1993, by and among the Company and the Initial Purchases named herein. 4.7(7) Warrant Agreement dated as of November 10, 1993 between Boomtown, Inc. and First Trust National Association, including Form of Warrant Certificate. 10.1(11) Amended and Restated 1990 Stock Option Plan. 10.2(11) 1992 Director's Stock Option Plan. 10.3(5) 1993 Stock Bonus Plan. 10.4(1) Standard Form of Indemnification Agreement between Boomtown, Inc. and its officers and directors. 10.5(1) Exercise of Option of Purchase and Agreement of Sale of Real Property dated October 29, 1986 between Boomtown, Inc. and S. Ross Mortensen and Irene Mortensen (the "Option Exercise Agreements"). 10.6(1) Note dated October 29, 1986 payable to Boomtown, Inc. to S. Ross Mortensen and Irene Mortensen in the principal amount of $823,000 and accompanying Deed of Trust, issued pursuant to the Option Exercise Agreement. 10.7(1) Agreement of Sale and Purchase and accompanying Agreement, each dated November 1, 1982 ( the "Purchase Agreement"), between Boomtown, Inc. and Chris Garson, Ruth R. Garson, George Garson, George Garson as Guardian of the Person and Estate of Agnes M. Garson, and Beatrice Garson (collectively the "Garsons"). 10.8(1) Registration Agreement dated May 6, 1988 between Boomtown, Inc., MLIF, Kenneth Rainin and Timothy J. Parrott. 10.9(11) Promissory Note dated September 10, 1992, payable by Timothy J. Parrott to Boomtown, Inc. in the principal amount of $221,000. 10.10(1) Agreement dated January 1, 1989 between Boomtown, Inc., Nevada Fun Flight Tours and Val Ruggerio. 20 SCHEDULE OF EXHIBITS (CONTINUED) EXHIBIT NUMBER DESCRIPTION 10.11(1) Memorandum of Understanding dated February 13, 1992 between Boomtown, Inc. and the Internal Revenue Service. 10.12(1) Termination Agreement and Mutual Release dated April 24,1992 between Registrant, Boomtown, Inc., Frank Gianopolus and Delores Gianopolus. 10.13(3) Letter of Intent dated as of March 26, 1993 among Boomtown, Inc., The Skrmetta Group, Inc. and Skrmetta Machinery Corporation, relating to the property in Harvey, Louisiana. 10.14(3) Letter of Intent dated as of March 26,1993 among Boomtown, Inc. and Raphael Skrmetta, relating to the property in Biloxi, Mississippi. 10.15(11) Amended and Restated Agreement to Lease Real Property in Biloxi, Mississippi dated September 12,1993 by and between Boomtown, Inc. and Raphael Skrmetta. 10.16(4) Agreement to Lease Real Property in Harvey, Louisiana by and between Boomtown, Inc., The Skrmetta Group, Inc. and Skrmetta Machinery Corporation. 10.17(4) Letter Agreement dated April 16, 1993 among Boomtown, Inc., Raphael Skrmetta, The Skrmetta Group, Inc., and Skrmetta Machinery Corporation. 10.18(4) Loan Agreement dated April 23, 1993 by and between Boomtown, Inc., First Interstate Bank of Nevada, N.A., First Interstate Bank of Arizona, N.A. and the Diawa Bank, Limited. 10.19(2) Memorandum of Understanding dated March 15, 1993 among Boomtown, Inc., Industry Hills Visitor Accommodations Center, Blue Diamond Hotel & Casino, Inc. ("Blue Diamond"), Majestic Realty Co. ("Majestic"), and Edward P. Roski, Jr. ("Roski"). 10.20(5) Stockholders and Affiliates Agreement dated as of June 30, 1993 by and among Blue Diamond, Edward P. Roski, Sr., Roski, Boomtown, Inc., IVAC, a California general partnership formerly known as Industry Hills Visitor Accommodations Center, a California general partnership ("IVAC") and Majestic. 10.21(11) First Amendment to and Clarification of Stockholders and Affiliates Agreement dated as of November 10, 1993 between Blue Diamond, Edward P. Roski, the Roski Community Property Trust, the Roski Senior Revocable Trust, the Registrant, IVAC and Majestic. 21 SCHEDULE OF EXHIBITS (CONTINUED) EXHIBIT NUMBER DESCRIPTION 10.22(5) Lease dated as of June 30, 1993 between IVAC and Blue Diamond. 10.23(11) Lease Amendment to Lease dated as of November 10, 1993 between IVAC and Blue Diamond. 10.24(5) Purchase Option Agreement dated as of June 30, 1993 by and among IVAC, Boomtown, Inc., and Blue Diamond. 10.25(11) Amendment to Purchase Option Agreement; Consent to Assignment dated as of November 10, 1993 between IVAC, the Registrant and Blue Diamond. 10.26(5) Development and Pre-Opening Services Agreement dated as of June 30, 1993 between Boomtown, Inc., Blue Diamond and IVAC. 10.27(5) Management Agreement dated as of June 30, 1993 between Boomtown, Inc. and Blue Diamond. 10.28(5) Affiliate Loan Agreement dated as of June 30, 1993 by and among IVAC, Majestic and Boomtown, Inc. 10.29(5) Bridge Loan Agreement dated as of June 30, 1993 by and between IVAC and Boomtown, Inc. 10.30(11) Amendment No. 1 to Bridge Loan Agreement dated as of November 10, 1993 between IVAC and the Registrant. 10.31(5) Trademark License Agreement dated as of June 30, 1993 by and between Boomtown, Inc. and Blue Diamond. 10.32(5) Boomtown Stockholders Agreement dated as of June 30, 1993 by and among Boomtown, Inc., IVAC and Roski. 10.33(5) Standard Form Agreement Between Owner and Designer/Builder, Part 1 Agreement Preliminary Design and Budgeting, dated as of May 10, 1993 between IVAC and Commerce Construction Co., Inc. and Standard Form Agreement Between Owner and Designer/Builder, Part 2 Agreement - Final Design and Construction dated as of May 17, 1993 between IVAC and Commerce Construction Co., Inc. and related documents. 10.34(11) Subordination Agreement dated as of November 10, 1993 between Majestic, IVAC and the Registrant. 22 SCHEDULE OF EXHIBITS (CONTINUED) EXHIBIT NUMBER DESCRIPTION 10.35(11) Omnibus Consent Agreement dated as of November 10, 1993 between Blue Diamond, Edward P. Roski, Sr., Roski, the Roski Community Property Trust, the Roski Senior Revocable Trust, the Registrant, IVAC and Majestic. 10.36(6) Indenture dated as of November 1, 1993 by and among the Registrant, Boomtown Casino, Blue Diamond, Louisiana - I Gaming, a Louisiana Partnership in Commendam (the "Louisiana Partnership"), Louisiana Gaming Enterprises, Inc. ("LGE"), Mississippi - I Gaming, L.P. (the Mississippi Partnership"), Bayview Yacht Club, Inc. ("Bayview") and First Trust National Association. 10.37(7) Purchase Agreement dated as of November 3, 1993 among Boomtown, Inc., Boomtown Casino, Blue Diamond, the Louisiana Partnership, LGE, the Mississippi Partnership, Bayview, Oppenheimer & Co., Inc. and Sutro & Co. Incorporated. 10.38(8) Master Agreement dated as of February 1, 1994 by and between Boomtown Indiana, Inc., Boomtown Riverboat, Inc., Boomtown, Inc., SES Indiana, L.L.C., First SES Indiana, Inc., SES Facilities, Inc., SES Gaming, Inc. and Sheldon E. Stunkel. 10.39(8) Agreement of Limited Partnership of Boomtown Landing, L.P., and Indiana Partnership. 10.40(8) Agreement of Limited Partnership of SES Boat, L.P., an Indiana limited partnership. 10.41(8) Development and Pre-Opening Services Agreement between Boomtown Indiana, Inc., and SES Boat, L.P. 10.42(8) Management Agreement between Boomtown Indiana, Inc. and SES Boat, L.P. 10.43(8) Agreement of Limited Partnership of Boomtown Belle II, L.P., and Indiana limited partnership. 10.44(8) Agreement of Limited Partnership of Single Riverboat, L.P., and Indiana limited partnership. 10.45(9) Asset Purchase Sale Agreement dated as of April 27, 1994 by and between HFS Gaming Corp. and Mississippi - I Gaming, L.P. 10.46(9) Lease Agreement between HFS Gaming Corp. as Landlord and Mississippi - I Gaming, L.P. as Tenant dated as of April 27, 1994. 10.47(9) Marketing Services Agreement dated as of April 27, 1994 by and among Boomtown, Inc. and HFS Gaming Corp. 23 SCHEDULE OF EXHIBITS (CONTINUED) EXHIBIT NUMBER DESCRIPTION 10.48(10) Stock Acquisition Agreement and Plan of Reorganization dated June 30, 1994 by and between Boomtown, Inc. and Roski. 10.49(11) Master Agreement dated as of September 19, 1994, as amended September 19, 1994, by and between Boomtown Council Bluffs, Inc. ("BCB"), the Registrant and Iowa Gaming Associates, Inc. ("IGA"). 10.50(11) Operating Agreement dated September 19, 1994 between BCB and IGA. 10.51(11) Management Agreement dated September 19, 1994 between BCB and IGA. 10.52(11) Development and Pre-Opening Services Agreement dated September 19, 1994 between BCB and Boomtown Iowa, L.C. 10.53(12) Agreement and Plan of Merger and Reorganization dated January 17, 1995, by and among Boomtown, Inc., Tweety Sub., Inc. and National Gaming Corp. 10.54(12) Guarantee letter dated January 17, 1995 between Hospitality Franchise Services, Inc., National Gaming Corp. and Boomtown, Inc. 10.55(13) Letter agreement dated March 31, 1995 between Boomtown, Inc., Tweety Sub., Inc., National Gaming Corp., Hospitality Franchise Systems., Inc. and HFS Gaming Corp. 10.56(14) Promissory Note dated December 1, 1994 by and between Boomtown, Inc. and First National Bank of Commerce. 10.57(14) Promissory Note dated December 30, 1994 by and between the Louisiana Partnership and PDS Financial. 10.58(15) Lease Agreement dated as of March 29, 1995 by and between Marquis Leasing Company , a Louisiana Corporation and Louisiana-I Gaming, L.P. 10.59(16) Option Agreement dated as of November 6, 1995 by and between National Gaming Mississippi, Inc. and Mississippi - I Gaming, L.P. 10.60(16) Marketing Services Agreement Amendment dated as of November 6, 1995 to Marketing Services Agreement dated as of April 27, 1994 by and among Boomtown, Inc. and HFS Gaming Corporation. 10.61(16) Lease Amendment dated November 6, 1995 to the Lease Agreement dated as of April 27, 1994 by and among National Gaming Mississippi, Inc. and Mississippi - I Gaming, L.P. 24 SCHEDULE OF EXHIBITS (CONTINUED) EXHIBIT NUMBER DESCRIPTION 10.62(16) Articles of Organization Indiana Ventures, LLC 10.63(16) Operations Agreement Indiana Ventures, LLC. 10.64(16) Stock Purchase Agreement for all shares of Pinnacle Gaming Development Corp. between Switzerland County Development Corp. (Buyer) and Century Casinos Management, Inc. and Cimarrron Investment Properties Corp. (Sellers). 10.65(16) Option Agreement to lease real property (Parcel I) in Switzerland County, Indiana, between Daniel Webster, et al (Landlord) and Indiana Ventures,LLC (Tenant). 10.66(16) Option Agreement to lease real property (Expansion Parcel) in Switzerland County, Indiana, between Daniel Webster, et al (Landlord) and Indiana Ventures, LLC (Tenant). 10.67(17) Agreement and Plan of Merger dated as of April 23, 1996, among Hollywood Park, Inc., HP Acquisition, Inc. and Boomtown, Inc. 10.68(17) Voting Agreement dated as of April 23, 1996, by and between Hollywood Park, Inc., a Delaware corporation, and Timothy J. Parrott, in his capacity as a stockholder of Boomtown, Inc. 10.69(17) Voting Agreement dated as of April 23, 1996, by and between Boomtown, Inc., a Delaware corporation, and R.D. Hubbard, in his capacity as a stockholder of Hollywood Park, Inc. 10.70(17) Joint Press Release issued on April 24, 1996 by Hollywood Park, Inc. and Boomtown, Inc. 10.71(18) Agreement between Boomtown and related entities ("Boomtown Group") and SES Gaming, Inc. and related entities ("SES Group") terminating the Master Agreement by and between the Boomtown Group and the SES Group dated February 1, 1994 relating to the proposed gaming project in Lawrenceburg, Indiana. 10.72(19) Agreement between Boomtown, Hollywood Park and Edward P. Roski, Jr. ("Swap Agreement") effectively terminating the lease of the Blue Diamond Property and selling virtually all assets and liabilities effective with the close of Boomtown's merger with Hollywood Park. 10.73(20) Settlement and Purchase Agreement dated November 18, 1996 among Louisiana-I Gaming, Inc., Boomtown, Inc. and Eric Skrmetta. 25 SCHEDULE OF EXHIBITS (CONTINUED) EXHIBIT NUMBER DESCRIPTION - ------------------------------ (1) Incorporated by reference to the exhibit filed with the Company's Registration Statement on Form S-1 (File No. 33-51968), effective October 22, 1992. (2) Incorporated by reference to the exhibit filed with the Company's Current Report on Form 8-K, filed with the SEC on March 18, 1993. (3) Incorporated by reference to the exhibit filed with the Company's Current Report on Form 8-K, filed with the SEC on April 1, 1993. (4) Incorporated by reference to the exhibit filed with the Company's Registration Statement on Form S-1 (File No. 33-61198), effective May 24, 1993. (5) Incorporated by reference to the exhibit filed with the Company's Current Report on Form 8-K, filed with the SEC on July 28, 1993. (6) Incorporated by reference to the exhibit filed with the Company's Current Report on Form 8-K, filed with the SEC on December 23, 1993. (7) Incorporated by reference to the exhibit filed with the Company's Form 10-K for the fiscal year ended September 30, 1993. (8) Incorporated by reference to the exhibit filed with the Company's Form 10-Q for the quarter ended December 31, 1993. (9) Incorporated by reference to the exhibit filed with the Company's Registration Statement on Form S-4 (File No. 33-70350), effective May 6, 1994. (10) Incorporated by reference to the exhibit filed with the Company's Form 10-Q for the quarter ended June 30, 1994. (11) Incorporated by reference to the exhibit filed with the Company's Form 10-K for the fiscal year September 30, 1994. (12) Incorporated by reference to the exhibit filed with the Company's Current Report on Form 8-K, filed with the SEC on January 25, 1995. (13) Incorporated by reference to the exhibit filed with the Company's Current Report on Form 8-K, filed with the SEC on April 14, 1995. (14) Incorporated by reference to the exhibit filed with the Company's Form 10-Q for the quarter ended March 31, 1995. 26 SCHEDULE OF EXHIBITS (CONTINUED) EXHIBIT NUMBER DESCRIPTION (15) Incorporated by reference to the exhibit filed with the Company's Form 10-Q for the quarter June 30, 1995. (16) Incorporated by reference to the exhibit filed with the Company's Form 10-K for the fiscal year September 30, 1995. (17) Incorporated by reference to the exhibit filed with the Company's Current Report on Form 8-K, filed with the SEC on April 23, 1996. (18) Incorporated by reference to the exhibit filed with the Company's Form 10-Q for the quarter ended March 31, 1996. (19) Incorporated by reference to the exhibit filed with the Company's Form 10-Q for the quarter ended June 30, 1996. (20) Incorporated by reference to the exhibit filed with the Company's Form 10-K for the quarter ended September 30, 1996. 27 EX-27 2 EX 27
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM BOOMTOWN, INC. AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 3-MOS SEP-30-1996 OCT-01-1996 DEC-31-1996 20,105,495 0 1,080,541 0 1,896,039 30,649,926 185,672,566 38,555,018 207,288,528 31,593,258 101,109,000 0 0 103,705,796 (34,632,357) 207,288,528 0 56,690,193 0 31,068,578 25,667,076 0 3,490,495 (2,824,507) 1,457,564 0 0 0 0 (1,366,943) 0 0
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