ATLANTIC CITY, N.J., Oct. 26, 1995--href="chap11.capital.html">Capital Gaming
International, Inc. (OTC Bulletin Board: GDFI) (the "Company")
reported financial results for its fourth quarter and fiscal year
ended June 30, 1995 ("Fiscal Year 1995").
For the Fiscal Year ended June 30, 1995, the Company reported
revenues of approximately $6.4 million, compared with $1.7 million
for Fiscal Year ended June 30, 1994. Operating losses from
continued operations for Fiscal Year 1995 were $29.5 million
compared with an operating loss of $23.7 million for the prior year.
For specific projects, the Company reported a loss from its New
Orleans subsidiary, Crescent City Capital Development Corporation
("Crescent City"), of approximately $17.6 million from continuing
operations and an overall loss of $19.0 million. As previously
reported, Crescent City discontinued operations following
substantial operating losses in part as a result of the failure of
the New Orleans gaming market. The Company's total net loss in
Fiscal Year 1995 was $117.7 million, or $6.82 per share, as compared
to a net loss of $23.7 million, or $1.68 per share a year earlier.
The Fiscal Year 1995 net loss was predominantly related to losses
incurred by Crescent City as the result of development costs and
operating revenue shortfalls at the Company's River City riverboat
casino project in New Orleans. The Fiscal Year 1995 net loss also
includes a loss of $5.11 per share for extraordinary items related
to the write-off of expenses related to the River City terminal in
the fourth quarter.
For the fourth quarter ended June 30, 1995, the Company reported
revenues of $2.8 million, compared with $.83 million in the
corresponding quarter last year. The operating loss was $6.3
million in the fourth quarter, compared with an operating loss of
$10.9 million in the 1994 fourth quarter. Net loss for the fourth
quarter was $86.9 million, or $4.50 per share, compared with a net
loss of $10.9 million, or $.66 per share, in the corresponding 1994
quarter. The net loss in the fourth quarter included a loss on
disposal of discontinued operations of $69.3 million or $3.50 per
share. Accordingly, fourth quarter losses were predominantly related
to losses incurred by Crescent City. Crescent City had fourth
quarter revenues of $4,196,000 following its opening in April, but
reported operating losses of $17,188,000 prior to closing on June 9,
The Company reported Fiscal Year 1995 Native American casino
management fees of $6,441,000 as compared to approximately
$1,724,000 in the previous fiscal year. Fourth quarter management
fees were $2,797,000, compared with 1994 fourth quarter management
fees of $833,000. The increase in management fees reflects the
opening of the Wildhorse Gaming Resort in Pendleton, Oregon in
March, 1995, and the openings of the Mazatzal Casino in Payson,
Arizona and the Muckleshoot Casino in Auburn, Washington, both of
which opened at the end of April, 1995. The Company's reported net
losses for Fiscal Year 1995 also included the extraordinary charges
taken in connection with the discontinuance of the Santa Rosa
Rancheria contract which was terminated during Fiscal Year 1995. In
addition, the net loss included approximately $1.9 million in
development costs, which are treated as an expense, associated with
the Narragansett Tribe's gaming project.
The Company has reduced operating expenses by approximately $3.3
million per year. In addition, the Company has reduced its
development budget since June of 1995 by approximately $3.0 million.
The Company continues to incur extraordinary expenses of
approximately $400,000 per month in connection with the cessation of
gaming operations at the New Orleans River City Casino.
In other developments, the Company reported that as part of
Crescent City's reorganization, a Plan of Reorganization (the
"Plan") was filed with the U.S. Bankruptcy Court in Louisiana. The
Company anticipates the Plan to be confirmed by the Bankruptcy Court
prior to December 31, 1995. Pursuant to the Plan, which includes
the sale of Crescent City to Mirage Resorts, Incorporated, the
Company estimates that the Indenture Trustee, on behalf of the
holders of the 11-1/2% Secured Notes, will receive approximately
$35.0 million, net of certain settlement payments contemplated
thereby. Such settlement payments will be used to fund
distributions to other Crescent City creditors, including trade
vendors. The purchase price to be paid by Mirage is $55.0 million
plus the assumption of up to $6.5 million of equipment financing.
On September 21, 1995, the Noteholder's Steering Committee for the
Company's 11-1/2% Senior Secured Notes recommended to the Company
that it proceed in the Bankruptcy Court with obtaining approval of
the transactions contemplated by the Mirage transaction. The
consummation of the Mirage transaction is subject to a number of
regulatory approvals including the approval of the Louisiana State
Police Riverboat Gaming Enforcement Division and the Louisiana
Riverboat Gaming Commission.
The consummation of the Plan, including the approval of the
Mirage transaction, will be dependent upon the satisfaction of
various conditions, including, among others, preparation of
disclosure statements describing the Plan and approval of the
disclosure statements by the Bankruptcy Court, the acceptance of the
Plan by several classes in interest, and confirmation of the Plan by
the Bankruptcy Court. There can be no assurances that the required
conditions of the Plan will be satisfied.
Edward M. Tracy, President and Chief Executive Officer,
commented, "While we are disappointed with the results of the River
City project, the Company intends to complete the sale of its New
Orleans assets to Mirage. The Company is pleased, however, with the
performance of its Native American casino operations, which continue
to meet the Company's expectations. Going forward, the Company
remains focused on its strategy of restructuring existing debt,
maintaining its Native American casino operations and pursuing new
Based in Atlantic City, New Jersey, Capital Gaming International
is a multi-jurisdictional casino development and management company
with interests in the Native American gaming markets.
/CONTACT: William S. Papazian, Senior Vice President and General
Counsel of Capital Gaming International, 609-383-3333/
GRAND PRAIRIE, Texas--Oct. 26, 1995--Oakhurst
Company Inc. ("Oakhurst") (NASDAQ: OAKC), a major distributor in the
automotive aftermarket, today announced that its majority-owned
subsidiary, Steel City Products Inc. ("SCPI") is anticipating a
decrease in sales to a large customer, Forest City Auto Parts Inc.
and that sales to this customer are expected to be eliminated
altogether during the first half of 1996.
In the first half of the current fiscal year (March through
August 1995) sales to Forest City were approximately $3.2 million.
SCPI expects that sales to Forest City and to href="chap11.jamesway.html">Jamesway Corporation
(a large customer which filed for bankruptcy on Oct. 18, 1995) will
be approximately $2 million lower in the second half of the current
fiscal year than in the same period of the prior year.
To counter this loss of business, SCPI has reduced operating and
overhead expenses while intensifying its on-going efforts to
increase business with existing customers and to add new customers.
In addition, SCPI is exploring the addition of new product lines to
CONTACT: Oakhurst Company Inc.,
Maarten D. Hemsley, 214/660-4484
Karen A. Stempinski, 214/660-4448