Colorado Gaming & Entertainment Co.
Announces First Quarter Results
DENVER, CO - May 13, 1997 - Colorado Gaming &
Entertainment Co. (OTC Bulletin Board: CGME), parent company of
the Bullwhackers Casinos in Black Hawk and Central City, Colo.,
and the Silver Hawk Casino in Black Hawk, announced today results
for the three months ended March 31, 1997, the company's third
full quarter of operations since completion of its reorganization
on June 7, 1996.
The company recorded a net loss of $346,000 or $(0.07) per
share for the period, on record net revenues of approximately
$13.0 million, an 18% increase in net revenues compared to the
prior year. Although Colorado Gaming & Entertainment Co.'s
(CG&E), predecessor company, Hemmeter Enterprises, Inc.,
(HEI), a private company, reflected net income of approximately
$328,000 for the period ended March 31, 1996, the prior year
figures are not comparable for a number of reasons as HEI was in
bankruptcy proceedings. Accordingly, the prior year figures do
not reflect certain interest expense and amortization charges
that were included in the 1997 period.
Casino operating profits were up approximately 18% from the
prior year reflecting the increase in net revenues. Earnings
Before Interest, Taxes, and Depreciation (EBITDA), increased
approximately 13% to approximately $3.1 million for the 1997
period as corporate expenses were up approximately $240,000 or
47% of the prior year's amount. This increase in corporate
expenses primarily reflects certain compensation expense relating
to implementation of the company's new cash bonus and stock
incentive plans, and expenses associated with the relocation of
the company's corporate offices, as well as costs associated with
the pursuit of the previously announced proposed joint venture in
Canada.
"We are pleased with the results for the period ended
March 31, 1997," said CG&E President & CEO Stephen
J. Szapor, Jr. "Although the company reported a net loss for
the period, the first quarter, historically, is seasonally
affected. In addition, we experienced disruption to our business
as a result of the extensive excavation and construction
activities that commenced in January, 1997 relating to our
parking expansion and development of the Kids Quest child care
center project. Despite the disruption to our parking facilities
during the quarter we were still able to achieve an 18% increase
in revenues and a corresponding 18% increase in casino operating
profits," said Szapor.
The company's parking expansion, which is expected to be
completed in time for the Memorial Day weekend, will provide the
company's Bullwhackers and Silver Hawk Casinos in Black Hawk with
approximately 33% more parking capacity. The Kids Quest child
care and entertainment center, which is adjacent to the company's
operations in Black Hawk, and which will be operated by New
Horizons Kids Quest, Minneapolis, (Nasdaq Smallcap: KIDQ), is
expected to be open for the July 4th weekend.
Colorado Gaming & Entertainment Co. currently owns and
operates three limited stakes casinos in Colorado located in the
adjacent towns of Black Hawk and Central City. The casinos,
operating under the names of Bullwhackers and Silver Hawk, offer
combined gaming space of approximately 25,000 square feet, with
approximately 1,250 gaming devices and 23 gaming tables. While
all operations are currently located within Colorado, the company
continues to explore potential gaming opportunities outside the
state.
COLORADO GAMING & ENTERTAINMENT CO.
SELECTED CONSOLIDATED RESULTS
FOR THE QUARTER ENDED MARCH 31
(numbers in thousands, except per share amounts)
(Unaudited)
Three months ended
March 31
1997 1996
Net revenue $12,973 $11,022
Casino expenses 9,153 7,790
Casino operating profit 3,820 3,232
Corporate expenses 751 512
EBITDA 3,069 2,720
Income from operations 1,368 424
Net income (loss) (346) 328
Net loss per share (a) $(0.07) N/A
Weighted average common
or common equivalent
shares outstanding (a) 5,138,888 N/A
(a) The net income per common share and the weighted average
shares outstanding for the predecessor company have not been
presented because, due to the reorganization and implementation of
fresh start reporting, they are not comparable to the previous
period.
SOURCE Colorado Gaming & Entertainment Co./CONTACT:
Stephen J. Szapor, Jr., President-CEO or Robert J. Stephens, Vice
President-Treasurer, both of Colorado Gaming & Entertainment
Co., 303-716-5600; or Z. James Czupor of The InterPro Group,
303-871-8909/
Andover Togs Emerges From Chapter 11
NEW YORK, NY - May 13, 1997 - Andover
Togs, Inc. (OTC) announced today that the Joint Plan of
Reorganization filed on January 30, 1997 has become effective as
of May 12, 1997.
Under the Plan, the Company will pay 100% of all allowed
claims. The Company announced that it has entered into a
financing agreement with the CIT Group/Commercial Services, Inc.
for a $10,500,000 credit facility.
William L. Cohen, Andover's CEO, was delighted that the
Company has successfully emerged from bankruptcy. He observed
that since March 19, 1996, the date of its Chapter 11 filing, the
Company has consolidated its operations and substantially reduced
its overhead.
Andover Togs, Inc. designs, manufactures and distributes
children's wear.
SOURCE Andover Togs, Inc. /CONTACT: William L. Cohen,
Chairman, President and Chief Executive Officer of Andover Togs,
212-244-0700/
LG&E Energy Corp.'s Big Rivers Bid
Prevails
LOUISVILLE, Ky., May 13, 1997 - Today LG&E Energy Corp.
(NYSE: LGE) and Big Rivers
Electric Corporation reached a global settlement agreement on
all outstanding issues regarding LG&E Energy's 25-year lease
of Big Rivers 1,700 megawatts of generation capacity in Western
Kentucky.
With the successful resolution of these issues and with all
other constituents, other than Green River Coal and PacifiCorp,
endorsing the settlement and the disclosure statement filed by
Big Rivers on April 18, 1997, Federal Bankruptcy Judge Wendell
Roberts today approved the disclosure statement and confirmed the
date of June 9 for the hearing on the proposed Plan of
Reorganization finalizing the LG&E Energy transaction.
In spite of the recent efforts of PacifiCorp to supplant
LG&E Energy as the winning bidder for Big Rivers, the
majority of the creditors and Big Rivers continue to support the
LG&E proposal.
If the creditors vote to approve the plan of reorganization on
June 9, the closing of the LG&E Energy transaction will be
subject only to regulatory approval by the Kentucky Public
Service Commission and the Federal Energy Regulatory Commission.
George Basinger, senior vice president of power operations at
LG&E Energy, complimented Big Rivers and its board and
advisors on their hard work and cooperation over the past two
months to reach the necessary agreements.
"Throughout the negotiation process we have been
impressed with the foresight and integrity demonstrated by the
Big Rivers board of directors and other Big Rivers employees
involved in the process. Everyone worked together to reach a
common goal that benefits all parties," he said. "We're
pleased with the agreement and we look forward to a lasting
relationship with Big Rivers and its customers."
The Big Rivers board of directors will vote on approving the
letter agreement with LG&E Energy later this week. Big
Rivers' lawyers, advisors and senior management have recommended
board approval.
"We're extremely pleased to have these issues resolved
and to be moving forward with LG&E Energy," said Michael
Core, president and chief executive officer of Big Rivers.
"We can now begin working in earnest to obtain regulatory
approval and confirmation."
LG&E Energy also will enter into an interim power
marketing agreement with Big Rivers for the company's excess
generating capacity effective mid-June 1997. This agreement will
provide for the sale of an average of 200,000 megawatts of
electricity per month between mid-June and the closing date of
the transaction. Once regulatory approvals are achieved, the two
companies will have a permanent power marketing agreement.
At a public auction March 19, LG&E Energy won the right to
enter into a business arrangement to lease Big Rivers' generating
assets. Under the terms of the transaction, LG&E Energy will
lease the generating assets of Big Rivers for 25 years and
provide power to serve its member cooperatives and their 91,000
customers at reduced rates.
Big Rivers provides power to four distribution cooperatives,
Henderson Union Electric Cooperative, Green River Electric
Corporation, Jackson Purchase Electric Cooperative and Meade
County Rural Electric Cooperative Corporation. The retail
cooperatives serve 91,000 consumers in 22 western Kentucky
counties.
LG&E Energy Corp., a Fortune 500 company, is an industry-
leading energy services holding company headquartered in
Louisville, Ky. The company has assets and operations in retail
and wholesale power and natural gas services and marketing. It
has offices, operations and partnership projects throughout the
U.S. as well as Canada, Argentina and Spain.
Statements made in this news release that state the Company's
or management's intentions, expectations or predictions of the
future are forward looking statements.
The Company's actual results could differ materially from
those projected in the forward looking statements, and there can
be no assurance that estimates of future results will be
achieved. The Company's SEC filings contain additional
information concerning factors that could cause actual results to
differ materially from those in the forward looking statements.
SOURCE LG&E Energy Corp. /CONTACT: Chris Whelan, LG&E
Energy Corp., 502-627-2511, Digital Pager, 502-346-4222; or Susan
Sauls, Big Rivers Electric Corp., 502-827- 2561/
Cincinnati Microwave Sells Modem
Business
CINCINNATI, OH - May 13, 1997 -
today that it signed an Asset Purchase Agreement with Sierra
Wireless, Inc. (Sierra) to sell its cellular digital packet data
modem business, for $110,000. On Monday, May 12, 1997 the Company
filed a motion with the United States Bankruptcy Court, Southern
District of Ohio, Western Division, for an order (i) granting
authority to sell the assets to Sierra pursuant to Section 363 of
the Bankruptcy Code, (ii) establishing auction procedures and
(iii) setting a hearing date of May 27, 1997 on the sale of these
assets.
The Company is in the process of looking for buyers for the
rest of its phone business. This transaction, however, is not
likely to contribute more than minimum value to the creditors.
This sale, coupled with the closing of the sale of the Company's
real estate, will complete the sale of substantially all of the
Company's assets.
Additional information on the Company, its products and
markets can be obtained from the Company's worldwide web site:
http://www.cnmw.com/welcome.htm.
SOURCE Cincinnati Microwave, Inc. /CONTACT: Elaine Bacon of
Cincinnati Microwave, Inc., 513-489- 5400, or e-mail,
shinfocnmw.com; or Analyst Inquiries, Bill Schmidle, 312-
640-6753, or General Inquiries, Karl Plath, 312-640-6738, both of
The Financial Relations Board/
Telechips Corp. Announces Plan to File
Petition for Relief Under Chapter 7 of the Bankruptcy Code
RENO, Nev.--May 13, 1997--Telechips Corp. (TCHP: common,
TCHPW: warrants), an innovative developer of interactive
Microsoft Windows(R)-compatible information appliances and
computer/telephony workstations, today announced that the Board
of Directors has retained the services of the law firm of Hale,
Lane, Peek, Dennison, Howard, Anderson & Pearl of Reno and
Las Vegas, Nevada to file a petition for relief under Chapter 7
of the Bankruptcy Code.
As of April 30, 1997, the Company had laid off all employees
after experiencing numerous delays in completing critical
financing.
Nelson B. Caldwell, interim president and chief executive
officer, said, "The Company has exhausted all possibilities
for obtaining financing crucial to operations and completion of
Company turnaround plans. Our nominal cash reserves and resultant
inability to retain key employees and pay vendors critical to the
production process would not support taking any other course of
action. We wish to express our sincerest gratitude for those
customers, vendors, employees, consultants and financial
community supporters who have contributed to Telechips vision for
wide-spread deployment of innovative information appliances and
integrated computer/telephony devices."
Telechips Corp. designed, developed, manufactured, and
marketed 100 percent, Microsoft Windows-compatible client
computing and communications devices that leveraged the company's
core competencies in network computing and computer/telephony
integration. The company sold its product and licensed its
technology through OEM and VAR distribution channels.
Any statements set forth above that are not historical facts
are forward-looking statements that involve risks and
uncertainties that could cause actual results to differ
materially from those in the forward-looking statements.
Potential risks and uncertainties include such factors as the
financial strengths of the company, product demand, market
acceptance, manufacturing efficiencies, new product development,
the success of planned advertising, marketing and promotional
campaigns, and the other risks identified in documents filed by
the company with the Securities and Exchange Commission.
CONTACT: Telechips Corp., Reno Nelson Caldwell, 702/824-5555