10-Q 1 tenq.txt 1 vegaswoody@hotmail.com NONE tenq.txt 06/30/2001 UNION PLAZA HOTEL AND CASINO, INC. 1 Main Street Las Vegas, NV 89101 August 14, 2001 Securities and Exchange Commission Washington, D.C. 20549 Gentlemen: Pursuant to the requirements of the Securities Exchange Act of 1934, we are transmitting herewith the attached Form 10-Q. Sincerely, UNION PLAZA HOTEL AND CASINO, INC. /s/ ALAN J. WOODY Alan J. Woody, Chief Financial Officer FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2001 Commission file number 0-8133 UNION PLAZA HOTEL AND CASINO INC. (Exact name of registrant as specified in its charter) Nevada 88-0110085 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) No. 1 Main Street 89125 Las Vegas, Nevada (Zip Code) (Address of principal executive offices) (702) 386-2110 (Registrant's telephone number, including area code) 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 and (2) has been subject to such filing requirements for the past 90 days. YES [ X ] NO [ ] Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the close of the period covered by this report: Outstanding at Class of Common Stock June 30, 2001 $.50 par value 757,419 shares The Securities and Exchange Commission Washington D.C. The financial information included herein is unaudited. In addition, the financial information does not include all disclosures required under generally accepted accounting principles because certain note information included in the Company's annual report has been omitted; however, such information reflects all adjustments (consisting entirely of normal recurring adjustments) which are, in the opinion of Management, necessary to a fair statement of the results for the interim period. In addition, certain amounts in the 2000 financial statements have been reclassified to conform to the 2001 presentation. /s/ ALAN J. WOODY Alan J. Woody, Controller Las Vegas, Nevada August 14, 2001 PART 1. - Financial Information Item 1. Financial Statements UNION PLAZA HOTEL AND CASINO, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (UNAUDITED) June 30, 2001 AND DECEMBER 31, 2000 UNION PLAZA HOTEL AND CASINO, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET

PART 1. - FINANCIAL INFORMATION ITEM 2. - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS LIQUIDITY AND CAPITAL RESOURCES At June 30, 2001, the Company's primary source of liquidity was $3,255,000 in cash and cash equivalents and a $1,000,000 letter of credit secured by the Company's majority shareholder. Cash accounted for 8.0% of total assets at June 30, 2001 and 7.9% or $3,335,000 at December 31, 2000. The ratio of current assets to current liabilities was .9 to 1 at June 30, 2001 compared to .8 to 1 at December 31, 2000. Prepaid expenses increased 33.2% or $238,000 including annual slot machine taxes of $320,000 that was paid in June. Long-term debt and obligations under capital leases (including current term portions) was $32,041,000 at June 30, 2001 compared to $33,321,000 at December 31, 2000. The decrease in obligations is the result of scheduled payments made on outstanding debt and lease obligations in the first six months of the year. Accounts payable increased 4.2% or $109,000 representing an increase in trade payables during the first half of 2001. The balance of trade payables at the end of the second quarter is consistent with normal levels carried through out the year. Operating cash flow was $1,799,000 for the six months ended June 30, 2001 compared to $1,833,000 a year ago. Management expects the cash generated by operations, along with financing provided by Exber, Inc. will provide the proper liquidity to meet the future needs of the business. The Company considers the financial stability of its majority shareholder to be a source of capital for future investment in equipment and funding for operations when needed. These factors considered, management believes that its capital resources and those available to it should be adequate to meet its anticipated requirements. RESULTS OF OPERATIONS Net revenues at the Company's hotel and casino increased $460,000 (3.6%) during the second quarter compared to the same period in 2000. The revenue growth in the second quarter was attributed to an increase of $357,000 (4.1%)in casino win an increase of $155,000 (6.5%) in food and beverage sales, and increase of $75,000 (2.7%) in hotel revenues. Improvements in the key operating segments were partially offset by a $69,000 decline in other income and a $58,000 increase in promotional complimentaries. Operating expenses increased $663,000 (5.2%) in the second quarter of 2001 compared to the same period in 2000. Higher utility costs combined with increased payroll expense were the primary factors contributing to the sharp rise in operating costs. The higher utility costs reflect the rising costs of both electricity and natural gas on the open market. The increase in payroll expense is reflective of higher overall rates in most categories of our operation but most noticeable in areas covered by the Culinary Bargaining Agreement. Additional increases are scheduled at the end of 2001. The Operating loss was $148,000 for the second quarter compared to operating income of $55,000 a year earlier. Interest expense declined $165,000 or 22.1% as interest rates continued to move lower. For the second quarter the Company's loss increased to $699,000 from $671,000. On a per share basis, the loss was $.92 per common share compared to $.89 reported last year. For the first six months of $2001, the Company's revenue rose $266,000 or less than one percent compared to the same period a year ago. Increases in food and beverage and room sales combined with lower promotional complimentaries were the primary factors in the improvement. Operating expenses increased $706,000 or 2.8% due to higher utility costs, increased advertising expenses, and higher payroll costs. As a result of the higher operating costs, operating income for the six months ended June 30, 2001 declined $480,000 or 29.1% compared to the same period a year ago. Interest expense declined $162,000 or 11.1% reflecting lower interest rates in the current period. Overall, the Company reported a net loss of $80,000 for the first six months of 2001 compared to net income of $228,000 for the same period in 2000. On a per share basis, the Company had a loss of $.11 per share compared to earnings of $.30 a year ago. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 the registrant had duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. UNION PLAZA HOTEL AND CASINO, INC. (REGISTRANT) Date: August 14, 2001 /S/ JOHN D. GAUGHAN JOHN D. GAUGHAN, President Date: August 14, 2001 /S/ JOHN P. JONES JOHN P. JONES, Vice President & Treasurer Date: August 14, 2001 /S/ ALAN J. WOODY ALAN J. WOODY, Chief Financial Officer

UNION PLAZA HOTEL & CASINO INC 10-Q