Mikohn prepares to drop ‘Gaming’ from name

David Strow

Wednesday, April 26, 2000 | 10:44 a.m.

If a board proposal is approved, "Gaming" may soon be on the way out of the name of Mikohn Gaming Corp. -- but not necessarily out of its business.

In its proxy statement issued Tuesday, Mikohn said shareholders will be asked to approve a name change to "Mikohn Corp." Shareholders will vote on the proposal at the company's annual shareholders meeting, scheduled for May 9 at the Monte Carlo hotel-casino.

The name change is necessary, the proxy said, because potential customers in non-gaming industries might be warded off by "Gaming" in Mikohn's name.

"We wanted to be a little more flexible going forward," said Don Stevens, Mikohn's chief financial officer. "We don't expect our business to change dramatically this year or next year. Not having gaming in the name would enable us to capitalize on some opportunities that would be more difficult with 'gaming' in there."

Shareholders will also be asked to increase Mikohn's authorized shares of stock from 20 million to 100 million. Currently, Mikohn has 10.9 million shares outstanding.

This would make acquisitions much easier, Stevens said, though nothing immediate is contemplated.

"There's nothing (immediate) that would require that amount of shares," Stevens said. "We see our valuation growing because of growth in profits and revenues ... and that things will come our way. We would have the capital structure prepared to react."

Separately, the proxy revealed Mikohn granted a three-year employment extension to David Thompson, chairman and chief executive.

The proxy said Thompson's employment contract now extends through Dec. 31, 2002. The extension was granted last February and entitles Thompson to a base salary of $375,000, with $20,000 raises each year. The agreement also entitles Thompson to collect 5 percent of Mikohn's net pretax income as a bonus, to a maximum of $1 million per year.

If Thompson's employment was terminated without cause, he would receive his salary payments through 2002 as a lump-sum payment, plus $1 million.

In 1999, the proxy said, Thompson received $434,327 in salary and a $225,207 bonus. Thompson's total compensation of $662,415 was 61 percent higher than his 1998 pay.

Thompson also received 80,000 stock options exerciseable at $4.06 per share, set to expire in February 2009. If Mikohn's stock appreciated at 10 percent annually for the next 10 years, the options would carry a cash value of $959,685.

At Mikohn's current market price of $5.75 per share, the options carry a current value of $135,200.

archive