Vegas firm to restate earnings

Wednesday, Jan. 16, 2002 | 11:01 a.m.

A Las Vegas gaming equipment manufacturer and supplier said expenses related to a proposed merger were not accounted for properly and earnings for three quarters will have to be restated.

Paul-Son Gaming Corp., which reported second quarter earnings for its 2002 fiscal year Monday, said the company on Tuesday filed for a five-day extension with the Securities and Exchange Commission and will restate earnings for its first and second quarters of the year and its fourth quarter of 2001.

The company said costs incurred during the past year for its negotiations with a French company, Etablissements Bourgogne et Grasset, should have been expensed as incurred. Previously, those costs were capitalized.

The Paris-based gaming supplier is the parent company of Bud Jones Co. Inc. of Las Vegas and Paul-Son was in negotiations to merge with the company in August.

In Tuesday's statement, Paul-Son reported the earnings adjustments it expects to make. The company said:

For the quarter ended Nov. 30, the corrected net loss is expected to be $579,000, 17 cents a share, compared with $329,000, 10 cents a share, reported earlier this week.

For the quarter ended Aug. 31, the restated net loss is expected to be $308,000, 9 cents a share, compared with the previously reported net loss of $281,361, 8 cents a share.

For the fiscal year ended May 31, the restated net loss is expected to be $1.2 million, 34 cents a share, compared with the previously reported net loss of $928,014, 27 cents a share.