Date: Fri, 19 Dec 1997 00:07:22 GMT Server: Apache/1.2.4 Last-Modified: Fri, 31 Oct 1997 02:16:36 GMT ETag: "68246-f0b-34593f84" Content-Length: 3851 Accept-Ranges: bytes Connection: close Content-Type: text/html

Taken from American Casino Enterprises 1996 Annual Report

Letter To Shareholders

To Our Shareholders:


Fiscal 1996 was a year of continued favorable financial results and positive developments for American Casino Enterprises, Inc.


Fiscal 1996 Financial Results


Revenues for Fiscal 1996 were relatively unchanged at $9.6 million compared with $9.7 million in the previous year. After a non-recurring charge of $500,000 resulting from the National Indian Gaming Commission civil fine, net income equaled $3.8 million or $0.23 per share, versus $4.8 million or $0.33 per share in Fiscal 1995. Other items affecting net income were: research, development and legal fees stemming from the pursuit of new business opportunities, and increased payroll and related general and administrative costs. Shareholders' equity increased to$13.3 million at Fiscal year-end, up from $9.5 million in the prior year. The Company's current ratio at Fiscal year-end 1996 is 38 to 1. At July 31, 1996 the Company had no long-term debt.


Other 1996 Highlights


On February 1, 1996 the Company settled its regulatory matter with the National Indian Gaming Commission.


The Company took a major step toward broadening its business activities with the formation of a joint venture with the Table Mountain Tribe that will assist in the development and operation of a casino for the United Auburn Indian Community, near Sacramento, California. The Company also formed a new majority-owned subsidiary which will seek to acquire new ventures in the gaming and leisure industry.


Progress in the latter part of the year suggests that the California Tribes' legal dispute over the scope of Indian gaming may soon be resolved, removing uncertainties that have long clouded Native American Gaming in California.


In October 1996, the Company purchased a 162-acre parcel of undeveloped land in Las Vegas, Nevada for investment purposes.


Consistent with our positive view of developments for the Company and our commitment to maximizing shareholder value, we have increased our efforts to gain the attention of the investing public. We are currently expanding our communications and presentation programs to acquaint both institutions and individual investors with the company.


We continue to pursue new gaming ventures, and we are exploring diversification opportunities within the leisure industry.


In this annual report we have presented a question and answer interview for your better understanding of the important issues and opportunities that the Company faces. We are pleased with the Company's growth and have heightened expectations for its future. We sincerely appreciate your continued confidence and support.


Sincerely,




Ronald J. Tassinari

President and Chief Executive Officer

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