(NGC-17A)(Rev. 6-94) STATE OF NEVADA GAMING CONTROL BOARD TAX AND LICENSE DIVISION 1919 College Parkway, P.O. Box 8004, Carson City, NV 89702 (775) 684 - 7770 555 E. Washington Ave., Suite 2300, Las Vegas, NV 89101 (702) 486 - 2008 STANDARD FINANCIAL STATEMENTS FOR FISCAL YEAR ENDED: JUNE 30, 2009 FOR SLOT MACHINE ROUTE OPERATOR LICENSEES FILING DEADLINE: September 15, 2009 Authority: NRS Chapter 463 and NGC-GCB Regulation 6 American LegalNet, Inc. www.FormsWorkFlow.com STATE GAMING CONTROL BOARD STANDARD FINANCIAL STATEMENTS for SLOT ROUTE OPERATORS GENERAL INSTRUCTIONS 1. Monetary amounts are to be rounded to the nearest dollar. 2. Allocations should be based on the number of slot machines if specific expenses can not be identified between the different types of route operations. Between route and non-route operations any reasonable method of allocation can be used as long as it is supported by the appropriate detail for examination by Board auditors. BALANCE SHEET 3. Cash includes all of the slot operator's coin in slot machine hoppers. 4. Bucket sales - notes receivable includes all sales of slot machines where payments toward the purchase of slot machines are made through slot participation agreements. 5. Prepaid space lease obligations include all payments of rents made in advance to satisfy future space lease commitments. 6. Location acquisition costs include incentive payments or other lump sum disbursements made to third parties in connection with the acquisition of a route location. 7. Contract acquisition costs include lump sum payments to obtain management rights at route locations from another slot route operator (SRO). 8. Equipment under capital lease and Capital lease obligations include all capital lease commitments for equipment (including gaming devices), vehicles, buildings, etc. 9. Other long-term liabilities should include deferred income taxes. INCOME STATEMENT 10. Complimentaries are to be reported at the rate the locations are reimbursed by the route operator. 11. Location revenue share is the percentage of gaming win paid to locations, not including slot space lease payments. NOTE: One hundred percent of slot machine revenue is to be reported as win in these statements. Bucket sales are not deducted in the calculation of win. 12. Rent includes those payments made toward office rent. This classification does not include space lease payments, which should be included under space lease expenses. 13. In some locations one slot route operator may be the owner of the location or may have space lease rights to the location (“the primary operator”), but a secondary slot route operator is responsible for the drops, fills, jackpots, machine maintenance, etc. (i.e., there is both a SRO participation and a space lease at one location). The secondary SRO may receive either a percentage of win or a fixed fee for the services provided under the participation agreement. Whether the secondary SRO receives a percentage split or a fixed fee, this SRO should treat this operation as a routine participation location for reporting purposes. The results of operations should be included on schedules B-2 or B-4 as applicable. The primary SRO should report only their share of win under participation win on schedules B-1 or B-3. The primary SRO should show no drop, jackpots, or fills in these statements. 14. Interest income and other non-operating income on Schedule B includes interest income, dividends, investment income, etc. 15. Slot route revenues for Schedules B-1 through B-4 should generally be the same as those reported on the NGC-36 forms (NGC 34 forms for periods prior to July 1991). 16. Questions regarding these statements should be directed to: GAMING CONTROL BOARD TAX AND LICENSE DIVISION 1919 College Parkway, P.O. Box 8004, Carson City, NV 89702-8004 (775) 684 - 7770 American LegalNet, Inc. www.FormsWorkFlow.com STATE GAMING CONTROL BOARD STANDARD FINANCIAL STATEMENTS FOR SLOT ROUTE OPERATORS QUESTIONNAIRE 1. If these statements cover a period of less than one year, list the starting date date , , and ending 2. This report was prepared by the: Cash Method for gaming, accrual method for other than gaming Cash Method Accrual Method Other (describe) 3. To whom should inquiries for additional information be directed? Name: Position with Business: Address: City: State: Telephone: Area Code Zip: Number: 4. Independent accountants: Firm Name: Individuals Name: Position with Firm: Address: City: State: Telephone: Area Code Zip: Number: 5. Did your CPA prepare or review these financial statements? Yes No 6. I, the undersigned, certify that, to the best of my knowledge and belief, these Standard Financial Statements are correct and complete; and that the records and methods of operation, upon which the statements are based, are maintained in accordance with the regulations of the State Gaming Control Board and the Nevada Gaming Commission. Name (type or print ) Title (type or print ) Signature (Controller or other corporation officer or owner) Location Name: Location Number: [1] American LegalNet, Inc. www.FormsWorkFlow.com STATE GAMING CONTROL BOARD STANDARD FINANCIAL STATEMENTS FOR SLOT ROUTE OPERATORS SCHEDULE A BALANCE SHEET ASSETS (Round Amounts to the Nearest Dollar) Slot Route Operations CURRENT ASSETS Cash................................................ Short term investments.................... Receivables: Accounts receivable.................... Bad debt allowance................. Current portion of notes receivable - loans to licensees....... Bad debt allowance................. Current portion of notes receivable - bucket sales................ Bad debt allowance.................. Current portion of notes receivable - other........................... Bad debt allowance.................. Inventories: Slot machines - work in progress and finished goods...................... Spare parts................................. Other inventories......................... Prepaid expenses............................ Other current assets........................ TOTAL CURRENT ASSETS Non-Slot Route Operations Combined Total ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ) ( ) ( ) N/A NONCURRENT ASSETS Property and equipment: Land............................................ Building & improvements............ Furniture, fixtures & equipment... Equipment under capital lease.... Gaming & casino operations equipment................................... Leasehold improvements............ Construction in progress............. Other........................................... Total Property & Equipment........ Less: Accumulated depreciation and amortization......................... ( Net property and equipment....... [2] American LegalNet, Inc. www.FormsWorkFlow.com STATE GAMING CONTROL BOARD STANDARD FINANCIAL STATEMENTS FOR SLOT ROUTE OPERATORS SCHEDULE A BALANCE SHEET ASSETS (continued) (Round Amounts to the Nearest Dollar) NONCURRENT ASSETS (Continued) Slot Route Operations Non-Slot Route Operations Combined Total Notes Receivable: Loans to locations........................... Bucket sales.................................... Other............................................... Total Notes Receivable................. Intangibles: Location acquisition costs, net................................................... Prepaid space lease obligations, net................................ Contract acquisition costs, net................................................... Goodwill.......................................... Other............................................... Total Intangibles............................ Other noncurrent assets: Investments..................................... Deposits.......................................... Miscellaneous................................. Total Other Noncurrent Assets.... TOTAL ASSETS.................................. [3] American LegalNet, Inc. www.FormsWorkFlow.com STATE GAMING CONTROL BOARD STANDARD FINANCIAL STATEMENTS FOR SLOT ROUTE OPERATORS SCHEDULE A BALANCE SHEET LIABILITIES & EQUITY (Round Amounts to the Nearest Dollar) CURRENT LIABILITIES Slot Route Operations Non-Slot Route Operations Combined Total Draws on bank line of credit...... Current maturities of long-term liabilities..................................... Accounts payable...................... Accrued expenses..................... Other current liabilities (including federal income tax liabilities)................................... Total Current Liabilities.......... Long-term liabilities (Schedule A-1) Capital lease obligations............ Long-term notes........................ Debentures and bonds.............. Mortgages.................................. Other long-term liabilities........... Total Long-term Liabilities......... Intercompany receivables/payables balance........................................... TOTAL LIABILITIES...................... EQUITY Capital accounts (other than corporations).............................. Capital stock and other capital (for corporations)....................... Retained earnings..................... TOTAL EQUITY............................. TOTAL LIABILITIES & EQUITY.... [4] American LegalNet, Inc. www.FormsWorkFlow.com STATE GAMING CONTROL BOARD STANDARD FINANCIAL STATEMENTS FOR SLOT ROUTE OPERATORS SCHEDULE A-1 DEBT SCHEDULE (Round Amounts to the Nearest Dollar) NAME OF CREDITOR AND AFFILIATION WITH LICENSEE Original Date Maturity Date Interest Rate Original Amount Amount Still Owing Capital Lease Obligations: Total Capital Lease Obligations......................................................................... * Long-Term Notes: Total Long-Term Notes........................................................................................ * Debentures and Bonds: Total Debentures and Bonds.............................................................................. * * Should balance with totals reflected under long-term liabilities on Balance Sheet (Schedule A). [5] American LegalNet, Inc. www.FormsWorkFlow.com STATE GAMING CONTROL BOARD STANDARD FINANCIAL STATEMENTS FOR SLOT ROUTE OPERATORS SCHEDULE A-1 (Continued) DEBT SCHEDULE (Round Amounts to the Nearest Dollar) NAME OF CREDITOR AND AFFILIATION WITH LICENSEE Original Date Maturity Date Interest Rate Original Amount Amount Still Owing Mortgages: Total Mortgages................................................................................................... * Other Long-Term Liabilities: Total Other Long-Term Liabilities...................................................................... * * Should balance with totals reflected under long-term liabilities on Balance Sheet (Schedule A). [6] American LegalNet, Inc. www.FormsWorkFlow.com STATE GAMING CONTROL BOARD STANDARD FINANCIAL STATEMENTS FOR SLOT ROUTE OPERATORS SCHEDULE B INCOME STATEMENT (Round Amounts to the Nearest Dollar) INCOME (CONTINUING OPERATIONS) Operating income from restricted space lease locations (Schedule BOperating income from restricted participation operations (Schedule BOperating income from nonrestricted space lease locations (Schedule BOperating income from nonrestricted participation operations (Schedule BAll Other Operating Income (Schedule BTotal Operating Income............................................................................................. GENERAL AND ADMINISTRATIVE EXPENSES Advertising and promotion........................................ Amortization and depreciation................................... Interest expense........................................................ Payroll - officers and owners..................................... Payroll - other employees......................................... Payroll taxes and employee benefits........................ Rent........................................................................... Other general and administrative expenses.............. Total General and Administrative Expenses............................................................... Net Income/(Loss) Before Income Taxes and Other Items......................................... Interest Income and Other Non-operating Income...................................................... Income Taxes (If applicable)………………………………………………………………… Net Gain or (Loss) on Discontinued Operations (Net of taxes)................................... Net Gain or (Loss) from Extraordinary Items (Net of taxes)........................................ Other Gains and (Losses) (Net of taxes)..................................................................... NET INCOME/(LOSS)................................................................................................. [7] American LegalNet, Inc. www.FormsWorkFlow.com STATE GAMING CONTROL BOARD STANDARD FINANCIAL STATEMENTS FOR SLOT ROUTE OPERATORS SCHEDULE B-1 INCOME STATEMENT RESTRICTED SPACE LEASE LOCATIONS (Round Amounts to the Nearest Dollar) REVENUE Total drop.................................................................. Less Jackpots and machine fills (Other than initial fills)................................................................... Win........................................................................................................................ Participation win (Where another SRO operates the location).............................. TOTAL WIN (REVENUE)............................................................................................ DIRECT OPERATING EXPENSES Direct labor and payroll taxes.................................... Gaming licenses & taxes - Nevada (Annual)............ Gaming licenses & taxes - Nevada (Quarterly)......... Gaming licenses & taxes - County............................ Gaming licenses & taxes - Local............................... Licenses & taxes - Other........................................... Space lease expenses.............................................. Direct maintenance (parts and service).................... Vehicles, maintenance and fuel................................ Complimentaries....................................................... Other direct operating expenses............................... Total Direct Operating Expenses............................................................................. OPERATING INCOME/(LOSS)................................................................................... [8] American LegalNet, Inc. www.FormsWorkFlow.com STATE GAMING CONTROL BOARD STANDARD FINANCIAL STATEMENTS FOR SLOT ROUTE OPERATORS SCHEDULE B-2 INCOME STATEMENT RESTRICTED PARTICIPATION LOCATIONS (Round Amounts to the Nearest Dollar) REVENUE Total drop.................................................................. Less: Jackpots and machine fills (Other than initial fills)................................................................... Win before location share...................................................................................... Less: Location's revenue share............................................................................ NET WIN (REVENUE)................................................................................................. DIRECT OPERATING EXPENSES Direct labor and payroll taxes.................................... Gaming licenses & taxes - Nevada (Annual) Route operator's share.............................................. Gaming licenses & taxes - Nevada (Quarterly) Route operator's share.............................................. Gaming licenses & taxes - County - Route operator's share........................................................ Gaming licenses & taxes - Local - Route operator's share......................................................................... Licenses and taxes - other........................................ Space lease expenses.............................................. Direct maintenance (parts and service).................... Vehicles, maintenance and fuel................................ Complimentaries....................................................... Other direct operating expenses............................... Total Direct Operating Expenses............................................................................. OPERATING INCOME/(LOSS)................................................................................... BUCKET SALES INFORMATION* Cash received from "bucket sales"........................... Number of machines under "bucket sale" contracts. *In some cases a portion of the above "net win" received by the operator may be percentage splits to be applied towards the purchase of slot machines sold by the operator. Indicate here the portion of net revenues received from "bucket sales", and the number of machines under bucket sales contracts. [9] American LegalNet, Inc. www.FormsWorkFlow.com STATE GAMING CONTROL BOARD STANDARD FINANCIAL STATEMENTS FOR SLOT ROUTE OPERATORS SCHEDULE B-3 INCOME STATEMENT NONRESTRICTED SPACE LEASE LOCATIONS (Round Amounts to the Nearest Dollar) REVENUE Total drop.................................................................. Less: Jackpots and machine fills (Other than initial fills)................................................................... Win........................................................................................................................ Participation win (Where another SRO operates the location).............................. TOTAL WIN (REVENUE)............................................................................................ DIRECT OPERATING EXPENSES Direct labor and payroll taxes.................................... Gaming licenses & taxes - Nevada (Annual)............ Gaming licenses & taxes - Nevada (Quarterly)......... Gaming licenses & taxes - Nevada (Percentage)..... Gaming licenses & taxes - County............................ Gaming licenses & taxes - Local.............................. Licenses & taxes - Other........................................... Space lease expenses.............................................. Direct maintenance (parts and service).................... Vehicles, maintenance and fuel................................ Complimentaries....................................................... Other direct operating expenses............................... Total Direct Operating Expenses............................................................................. OPERATING INCOME/(LOSS)................................................................................... [10] American LegalNet, Inc. www.FormsWorkFlow.com STATE GAMING CONTROL BOARD STANDARD FINANCIAL STATEMENTS FOR SLOT ROUTE OPERATORS SCHEDULE B-4 INCOME STATEMENT NONRESTRICTED PARTICIPATION LOCATIONS (Round Amounts to the Nearest Dollar) REVENUE Total drop.................................................................. Less: Jackpots and machine fills (Other than initial fills)................................................................... Win before location share...................................................................................... Less: Location's revenue share............................................................................ NET WIN (REVENUE)................................................................................................. DIRECT OPERATING EXPENSES Direct labor and payroll taxes.................................... Gaming licenses & taxes - Nevada (Annual) Route operator's share.............................................. Gaming licenses & taxes - Nevada (Quarterly) Route operator's share.............................................. Gaming licenses & taxes - (Percentage) Route Operator's share............................................. Gaming licenses & taxes - County - Route operator's share...................................................................…… Gaming licenses & taxes - Local - Route operator's share......................................................................... Licenses and taxes - other........................................ Space lease expenses.............................................. Direct maintenance (parts and service).................... Vehicles, maintenance and fuel................................ Complimentaries....................................................... Other direct operating expenses............................... Total Direct Operating Expenses............................................................................. OPERATING INCOME/(LOSS)................................................................................... BUCKET SALES INFORMATION* Cash received from "bucket sales"........................... Number of machines under "bucket sale" contracts. *In some cases a portion of the above "net win" received by the operator may be percentage splits to be applied towards the purchase of slot machines sold by the operator. Indicate here the portion of net revenues received from "bucket sales", and the number of machines under bucket sales contracts. [11] American LegalNet, Inc. www.FormsWorkFlow.com STATE GAMING CONTROL BOARD STANDARD FINANCIAL STATEMENTS FOR SLOT ROUTE OPERATORS SCHEDULE B-5 INCOME STATEMENT ALL OTHER OPERATING INCOME (Round Amounts to the Nearest Dollar) REVENUE Slot machine sales (not including "bucket sales" at space lease locations or locations operated by the slot route operator)......................................... Service and parts sales............................................. Other operating revenue........................................... Total Revenue from Non-slot Route Operations.................................................... COST OF SALES Cost of goods sold.................................................... Cost of services and parts sales............................... Other costs of sales.................................................. Total Cost of Sales.................................................................................................... Gross Margin.............................................................................................................. DIRECT OPERATING EXPENSES Direct labor and payroll taxes.................................... Licenses and taxes................................................... Direct maintenance (parts and service).................... Vehicles, maintenance and fuel................................ Complimentaries....................................................... Other direct operating expenses............................... Total Direct Operating Expenses............................................................................. OPERATING INCOME/(LOSS)................................................................................... [12] American LegalNet, Inc. www.FormsWorkFlow.com