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Saskatchewan Indian Gaming Authority Inc.
Notes to the Financial Statements
Year ended March 31, 2009
14. Segmented Information
SIGA operates in three segments – table operations, slot operations and ancillary operations. The following table shows
key amounts by segment.
Slot
Table
Ancillary
Total
Total
Operations
Operations
Operations
2009
2008
(Restated, See Note 18)
Revenues
$217,668,593 $ 8,856,741
$ 17,174,095 $243,699,429 $198,583,454
Less:
Promotional allowance
6,788,185
6,788,185
6,386,666
Cost of sales
6,239,509
6,239,509
5,037,708
Elimination of
inter-company
transactions
3,906,565
3,906,565
2,580,311
Net revenue
210,880,408
8,856,741
7,028,021 226,765,170 184,578,769
Expenses
126,988,128 10,923,008
16,426,731 154,337,867 118,876,358
Income (loss) before
the following:
83,892,280 (2,066,267)
(9,398,710) 72,427,303 65,702,411
Indigenous Gaming Regulators Inc.
(Note 12)
2,607,128
2,925,230
Saskatoon Prairieland Park Corporation
(Note 12)
2,600,004
1,670,432
Unrealized loss on interest rate swaps
(Note 10)
7,345,748
3,014,043
Net income before distribution to SLGA
(Note 1 & 8)
$ 59,874,423 $ 58,092,706
15. Contingencies
SIGA enters into contractual arrangements with suppliers of services, products and facilities in the normal course of
business. Contracts are subject to legal interpretation from time to time and disputes do arise. Management plans to
account for such dispute resolutions in the year such disputes are settled.
In addition, various other claims and lawsuits are pending against SIGA in the ordinary course of business. While it is
not possible to determine the ultimate outcome of such actions at this time, and there exist inherent uncertainties in
predicting such outcomes, it is SIGA’s belief that the ultimate resolution of such actions is not reasonably likely to
have a material adverse effect on its financial position or results of operations.
16. Capital Disclosures
SIGA’s objectives when managing capital are to ensure adequate capital to support the operations and growth strategies
of the Corporation, and to ensure adequate returns to the shareholders.
SIGA funds its capital requirements through the $5,000,000 capital reserve from SLGA, internal operating activities
and debt. SIGA may only borrow up to $107,260,764, which includes capital leases and long-term debt. SIGA also has
an available line of credit of $2,000,000 at a financial institution.
SIGA limits the amount of risk in proportion to its capital. The initial financing option of the Dakota Dunes, Living
Sky, and Painted Hand casino projects (“casino projects”) was limited to variable rate loans. SIGA entered into three
interest rate swap agreements to exchange the variable rate debt instruments to fixed rate loans to mitigate fluctuations
in interest rates. SIGA also performs environmental scanning to determine if any factors have the potential to change
the capital structure of the organization. Risk management reports are presented to the Audit and Finance Committee
and Board of Directors on a quarterly basis.