Page 55 - SIGA_2010-11 Annual Report

Basic HTML Version

Saskatchewan Indian Gaming Authority Inc.
Notes to the Financial Statements
Year Ended March 31, 2011
53
15. SEGMENTED INFORMATION
SIGA operates in three segments – table operations, slot operations and ancillary operations. The following table shows key amounts
by segment.
Elimination of Total
Slot
Table
Ancillary Intercompany
Operations
Operations
Operations
Transactions
2011
2010
Revenues
$ 235,478,726 $ 9,731,320 $ 19,152,490 $ (4,541,034) $ 259,821,502 $ 254,222,900
Less:
Promotional allowance
8,583,302
8,583,302
8,764,401
Cost of sales
6,172,045
6,172,045
6,711,571
Net revenue
226,895,424
9,731,320
12,980,445 (4,541,034)
245,066,155 238,746,928
Expenses
146,773,611 13,979,556
24,759,851 (4,541,034)
180,971,984 178,506,189
Income (loss) before
the following:
$ 80,121,813 $ (4,248,236) $ (11,779,406) $
– $ 64,094,171 $ 60,240,739
Unrealized gain on interest rate swaps (Note 11)
345,073
4,866,822
Net income before distribution to Saskatchewan Liquor and Gaming Authority (Note 1 & 9) $ 64,439,244 $ 65,107,561
16. 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, as they cannot be reasonably estimated prior to this time.
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.
17. 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 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.