Attachment VIII.A.8.c.-1 Company FundamentalsCompany Fundamentals\Company Profile A Wright Investors' Service Research Report: Empire Resorts, Inc. 440 Wheelers Farms Road Milford, CT 06461 U.S.A. COMPANY PROFILE Figures in U.S. Dollars Wright Quality Rating:LCNN Key Data Empire Resorts, Inc. (Empire) is a holding company for various subsidiaries engaged Ticker: in the hospitality and gaming industries. Empire owns and operates Monticello Casino NYNY and Raceway, a video gaming machine (VGM) and harness horse racing facility located in Monticello, New York. At Monticello Casino and Raceway, the Company 2010 Sales: operates 1,090 VGMs as an agent for the New York State Lottery and conduct pari- 68,545,000 mutuel wagering through the running of live harness horse races, the import simulcasting of harness and thoroughbred horse races from racetracks across the world and the export simulcasting of its races to offsite pari-mutuel wagering Major Industry: facilities. The Company operates a 45,000 square foot VGM facility at Monticello Recreation Casino and Raceway. Stock Chart Officers Sub Industry: Chairman Miscellaneous Recreation Emanuel R. Pearlman Country: Chief Executive Officer United States Joseph A. D'Amato Currency: Senior Vice President & U.S. Dollars Chief Financial Officer Laurette J. Pitts Fiscal Year Ends: December Employees 310 Exchanges: NAS Share Type: Common Stock Price (10/21/2011): 0.71 Recent stock performance Market Capitalization: 1 Week -4.0% 63,610,504 4 Weeks -12.3% 13 Weeks -15.6% 52 Weeks -26.7% Total Shares Outstanding: Earnings / Dividends (as of 6/30/2011) 89,592,259 Earnings Dividends Most Recent Qtr 0.00 0.00 Closely Held Shares: Last 12 Months -0.12 0.00 40,553,790 Ratio Analysis Price / Earnings Ratio N/A Dividend Yield 0.00% Price / Sales Ratio 0.93 Payout Ratio N/A Price / Book Ratio N/A % Held by Insiders 45.26% Address Route 17b Phone Monticello, NEW YORK 12701 +1 845 807-0001 UNITED STATES Home Page http://www.empireresorts.com Copyright ©2000-2011 Distributed by Wright Investors' Service, Inc. All Rights Reserved. Except for quotations by established news media, no pages on this site may be reproduced, stored in a retrieval system, or transmitted for commercial purposes, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without prior written permission. Information is believed reliable, but accuracy, completeness and opinions are not guaranteed. Company Fundamentals\Comparative Business Analysis A Wright Investors' Service Research Report: Empire Resorts, Inc. 440 Wheelers Farms Road Provided By CorporateInformation.com Milford, CT 06461 U.S.A. Wright Comparative Business Analysis Report Report Date: 10/21/2011 Company Description Empire Resorts, Inc. (Empire) is a holding company for various subsidiaries engaged in the hospitality and gaming industries. Empire owns and operates Monticello Casino and Raceway, a video gaming machine (VGM) and harness horse racing facility located in Monticello, New York. At Monticello Casino and Raceway, the Company operates 1,090 VGMs as an agent for the New York State Lottery and conduct pari-mutuel wagering through the running of live harness horse races, the import simulcasting of harness and thoroughbred horse races from racetracks across the world and the export simulcasting of its races to offsite pari-mutuel wagering facilities. The Company operates a 45,000 square foot VGM facility at Monticello Casino and Raceway. Competitor Analysis Empire Resorts, Inc. operates in the Amusement and recreation sector. This analysis compares Empire Resorts with three other companies: Full House Resorts, Inc. (2010 sales of $32.90 million of which 75% was Development / Management), Tix Corporation ($30.88 million of which 70% was Ticketing Services), and Lakes Entertainment, Inc. ($24.60 million of which 100% was Indian Casino Project). Sales Analysis Empire Resorts reported sales of $68.55 million for the year ending December of 2010. This represents a very small increase of 1.3% versus 2009, when the company's sales were $67.63 million. Recent Sales at Empire Resorts 98 87 76 67 68 69 2005 2006 2007 2008 2009 2010 (Figures in Millions of U.S. Dollars) Empire Resorts currently has 310 employees. With sales of $68.55 million , this equates to sales of US$221,113 per employee. The sales per employee levels at the three comparable companies vary greatly, from US$151,382 to US$2,530,548, as shown in the following table. Some of the variation may be due to the way each of these companies counts employees (and if they count subcontractors, independent contractors, etc). Sales Comparisons (Fiscal Year ending 2010) Sales Sales Sales/ Company (mlns) Growth Emp (US$) Largest Region Empire Resorts 68.545 1.3% 221,113 the United States (100.0%) Full House Resorts, Inc. 32.897 73.0% 2,530,548 the United States (100.0%) Tix Corporation 30.882 -62.2% 151,382 the United States (100.0%) Lakes Entertainment, Inc. 24.602 -6.2% 1,118,273 the United States (100.0%) Recent Stock Performance In recent years, this stock has performed terribly. In 2000, the stock traded as high as $97.50, versus $0.71 on 10/21/2011. (In 2000, the stock retreated significantly from its high, and by the end of the year was at $8.75). For the 52 weeks ending 10/21/2011, the stock of this company was down 26.7% to $0.71. During the past 13 weeks, the stock has fallen 15.6%. During the 12 months ending 6/30/2011, the company has experienced losses totalling $0.12 per share. These 12 month earnings are greater than the earnings per share achieved during the calendar year ending last December, when the company reported earnings of -0.28 per share. Note that the earnings number Includes Or Excludes Extraordinary Charge Or Credit. This company is currently trading at 0.93 times sales. This is at a lower ratio than all three comparable companies, which are trading between 1.35 and 2.33 times their annual sales. This company has negative book value (and thus a price to book value would not make any sense). Summary of company valuations (as of 10/21/2011). Price/ Price/ 52 Wk Company P/E Book Sales Pr Chg Empire Resorts N/A N/A 0.93 -26.70% Full House Resorts, Inc. 6.0 0.87 1.39 -29.28% Tix Corporation N/A 3.35 1.35 80.85% Lakes Entertainment, Inc. N/A 0.47 2.33 8.50% The market capitalization of this company is $63.61 million . The capitalization of the floating stock (i.e., that which is not closely held) is $34.82 million . Dividend Analysis This company has paid no dividends during the last 12 months. The company also reported losses during the previous 12 months. The company has not paid any dividends during the previous 6 calendar years. Profitability Analysis On the $68.55 million in sales reported by the company in 2010, the cost of goods sold totalled $53.87 million, or 78.6% of sales (i.e., the gross profit was 21.4% of sales). This gross profit margin is better than the company achieved in 2009, when cost of goods sold totalled 79.4% of sales. In 2010, the gross margin was the highest of the previous five years (and in 2007 was as low as 13.1%). The company's earnings before interest, taxes, depreciation and amorization (EBITDA) were $212,000.00 , or 0.3% of sales. This EBITDA margin is better than the company achieved in 2009, when the EBITDA margin was equal to -4.4% of sales. The three comparable companies had EBITDA margins that were all higher (between 12.2% and 67.1%) than that achieved by Empire Resorts. In 2010, earnings before extraordinary items at Empire Resorts were -$17.57 million, or -25.6% of sales. This profit margin is lower than the level the company achieved in 2009, when the profit margin was -15.6% of sales. The company has reported losses before extraordinary items for each of the past 6 years. The company's return on equity in 2010 was -202.2%. (Extraordinary items have been excluded). Profitability Comparison Gross Earns Profit EBITDA bef. Company Year Margin Margin extra Empire Resorts 2010 21.4% 0.3% -25.6% Empire Resorts 2009 20.6% -4.4% -15.6% Full House Resorts, Inc. 2010 87.3% 67.1% 23.3% Tix Corporation 2010 53.5% 12.2% -10.1% Lakes Entertainment, Inc. 2010 N/A 52.2% -56.2% Financial Position At the end of 2010, Empire Resorts had negative working capital, as current liabilities were $42.15 million while total current assets were only $19.16 million. The fact that the company has negative working capital could indicate that the company will have problems in expanding. However, negative working capital in and of itself is not necessarily bad, and could indicate that the company is very efficient at turning over inventory, or that the company has large financial subsidiaries. At the end of 2010, the company had negative common shareholder's equity of -$564,000.00 . This means that at the present time, the common shareholders have essentially no equity in the company. Although the common equity is negative, Empire Resorts does have a net positive equity position (as its preferred stock, minority interest, etc. are positive). As of December 2010, the accounts receivable for the company were $1.23 million, which is equivalent to 7 days of sales. This is an improvement over the end of 2009, when Empire Resorts had 9 days of sales in accounts receivable. Financial Positions Days Company Year AR Empire Resorts 2010 7 Full House Resorts, Inc.