155 East Tropicana Announces First Quarter 2007 Financial Results.LAS VEGAS Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. -- 155 East Tropicana, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control (the "Company") today announced the operating results for the first quarter ended March 31, 2007. The Company owns the Hooters Casino Hotel
Operating highlights of 155 East Tropicana, LLC for the first quarter ended March 31, 2007 compared to the first quarter of 2006, are as follows: * Net revenues were $17.3 million during the first quarter of 2007 compared to net revenues of $14.9 million in the first quarter of 2006. * Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become was $2.4 million in the first quarter of 2007, which compares to $2.9 million in the same quarter last year. "The first quarter of 2007 was an exciting quarter for us, as we maintained our emphasis on providing outstanding service while implementing several new initiatives designed to increase our slot play and hotel occupancy Noun 1. hotel occupancy - occupancy rate for hotels occupancy rate - the percentage of all rental units (as in hotels) are occupied or rented at a given time ," stated Mr. Neil Kiefer, Chief Executive Officer. "We successfully remodeled 13 Martini Bar to create our new Night Owl showroom, featuring the comedy stylings of Bobby Slayton. In addition, we were proud to receive the Las Vegas Review Journal's coveted cov·et v. cov·et·ed, cov·et·ing, cov·ets v.tr. 1. To feel blameworthy desire for (that which is another's). See Synonyms at envy. 2. To wish for longingly. See Synonyms at desire. 2007 "Best Service" Award, which we share with Wynn Las Vegas." Operating Results for the Quarter Ended March 31, 2007 Compared to the Quarter Ended March 31, 2006 Net operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. for the quarter ended March 31, 2007 were $17.3 million, an increase of $2.3 million or 15.8%, from $14.9 million of net operating revenues generated during the same period in the previous year. During the quarter ended March 31, 2006, operations were essentially closed from January 1 through February 2, 2006 while substantial remodeling remodeling /re·mod·el·ing/ (re-mod´el-ing) reorganization or renovation of an old structure. bone remodeling was performed on all public areas of the casino hotel. Minimal revenue of $0.6 million was generated during the remodel re·mod·el tr.v. re·mod·eled also re·mod·elled, re·mod·el·ing also re·mod·el·ling, re·mod·els also re·mod·els To make over in structure or style; reconstruct. period. Expenses before interest, depreciation, related-party royalties, pre-opening expenses, and loss on disposal totaled $14.8 million for the quarter ended March 31, 2007, an increase of $2.8 million or 23.3%, from $12.0 million during the same period in the previous year. Again, the comparison of these expenses is affected by the near closure of all operations during substantial remodeling from January 1 through February 2, 2006. Most of the expenses incurred during the remodeling period fell into the category of pre-opening expense. During the first quarter of 2007, we began implementing several changes aimed at increasing visitor volume to the property for our 2007 fiscal period, including: (1) increasing our presence through television, radio, and interstate billboards to build awareness of Hooters Casino Hotel in southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, , (2) converting 13 Martini Bar to the new Night Owl Showroom, which opened on April 20, 2007, featuring veteran comedy stand-up stand·up or stand-up adj. 1. Standing erect; upright: a standup collar. 2. Taken, done, or used while standing: a standup supper; a standup bar. artist Bobby Slayton, "The Pitbull of Comedy," (3) featuring value-priced food offerings in our restaurants, and (4) introducing new marketing promotions and other gaming-oriented events. Management has also identified slot revenue as a revenue source that needs to be enhanced. During the first quarter of 2007, we modified our slot floor and begun promoting our new Owl Rewards Club featuring cash back with programs such as HOOT Million Dollar Swipe swipe n. 1. A sweeping blow or stroke. 2. Informal A critical remark. 3. A lever, especially one that raises the bucket in a well. v. swiped, swip·ing, swipes v. and other giveaways. Casino revenues decreased by $0.6 million to $6.1 million for the quarter ended March 31, 2007, compared to $6.7 million for the quarter ended March 31, 2006 in spite of the fact that the casino only generated $0.1 million in revenue during the substantial closure of the casino for the period from January 1 through February 2, 2006. During the months of February and March 2006, after the grand opening of Hooters Casino Hotel, we experienced unusually high revenues in the casino as visitors came to see the new property. Casino expenses increased by 25.4% to $3.4 million for the quarter ended March 31, 2007 compared to $2.7 million for the quarter ended March 31, 2006 due to increases in payroll and other operational expenses when comparing a full three months of operations to a short period of February 3 through March 31, 2006. The profit margin for casino operations also decreased from 58.9% during the quarter ended March 31, 2006 to 44.0% during the quarter ended March 31, 2007. However, the profit margin during the quarter ended March 31, 2007 is comparable to more current trends; for example, the profit margin of 45.6% during the quarter ended December 31, 2006. The slight decrease in profit margin is largely due to increased staffing for the new Owl Rewards Club. Food and beverage F&B is a common abbreviation in the United States and Commonwealth countries, including Hong Kong. F&B is typically the widely accepted abbreviation for "Food and Beverage," which is the sector/industry that specializes in the conceptualization, the making of, and delivery of foods. revenue was $5.9 million for the quarter ended March 31, 2007 as compared to $5.2 million for 2006 (when restaurants were only open from February 3 through March 31, 2006), an increase of $0.7 million, or 14.6%. Beverage revenue (which includes complimentary beverages) decreased by $0.3 million, or 15.5%, from $1.9 million during the quarter ended March 31, 2006. The decrease in beverage revenue is largely attributable to the closing of the 13 Martini Bar for the month of March 2007 for remodeling. The 13 Martini Bar generated $0.2 million in revenue for the month of March 2006. Food and beverage expenses increased from $4.2 million during the quarter ended March 31, 2006 to $4.5 million during the quarter ended March 31, 2007, an increase of $0.3 million due to the impact of a full quarter's operations in 2007. The profit margin for food and beverage operations increased to 23.8% for the quarter ended March 31, 2007 as compared to 18.0% for the same quarter in 2006 due to increased payroll efficiencies. Hotel and other revenue (which includes hotel room revenue, retail, spa and other miscellaneous revenue) increased by $2.1 million, or 47.4%, to $6.6 million for the quarter ended March 31, 2007, from $4.5 million for the quarter ended March 31, 2006. Room revenue was $5.1 million for the quarter ended March 31, 2007 compared to $3.3 million in 2006. Average daily room rates decreased from $112 for the period from February 3 through March 31, 2006 to $90 for the quarter ended March 31, 2007, and occupancy rates Noun 1. occupancy rate - the percentage of all rental units (as in hotels) are occupied or rented at a given time pct, per centum, percent, percentage - a proportion in relation to a whole (which is usually the amount per hundred) increased from 66.3% for the period from February 3 through March 31, 2006 to 91.3% for the quarter ended March 31, 2007. Almost all the rooms were out of service and under remodeling in the month of January 2006. Sales from our retail outlets selling Hooters This article is about the two restaurant chains collectively using the shared Hooters brand. For other uses, see Hooters (disambiguation). Hooters is the trade name of two privately held American restaurant chains: Hooters of America, Inc based in Atlanta, Georgia, and logo merchandise was $1.3 million during the quarter ended March 31, 2007, an increase of $0.2 million, from $1.1 million during the quarter ended March 31, 2006, despite the fact that retail operations were only open from February 3 through March 31, 2006. Hotel and other expenses increased by $0.5 million, or 25.3%, from $1.7 million during the quarter ended March 31, 2006 to $2.2 million during the quarter ended March 31, 2007, due to partial closing of operations in 2006 from January 1 through February 2, 2006. The profit margin for hotel and other revenue was 67.6% in the first quarter of 2007 compared to 61.9% for that same period in the prior year. General and administrative expense includes costs associated with marketing, information technology, finance, accounting, and property operations. General and administrative expense increased by $1.4 million to $4.7 million for the quarter ended March 31, 2007 compared to $3.3 million for the quarter ended March 31, 2006. Again, the lower expenses in the first quarter of 2006 were due to the partial closing of operations due to the remodel. General and administrative expenses have also increased from $4.2 million for the fourth quarter of 2006. The increase of $0.5 million is largely attributable to increases in payroll expenses and fees paid for outside services. In regard to liquidity of the Company, $2.4 million of cash was provided by operating activities in the quarter ended March 31, 2007. We used $0.3 million of cash in investing activities largely due to capital expenditures. $1.3 million of cash was provided by financing activities, as a result of $1.8 million in proceeds from our revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility, partially offset by principal payments of $0.5 million on equipment debt. Our four-year $15.0 million revolving credit facility, which matures on March 30, 2009, currently has outstanding draws of $2.8 million at March 31, 2007. We believe that we have the flexibility to cover operational contingencies, working capital needs, capital expenditures, and debt service obligations during 2007 through the use of cash (which totaled $9.6 million at March 31, 2007, including $3.8 million required in daily operations), our cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses , and our ability to draw against our $15.0 million revolving credit facility, along with other available equipment financing. Conference Call The Company will conduct a conference call to discuss its first quarter 2007 financial results on Monday, May 14, 2007 at 4:00 p.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . The call can be accessed live over the phone by dialing (888) 802-2266 or for international callers by dialing (913) 312-1270. The conference call will be simultaneously webcast on the Investor Relations Investor relations The process by which the corporation communicates with its investors. portion of the Company's website, www.hooterscasinohotel.com. A replay will be available one hour after the call and can be accessed by dialing (888) 203-1112 or for international callers by dialing (719) 457-0820; the password is 3749706. The replay will be available from May 14 through May 21, 2007. (1) "Adjusted EBITDA" is defined as earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. , as an indicator of the Company's operating performance, or as an alternative to cash flows from operating activities, as a measure of liquidity, or as any other measure determined in accordance with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ). Moreover, our calculations of Adjusted EBITDA may not be comparable to that reported by other companies. EBITDA is a basis upon which we assess our liquidity and because certain covenants in the indenture and senior secured credit facility are tied to similar measures. EBITDA also presents useful information regarding our ability to service and incur indebtedness. EBITDA does not take into account our debt service requirements, and, accordingly, is not necessarily indicative of amounts that may be available for debt service. The following table reconciles Adjusted EBITDA to operating income (loss) for the periods indicated (in thousands): [TABLE OMITTED] About 155 East Tropicana, LLC 155 East Tropicana, LLC owns the Hooters Casino Hotel in Las Vegas, Nevada. The property is located one-half block from the intersection of Tropicana Avenue and Las Vegas Boulevard, a major intersection on the Las Vegas Strip The Las Vegas Strip (also known as The Strip) is a 4 mi (6.7 km) section of Las Vegas Boulevard South, most of which has been designated an All-American Road. . The Hooters Casino Hotel features 696 hotel rooms and an approximately 29,000 square-foot casino. Additional information about the Company can be found at www.hooterscasinohotel.com. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This release contains certain "forward-looking statements" within the meaning of the Unites States Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Actual results in future periods may differ materially from forward-looking statements made today because of a number of risks and uncertainties, including, but not limited to, risks relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc our substantial level of debt and our debt obligations and covenants; the implementation of the Company's business and marketing strategies; the Company's short operating history; its dependence on one gaming site; changes in and challenges to gaming laws and regulations; competition; changes in federal or state tax laws; and other factors beyond our control. Additional information about factors that could affect the Company's business is set forth in SEC filings. [TABLE OMITTED] [TABLE OMITTED] |
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