155 East Tropicana Announces Fourth Quarter and Fiscal 2006 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 Tropicana may mean:
LLC - Logical Link Control (the "Company") today announced full year operating results for the period ended December December: see month. 31, 2006. The Company owns the Hooters Casino Hotel
Operating highlights of 155 East Tropicana, LLC for the fourth quarter ended December 31, 2006, compared to the combined results of operations for 155 East Tropicana, LLC and Hytel San Remo San Remo (sän rĕ`mō), city (1991 pop. 56,003), in Liguria, NW Italy, on the Ligurian Sea and on the Italian Riviera. It is a fashionable resort and gaming center and a major flower market. Casino casino or cassino (both: kəsē`nō). 1 Card game played with a full deck by two to four players. Its origins are obscure though it probably traces back to the Italian game of Scopa. and Resort ("Hytel San Remo") for the fourth quarter of 2005, are as follows: * Net revenues were $16.8 million during the fourth quarter compared to net revenues of $4.4 million in the fourth quarter of last year * 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 fourth quarter 2006, which compares to a loss of $2.1 million in the same quarter last year, but more significantly, represents an encouraging sequential increase from Adjusted EBITDA of $1.7 million in the third quarter of 2006. "During the fourth quarter of 2006, we continued to cut costs and to implement 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. "As is normal with opening a new gaming property in Las Vegas, we have remained focused on driving efficiencies at the property. Our new Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , Gary Gregg and his team recently completed a thorough review of operations and are now preparing to launch several additional programs that should enhance performance in 2007." Prior to the grand opening, renovation and re-branding, the Hooters Casino Hotel was formerly known as the Hytel San Remo. Through October 31, 2005, the Company leased the hotel and casino to Eastern & Western Hotel Corporation, the former owner and operator of the Hytel San Remo. The Company then assumed operational responsibility for the hotel and casino on November 1, 2005, after receiving its state gaming license. For comparative purposes, a separate balance sheet and statement of operations See Income statement. for the Company for year ended December 31, 2005 is included in this release along with the statement of operations for Hotel San Remo for the ten months ended October 31, 2005. The fourth quarter ended December 31, 2006 results below are the results for 155 East Tropicana, LLC compared to the combined results for Hytel San Remo and 155 East Tropicana, LLC for the fourth quarter ended December 31, 2005. [TABLE OMITTED] Note: Intercompany related party lease income and expense for the quarter ended December 31, 2005 have been eliminated in this schedule. Operating Results of 155 East Tropicana, LLC for the Quarter Ended December 31, 2006 Compared to Combined Results of 155 East Tropicana, LLC and Hytel San Remo for the Quarter Ended December 31, 2005 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 three months ended December 31, 2006, were $16.8 million, compared to net revenues of $4.4 million in the fourth quarter of last year, an increase of $12.3 million or 278.6%. The significant increase in net operating revenues was due to increased activity in the casino and 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. outlets related to the new Hooters Casino Hotel. Casino revenues were $6.2 million for the quarter ended December 31, 2006, an increase of $4.5 million when compared to $1.7 million for the same quarter in 2005 due to increases in table games and slot revenue. The profit margin for casino operations increased from -1.1% for the quarter ended December 31, 2005 to 45.6% for the quarter December 31, 2006. Food and beverage revenue was $5.7 million for the quarter ended December 31, 2006 as compared to $1.1 million for 2005, an increase of $4.6 million or 416.5%. The increase was the result of dramatic additions to the volume in all restaurants and bars after the grand opening of the Hooters Casino Hotel. The profit margin for food and beverage operations increased to 20.3% for the quarter ended December 31, 2006, up from -36.8% for the quarter ended December 31, 2005, due to operational efficiencies in payroll and cost of sales. Hotel and other revenue (which includes hotel room revenue, retail, spa, and other miscellaneous revenue) increased by $4.0 million, or 188.7%, to $6.1 million for the quarter ended December 31, 2006 from $2.1 million for the quarter ended December 31, 2005. Room revenue was $4.5 million for the quarter ended December 31, 2006 compared to $4.0 million in 2005. Average daily room rates increased by 40.0% from $60 for the quarter ended December 31, 2005 to $84 for the quarter ended December 31, 2006, 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 slightly from 82.0% for the quarter ended December 31, 2005 to 83.4% for the quarter ended December 31, 2006. Room rate increases have been achieved due to the remodeling remodeling /re·mod·el·ing/ (re-mod´el-ing) reorganization or renovation of an old structure. bone remodeling of the rooms and rebranding of the hotel casino, which have resulted in an improved product. Total expenses for the quarter ended December 31, 2006 increased in all departments, particularly general and administrative expense, which includes marketing costs associated with promoting the new 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 brand, when compared to the Hytel San Remo operations in 2005. Adjusted EBITDA(1) was $2.4 million in the fourth quarter of 2006. This compares to a loss of $2.1 million for the same period in 2005. 2006 Fiscal Year Results Net operating revenues were $66.7 million for the year ended December 31, 2006, which includes the month of January 2006 when the property was essentially closed for remodeling and the first eleven months of operations of the Hooters Casino Hotel from February 3, 2006 through December 31, 2006. Casino revenues in 2006 totaled $25.8 million for 2006, all of which was earned after February 3, 2006 with the exception of $0.1 million. For the period from February 3, 2006 through December 31, 2006, table games contributed $11.0 million with an average daily win per table of $1,013 and slots contributed $14.3 million with an average daily win per machine of $73. This win per day is comparable to industry averages for table games, but falls short of industry averages of $111 for slot machines. Room revenues for February 3, 2006 through December 31, 2006 were $15.9 million, with occupancy rates of 79.7% and an average room rate of $90. Food and beverage revenue was $23.6 million for the year and the Hooters restaurant broke franchise-wide sales records by generating $9.4 million in food and beverage revenue in its eleven months of operations. Expenses before interest, depreciation, related-party royalties, pre-opening expenses, and loss on disposal totaled $59.1 million for the year ended December 31, 2006, resulting in an Adjusted EBITDA(1) of $7.6 million. The net loss for 2006 was $18.4 million. 2006 Quarterly Trends through December 31, 2006 In comparing trends between the fourth quarter, third quarter and second quarter of 2006, we earned $2.4 million Adjusted EBITDA(1) in the fourth quarter, as compared to $1.7 million for the third quarter and $0.7 million in the second quarter. This trend of improvement each quarter has been the result of management's focus on enhancing revenue, while cutting costs. Net revenues declined from $18.0 million in the second quarter of 2006, to $17.0 million in the third quarter, to $16.8 million in the fourth quarter. The slight down-turn in revenue of $0.2 million from the third quarter to the fourth was the result of a decline in food and beverage revenue as noted below. Room occupancy increased from 73.9% in the second quarter, to 80.7% in the third quarter of 2006 and to 83.4% in the fourth quarter of 2006. Average daily room rates initially decreased form $96 in the second quarter to $78 in the third quarter. We were able to increase room rates back up to $84 in the fourth quarter. The increase in occupancy is the result of targeted marketing efforts with third party distributors. This increase in occupancy and room rates in the fourth quarter resulted in an increase in fourth quarter room revenue of $0.5 million as compared to the third quarter. Table games revenues slightly decreased by $0.1 million in the fourth quarter of 2006 as compared to the third quarter, largely due to a decrease in table games drop of $2.0 million partially offset by an increase in table games hold percentage from 16.2% during the third quarter to 17.7% during the fourth quarter of 2006. During the fourth quarter, slot revenue increased by approximately $0.1 million, or 2.4%, from the third quarter of 2006 as a result of increased emphasis on slot marketing, additional room occupancy, and the new slot floor layout. Management has identified slot revenue as a revenue source that needs to be enhanced. The Company identified a need to modify the slot floor and enhance the Company slot club by featuring cash back. The Company made those changes in the first quarter of 2007. The new slot club will be promoted 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. The Company is making several other changes in 2007 that are aimed at increasing visitor volume to the property, including: (1) Because of an identified need to increase 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, , the Company will be increasing its presence through television, radio and interstate in·ter·state adj. Involving, existing between, or connecting two or more states. n. One of a system of highways extending between the major cities of the 48 contiguous United States. Noun 1. billboards. The marketing effort is targeted at increasing room occupancy and walk-in walk-in A new brokerage customer who simply walks into the office. Although walk-ins are generally assigned to brokers, they have the right to specify a preferred broker. traffic. (2) The Martini Bar is being converted to the new Night Owl Showroom. The Night Owl Showroom, when it opens April 20th, will feature 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", who will be giving his views on marriage and relationships. (3) The restaurants will feature value priced food offerings in 2007. (4) The Company will introduce new marketing promotions and other gaming-oriented events in 2007. Food and beverage revenue declined from $6.3 million in the third quarter to $5.7 million in the fourth quarter, a decline of $0.6 million. A decline of $0.2 million is primarily due to the seasonal closing of the pool bar for most of the fourth quarter and a combined decline of $0.4 million in banquets and Hooters restaurant revenue. Expenses before interest, depreciation and related party royalties were cut from $15.4 million in the third quarter of 2006 to $14.4 million in the fourth quarter of 2006, a decline of $1.0 million. Expenses were previously cut from $17.4 million in the second quarter of 2006. The decline in fourth quarter expenses resulted largely from cutting marketing costs by $0.6 million, food and beverage costs by $0.3 million, and other general and administrative expenses by $0.2 million. Management of the Company believes that it has the flexibility to cover operational contingencies Contingencies (ISSN 1048-9851) is the bimonthly magazine of the American Academy of Actuaries, providing a large and diverse readership with general interest and technical articles on a wide range of issues related to the actuarial profession. , working capital needs, capital expenditures, and debt service obligations during 2007 through the use of cash (which totaled $6.2 million at December 31, 2006), 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 senior secured credit facility, along with other available equipment financing. Management anticipates that the Company will draw $1.7 to $2.0 million against the credit facility in the next couple of weeks. We spent $1.6 million in capital expenditures through December 31, 2006 (in addition to the capital expenditures associated with the remodeling and funded through Notes proceeds). Capital expenditures of approximately $1.8 million are anticipated in 2007. Conference Call The Company will conduct a conference call to discuss its fourth quarter 2006 financial results on Monday, March 26, 2007 at 10:00 a.m. ET. The call can be accessed live over the phone by dialing (800) 811-8824 or for international callers by dialing (913) 981-4903. 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 3494685. The replay will be available from March 26, 2007 through April 2, 2007. [TABLE OMITTED] [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 intersection /in·ter·sec·tion/ (-sek´shun) a site at which one structure crosses another. intersection a site at which one structure crosses another. 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 Gaming law can be described as the set of rules and regulations that apply to the gaming or gambling industry. Gaming law is not exactly a branch of law in the traditional sense but rather a transversal gathering of a range of legal topics related to gaming which encompasses 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] [TABLE OMITTED] |
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