155 East Tropicana Announces Second Quarter 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 second quarter operating results for the period ended June June: see month. 30, 2006. The Company owns the Hooters Casino Hotel
Operating highlights of 155 East Tropicana, LLC for the second quarter ended June 30, 2006 compared to the combined results of operations for 155 East Tropicana, LLC and Hotel 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 ("Hotel San Remo") for the second quarter of 2005 are as follows: --Net revenues increased to $18.3 million from $8.1 million in combined revenues last year. --Casino revenues increased to $6.8 million; 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. revenues increased to $6.4 million; and hotel and other revenues were $6.4 million. --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 (1) was $0.7 million, a 57.1% decrease compared to $1.6 million. "The second quarter was a transitional period for us, as our financial performance was impacted by operational disruptions necessary to optimize optimize - optimisation the slot floor. Most of the new equipment is now installed, and we believe the slot program will be enhanced as a result," stated Mr. Neil Kiefer, Chief Executive Officer. "We were very pleased to see occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy improve at the hotel during the quarter, and we continue to focus on areas where we see additional opportunities to improve our performance, including revamping our marketing plan." Prior to the grand opening, renovation and re-branding, the Hooters Casino Hotel was known as the Hotel San Remo. Through October October: see month. 31, 2005, the Company leased the hotel and casino to Eastern & Western Hotel Corporation, the former owner and operator of the Hotel San Remo. The Company then assumed operational responsibility for the hotel and casino on November November: see month. 1, 2005, after receiving approval for its state gaming license. The second quarter ended June 30, 2006 results below are the results for 155 East Tropicana, LLC compared to the combined results for Hotel San Remo and 155 East Tropicana, LLC in the second quarter ended June 30, 2005.
Supplemental Schedule
-------------------------
Statement of Operations for 155 East Tropicana, LLC
for quarter ended June 30, 2006
and Combined Statement of Operations for 155 East Tropicana, LLC and
Hotel San Remo for quarter ended June 30, 2005
155 East
Tropicana, LLC COMBINED
---------------- ----------------
Quarter ended Quarter ended
June 30, 2006 June 30, 2005
---------------- ----------------
Operating revenues:
Casino $ 6,824,271 $ 2,896,134
Food and beverage 6,428,002 1,721,714
Hotel and other 6,375,222 3,989,556
---------------- ----------------
19,627,495 8,607,404
Less promotional allowances (1,310,271) (528,595)
---------------- ----------------
Net operating revenues 18,317,224 8,078,809
Operating expenses:
Casino 3,995,974 1,658,072
Food and beverage 5,379,663 1,569,423
Hotel and other 2,480,034 1,079,711
General and administrative 5,790,726 1,991,808
Depreciation 1,687,318 500,029
Pre-opening expenses - 335,146
Related party royalties expense 394,779 -
Loss on disposal of assets 221,793 -
---------------- ----------------
Total operating expenses 19,950,287 7,134,189
---------------- ----------------
Operating (loss) income (1,633,063) 944,620
Other income (expense):
Interest income 120,568 668,693
Interest expense, net of capitalized
interest (3,222,737) (3,094,360)
---------------- ----------------
Other income (expense), net (3,102,169) (2,425,667)
---------------- ----------------
Loss before income taxes $ (4,735,232) $ (1,481,047)
================ ================
Note: Intercompany related party lease income and expense for the
quarter ended June 30, 2005 have been eliminated in this schedule.
Operating Results of 155 East Tropicana, LLC for the Quarter Ended June 30, 2006 Compared to Combined Results of 155 East Tropicana, LCC (Leadless Chip Carrier, Leaded Chip Carrier) See leadless chip carrier, CLCC and PLCC. 1. LCC - Language for Conversational Computing. Written at CMU in the 1960's. and Hotel San Remo for the Quarter Ended June 30, 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 quarter ended June 30, 2006 were $18.3 million, an increase of $10.2 million or 126.7%, from $8.1 million of net operating revenues generated by Hotel San Remo during the same period in the previous year. The increase in net operating revenues was due to increased activity in the casino, hotel and food and beverage outlets related to the new Hooters Casino Hotel, as described below. Casino revenues increased by $3.9 million to $6.8 million for the quarter ended June 30, 2006, compared to $2.9 million for the quarter ended June 30, 2005. Table games revenue was $3.0 million in 2006, an increase of $2.1 million, or 245.3%, compared to the table games revenue of $0.9 million from the prior year's quarter. The table games generated an average win per table of $1,622 per day for the quarter ended June 30, 2006 as compared to $627 per day for the quarter ended June 30, 2005. Slot revenue of $3.8 million for the quarter ended June 30, 2006 was an increase of 86.4% compared to $2.0 million in the same period in 2005. The average win per machine per day was $67 for the quarter ended June 30, 2006 as compared to $43 for the quarter ended June 30, 2005. Casino expenses increased by 141.0% to $4.0 million for the quarter ended June 30, 2006 compared to $1.7 million for the quarter ended June 30, 2005 due to increases in payroll payroll a list of employees, their salary rates, tax deductions, amounts paid, payroll tax, long service leave entitlements. and other operational expenses. The profit margin for casino operations was relatively consistent with prior year at 41.4% during the quarter ended June 30, 2006. Food and beverage revenue was $6.4 million for the quarter ended June 30, 2006 as compared to $1.7 million for 2005, an increase of 273.3%. The increase was a result of added food covers after the grand opening of Hooters Casino Hotel. Beverage revenue (which includes complimentary beverages) increased by $2.9 million, or 605.4%, from $0.5 million during the quarter ended June 30, 2005. Food and beverage expenses increased from $1.6 million during the quarter ended June 30, 2005 to $5.4 million during the quarter ended June 30, 2006, an increase of $3.8 million due to increased volume levels. The profit margin for food and beverage operations increased by 7.5% for the quarter ended June 30, 2006 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 $2.4 million, or 59.8%, to $6.4 million for the quarter ended June 30, 2006 from $4.0 million for the quarter ended June 30, 2005. Room revenue was $4.5 million for the quarter ended June 30, 2006 compared to $3.7 million in 2005. This increase was a result of an increase in average daily room rates partially offset by a decrease in 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) . Average daily room rates increased by 37.1% from $70 for the quarter ended June 30, 2005 to $96 for the quarter ended June 30, 2006, while occupancy rates decreased from 85.5% for the quarter ended June 30, 2005 to 73.9% for the quarter ended June 30, 2006. Sales from our retail outlets retail outlet n → punto de venta retail outlet n → point m de vente retail outlet retail n → 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 MERCHANDISE. By this term is understood all those things which merchants sell either wholesale or retail, as dry goods, hardware, groceries, drugs, &c. It is usually applied to personal chattels only, and to those which are not required for food or immediate support, but such as remain increased significantly. Retail revenue is $1.5 million or 23.7% of hotel and other revenue in the quarter ended June 30, 2006 and has increased from $0.2 million during the quarter ended June 30, 2005, an increase of $1.3 million. Hotel and other expenses increased by 129.7% from $1.1 million during the quarter ended June 30, 2005 to $2.5 million during the quarter ended June 30, 2006 due to increases in cost of sales, payroll, and other expenses in hotel and retail operations. The profit margin for room was 66.5% in the second quarter of 2006 compared to 74.2% for that same period in the prior year due to increased payroll expense and upgraded room amenities. Retail sales generated a profit margin of 29.0%. General and administrative expense, which was 31.6% of net revenue, includes costs associated with corporate marketing, information technology, finance, accounting, and property operations. General and administrative expense increased by $3.8 million to $5.8 million for the quarter ended June 30, 2006 compared to $2.0 million for the quarter ended June 30, 2005. This increase was principally due to significant increases in advertising and marketing, and payroll expenses for the quarter ended June 30, 2006. Depreciation and amortization expense of $1.7 million for the quarter ended June 30, 2006 increased by $1.2 million, or 237.4%, from $0.5 million for the quarter ended June 30, 2005. The increase in depreciation expense was due to additional depreciation of fixed asset additions placed in service beginning February 3, 2006. Beginning on February 3, 2006, we incurred related party royalty Compensation for the use of property, usually copyrighted works, patented inventions, or natural resources, expressed as a percentage of receipts from using the property or as a payment for each unit produced. fees pursuant to agreements with Hooters Gaming Corporation, Lags Ventures, Inc., and Las Vegas Wings, Inc. These related party royalties Not to be confused with Royal family. Royalties (sometimes, running royalties) are usage-based payments made by one party (the "licensee") to another (the "licensor") for ongoing use of an asset, most typically an intellectual property (IP) right. expense totaled $0.4 million during the quarter ended June 30, 2006. The payment of the related party royalties is restricted under the indenture An agreement declaring the benefits and obligations of two or more parties, often applicable in the context of Bankruptcy and bond trading. The term indenture primarily describes secured contracts and has several applications in U.S. law. governing gov·ern v. gov·erned, gov·ern·ing, gov·erns v.tr. 1. To make and administer the public policy and affairs of; exercise sovereign authority in. 2. the Company's notes. The fees can only be paid after the close of the fiscal year and only if our debt coverage ratio is 1.5 to 1 for that fiscal year. The payments of the royalty fees are further limited to the sum of 2% of revenue and 3% of EBITDA, as defined in the indenture. The loss on disposal of assets in the second quarter of 2006 of $0.2 million is the result of retiring and replacing certain old slot machines and other equipment and replacing the carpeting on the casino floor in connection with the Hooters Casino Hotel 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. . Interest income was $0.1 million for the quarter ended June 30, 2006, compared to $0.7 million for the quarter ended June 30, 2005. The decrease resulted from greater interest income earned during 2005 on the investment of $130.0 million in notes proceeds. Interest expense was $3.2 million for the quarter ended June 30, 2006, compared to $3.1 million for the quarter ended June 30, 2005, an increase of $0.1 million. The increase in interest expense is largely attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to $0.1 million in interest expense on the Company's $15.0 million senior secured credit facility and the equipment purchase agreements entered into during 2006. Adjusted EBITDA(1), 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.
Management of the Company believes that we have 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 2006 through the use of cash (which totaled $8.5 million at June 30, 2006), restricted cash (which totaled $1.5 million at June 30, 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. . Approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $300,000 was drawn on our line at June 30, 2006 and an additional $330,000 was drawn in July July: see month. to pay for some slot purchases. We expect to spend approximately $2.3 million in capital expenditures in 2006 above the amount spent for the remodeling remodeling /re·mod·el·ing/ (re-mod´el-ing) reorganization or renovation of an old structure. bone remodeling . Approximately $800,000 of that amount will be paid for from slot financing. Most of the remaining $1.5 million has already been spent. Conference Call The Company will conduct a conference call to discuss its second quarter 2006 financial results on Monday Monday: see week. , August 14, 2006 at conduct a conference call to discuss its second quarter financial results on Monday, August 14, 2006 at 4:30 pm. ET. The call can be accessed live over the phone by dialing 800-289-0528 or for international callers by dialing 913-981-5522. The conference call will be simultaneously si·mul·ta·ne·ous adj. 1. Happening, existing, or done at the same time. See Synonyms at contemporary. 2. Mathematics web cast 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 A secret word or code used to serve as a security measure against unauthorized access to data. It is normally managed by the operating system or DBMS. However, the computer can only verify the legitimacy of the password, not the legitimacy of the user. See NCSC. is 1076435. The replay will be available from August 14, 2006 through August 21, 2006.
(1) "Adjusted EBITDA" is defined as earnings before interest, taxes,
depreciation and amortization, but after adding back unusual or
non-cash items such as pre-opening expenses, loss on disposal of
assets and related party royalties. Adjusted EBITDA should not be
construed as an alternative to operating income, 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 (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 (loss)
income for the periods indicated (in thousands):
Three Months Ended Three Months Ended
June 30, 2006 June 30, 2005
------------------ ------------------
Operating (loss) income $ (1,633,063) $ 822,963
Depreciation 1,687,318 406,281
Related party royalties 394,779 -
Loss on disposal of assets 221,793 -
Pre-opening expense - 335,146
------------------ ------------------
Adjusted EBITDA $ 670,827 $ 1,564,390
================== ==================
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 boulevard Broad landscaped avenue that typically permits several lanes of vehicular traffic as well as pedestrian walkways. The earliest boulevards originally followed the city walls (the word originally meant “bulwark”) and were built in the ancient Middle , 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 the Company's website, 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 United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. 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 related to 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 factors beyond our control. Additional information about factors that could affect the Company's business is set forth in SEC filings.
155 EAST TROPICANA, LLC
(A NEVADA LIMITED-LIABILITY COMPANY)
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2006 2005
-------------- --------------
(unaudited)
Assets
Current assets:
Cash and cash equivalents $ 8,544,714 $ 14,191,385
Accounts receivable, net of allowance
for doubtful accounts of $116,497 and
$110,017 in 2006 and 2005, respectively 1,022,931 647,776
Due from Hotel San Remo 220,841 30,508
Inventories 909,186 146,339
Prepaid expenses 2,305,021 775,836
-------------- --------------
Total current assets 13,002,693 15,791,844
Property and equipment, net 124,276,077 103,264,703
Other long-term assets:
Restricted cash 1,498,587 29,345,513
Deferred financing costs 6,887,569 7,286,738
Intangible assets 6,583,073 6,609,028
Other assets 256,193 861,565
-------------- --------------
Total other long-term assets 15,225,422 44,102,844
-------------- --------------
Total assets $ 152,504,192 $ 163,159,391
============== ==============
Liabilities and Members' Equity
Current liabilities:
Accounts payable $ 4,052,051 $ 3,323,099
Related party royalties payable 743,196 -
Construction payable - 6,034,450
Accrued interest payable 2,843,750 2,864,396
Accrued liabilities 2,391,172 1,384,649
Current portion of long-term debt 2,150,783 -
-------------- --------------
Total current liabilities 12,180,952 13,606,594
Long-term debt 133,101,754 130,000,000
-------------- --------------
Total liabilities 145,282,706 143,606,594
-------------- --------------
Commitments and contingencies
Members' equity:
Membership interests 34,333,375 34,333,375
Accumulated deficit (27,111,889) (14,780,578)
-------------- --------------
7,221,486 19,552,797
-------------- --------------
Total liabilities and members'
equity $ 152,504,192 $ 163,159,391
============== ==============
155 EAST TROPICANA, LLC
(A NEVADA LIMITED-LIABILITY COMPANY)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Six Months Ended
------------------------- --------------------------
June 30, June 30, June 30, June 30,
2006 2005 2006 2005
------------ ------------ ------------- ------------
(unaudited) (unaudited) (unaudited) (unaudited)
Operating
revenues:
Casino $ 6,824,271 $ - $ 13,722,302 $ -
Food and
beverage 6,428,002 - 11,580,978 -
Hotel and other 6,375,222 - 10,875,478 -
Related party
lease income - 1,564,390 - 3,939,324
------------ ------------ ------------- ------------
19,627,495 1,564,390 36,178,758 3,939,324
Less promotional
allowances (1,310,271) - (2,731,362) -
------------ ------------ ------------- ------------
Net operating
revenues 18,317,224 1,564,390 33,447,396 3,939,324
Operating
expenses:
Casino 3,995,974 - 6,963,152 -
Food and
beverage 5,379,663 - 9,605,911 -
Hotel and other 2,480,034 - 4,196,618 -
General and
administrative 5,790,726 - 9,116,742 -
Depreciation and
amortization 1,687,318 406,281 2,821,551 812,562
Pre-opening
expenses - 335,146 5,292,834 600,036
Related party
royalties
expense 394,779 - 740,476 -
Loss on disposal
of assets 221,793 - 1,199,470 -
------------ ------------ ------------- ------------
Total operating
expenses 19,950,287 741,427 39,936,754 1,412,598
------------ ------------ ------------- ------------
Operating (loss)
income (1,633,063) 822,963 (6,489,358) 2,526,726
Other income
(expense):
Interest income 120,568 562,283 401,848 577,273
Interest
expense, net of
capitalized
interest of $0,
$56,583,
$202,873 and
$88,922 for the
three months
ended June 30,
2006, three
months ended
June 30, 2005,
six months
ended June 30,
2006, and six
months ended
June 30, 2005,
respectively (3,222,737) (3,092,033) (6,243,801) (4,446,158)
Loss on
extinguishment
of debt - - - (2,246,526)
------------ ------------ ------------- ------------
Other income
(expense), net (3,102,169) (2,529,750) (5,841,953) (6,115,411)
------------ ------------ ------------- ------------
Net loss $(4,735,232) $(1,706,787) $(12,331,311) $(3,588,685)
============ ============ ============= ============
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