155 East Tropicana Announces Third 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 third quarter ended September 30, 2007. The Company owns the Hooters Casino Hotel
Operating highlights of 155 East Tropicana, LLC for the third quarter ended September 30, 2007 compared to the third quarter of 2006, are as follows: Net revenues were $16.0 million during the third quarter of 2007 compared to net revenues of $17.0 million in the third 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 (1) was $1.1 million in the third quarter of 2007, which compares to $1.7 million in the same quarter last year. "In spite of increased reward club sign-ups, increased occupancy and average rate, the third quarter saw a noticeable decrease of walk-in traffic that negatively impacted our casino and restaurant revenues" according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. COO Gary Gregg. "Our heavily promoted 99 cent shrimp cocktail promotion did not achieve the expected results. To reverse this negative trend in the casino, we will be rolling out our most aggressive slot promotion in mid November as well as implementing a major change in the marketing of table games beginning in December and extending through the first quarter of 2008." Operating Results for the Quarter Ended September 30, 2007 Compared to the Quarter Ended September 30, 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 September 30, 2007 were $16.0 million, a decrease of $1.0 million or 6.2%, from $17.0 million generated during the same period in the previous year. Casino. Casino revenues decreased by $0.7 million or 11.7% to $5.7 million for the quarter ended September 30, 2007, compared to $6.4 million for the quarter ended September 30, 2006. This decline in casino revenue is the result of a general decline in the property's visitor traffic for all three months of the quarter. Table games revenue was $2.3 million for the quarter ended September 30, 2007, a decrease of $0.3 million or 12.9% compared to table game revenue of $2.6 million from the prior year's quarter. During the quarter ended September 2007, we had a reduction of table game volume by $3.0 million or 18.6%, which was partially offset by a higher hold percentage. The hold percentage for table game win was 17.3% in 2007 compared to 16.2% for the quarter ended September 30, 2006. The table games generated an average win per table of $803 per day for the quarter ended September 30, 2007 as compared to $866 per day for the quarter ended September 30, 2006. Slot revenue (net of participation fees) was $3.1 million for the quarter ended September 30, 2007, which was a decrease of $0.5 million or 13.5% compared to $3.6 million in the same period in 2006. The average win per machine per day (before deducting participation fees) was $59 for the quarter ended September 30, 2007 as compared to $68 for the quarter ended September 30, 2006. Casino expenses of $3.4 million for the quarter ended September 30, 2007 were up $0.1 million from $3.3 million for the quarter ended September 30, 2006 due to increased casino marketing costs, offset partially by decreased operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. on the casino floor. The profit margin for casino operations decreased from 48.9% during the quarter ended September 30, 2006 to 39.2% during the quarter ended September 30, 2007. Food, beverage, and entertainment. Food, beverage, and entertainment revenue decreased $0.3 million to $6.0 million for the quarters ended September 30, 2007 compared to $6.3 million for the quarter ended September 30, 2006. Beverage revenue of $2.1 million (which includes complimentary beverages) decreased by $0.1 million, or 2.6%, from $2.2 million during the quarter ended September 30, 2006. Our showroom, which opened mid April 2007, generated $0.3 million in entertainment ticket revenues for the quarter ended September 30, 2007. Food revenue decreased from $4.2 million for the quarter ended September 30, 2006 to $3.6 million for the quarter ended September 30, 2007, a decrease of $0.6 million or 13.7%. The decrease was due to revenue decreases in all restaurants expect for a $0.2 million increase in Marino's. Marino's offered a new dinner special, which generated the additional revenue. Food, beverage, and entertainment expenses decreased from $4.8 million during the quarter ended September 30, 2006 to $4.7 million during the quarter ended September 30, 2007, a decrease of $0.1 million. The profit margin for food, beverage, and entertainment operations decreased to 22.4% for the quarter ended September 30, 2007 from 23.9% in the same quarter in 2006 primarily due to the decline in revenues. Hotel and other. Hotel and other revenue (which includes hotel room revenue, retail, spa, and other miscellaneous revenue) increased $0.2 million to $5.9 million for the quarter ended September 30, 2007 from $5.7 million for the quarter ended September 30, 2006. Room revenue was $4.3 million for the quarter ended September 30, 2007 compared to $4.0 million in 2006. This increase was a result of an increase 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) , offset by a decrease in average daily room rates. Average daily room rates decreased slightly from $78 for the quarter ended September 30, 2006 to $77 for the quarter ended September 30, 2007, while occupancy rates increased from 80.7% for the quarter ended September 30, 2006 to 87.9% for the quarter ended September 30, 2007. Occupancy rates increased largely because of successful targeted marketing efforts 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, and increased sales through the wholesalers, internet providers Internet provider - Internet Service Provider and our group sales Group sales Block sale (of large amounts) of securities to institutional investors. group sales The distribution of a new security issue to institutional clients. . 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 decreased 11.3% from $1.5 million for the quarter ended September 2006 to $1.3 million for the quarter ended September 2007. Other miscellaneous revenue remained constant. Hotel and other expenses remained constant at $2.3 million during both the quarter ended September 30, 2007 and September 30, 2006. The profit margin for room sales was 65.7% in the third quarter of 2007 compared to 61.2% for that same period in the prior year. Retail sales generated a profit margin of 41.2% for the quarter ended September 30, 2007 compared to 45.3% for the quarter ended September 30, 2006. General and administrative. General and administrative expense includes costs associated with marketing, information technology, finance, accounting, and property operations. General and administrative expense decreased $0.5 million to $4.4 million for the quarter ended September 30, 2007 compared to $4.9 million for the quarter ended September 30, 2006. This decrease was principally due to significant decreases in advertising and marketing expenses for the quarter ended September 30, 2007 as compared to the same quarter in 2006. As anticipated, our general and administrative expenses are down from the $5.1 million we incurred in the second quarter of 2007, when advertising marketing expenses were high due to advertising our new food specials, promotions and comedy show. For the nine months ended September 30, 2007, we used $1.6 million of cash in operating activities, largely due to our net loss of $10.6 million, which was offset by $6.8 million of non-cash depreciation and amortization charges and payment-restricted related party royalty fees and an increase of $2.8 million in interest payable. For the nine months ended September 30, 2007, $1.1 million of cash was used for capital expenditures. For the nine months ended September 30, 2007, $2.3 million of cash was provided from financing activities. We borrowed $2.3 million on our new line of credit, offset by $1.5 million in principal payments on debt. During the nine months, we also received $1.5 million in non-refundable deposits relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the possible pending sale of our assets. Our 8.75% Senior Secured Notes (the "Notes") 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. contains certain provisions, which restrict or limit our ability to, among other things, incur more debt, pay dividends, redeem redeem v. to buy back, as when an owner who had mortgaged his/her real property pays off the debt. The term also refers to paying the amount due and all charges after a foreclosure (due to failure to make payments when due) has begun. stock or make other distributions, enter into transactions with affiliates or transfer or sell assets. Our senior secured credit facility (the "Credit Facility") is a four-year 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 of $15.0 million, maturing on March 30, 2009. We had outstanding draws of $2.9 million at September 30, 2007 and an additional draw of $3.2 million was made on October 1, 2007. All outstanding principal and interest under the Credit Facility is due and payable on March 30, 2009. We believe that we have the flexibility to cover operational contingencies, working capital needs, capital expenditures, and debt service obligations expected as of September 30, 2007 over the next twelve months through; (1) the use of cash (which totaled $5.8 million at September 30, 2007); (2) our cash generated from operations prior to debt service; and (3) our ability to draw against our Credit Facility (with an unused balance of $8.9 million as of October 1, 2007), along with other available equipment financing. (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 Notes indenture and 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 operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the periods indicated (in thousands): [TABLE OMITTED] Update on Asset Purchase Agreement On April 30, 2007, we entered into an Asset Purchase Agreement (the "Agreement") with Hedwigs Las Vegas Top Tier, LLC (the "Buyer") which was amended on May 7, 2007 and August 8, 2007. Pursuant to the terms of the Agreement, the Buyer has offered to purchase essentially all of our assets for a purchase price of $95.0 million in cash, the payment of certain accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. royalties, and the assumption of certain outstanding debt. The Buyer also agreed to be responsible for the Notes. We received from the Buyer nonrefundable earnest money A sum of money paid by a buyer at the time of entering a contract to indicate the intention and ability of the buyer to carry out the contract. Normally such earnest money is applied against the purchase price. deposits of $1.5 million, which will be applied against the purchase price if the transaction closes. A final deposit payment of $1.5 million, due by 5:00 p.m. on November 15, 2007, has not yet been received. There can be no assurance that the conditions to closing under the Agreement will ever be satisfied, or any transaction contemplated under the Agreement will be consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. , or if a transaction is consummated, it will be on the same or similar terms as currently provided under the Agreement. Conference Call The Company will conduct a conference call to discuss its third quarter 2007 financial results on Thursday, November 15, 2007 at 10:00 a.m. ET. The call can be accessed live over the phone by dialing (800)762-8908 or for international callers by dialing (480)629-9031. The conference call will be simultaneously 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 of the conference call will be available one hour after the call and can be accessed by dialing (800)406-7325 or for international callers by dialing (303)590-3030; the password is 3807166. The replay will be available from November 15, 2007 through November 22, 2007. 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 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] |
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