155 East Tropicana Announces Third 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 third quarter operating results for the period ended September 30, 2006. The Company owns the Hooters Casino Hotel
Operating highlights of 155 East Tropicana, LLC for the third quarter ended September 30, 2006 compared to the combined results of operations for 155 East Tropicana, LLC and H[R][thorn thorn, in botany thorn, sharp-pointed projection on some plants, usually protective in function. Botanically, thorns are distinguished as modified stems (as in the honey locust and hawthorn) from spines, which are modified leaves (as in the barberry), and ]tel San R[R] mo 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 ("H[R][thorn]tel San R[R] mo") for the third quarter of 2005 are as follows: * Net revenues increased to $17.3 million from $6.3 million in combined revenues last year. * Casino revenues increased to $6.7 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 $6.3 million; and hotel and other revenues were $5.7 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 $1.7 million, a 47.1% increase compared to $1.1 million last year. "As is normal with the opening of most new gaming operations in Las Vegas, we have been in the process of fine-tuning our operations. We are pleased with the progress we made in the third quarter, as we continued to implement initiatives designed to enhance our operations. In addition to changing the layout of our slot floor and replacing certain slot machines, we revamped our marketing plan and increased our focus on room occupancy," stated Mr. Neil Kiefer, Chief Executive Officer. "Our guests have responded well to our new slot program, and we were delighted to see 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) improve at the hotel during the quarter. While we made progress, we believe there is still significant room for improvement and remain committed to taking appropriate steps to optimize optimize - optimisation our performance and fully leverage the strength of the brand. Our new COO (Cell Of Origin) See mobile positioning. , Gary GreggeIUs knowledge and experience should serve us well as we look to further enhance the performance of the Hooters Casino Hotel. We look forward to his contributions and are delighted to have him on board." Prior to the grand opening, renovation and re-branding, the Hooters Casino Hotel was known as the H[R][thorn]tel San R[R] mo. Through October 31, 2005, the Company leased the hotel and casino to Eastern & Western Hotel Corporation, the former owner and operator of the H[R][thorn]tel San R[R] mo. The Company then assumed operational responsibility for the hotel and casino on November 1, 2005, after receiving approval for its state gaming license. The third quarter ended September 30, 2006 results below are the results for 155 East Tropicana, LLC compared to the combined results for H[R][thorn]tel San R[R] mo and 155 East Tropicana, LLC in the second quarter ended September 30, 2005. [TABLE OMITTED] Operating Results of 155 East Tropicana, LLC for the Quarter Ended September 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 H[R][thorn]tel San R[R] mo for the Quarter Ended September 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 September 30, 2006 were $17.3 million, an increase of $11.0 million or 175.9%, from $6.3 million of net operating revenues generated by the H[R][thorn]tel San R[R] mo 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. Casino revenues were $6.7 million for the quarter ended September 30, 2006, an increase of $4.2 million when compared to $2.5 million for the same quarter in 2005 due to increases in table games and slot revenue. The profit margin for casino operations increased from 34.1% for the quarter ended September 30, 2005 to 46.4% for the quarter ended September 30, 2006. Food and beverage revenue was $6.3 million for the quarter ended September 30, 2006 as compared to $1.5 million for 2005, an increase of $4.8 million or 328.4%. The increase was the result of dramatic additions to the volume in all restaurants and bars after the grand opening. The profit margin for food and beverage operations increased to 23.9% for the quarter ended September 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 $2.9 million, or 102.3%, to $5.7 million for the quarter ended September 30, 2006, from $2.8 million for the quarter ended September 30, 2005. Room revenue was $4.0 million for the quarter ended September 30, 2006 compared to $2.6 million in 2005. Average daily room rates increased by 47.2% from $53 for the quarter ended September 30, 2005 to $78 for the quarter ended September 30, 2006, and occupancy rates increased slightly from 79.7% for the quarter ended September 30, 2005 to 80.7% for the quarter ended September 30, 2006. After 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, we have an improved product and we are able to increase room rates. Total expenses for the quarter ended September 30, 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 H[R][thorn]tel San R[R] mo operations in 2005. 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.
2006 Quarterly Trends through September 30, 2006 After generating second quarter results that were below expectations, with net revenues of $18.3 million and expenses (before depreciation, related party royalties, and loss on disposal of assets) of $17.7 million, management announced that we would concentrate our efforts on increasing slot revenue, increasing business volume to the property through occupied rooms, and we would also cut costs. Second quarter room occupancy rates of 73.9% and slot win per unit per day of $67 were below industry norms of 94.7% reported by the Las Vegas Conventions and Visitors Authority and $113 reported in the Gaming Revenue Reports published by the Nevada State Gaming Control Board Gaming Control Board or "GCB" is a governmental body or agency charged with regulating casino and other types of gaming in a defined geographical area, usually a state, and of enforcing gaming law in general. , respectively. Management made the decision to lower room rates and aggressively sell rooms through third party distributors such as Expedia and Travelocity. Additionally, we began to target the marketing of our slot club and to provide a more comfortable and entertaining slot floor to attract play. Management examined all operating and marketing costs and began trimming excess costs at all levels. In comparing trends for 2006, we earned $1.7 million before depreciation expense, related party royalties expense, and loss on disposal of assets in the third quarter ended September 30, 2006, as compared to $0.7 million for the second quarter. Net revenues declined from $18.3 million in the second quarter to $17.3 million in the third quarter, a decline of $1.0 million or 5.3%. Room occupancy increased from 73.9% in the second quarter of 2006 to 80.7% in the third quarter of 2006, but the decrease in average daily room rates from $96 to $78 resulted in a decrease in room revenue of $0.4 million. Other miscellaneous revenue also decreased by $0.2 million. Table games revenue declined by $0.3 million in the third quarter of 2006 largely due to a hold percentage on the table games of 16.2%, which was lower than the hold percentage of 17.6% in the second quarter. The hold percentage experienced in the third quarter was still within industry norms. During the third quarter, slot revenues increased $0.2 million or 6.0% from the second quarter 2006 as result of increased emphasis on slot marketing, additional room occupancy and the new slot floor layout. We believe that historical trends in the seasonality of revenue volumes between the second and third quarters of the year contributed to the decline in revenues from the second quarter to the third quarter of 2006. Based on the Gaming Revenue Reports published by the Nevada State Gaming Control Board for 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. casinos A list of casinos. Antigua and Barbuda
Expenses before depreciation and related party royalties and loss on disposal of assets were cut from $17.7 in the second quarter 2006 to $15.7 million in the third quarter of 2006, a decline of $2.0 million. The decline in third quarter expenses resulted largely from cutting marketing costs by $1.0 million, payroll costs by $0.2 million and other operational expenses by $0.9 million. These cuts were phased in throughout the quarter, with a savings of $0.8 million in September. Management of the Company continues to focus on building revenues and controlling costs. Gary Gregg, our new COO has joined the Company as of October 30, and will help us continue our focus on optimizing profitability and developing the strength of the brand. 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 2006 and into 2007 through the use of cash (which totaled $10.2 million at September 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, along with other available equipment financing. We spent $1.1 million in capital expenditures through September 30, 2006 in addition to the capital expenditures associated with the remodeling, and paid for from the restricted renovation funds. Capital expenditures of approximately $0.5 million are anticipated in the fourth quarter of 2006. Conference Call The Company will conduct a conference call to discuss its third quarter 2006 financial results on Monday, November 13, 2006 at 11 a.m. ET. (800) 811-8824 or for international callers by dialing (913) 981-4903. 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 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 4468240. The replay will be available from November 13, 2006 through November 20, 2006. [TABLE OMITTED] 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] 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 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 CompanyeIUs 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 CompanyeIUs business and marketing strategies; the CompanyeIUs 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 CompanyeIUs business is set forth in the CompanyeIUs SEC filings. [TABLE OMITTED] [TABLE OMITTED] |
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