Black Gaming Reports Third Quarter 2006 Earnings.MESQUITE Mesquite, city, United States Mesquite (məskēt`), city (1990 pop. 101,484), Dallas co., N Tex., a suburb of Dallas; inc. 1887. Manufacturing includes industrial power supplies, building materials, and medical equipment. , Nev. -- Black Gaming (formerly known as Casablanca Resorts, the "Company") reported the results of its operations for the third quarter ended September 30, 2006 and other Company-related news. Highlights include: * Third quarter combined 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) of $2.6 million, an increase of 15.2% over the prior year's third quarter. * Third quarter combined net revenues of $38.6 million, an increase of 4.9% over the prior year's third quarter. * Record combined EBITDA of $20.5 million for the nine months ended September 30, 2006, an increase of approximately 12.8% over the nine months ended September 30, 2005. * Completion of the Oasis sports bar and Casablanca race and sports book 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. . * Finalized See finalization. plans for the remodel of the Virgin River casino interior, remodel and expansion of the fine dining restaurant at the Oasis and addition of Casablanca's platinum services. These three projects are expected to cost less than $3.0 million in total. * Finalized plans for a temporary convention and concert space at the Casablanca. Total cost of this project is approximately $3.5 million, of which $2.75 million represents furniture, fixtures and equipment Furniture, fixtures and equipment (or FF&E) is an accounting term used in valuing, selling, or liquidating a company or a building. FF&E are movable furniture, fixtures or other equipment that have no permanent connection to the structure of a building or utilities. that will be utilized within the permanent facility. Results of Operations The Company's combined net revenues for the third quarter ended September 30, 2006 were approximately $38.6 million, a 4.9% increase over the $36.8 million in combined net revenues for the third quarter ended September 30, 2005. The Company's combined net revenues for the nine months ended September 30, 2006 were $127.5 million, a 4.4% increase over the $122.1 million in combined net revenues for the nine months ended September 30, 2005. The Company's combined EBITDA for the third quarter ended September 30, 2006 was $2.6 million, a 15.2% increase over the combined EBITDA of $2.3 million for the third quarter ended September 30, 2005. The Company's combined EBITDA for the nine months ended September 30, 2006 was $20.5 million, a 12.8% increase over the combined EBITDA of $18.2 million for the nine months ended September 30, 2005. EBITDA is not a 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). ") measurement and is presented solely as a supplemental disclosure because the Company believes that it is a widely used measure of operating performance in the gaming industry and a principal basis for valuation of gaming companies. EBITDA is further defined in footnote Text that appears at the bottom of a page that adds explanation. It is often used to give credit to the source of information. When accumulated and printed at the end of a document, they are called "endnotes." 1 below. Liquidity and Capital Expenditures The Company's primary sources of liquidity and capital resources have been 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 the Company's credit facility. As of September 30, 2006, the Company had $11.6 million of cash and cash equivalents and $15.0 million of availability under its credit facility. The Company spent approximately $6.9 million in capital expenditures during the nine months ended September 30, 2006 compared to $20.3 million during the nine months ended September 30, 2005. The majority of the capital expenditures were related to the consolidated laundry project, property management and back office computer system, and the remodel of the Oasis sports bar and Casablanca race and sports book. In addition, the Company spent $1.1 million to purchase the remaining rights in the Company's Arizona land from the previous owner enabling it to sell it in the future. The Company has begun the remodel of the casino interior at the Virgin River, remodel and expansion of the fine dining restaurant Charmaine's at the Oasis, and its platinum services at the Casablanca. The total cost of the three current projects is expected to be less than $3.0 million and is expected to be completed before the end of the first quarter of 2007. The Company has also decided to move forward with a temporary convention and concert space at the Casablanca that will be utilized until the permanent facility is completed. The total cost of this project is approximately $3.5 million, with approximately $2.75 million representing furniture, fixtures and equipment that will be utilized in the permanent structure. The remainder of the Company's planned capital projects, which include the permanent convention and concert space and tropical pool bar at the Casablanca, an additional restaurant and remodel of the coffee shop and lounge at the Virgin River and a renovation and expansion of the spa at the Casablanca are still in the planning and design phase therefore budgets and timetables have not been finalized; however, the Company anticipates having timelines and budgets for the remainder of these projects during the first half of 2007, and it is anticipated that the total cost for all projects will not exceed what had been allocated for the postponed Casablanca hotel tower which was $21 million. Conference Call Information The Company will host a conference call on Tuesday December 5, 2006 at 1:00 PM (EST EST electroshock therapy. EST abbr. electroshock therapy ) to discuss its third quarter 2006 financial results. Those interested in participating in the call should dial into the conference operator no later than 12:45 PM (EST) on December 5, 2006, at 888-633-8495. The conference reservation number is 21311012. A replay of the call will be available through December 12, 2006 until 3:00 PM (EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT ) at 800-633-8284 using the same reservation number. 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 press release contains certain forward-looking statements within the meaning of the 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 with respect to our business, financial condition, results of operations, expansion projects and our subsidiaries, which involve risks and uncertainties that cannot be predicted or quantified, and consequently, actual results may differ materially from those expressed or implied herein. Such risks and uncertainties include, but are not limited to, financial market risks, the ability to maintain existing management, competition within the gaming industry, the cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. nature of the hotel and gaming business, economic conditions, regulatory matters and litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. and other risks described in our filings with the Securities and Exchange Commission. In addition, construction projects entail entail, in law, restriction of inheritance to a limited class of descendants for at least several generations. The object of entail is to preserve large estates in land from the disintegration that is caused by equal inheritance by all the heirs and by the ordinary significant risks, including shortages of materials or skilled labor, unforeseen regulatory problems, work stoppages, weather interference, and unanticipated cost increases. The anticipated costs and construction periods are based on budgets, conceptual design documents and construction schedule estimates. There can be no assurance that the budgeted costs or construction period will be met. All forward-looking statements are based on our current expectations and projections about future events. All forward-looking statements speak only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" and the Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. (1) EBITDA consists of net loss plus or minus (as the case may be) minority interest in income from RBG RBG Royal Botanical Gardens RBG Revolutionary But Gangsta (Dead Prez album) RBG Regalbediengerät (machine for moving pallets in an automatic warehouse) RBG Red Blue and Green , LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control and Casablanca Resorts, LLC, cumulative effect in change of accounting principle, return on investment with MDW MDW Midway Airport MDW Meadow (street suffix) MDW Military District of Washington (US DoD) MDW Memorial Day Weekend MDW Medical Wing MDW Chicago, IL, USA - Midway (Airport Code) , LLC, change in fair value of interest rate swaps Interest Rate Swap A deal between banks or companies where borrowers switch floating-rate loans for fixed rate loans in another country. These can be either the same or different currencies. , interest expense, loss on disposal of assets and depreciation and amortization expense. EBITDA is presented solely as a supplemental disclosure because the Company believes that it is a widely used measure of operating performance in the gaming industry and as a principal basis for valuation of gaming companies. The Company believes that in addition to cash flows and net loss, EBITDA is a useful financial performance measurement for assessing the operating performance of the Company. Together with net loss and cash flows, EBITDA provides readers of the Company's combined financial statements Combined financial statement A financial statement that merges the assets, liabilities, net worth, and operating figures of two or more affiliated companies. A combined statement is distinguished from a consolidated financial statement of a company and subsidiaries, which must with an additional basis to evaluate the ability of the Company to incur and service debt and incur capital expenditures. To evaluate EBITDA and the trends it depicts, the components should be considered. The impact of minority interest in income from RBG, LLC and Casablanca Resorts, LLC, cumulative effect in change of accounting principle, return on investment with MDW, LLC, change in fair value of interest rate swaps, interest expense, loss on disposal of assets and depreciation and amortization expense, each of which can significantly affect the Company's results of operations and liquidity and should be considered in evaluating the Company's operating performance, cannot be determined from EBITDA. Further, EBITDA does not represent net loss or cash flows from operating, financing and investing activities as defined by generally accepted accounting principles ("GAAP") and does not necessarily indicate cash flows will be sufficient to fund cash needs. It should not be considered as an alternative to net loss, as an indicator of the Company's operating performance or to cash flows as a measure of liquidity. In addition, it should be noted that not all gaming companies that report EBITDA or adjustments to such measures may calculate EBITDA or such adjustments in the same manner as the Company, and therefore, the Company's measure of EBITDA may not be comparable to similarly titled measures used by other gaming companies. A reconciliation of EBITDA to net income is included in the financial schedules accompanying this release. B & B B, Inc. (doing business as Virgin River Hotel/Casino/Bingo), Virgin River Casino Corporation, CasaBlanca Resorts, LLC (doing business as Oasis Resort & Casino) and RBG, LLC (doing business as CasaBlanca Resort/Casino/Golf/Spa) Condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. Combined Statements of Operations (unaudited) (in thousands) [TABLE OMITTED] B & B B, Inc. (doing business as Virgin River Hotel/Casino/Bingo), Virgin River Casino Corporation, CasaBlanca Resorts, LLC (doing business as Oasis Resort & Casino) and RBG, LLC (doing business as CasaBlanca Resort/Casino/Golf/Spa) Summary Information and Reconciliation of Net Loss To EBITDA (unaudited) (in thousands) [TABLE OMITTED] |
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