Black Hawk Gaming & Development Company Reports Record Quarterly Earnings.BLACK HAWK Black Hawk (born 1767, Sauk Sautenuk, Va.—died Oct. 3, 1838, village on the Des Moines River, Iowa, U.S.) Sauk Indian leader. Long antagonistic to whites, Black Hawk was driven into Iowa from Illinois in 1831. , Co.--(BUSINESS WIRE)--Nov. 5, 1998--Black Hawk Gaming & Development Company, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : NM: BHWK), owner and operator of the Gilpin Hotel 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 75 percent owner and operator of the Lodge Casino at Black Hawk, today announced results for the third quarter and nine months ended September September: see month. 30, 1998. Net income for the third quarter increased to a record $2,026,000 or 47 cents per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, from net income of $482,000, or 12 cents per diluted share, in the comparable quarter last year. Third quarter revenue increased to $22,442,000 from $318,000 in the same quarter last year. Net income attributable to common shares increased to $2,880,000 or 68 cents per diluted share for the nine-month period, versus $1,395,000 or 41 cents per diluted share, in the same period last year. Nine-month revenue increased to $29,693,000 from $949,000 in the corresponding period last year. The increase in revenues and net income for both the three-month and nine-month periods is attributable to a full quarter's operation of the half of the Gilpin Hotel Casino that it did not previously own and a full quarter's operation of The Lodge Casino at Black Hawk. The other half of the Gilpin was acquired on April 24th of this year and The Lodge Casino at Black Hawk opened on June 24th. Additionally, the reported revenues of the company are now dramatically different because the acquisition of the Gilpin now allows the company to report all of the revenue of the Gilpin. Previously, the company owned 50 percent of the Gilpin, and reported equity in earnings of the joint venture, which was the company's share of the before-tax net income of the Gilpin. Jeffrey P. Jacobs, chairman of the board and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Black Hawk Gaming, commented, "Both the Lodge and the Gilpin performed well in the third quarter. This is the first quarter where our shareholders can get a clear picture of our operating results. As the results show, we feel we have two very efficient operations in Colorado. Our 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 and net profit margins are very good. In fact, we believe our EBITDA margins are similar to the average of the 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. operators and better than the averages for Atlantic City Atlantic City, city (1990 pop. 37,986), Atlantic co., SE N.J., an Atlantic resort and convention center; settled c.1790, inc. 1854. Situated on Absecon Island, a barrier island 10 mi (16. and the Mississippi Gulf Coast The Mississippi Gulf Coast refers to the three Mississippi counties which lie on the Gulf of Mexico: Hancock County, Mississippi, Harrison County, Mississippi, and Jackson County, Mississippi. . In addition, we have the advantage of not having the expense of high yield debt that burdens some of our competitors. We are well positioned as one of the lowest cost providers in this growing marketplace. This contributes to a higher net profit margin." The combined operations For the department of the British War Office during World War II, see . In the military, combined operations are operations conducted by forces of two or more allied nations acting together for the accomplishment of a single mission. See also
BLACK HAWK GAMING & DEVELOPMENT COMPANY, INC.
Financial Highlights (Unaudited)
For the Three Months Ended
9/30/98 9/30/97
Revenue $22,442,000 $ 318,000
Equity in Earnings of Joint Venture -- $ 775,000
Net income $ 2,026,000 $ 482,000
Net income per common share
Diluted $ .47 $ .12
Weighted Average Shares Outstanding
Diluted 4,340,000 3,900,000
For the Nine Months Ended
9/30/98 9/30/97
Revenue $29,693,000 $ 949,000
Equity in Earnings of Joint Venture $ 1,018,000 $ 1,994,000
Net income $ 2,880,000 $ 1,395,000
Net income per common share
Diluted $ .68 $ .41
Weighted Average Shares Outstanding
Diluted 4,261,000 3,377,000
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BALANCE SHEET DATA
9/30/98 12/31/97
Total Assets $98,367,000 $49,304,000
Total Liabilities and Minority
Interest $68,056,000 $22,713,000
Shareholders' Equity $30,311,000 $26,591,000
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