Choctaw Resort Development Enterprise Announces First Quarter Results.Business Editors CHOCTAW Choctaw (chŏk`tô), Native North Americans whose language belongs to the Muskogean branch of the Hokan-Siouan linguistic stock (see Native American languages). RESERVATION A clause in a deed of real property whereby the grantor, one who transfers property, creates and retains for the grantor some right or interest in the estate granted, such as rent or an Easement ,a right of use over the land of another. , Miss.--(BUSINESS WIRE)--Feb. 13, 2003 The Choctaw Resort Development Enterprise (CRDE CRDE Certified Rooms Division Executive (American Hotel & Motel Association certification) CRDE Centre de Recherche et Developpement en Economique (University of Montreal) CRDE Common Rail Diesel Engine ) today announced revenues and results for its first quarter, which ended December December: see month. 31, 2002. Revenues continued to increase with net revenues at $68.5 million and $57.2 million for the quarters ended December 31, 2002 and 2001. The $11.3 million, or 19.8% increase was primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to gaming, 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. and other revenue from the Golden Moon. Complimentary revenues are included in gross revenues but are deducted de·duct v. de·duct·ed, de·duct·ing, de·ducts v.tr. 1. To take away (a quantity) from another; subtract. 2. To derive by deduction; deduce. v.intr. as a promotional allowance to arrive at net revenues. "The strong opening we had with the Golden Moon contributed to the increases we experienced in our gaming, food and beverage and lodging Lodging or holiday accommodation is a type of accommodation. People who travel and stay away from home for more than a day need lodging mainly for sleeping. Other purposes are safety, shelter from cold and rain, having a place to store luggage and being able to take a revenues. It is an auspicious aus·pi·cious adj. 1. Attended by favorable circumstances; propitious: an auspicious time to ask for a raise in salary. See Synonyms at favorable. 2. Marked by success; prosperous. start to our new property and we are pleased with the positive reception from our customers," said Jay Dorris Dorris may refer to:
Revenues grew in all areas with gaming revenues increasing $8.4 million, or 15.7%, to $61.9 million for the quarter ended December 31, 2002 from $53.5 million for the quarter ended December 31, 2001. During the same period, food and beverage revenues were $7.4 million, an increase of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $2.0 million, or 37.0%, from $5.4 million for the quarter ended December 31, 2001. Room revenues were $3.8 million for the quarter ended December 31, 2002 compared to $2.0 million for the quarter ended December 31, 2001. Operating income Operating Income 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. was $15.3 million for the quarter ended December 31, 2002 compared to $22.7 million for the quarter ended December 31, 2001, a decrease of $7.4 million, or 32.6%. "In looking at our operating income, our decrease resulted largely from the start up of our operations at the Golden Moon. We are focused on better control of our costs and expenses as we move forward and greater understanding of our customers' experiences with multiple properties and attractions," Dorris added. "We experienced a spike A burst of extra voltage in a power line that lasts only a few nanoseconds. See power surge, power swell, sag and surge suppression. (jargon) spike - To defeat a selection mechanism by introducing a (sometimes temporary) device that forces a specific result. in expenses with the addition of the Golden Moon, and our efforts to control costs has required adjustment of our processes to achieve the operating efficiencies we expect." The Enterprise will file its Quarterly Report on form 10-Q Form 10-Q See 10-Q. for its quarter ended December 31, 2002 on or about February February: see month. 13, 2003. 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 for quarter ended December 31, 2002 was $22.3 million compared to $26.5 million for the quarter ended December 31, 2001, a decrease of $4.2 million or 15.9%. EBITDA is presented because management believes it is a widely used measure of operating performance in the gaming industry. EBITDA is not a measure under 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). ") and should not be construed as an alternative to operating income (as determined in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP) as an indicator of cash flows or a measure of liquidity. All companies do not calculate EBITDA in the same manner. As a result, EBITDA as presented here may not be comparable to a similarly titled measure presented by other companies. EBITDA is calculated as follows:
Three Months Three Months
Ended Ended
December 31, December 31,
2002 2001
Net Income $9,413,602 $19,991,828
Depreciation 6,982,064 3,486,418
Other income (expense) 5,909,625 2,735,171
Preopening expense - 325,774
EBITDA $22,305,291 $26,539,191
As a result of the lower than expected EBITDA during the December Quarter, management recognized impending im·pend intr.v. im·pend·ed, im·pend·ing, im·pends 1. To be about to occur: Her retirement is impending. 2. exceptions to the covenant covenant (kŭv`ənənt), agreement entered into voluntarily by two or more parties to do or refrain from doing certain acts. In the Bible and in theology the covenant is the agreement or engagement of God with man as revealed in the ratios for the quarter related to the Fixed Charge Coverage Ratio and the Total Leverage Ratio as contained in the Enterprise's Bank Facility. The Enterprise has secured a waiver The voluntary surrender of a known right; conduct supporting an inference that a particular right has been relinquished. The term waiver is used in many legal contexts. from the lender(s) for these covenant ratio exceptions incurred during the December Quarter. Management also recognizes the likely potential for future quarter non-compliance with the covenant ratios and has entered into negotiations with the lender(s) to develop an amendment to correct the situation. 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. Jay Dorris, "We have been in conversations with our bank since December to secure covenant relief on a going forward basis. Rather than rush our projections that will allow us to predict needed ratios during these uncertain economic times, we want to consider as many days of actual results as possible while still securing an amendment that provides relief by the end of the second quarter." While management has no guarantee regarding the needed amendment, we note the continued and positive efforts between management and the lender(s) to reach agreement and produce the needed amendment within our anticipated time frames. Accordingly, the outstanding balance of the bank facility has been presented as current in the accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. financial statements. 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. . Certain information included in this release and other materials filed or to be filed by the Enterprise with the Securities and Exchange Commission contains forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934. Such statements include information relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc plans for future expansion and other business development activities as well as other capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. , financing sources and the effects of regulation (including gaming and tax regulation) and competition. Such forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of the Enterprise. These risks and uncertainties include, but are not limited to, those relating to development and construction activities, dependence on existing management, leverage and debt service, domestic or global economic conditions, pending 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. , changes in federal tax laws or the administration of such laws and changes in 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 or regulations (including the legalization LEGALIZATION. The act of making lawful. 2. By legalization, is also understood the act by which a judge or competent officer authenticates a record, or other matter, in order that the same may be lawfully read in evidence. Vide Authentication. of gaming in certain jurisdictions).
CHOCTAW RESORT DEVELOPMENT ENTERPRISE
BALANCE SHEETS
December 31, 2002 and September 30, 2002
December 31, September 30,
2002 2002
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $55,555,869 $72,783,499
Accounts receivable (net of allowance of
$2,538,547 and $2,411,237) 4,694,671 3,961,599
Inventories 2,292,262 2,120,422
Prepaid expenses and other 1,406,272 1,403,550
Total current assets 63,949,074 80,269,070
Property and equipment, net 419,914,984 410,892,145
Restricted cash 2,627,561 2,617,915
Deferred loan costs, net 5,362,269 5,617,005
Other assets 4,368,231 2,631,964
Total assets $496,222,119 $502,028,099
Liabilities and Owner's Equity
Current liabilities:
Current maturities of long-term debt $100,300,000 $300,000
Accounts payable 6,165,774 8,209,279
Construction accounts payable 7,730,344 17,375,937
Due to Tribe 3,125,891 3,875,465
Accrued liabilities:
Accrued payroll and related 8,787,365 8,195,759
Accrued expenses and other liabilities 8,544,633 9,047,224
Accrued interest expense 5,212,120 9,808,719
Total current
liabilities 139,866,127 56,812,383
Long term debt, net of current maturities 200,000,000 275,000,000
Commitments and contingencies - -
Owner's equity:
Contributed capital 200,439,881 199,888,916
Retained earnings (deficit) (43,891,827) (29,439,139)
Accumulated other comprehensive loss (192,062) (234,061)
Total owner's equity 156,355,992 170,215,716
Total liabilities and
owner's equity $496,222,119 $502,028,099
CHOCTAW RESORT DEVELOPMENT ENTERPRISE
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
For the three months ended December 31, 2002 and 2001
Three Months Ended
December 31,
2002 2001
(Unaudited) (Unaudited)
Revenue:
Casino $61,910,328 $53,515,273
Food & beverage 7,353,637 5,407,666
Rooms 3,756,157 1,990,685
Other 3,612,716 2,101,062
Gross revenue 76,632,838 63,014,686
Less: promotional allowances (8,092,096) (5,820,938)
Net revenue 68,540,742 57,193,748
Costs and expenses:
Casino 21,829,876 15,869,377
Food & beverage 3,390,544 1,603,442
Rooms 1,013,979 354,643
Other 2,563,553 1,955,082
Selling, general, and administrative 15,203,904 9,515,963
Maintenance and utilities 2,233,595 1,356,050
Preopening expense - 325,774
Depreciation 6,982,064 3,486,418
Total 53,217,515 34,466,749
Operating income 15,323,227 22,726,999
Other income (expense):
Interest income 60,202 1,162,773
Interest expense, net of interest
capitalized (6,222,518) (4,143,186)
Other income (expense) 252,691 245,242
Total (5,909,625) (2,735,171)
Net income 9,413,602 19,991,828
Other comprehensive income (loss) 41,999 38,740
Comprehensive income $9,455,601 $20,030,568
CHOCTAW RESORT DEVELOPMENT ENTERPRISE
STATEMENTS OF CASH FLOWS
For the three months ended December 31, 2002 and 2001
Three Months Ended
December 31,
2002 2001
(Unaudited) (Unaudited)
Cash flows from operating activities:
Net income $9,413,602 $19,991,828
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 7,278,799 4,184,090
Gain on disposal of property and equipment 2,205 29,507
Change in operating assets and
liabilities:
Accounts receivable, net (733,072) (411,650)
Inventories (171,840) (163,371)
Prepaid expenses and other (2,722) 912,222
Other assets (1,736,267) (569,339)
Accounts payable and due to Tribe (2,793,079) 322,263
Accrued liabilities (4,507,584) (4,919,869)
Net cash provided by operating activities 6,750,042 19,375,681
Cash flows from investing activities:
Acquisitions of property and equipment,
net of
amounts in construction accounts payable (25,652,701) (33,357,509)
Proceeds from sales and maturities of
short term investments - 74,567,321
Restricted cash (9,646) (15,679)
Net cash (used in) provided by investing
activities (25,662,347) 41,194,133
Cash flows from financing activities:
Borrowing under credit facilities 25,000,000 -
Contributions of cash from Tribe 550,965 -
Distributions to Tribe (23,866,290) (19,631,218)
Loan fees paid - (39,793)
Net cash provided by (used in) financing
activities 1,684,675 (19,671,011)
Net (decrease) increase in cash and cash
equivalents (17,227,630) 40,898,803
Cash and cash equivalents at beginning of
period 72,783,499 81,822,543
Cash and cash equivalents at end of period $55,555,869 $122,721,346
Supplemental disclosure of cash flow
information:
Cash paid for interest $10,564,382 $10,064,043
Supplemental disclosure of non-cash
investing and
financing activities:
Accounts payable for construction $7,730,344 $22,019,591
Exchange of property and equipment for a
note due to Tribe $- $4,501,215
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