Choctaw Resort Development Enterprise Announces Second 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)--May 7, 2002 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 second quarter, which ended March 31, 2002. Net revenues for the quarter were $63.1 million compared to $64.1 million for the quarter ended March 31, 2001. The $1.0 million, or 1.6%, decrease in net revenues was primarily due to a decrease in gaming revenues. Net revenues for the six months ended March 31, 2002 were $120.3 million compared to $121.3 million for the six months ended March 31, 2001. The $1.0 million or 0.8%, decrease in net revenues was primarily due to a decrease in gaming revenues. 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. "As we move further into the new fiscal year, we continue to enjoy another strong quarter and are tracking ahead of our projections," said Jay Dorris Dorris may refer to:
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 $30.6 million for the quarter ended March 31, 2002 compared to $32.5 million for the quarter ended March 31, 2001, a decrease of $1.9 million, or 5.8%. The decrease for the quarter was primarily due to the revenue variations discussed above and to expense variations. Operating income was $53.4 million for the six months ended March 31, 2002 compared to operating income of $57.8 million for the six months ended March 31, 2001, a decrease of $4.4 million or 7.6%. "We remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op on our progress and current operations. Our vision in creating a comprehensive resort destination with the opening of the Golden Moon continues on track with all signs in our current business indicating solid support from our customers," Dorris added. "With the topping off of Golden Moon, we are focused on the rapid completion and opening of this new world-class world-class adj. 1. Ranking among the foremost in the world; of an international standard of excellence; of the highest order: a world-class figure skater. 2. facility." The Enterprise will file its Quarterly Report on form 10-Q Form 10-Q See 10-Q. for its quarter ended March 31, 2002 on or about May 10, 2002. 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 March 31, 2002 was $34.3 million compared to $35.7 million for the quarter ended March 31, 2001, a decrease of $1.4 million or 3.9%. "EBITDA" means earnings before interest, taxes, depreciation, amortization, certain non-cash items and certain non-recurring items. The only non-cash items were other income for the quarter ended March 31, 2002 and other expense for the quarter ended March 31, 2001 related to the change in the fair value liability of the Enterprise's interest rate swap 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. agreement and the only non-recurring item was the pre-opening expenses of $114,808 for the quarter ended March 31, 2002. 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 Indicator Anything used to predict future financial or economic trends. Notes: In the context of technical analysis, an indicator is a mathematical calculation based on a securities price and/or volume. The result is used to predict future prices. 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. Through March 31, 2002, $148.5 million of the budgeted $290.6 million Golden Moon construction has been completed through proceeds from the $200.0 million note offering, and contributions of cash and property and equipment from the Tribe tribe [Lat., tribus: the tripartite division of Romans into Latins, Sabines, and Etruscans], a social group bound by common ancestry and ties of consanguinity and affinity; a common language and territory; and characterized by a political and economic . The Enterprise anticipates the remaining $142.1 million of budgeted expenditures to be financed from cash on hand and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments, which includes the balance of the proceeds from the $200.0 million note offering and our $125.0 million 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. It is anticipated that the revolving credit facility will remain un-drawn until the latter part of May 2002, when it will become necessary to use the proceeds from this facility, together with the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of the offering of the notes, to complete the Golden Moon. The Golden Moon is expected to be completed and opened in August 2002. 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
March 31, 2002 and September 30, 2001
March 31, Sept. 30,
2002 2001
------------- -------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 74,244,394 $ 81,822,543
Short-term investments -- 81,949,037
Accounts receivable (net of allowance
of $2,130,050 and $1,685,009) 2,858,356 3,085,106
Inventories 1,578,386 1,517,052
Prepaid expenses and other 2,628,947 1,784,209
------------- -------------
Total current assets 81,310,083 170,157,947
Property and equipment, net 305,951,716 206,222,932
Restricted cash 2,595,618 2,568,256
Deferred loan costs, net 6,126,475 6,595,249
Other assets 679,848 1,302,131
------------- -------------
Total assets $396,663,740 $386,846,515
============= =============
Liabilities and Owner's Equity
Current liabilities:
Current maturities of long-term debt $ 300,000 $ 300,000
Accounts payable 1,243,660 2,519,767
Construction accounts payable 15,963,989 15,883,132
Due to Tribe 3,376,019 81,401
Accrued liabilities:
Accrued payroll and related 5,155,101 5,247,757
Accrued expenses and other liabilities 7,500,068 7,991,053
Accrued interest expense 9,622,319 9,597,633
------------- -------------
Total current liabilities 43,161,156 41,620,743
Long-term debt, net of current maturities $200,000,000 $200,000,000
Commitments and contingencies -- --
Owner's equity:
Contributed capital 181,552,126 181,552,126
Retained earnings (deficit) (27,733,918) (35,932,309)
Accumulated other comprehensive loss (315,624) (394,045)
------------- -------------
Total owner's equity 153,502,584 145,225,772
------------- -------------
Total liabilities and
owner's equity $396,663,740 $386,846,515
============= =============
CHOCTAW RESORT DEVELOPMENT ENTERPRISE
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
For the three and six months ended March 31, 2002 and 2001
Three Months Ended Six Months Ended
March 31, March 31,
------------------------ --------------------------
2002 2001 2002 2001
----------- ----------- ------------ ------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenue:
Casino $59,140,612 $60,305,943 $112,655,885 $113,613,824
Food &
Beverage 5,585,286 5,327,982 10,992,952 10,232,945
Rooms 2,113,050 2,077,273 4,103,735 4,145,503
Other 1,946,001 2,195,163 4,047,063 4,552,795
----------- ----------- ------------ ------------
Gross
Revenue 68,784,949 69,906,361 131,799,635 132,545,067
Less:
promotional
allowances (5,716,902) (5,804,552) (11,537,840) (11,287,003)
----------- ----------- ------------ ------------
Net revenue 63,068,047 64,101,809 120,261,795 121,258,064
----------- ----------- ------------ ------------
Costs and
expenses:
Casino 15,153,750 15,519,490 31,023,127 31,333,837
Food &
Beverage 1,952,819 1,653,119 3,556,261 3,450,887
Rooms 362,355 475,048 716,998 712,169
Other 1,504,953 1,665,648 3,460,035 3,346,805
Selling,
general, and
administrative 8,713,401 7,801,642 18,555,138 16,006,174
Maintenance
and utilities 1,207,677 1,282,630 2,563,727 2,455,483
Depreciation 3,541,494 3,155,853 7,027,912 6,157,030
----------- ----------- ------------ ------------
Total 32,436,449 31,553,430 66,903,198 63,462,385
----------- ----------- ------------ ------------
Operating income 30,631,598 32,548,379 53,358,597 57,795,679
----------- ----------- ------------ ------------
Other income
(expense):
Interest income 338,489 393,146 1,501,262 673,392
Interest
expense, net
of interest
capitalized (3,100,440) (1,574,010) (7,243,626) (2,975,665)
Other income
(expense) 3,542,971 (737,457) 3,788,213 (1,402,014)
----------- ----------- ------------ ------------
Total 781,020 (1,918,321) (1,954,151) (3,704,287)
----------- ----------- ------------ ------------
Net income 31,412,618 30,630,058 51,404,446 54,091,392
Other
comprehensive
income (loss) 39,681 36,680 78,421 (469,316)
----------- ----------- ------------ ------------
Comprehensive
income $31,452,299 $30,666,738 $ 51,482,867 $ 53,622,076
----------- ----------- ------------ ------------
CHOCTAW RESORT DEVELOPMENT ENTERPRISE
STATEMENTS OF CASH FLOWS
For the six months ended March 31, 2002 and 2001
Six Months Ended
March 31,
--------------------------
2002 2001
------------- -------------
(Unaudited) (Unaudited)
Cash flows from operating activities:
Net income $ 51,404,446 $ 54,091,392
Adjustments to reconcile net income to
net cash provided by operating
activities:
Cumulative effect of accounting change -- (541,847)
Depreciation and amortization 7,060,031 6,726,816
Gain on disposal of property
and equipment (470,924) --
Change in operating assets and liabilities:
Accounts receivable, net 226,750 (309,389)
Inventories (61,334) (70,519)
Prepaid expenses and other (844,738) (763,792)
Other assets 622,283 50,735
Accounts payable and due to Tribe (2,482,704) (1,381,301)
Accrued liabilities (558,955) 3,395,840
------------- -------------
Net cash provided by operating activities 54,894,855 61,197,935
------------- -------------
Cash flows from investing activities:
Acquisitions of property and equipment,
net of amounts in construction
accounts payable (102,284,985) (10,656,326)
Proceeds from disposal of property
and equipment 571,710 --
Proceeds from sale/maturity of
short-term investments 82,513,481 --
Restricted cash (27,362) (206,698,841)
------------- -------------
Net cash used in investing activities (19,227,156) (217,355,167)
------------- -------------
Cash flows from financing activities:
Proceeds from issuance of bonds -- 200,000,000
Repayment of long-term debt -- (9,375,000)
Contributions of cash from Tribe -- 21,794,027
Distributions to Tribe (43,206,055) (42,159,811)
Loan fees paid (39,793) (5,153,646)
------------- -------------
Net cash (used in) provided by
financing activities (43,245,848) 165,105,570
------------- -------------
Net (decrease) increase in cash and cash
equivalents (7,578,149) 8,948,338
Cash and cash equivalents at beginning
of period 81,822,543 34,779,920
------------- -------------
Cash and cash equivalents at end
of period $ 74,244,394 $ 43,728,258
============= =============
Supplemental disclosure of cash flow
information:
Cash paid for interest $ 10,550,888 $ 2,366,572
============= =============
Supplemental disclosure of non-cash
investing and financing activities:
Contributions of property and equipment
from Tribe $ -- $ 3,156,740
============= =============
Due to Tribe for property and equipment -- 816,468
============= =============
Contributions of other assets from Tribe -- 1,843,927
============= =============
Accounts payable for construction $ 15,963,989 $ --
============= =============
Exchange of property and equipment
for a note due to Tribe $ 4,501,215 $ --
============= =============
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