Choctaw Resort Development Enterprise Announces Third-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)--Aug. 13, 2001 The Choctaw Resort Development Enterprise today announced revenues and results from its third quarter, closing as of June June: see month. 30, 2001. Net revenues for the quarter were $57.7 million compared with $60.2 million for the quarter ended June 30, 2000. The $2.5 million, or 4.2 percent, decrease in net revenues was primarily due to a decrease in gaming revenues. Net revenues for the nine months ended June 30, 2001, were $177.6 million compared with $183.5 million for the nine months ended June 30, 2000. The $5.9 million, or 3.2 percent, decrease in net revenues was primarily due to a decrease in gaming revenues. Complementary 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. Revenues were adversely affected by flooding Refers to various denial-of-service techniques that saturate a critical resource, leading either to system failure or to the exclusion of legitimate access. See e-mail bombing, Fraggle attack, smurf attack and SYN-flood attack. that occurred during the quarter, which enveloped en·vel·op tr.v. en·vel·oped, en·vel·op·ing, en·vel·ops 1. To enclose or encase completely with or as if with a covering: "Accompanying the darkness, a stillness envelops the city" approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. one-half of the Silver Star's 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. area, resulting in as many as 2,110 slot machines and six table games remaining inactive in·ac·tive adj. 1. Not active or tending to be active. 2. a. Not functioning or operating; out of use: inactive machinery. b. for periods ranging from several hours to several days. The closing of a portion of the gaming floor, some retail outlets retail outlet n → punto de venta retail outlet n → point m de vente retail outlet retail n → and restaurants, along with the related clean up, led to a significant decrease in overall casino traffic during these periods. Additionally, the clean up and restoration process continued to significantly affect casino revenue for several weeks. Revenues for the month of April 2001 were significantly lower than those of April 2000 due to the effect of the flooding and related clean up. "The flooding we experienced in April adversely impacted the casino's operations, but overall we believe the Enterprise's ongoing business remains sound and profitable," said Jay Dorris Dorris may refer to:
The company will file its Quarterly Report for its second quarter ended June 30, 2001, on or about Aug. 15, 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. for the quarter was $27.2 million compared with $30.9 million for the quarter ended June 30, 2000, a decrease of $3.7 million. The decrease for the quarter was primarily due to the revenue variations discussed above and to expense variations. Operating income was $85.9 million for the nine months ended June 30, 2001, compared with operating income of $10 million for the nine months ended June 30, 2000, an increase of $75.9 million. The increase for the nine months ended June 30, 2001, was due to the elimination of the management fee paid to Boyd Boyd may refer to any of the following: People See Boyd (surname) The name Boyd has Irish roots that originally meant "blondheaded". Fictional characters
Mississippi (mĭs'əsĭp`ē), one of the Deep South states of the United States. It is bordered by Alabama (E), the Gulf of Mexico (S), Arkansas and Louisiana, with most of the border formed by , the payment of the one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. management agreement termination fee termination fee The one-time charge for terminating or transferring an individual retirement account. If a financial institution charges a termination fee, the fee must be spelled out in the original agreement that is signed when the account is opened. and, to a lesser extent, to the revenue variations discussed above and expense variations. Cash provided by financing activities was $83.7 million in the nine months ended June 30, 2001, compared with $5.4 million in the nine months ended June 30, 2000. The primary use of cash in each period was distributions to 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 of $70.6 million and $60.1 million in the nine months ended June 30, 2001 and 2000, respectively. The primary source of funds provided by financing activities was the $200.0 million note offering during the nine months ended June 30, 2001, and the borrowing under the $75.0 million term loan to buy out the Boyd management contract in the nine months ended June 30, 2000. Pursuant to the indenture An agreement declaring the benefits and obligations of two or more parties, often applicable in the context of Bankruptcy and bond trading. The term indenture primarily describes secured contracts and has several applications in U.S. law. for the note offering, a portion of the proceeds from the note offering was used to repay the remaining outstanding balance under the term loan with the remaining proceeds going to finance the first phase of the construction of the Golden Moon. The $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 should remain undrawn un·draw tr.v. un·drew , un·drawn , un·draw·ing, un·draws To draw to one side, as a curtain. Adj. 1. undrawn - not represented in a drawing undelineated - not represented accurately or precisely until December December: see month. 2001, 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 note offering to complete the Golden Moon. Through June 30, 2001, $30.5 million of the budgeted $290.6 million Golden Moon construction has been completed through contributions of cash and property and equipment from the Tribe. We anticipate the remaining $260.1 million of budgeted expenditures to be financed from cash on hand, which includes the balance of the proceeds from the $200.0 million note offering and the $125.0 million revolving credit facility. 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
June 30, 2001 and Sept. 30, 2000
June 30, Sept. 30,
2001 2000
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 100,807,546 $ 33,265,501
Short-term investments 87,410,412 --
Accounts receivable (net of allowance
of $1,481,278 and $829,704) 1,620,844 3,147,464
Inventories 1,479,860 1,337,074
Prepaid expenses and other 2,072,394 914,674
Total current assets 193,391,056 38,664,713
Property and equipment, net 147,363,921 126,621,963
Restricted cash 2,544,962 2,443,344
Deferred loan costs 6,448,194 299,082
Other assets 642,876 618,770
Total assets $ 350,391,009 $ 168,647,872
Liabilities and Owner's Equity
Current liabilities:
Current maturities of long-term debt $ -- $ 18,750,000
Accounts payable 1,086,943 2,105,064
Construction accounts payable 9,182,914 --
Due to Tribe 816,468 5,562,108
Accrued liabilities:
Accrued payroll and related 4,511,863 4,836,791
Accrued expenses and other liabilities 7,316,633 5,573,751
Accrued interest expense 4,867,458 23,307
Total current liabilities 27,782,279 36,851,021
Long-term debt, net of current
maturities 200,000,000 43,750,000
Commitments and contigencies
Owner's equity:
Contributed capital 148,052,627 120,941,233
Retained earnings (deficit) (25,011,889) (32,894,382)
Accumulated other comprehensive loss (432,008) --
Total owner's equity 122,608,730 88,046,851
Total liabilities and owner's
equity $ 350,391,009 $ 168,647,872
Choctaw Resort Development Enterprise
Statements of Income
For the Three and Nine Months Ended June 30, 2001 and 2000
Three Months Ended Nine Months Ended
June 30, June 30,
2001 2000 2001 2000
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenue:
Casino $ 54,522,252 $ 56,924,282 $ 168,136,076 $ 173,843,563
Food & beverage 5,143,548 4,846,286 15,376,493 14,310,394
Rooms 2,081,706 2,228,418 6,227,209 6,348,575
Other 1,303,261 1,261,185 4,514,237 3,658,515
Gross revenue 63,050,767 65,260,171 194,254,015 198,161,047
Less: promotional
allowances (5,376,587) (5,075,555) (16,663,590) (14,669,083)
Net revenue 57,674,180 60,184,616 177,590,425 183,491,964
Costs and expenses:
Casino 15,514,718 14,811,050 46,848,555 44,181,030
Food & beverage 1,804,004 1,783,122 5,254,891 5,058,592
Rooms 385,833 448,902 1,098,002 1,151,855
Other 783,778 715,500 2,362,443 2,314,952
Selling, general and
administrative 7,572,617 7,522,579 23,578,791 20,423,343
Maintenance and
utilities 1,433,742 1,253,114 3,889,225 3,468,619
Management fee -- -- -- 16,413,591
Depreciation 2,944,463 2,794,571 8,714,973 8,495,134
Management agreement
termination fee -- -- -- 72,000,000
Total 30,439,155 29,328,838 91,746,880 173,507,116
Operating income 27,235,025 30,855,778 85,843,545 9,984,848
Other income (expense):
Interest income 1,656,546 214,865 2,300,611 481,401
Interest expense (5,408,668) (1,484,581) (8,375,333) (2,541,618)
Other income
(expense) 115,794 -- (1,286,220) --
Total (3,636,328) (1,269,716) (7,360,942) (2,060,217)
Net income 23,598,697 29,586,062 78,482,603 7,924,631
Other comprehensive
income (loss) 37,308 -- (432,008) --
Comprehensive
income $ 23,636,005 $ 29,586,062 $ 78,050,595 $ 7,924,631
Choctaw Resort Development Enterprise
Statements of Cash Flows
For the Nine Months Ended June 30, 2001 and 2000
Nine Months Ended
June 30,
2001 2000
(Unaudited) (Unaudited)
Cash flows from operating activities:
Net income $ 78,482,603 $ 7,924,631
Adjustments to reconcile net income
to net cash provided by operating
activities:
Cumulative effect of accounting change (541,847) --
Depreciation and amortization 9,843,200 8,532,519
Change in operating assets and
liabilities:
Accounts receivable, net 1,526,620 210,017
Inventories (142,786) (250,896)
Prepaid expenses and other (1,157,720) (210,637)
Other assets 2,465 55,991
Accounts payable and due to Tribe (6,580,229) 239,907
Accrued liabilities 6,262,105 (3,705,805)
Net cash provided by operating
activities 87,694,411 12,795,727
Cash flows from investing activities:
Acquisitions of property and equipment,
net of amounts in construction
accounts payable (16,300,809) (2,815,153)
Purchases of short-term investments (87,436,862) --
Proceeds from disposal of property
and equipment -- 39,324
Restricted cash (101,618) (109,376)
Net cash used in investing activities (103,839,289) (2,885,205)
Cash flows from financing activities:
Proceeds from issuance of bonds 200,000,000 --
Proceeds from issuance of long-term debt -- 75,000,000
Repayment of long-term debt (62,500,000) (7,812,500)
Repayment of note payable to Boyd -- (1,333,240)
Contributions of cash from Tribe 22,110,727 --
Distributions to Tribe (70,600,110) (60,076,946)
Loan fees paid (5,323,694) (358,898)
Net cash provided by financing activities 83,686,923 5,418,416
Net increase in cash and cash equivalents 67,542,045 15,328,938
Cash and cash equivalents at beginning
of period 33,265,501 20,131,227
Cash and cash equivalents at end of
period $ 100,807,546 $ 35,460,165
Supplemental disclosure of cash flow information:
Cash paid for interest $ 2,911,585 $ 2,490,458
Supplemental disclosure of non-cash
investing and financing activities:
Contributions of property and equipment
from Tribe $ 3,156,740 $ 3,960,276
Due to Tribe for property and equipment $ 816,468 $ --
Contributions of other assets from Tribe $ 1,843,927 $ --
Accounts payable for construction $ 9,182,914 $ --
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