Diamond Jo, LLC Announces Financial Results for the Quarter Ended March 31, 2004.Business Editors DUBUQUE, Iowa--(BUSINESS WIRE)--May 13, 2004 Diamond Jo, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control ("DJL DJL Davy Jones Locker (band) "), owner and operator of the Diamond Jo Casino The Diamond Jo Casino is a riverboat gambling casino located in the Port of Dubuque, in Dubuque, Iowa. The casino is owned and operated by Dubuque-based Peninsula Gaming L.L.C., which also operates the Diamond Jo Casino in Northwood, Iowa. in Dubuque, Iowa Dubuque is a city in the U.S. State of Iowa, located along the Mississippi River. Its population was estimated at 57,696 in 2006,[3] making it the eighth-largest city in the state. and indirect parent of The Old Evangeline Downs, L.L.C. ("OED OED abbr. Oxford English Dictionary Noun 1. OED - an unabridged dictionary constructed on historical principles O.E.D., Oxford English Dictionary "), which owns and operates Evangeline Downs Racetrack and Casino in Opelousas, Louisiana The city of Opelousas, situated at the juncture of Interstate 49 and US Highway 190, is the parish seat of St. Landry Parish, in the US state of Louisiana. [1] [2] The population was 22,860 at the 2000 census. The 2006 population estimate is 23,222. , today reported financial results for the quarter ended March 31, 2004. A conference call with management is scheduled for Thursday, May 13, 2004 at 9:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy , and can be accessed by calling (800) 218-0713. For your convenience, the call can be retrieved for replay for a period of one week (through May 20, 2004) by calling (800) 405-2236 code: 580250. First Quarter 2004 Results Consolidated Results Consolidated net revenue for the first quarter of 2004 was $35.6 million, compared to $15.7 million in the first quarter of 2003. Consolidated income from operations during the first quarter of 2004 rose to $5.1 million as compared to $3.2 million reported in the first quarter of 2003. Consolidated net loss to common members' interest for the first quarter of 2004 was $2.6 million, compared to $2.0 million for the first quarter of 2003. In the first quarter of 2004, Diamond Jo, LLC reported consolidated Adjusted 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 of $8.5 million, an increase of 112.2 percent when compared to $4.0 million for the first quarter 2003. The increase is primarily due to the opening of the casino portion of the Evangeline Downs Racetrack and Casino on December 19, 2003. (See the accompanying tables and footnotes, which reconciles Adjusted EBITDA to net loss from common members' interest.) The Company ended the quarter with $40.1 million of cash (of which $20.8 million is unrestricted cash and $19.3 million is restricted cash). Total debt outstanding at March 31, 2004 including the current portion, was $230.9 million. The Company incurred $5.3 million of capital expenditures during the three-month period ended March 31, 2004. Of this total, $4.5 million related to construction and development activities at Evangeline Downs Racetrack and Casino and $0.3 million and $0.5 million related to non-construction related improvements and maintenance capital expenditures at DJL and OED, respectively. The expenditures primarily related to the purchase of new slot machines at the Diamond Jo and conversions of slot machines at OED to incorporate ticket-in, ticket-out technology, which we believe enhances customer service and produces operating efficiencies. Diamond Jo (property only) In the first quarter of 2004, Adjusted EBITDA at the Diamond Jo increased over the comparable period of the prior year by approximately $0.1 million to $3.7 million. In the first quarter of 2004, net revenues at the Diamond Jo increased over the comparable period of the prior year by approximately $0.3 million to $12.2 million. Net revenues increased during the 2004 period primarily due to an increase in casino revenues of approximately $0.3 million. Net revenues include casino revenues of approximately $12.1 million and 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 revenues of approximately $0.8 million, less promotional allowances of approximately $0.7 million. Evangeline Downs Racetrack and Casino (property only) For the first quarter of 2004, OED's Adjusted EBITDA and net operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. were approximately $4.8 million and $23.4 million, respectively. Net revenues for the 2004 period include casino revenues of approximately $18.1 million, racing and off-track betting off-track betting n. Abbr. OTB A system of placing bets away from a racetrack. revenues of approximately $4.4 million, and food and beverage and other revenues of approximately $2.3 million, less promotional allowances of approximately $1.4 million. Results from operations of OED for the periods described above are not comparable to prior periods due to the casino opening in December 2003. Refinancing Refinancing An extension and/or increase in amount of existing debt. On April 16, 2004, DJL and The Old Evangeline Downs Capital Corp. completed a Rule 144A Rule 144A A Securities & Exchange Commission rule modifying a two-year holding period requirement on privately placed securities to permit qualified institutional buyers to trade these positions among themselves. private placement of $233 million principal amount of 8 3/4% senior secured notes due 2012 (the "Peninsula Gaming Notes"). The Peninsula Gaming Notes were issued at a discount of approximately $3.3 million. Interest on the Peninsula Gaming Notes is payable semi-annually on April 15 and October 15 of each year, beginning on October 15, 2004. DJL used 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). from the sale of the Peninsula Gaming Notes (all payments based on outstanding balances as of April 16, 2004): (1) to irrevocably ir·rev·o·ca·ble adj. Impossible to retract or revoke: an irrevocable decision. ir·rev deposit funds in an escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. account to redeem all of DJL's existing 12 1/4% senior secured notes due 2006 in an amount (including call premium and accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. ) of approximately $79.9 million; (2) to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. approximately $116.3 million principal amount of OED's 13% senior secured notes due 2010 for an aggregate amount (including tender premium, accrued interest and contingent interest contingent interest n. an interest in real property which, according to the deed (or a will or trust), a party will receive only if a certain event occurs or certain circumstances happen. ) of approximately $134.6 million; (3) to pay accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. distributions on DJL's outstanding preferred membership interests-redeemable of approximately $1.1 million; (4) to pay related fees and expenses of approximately $13.4 million; and (5) for general corporate purposes. As a result of the issuance of the Peninsula Gaming Notes, DJL incurred a loss of approximately $8.9 million consisting of the write-off of deferred financing fees of approximately $2.1 million, the payment of a call premium on the DJL senior secured notes of approximately $5.7 million, interest on the DJL senior secured notes of approximately $0.7 million and the write-off of bond discount of approximately $0.4 million. In connection therewith there·with adv. 1. With that, this, or it. 2. In addition to that. 3. Archaic Immediately thereafter. Adv. 1. , OED also incurred a loss of approximately $26.8 million consisting of the write-off of deferred financing fees of approximately $8.4 million, the payment of a tender premium on the OED senior secured notes of approximately $16.3 million and the write-off of bond discount of approximately $2.1 million. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma for the closing of the Peninsula Gaming Notes transactions, DJL's cash balance at March 31, 2004 would have been $41.8 million (of which $37.4 million is unrestricted cash and $4.4 million is restricted cash) and total debt would have been $275.8 million. 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 forward-looking statements that are made pursuant to the Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Provisions 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. Forward-looking statements involve a number of risks, uncertainties or other factors beyond DJL's control, which may cause material differences in actual results, performance or other expectations. These factors include, but are not limited to general economic conditions, competition, new ventures, government regulation, 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, interest rates, future terrorist acts, insurance, and other factors detailed in the reports filed by DJL with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date thereof. DJL assumes no obligation to update such information.
Diamond Jo, LLC
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands)
Three Months Three Months
Ended Ended
March 31, 2004 March 31, 2003
REVENUES:
Casino $ 30,193 $ 11,782
Racing 4,366 3,645
Food and beverage 2,818 839
Other 201 58
Less promotional allowances (2,013) (654)
------------ ------------
Total net revenues 35,565 15,670
------------ ------------
EXPENSES:
Casino 15,054 5,014
Racing 3,504 2,847
Food and beverage 2,281 731
Boat operations 573 567
Other 125 9
Selling, general and administrative 5,528 2,518
Depreciation and amortization 2,896 819
Pre-opening expense 221
Development costs 21
Management fee 257
------------ ------------
Total expenses 30,460 12,505
------------ ------------
INCOME FROM OPERATIONS 5,105 3,165
------------ ------------
OTHER INCOME (EXPENSE):
Interest income 57 80
Interest expense, net of amounts
capitalized (7,693) (5,032)
Interest expense related to preferred
members' interest, redeemable (90)
Loss on disposal of assets (87)
------------ ------------
Total other expense (7,726) (5,039)
------------ ------------
NET LOSS BEFORE PREFERRED MEMBER
DISTRIBUTIONS (2,621) (1,874)
LESS PREFERRED MEMBER DISTRIBUTIONS (91)
-------------- ------------
NET LOSS TO COMMON MEMBERS' INTEREST $ (2,621) $ (1,965)
============ ============
Diamond Jo, LLC
Supplemental Data Schedule (Unaudited)
(In thousands)
The following is a reconciliation of Adjusted EBITDA to Net Loss from
Common Members' Interest:
Adjusted EBITDA(3)
Three Months Ended
March 31,
------------------
2004 2003
-------- --------
Diamond Jo(1) $ 3,705 $ 3,629
OED(2) 4,795 355
-------- --------
Total Adjusted EBITDA(3) 8,500 3,984
Diamond Jo:
Development costs (21)
Depreciation and amortization (577) (752)
Interest expense, net (2,808) (2,731)
Loss on sale of assets (87)
Preferred member distributions (91)
OED:
Depreciation and amortization (2,319) (67)
Pre-opening expense (221)
Management fee (257)
Interest expense, net (4,918) (2,221)
-------- ---------
Net loss to common members' interest $(2,621) $(1,965)
======== =========
(1) Reflects results of operations of the Diamond Jo for the three months ended March 31, 2004 and 2003. (2) Reflects results of operations of OED for the three months ended March 31, 2004 and 2003. (3) Adjusted EBITDA is defined as 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. plus depreciation and amortization, pre-opening expense, development expense and management fees. Adjusted EBITDA is presented to enhance the understanding of our financial performance and our ability to service our indebtedness. Although Adjusted EBITDA is not necessarily a measure of our ability to fund our cash needs, we understand that Adjusted EBITDA is used by certain investors as a measure of financial performance and to compare our performance with the performance of other companies that report Adjusted EBITDA. Adjusted EBITDA is not a measurement determined in accordance with accounting principles generally accepted in the Unites States of America ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ") and should not be considered as an alternative to, or more meaningful than, our net loss or income from operations, as indicators of our operating performance, or our cash flows from operating activities, as a measure of our liquidity or any other measure determined in accordance with GAAP. This definition of Adjusted EBITDA may not be the same as that of similarly named measures used by other companies and is not the same as the definition used in 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. governing the Notes or any of our other debt agreements. |
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