Peninsula Gaming, LLC Announces Financial Results for the Quarter Ended June 30, 2004.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. -- Peninsula Gaming, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control ("PGL Persistent generalized lymphadenopathy (PGL) A condition in which HIV continues to produce chronic painless swellings in the lymph nodes during the latency period. Mentioned in: AIDS " or the "Company"), owner and operator of the Diamond Jo, LLC ("DJL DJL Davy Jones Locker (band) "), which owns and operates 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, and 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 June 30, 2004. A conference call with management is scheduled for Monday, August 16, 2004 at 4:30 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. , and can be accessed by calling 800-240-4186. For your convenience, the call can be retrieved for replay for a period of one week (through August 23, 2004). The number will be released at the time of the call. Second Quarter 2004 Results Consolidated Results Consolidated net revenue for the second quarter of 2004 was $36.6 million, compared to $19.6 million in the second quarter of 2003. Consolidated income from operations during the second quarter of 2004 rose to $4.4 million as compared to $3.7 million reported in the second quarter of 2003. Consolidated net loss to common members' interest for the second quarter of 2004 was $39.7 million, compared to $3.0 million for the second quarter of 2003. The increased net loss was due to a loss on early retirement of debt of $37.6 million as a result of our refinancing Refinancing An extension and/or increase in amount of existing debt. activities discussed below. In the second quarter of 2004, Peninsula Gaming, 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 $7.6 million, an increase of 61.6 percent when compared to $4.7 million for the second 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 $30.7 million of cash (of which $27.6 million is unrestricted cash and $3.1 million is restricted cash). Total debt outstanding at June 30, 2004 including the current portion, was $274.4 million. The Company incurred $10.5 million of capital expenditures during the three-month period ended June 30, 2004. Of this total, $9.5 million related to construction and development activities at Evangeline Downs Racetrack and Casino and $0.5 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 second quarter of 2004, Adjusted EBITDA at the Diamond Jo decreased over the comparable period of the prior year by approximately $0.6 million to $3.7 million. In the second quarter of 2004, net revenues at the Diamond Jo decreased over the comparable period of the prior year by approximately $0.9 million to $12.3 million. Net revenues decreased during the 2004 period primarily due to a decrease in casino revenues of approximately $0.9 million. Net revenues include casino revenues of approximately $12.2 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 second 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 $3.9 million and $24.2 million, respectively. Net revenues for the 2004 period include casino revenues of approximately $16.6 million, racing and off-track betting off-track betting n. Abbr. OTB A system of placing bets away from a racetrack. revenues of approximately $6.5 million, and food and beverage and other revenues of approximately $2.5 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 On April 16, 2004, DJL and The Old Evangeline Downs Capital Corp. completed a private placement of $233 million 8 3/4% senior secured notes due 2012 in a transaction exempt from the registration requirements of the Securities Act of 1933, as amended, pursuant to 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. promulgated prom·ul·gate tr.v. prom·ul·gat·ed, prom·ul·gat·ing, prom·ul·gates 1. To make known (a decree, for example) by public declaration; announce officially. See Synonyms at announce. 2. thereunder (herein referred to as 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. The Company 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 as follows (all payments based on outstanding balances as of April 16, 2004): 1) to redeem all of DJL's existing senior secured notes 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 OED's senior secured notes in an 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 $8.7 million consisting of the write-off of deferred financing fees of approximately $2.0 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 write-off of bond discount of approximately $0.3 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 $27.9 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, write-off of bond discount of approximately $2.1 million and consent fees of approximately $1.1 million. In addition, the Company wrote off $0.9 million of deferred financing fees related to the credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities discussed below. On June 16, 2004, DJL and OED jointly entered into a Loan and Security Agreement with Wells Fargo Wells Fargo armored carriers of bullion. [Am. Hist.: Brewer Dictionary, 1147] See : Protectiveness Wells Fargo company that handled express service to western states; often robbed. [Am. Hist. Foothill, Inc. as the Arranger and Agent (the "PGL Credit Facility"). The PGL Credit Facility consists of a 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 which permits DJL and OED to request advances and letters of credit up to the lesser of the maximum revolver revolver: see small arms. revolver Pistol with a revolving cylinder that provides multishot action. Some early versions, known as pepperboxes, had several barrels, but as early as the 17th century pistols were being made with a revolving chamber to amount of $35 million (less amounts outstanding under letters of credit) and a specified borrowing base. Immediately upon the closing of the PGL Credit Facility, the Company borrowed approximately $14.9 million to refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. outstanding obligations under DJL's and OED's existing senior credit facilities and pay financing related fees and expenses. The PGL Credit Facility also contains a Term Loan in the amount of $14,666,667. The proceeds from the Term Loan were used to repay outstanding obligations under the OED's existing furniture, fixtures and equipment Furniture, fixtures and equipment (or FF&E) is an accounting term used in valuing, selling, or liquidating a company or a building. FF&E are movable furniture, fixtures or other equipment that have no permanent connection to the structure of a building or utilities. credit facility. As of June 30, 2004, the Company had $14.9 million and $14.7 million outstanding under the revolver portion and Term Loan portion of the PGL Credit Facility, respectively. In addition, as of June 30, 2004, the Company had outstanding letters of credit of approximately $3.5 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 PGL'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. PGL assumes no obligation to update such information.
Peninsula Gaming, LLC
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands)
Three Months Three Months
Ended Ended
June 30, 2004 June 30, 2003
--------------- --------------
REVENUES:
Casino $28,813,123 $13,196,976
Racing 6,494,040 5,810,395
Food and beverage 2,957,716 1,157,327
Other 408,084 104,735
Less promotional allowances (2,107,294) (710,186)
--------------- --------------
Total net revenues 36,565,669 19,559,247
--------------- --------------
EXPENSES:
Casino 14,234,665 5,446,088
Racing 5,426,800 4,921,420
Food and beverage 2,523,221 869,126
Boat operations 545,986 575,000
Other 543,737 47,946
Selling, general and administrative 5,686,185 2,993,694
Depreciation and amortization 2,959,151 829,624
Pre-opening expense 50,997 196,045
Development costs 37,961
Management fee 149,577
--------------- --------------
Total expenses 32,158,280 15,878,943
--------------- --------------
INCOME FROM OPERATIONS 4,407,389 3,680,304
--------------- --------------
OTHER INCOME (EXPENSE):
Interest income 72,518 211,199
Interest expense, net of amounts
capitalized (6,471,234) (6,797,433)
Interest expense related to early
retirement of debt (36,471,069)
Interest expense related to preferred
members' interest, redeemable (90,000)
Loss on disposal of assets (192) (17,421)
--------------- --------------
Total other expense (42,959,977) (6,603,655)
--------------- --------------
NET LOSS BEFORE PREFERRED
MEMBER DISTRIBUTIONS (38,552,588) (2,923,351)
LESS PREFERRED MEMBER DISTRIBUTIONS (90,000)
--------------- --------------
NET LOSS TO COMMON MEMBERS' INTEREST
$(38,552,588) $(3,013,351)
=============== ==============
Peninsula Gaming, LLC
Supplemental Data Schedule (Unaudited)
(In thousands)
The following is a reconciliation of Adjusted EBITDA to Net Loss
from Common Members' Interest:
Adjusted EBITDA
Three Months Ended
June 30,
2004 2003
--------- --------
Diamond Jo $3,704 $4,306
Evangeline Downs 3,901 400
--------- --------
Total Adjusted EBITDA (1) 7,605 4,706
Diamond Jo:
Development costs (38)
Depreciation and amortization (588) (751)
Interest expense, net (11,495) (2,722)
Loss on sale of assets (17)
Preferred member distributions (90)
Evangeline Downs:
Depreciation and amortization (2,372) (79)
Pre-opening expense (51) (196)
Management fee (150)
Interest expense, net (31,464) (3,864)
--------- --------
Net loss to common members' interest $(38,553) $(3,013)
========= ========
(1) Adjusted EBITDA is defined as net loss to common members'
interest plus depreciation and amortization, pre-opening expense, net
interest expense (including loss on early retirement of debt),
development expense, loss on sale of assets, preferred member
distributions and management fees.
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