Peninsula Gaming, LLC Announces Financial Results for the Quarter Ended March 31, 2006.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 A peninsula is a piece of land that is bordered on three sides by water. A peninsula can also be a headland, cape, island promontory, bill, point, or spit.[1] Europe
LLC - Logical Link Control --Peninsula Gaming, LLC reports consolidated quarterly net revenue growth of 27% to $52.4 million, 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. growth of 43% to $9.4 million and 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 growth of 37% to $15.0 million --Diamond Jo 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. and Evangeline Downs Racetrack and Casino report combined quarterly net revenue growth of 24% to $51.2 million, operating income growth of 65% to $11.9 million and Adjusted EBITDA growth of 44% to $16.7 million Peninsula Gaming, LLC (the "Company") reported financial results for the quarter ended March 31, 2006. The Company is the direct parent of 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, 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. , and Diamond Jo Worth, LLC ("DJW DJW Dank Je Wel (Dutch) "), which owns and operates the Diamond Jo Casino in Worth County, Iowa Worth County is a county located in the U.S. state of Iowa. It was named for Major General William Jenkins Worth(1749-1849), an officer in both the Black Hawk War and the Mexican-American War. As of 2000, the population is 7,909. Its county seat is Northwood. . A conference call with management will be scheduled and announced at a later date. FIRST QUARTER 2006 RESULTS Consolidated Results Net revenues for the first quarter of 2006 increased 27% to $52.4 million, compared to $41.3 million in the first quarter of 2005. Income from operations during the first quarter of 2006 rose 43% to $9.4 million as compared to $6.6 million reported in the first quarter of 2005. Net income to common members' interest for the first quarter of 2006 was $2.1 million, compared to a net loss of $0.2 million for the first quarter of 2005. In the first quarter of 2006, the Company reported Adjusted EBITDA (as defined below) of $15.0 million, an increase of 37% when compared to $11.0 million for the first quarter of 2005. The increase was driven by a 77% increase in Adjusted EBITDA at OED in the first quarter of 2006 over the first quarter of 2005. Revenues at OED increased as a result of Hurricane Katrina  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. which hit Southern Louisiana Louisiana (ləwē'zēăn`ə, l ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. in August 2005 and forced
many residents from the Gulf Coast to move north to areas closer to the
racino as well as a continued focus on our marketing and player
development programs and promotions. The Company's Adjusted EBITDA
margin for the first quarter of 2006 was 29% as compared to 27% for the
first quarter of 2005. Adjusted EBITDA is defined as EBITDA (earnings
before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
The Company ended the quarter with $31.5 million of cash (of which $18.4 million is restricted cash). Total debt outstanding at March 31, 2006 was $317.1 million, including the $40.0 million related to a senior secured note offering by DJW during the third quarter of 2005 to help fund the construction of DJW's new casino and Company wide slot financing of $8.8 million. At March 31, 2006, the Company had $34.0 million available under its $50.0 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. The Company had cash outflows of $12.2 million related to capital expenditures during the quarter ended March 31, 2006. Of this total, $9.9 million related to construction and development activities at DJW, $1.4 million related to construction, leasehold improvements Leasehold Improvement Improvements on a leased asset that increase the value of the asset. Notes: A leasehold improvement is classified as an asset that must be depreciated over time. and development activities for new off-track betting off-track betting n. Abbr. OTB A system of placing bets away from a racetrack. parlors ("OTBs") at OED, and $0.6 million and $0.3 million related to non-construction related improvements and maintenance capital expenditures at DJL and OED, respectively. Diamond Jo In the first quarter of 2006, net revenues at the Diamond Jo decreased 7% to $12.6 million from $13.5 million in the first quarter of 2005. Net revenues include casino revenues of $12.0 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 $1.0 million, less promotional allowances of $0.4 million. Adjusted EBITDA at the Diamond Jo decreased 12% to $3.8 million for the first quarter of 2006 from $4.3 million in the first quarter of 2005. We believe this decrease was primarily attributed to a local competitor's expansion of its facility that increased the number of slot machines from 600 to 1,000 in May 2005 and introduced video poker Video poker is a casino game based on five-card draw poker. It is played on a computerized console which is a similar size to a slot machine. History Video poker first became commercially viable when it became economical to combine a television-like monitor with a in February 2006 and table games in March 2006. Evangeline Downs Racetrack and Casino For the first quarter of 2006, OED's net revenues were $38.6 million, an increase of 39% from $27.8 million in 2005. Net revenues for such period include casino revenues of $29.4 million, racing and off-track betting revenues of $6.7 million, video poker revenues of $0.7 million, and food and beverage and other revenues of $3.2 million, less promotional allowances of $1.4 million. Adjusted EBITDA at OED increased 77% to $12.9 million in the first quarter of 2006 from $7.3 million in the first quarter of 2005 primarily for the reasons stated above. Strong casino revenue increases of 31% in the first quarter of 2006 compared to the first quarter of 2005 contributed to an increase in EBITDA margin to 34% during the first quarter of 2006 from 26% during the first quarter of 2005. OFF TRACK BETTING PARLORS During the first quarter of 2006, OED opened its fifth OTB OTB abbr. off-track betting OTB n abbr (US) (= off-track betting) → apuestas hechas fuera del hipódromo OTB n abbr (US) (= off-track betting which is located in Eunice, Louisiana Eunice is a city in St. Landry and Acadia parishes in Louisiana. [1] [2] The population was 11,499 at the 2000 census. Geography Eunice is located at (30.493595, -92. . The Eunice facility offers simulcast pari-mutuel pari-mutuel Betting pool in which those who bet on competitors finishing in the first three places share the total amount bet minus a percentage for the management. First introduced in France c. wagering wa·ger n. 1. a. An agreement under which each bettor pledges a certain amount to the other depending on the outcome of an unsettled matter. b. A matter bet on; a gamble. 2. seven days a week, a restaurant and full service bar and private parking for the patrons. In addition, we recently completed the installation of 60 video poker machines at such facility which opened to the public on April 26, 2006. WORTH COUNTY On May 11, 2005, DJW, in connection with its exclusive agreement with the Worth County Development Authority, was granted a gaming license by the Iowa Racing and Gaming Commission to operate a moored moor 1 v. moored, moor·ing, moors v.tr. 1. To make fast (a vessel, for example) by means of cables, anchors, or lines: barge in Verb 1. barge in - enter uninvited; informal; "let's crash the party!" gate-crash, crash intrude, irrupt - enter uninvited; "They intruded on our dinner party"; "She irrupted into our sitting room" 2. Worth County, Iowa. On April 4, 2006, DJW opened its casino to the public with 511 slot machines, 15 table games and 5 poker tables A poker table is a table specifically designed for playing card games, usually poker. It is often covered with baize which is a type of felt, or speed cloth, a teflon-coated fabric that helps the cards slide easily across the surface. . In addition, the new facility includes several dining options, including a 150 seat coffee shop and two fast food dining outlets and parking spaces for approximately 750 vehicles. 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 the Company'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, risks associated with new ventures, government regulation, including, licensure licensure (lī´s  nsh requirements, 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, availability of financing on commercially reasonable terms, changes in interest rates, future terrorist acts, and other factors detailed in the reports filed by the Company 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. The Company assumes no obligation to update such information.
Peninsula Gaming, LLC
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands)
Three Three
Months Months
Ended Ended
March March
31, 31,
2006 2005
-------- --------
REVENUES:
Casino $41,439 $35,438
Racing 6,702 3,338
Video poker 739 608
Food and beverage 3,530 2,992
Other 1,938 251
Less promotional allowances (1,914) (1,323)
-------- --------
Total net revenues 52,434 41,304
-------- --------
EXPENSES:
Casino 20,347 18,189
Racing 5,488 2,742
Video poker 524 467
Food and beverage 2,529 2,334
Other 1,224 98
Selling, general and administrative 7,288 6,511
Depreciation and amortization 4,180 3,938
Pre-opening expense 699 39
Development expense 24 136
Affiliate management fees 781 307
Gain on sale of assets (30) (37)
-------- --------
Total expenses 43,054 34,724
-------- --------
INCOME FROM OPERATIONS 9,380 6,580
-------- --------
OTHER INCOME (EXPENSE):
Interest income 203 14
Interest expense, net of amounts capitalized (7,416) (6,686)
Interest expense related to preferred member's
interest, redeemable (90) (90)
-------- --------
Total other expense (7,303) (6,762)
-------- --------
NET INCOME (LOSS) TO COMMON MEMBER'S INTEREST $ 2,077 $ (182)
======== ========
Peninsula Gaming, LLC
Supplemental Data Schedule (Unaudited)
(In thousands)
The following is a reconciliation of Adjusted EBITDA to Net Income
(Loss) to Common Member's Interest:
Adjusted EBITDA
Three Months
Ended
March 31,
2006 2005
-------- -------
General corporate $(1,709) $(599)
Diamond Jo 3,762 4,253
Diamond Jo Worth 51
Evangeline Downs 12,930 7,309
-------- -------
Total Adjusted EBITDA (1) 15,034 10,963
General corporate:
Development expense (53)
Affiliate management fees (76)
Diamond Jo:
Depreciation and amortization (995) (1,009)
Development expense (12) (37)
Interest expense, net (2,354) (2,412)
Gain/(loss) on disposal of assets 25 (24)
Diamond Jo Worth:
Depreciation and amortization (18)
Affiliate management fees (120)
Pre-opening expense (680)
Interest expense, net (420)
Evangeline Downs:
Depreciation and amortization (3,167) (2,929)
Development expense (12) (46)
Pre-opening expense (19) (39)
Affiliate management fees (586) (307)
Interest expense, net (4,529) (4,350)
Gain on disposal of assets 6 61
-------- -------
Net income (loss) to common member's interest $2,077 $(182)
======== =======
(1) Management uses Adjusted EBITDA as a supplemental financial
measure in the evaluation of the performance of its businesses and
believes that Adjusted EBITDA provides a meaningful measure of its
ability to meet future debt service, capital expenditures and
working capital requirements. Management also believes that
Adjusted EBITDA is useful because it is reflective of operating
decisions and other factors that affect operating performance.
Management further believes that EBITDA (and varying adjustments
thereto) is a commonly used measure of operating performance in
the gaming industry and is an important basis for the valuation of
gaming companies. Management uses Adjusted EBITDA to compare
operating results among properties and between accounting periods
and to develop compensation plans, to measure personnel
performance and to allocate capital assets. Adjusted EBITDA,
however, is not a financial measure under accounting principles
generally accepted in the United States (GAAP). Accordingly, its
use should not be construed as an alternative to operating income,
as an indicator of the Company's operating performance, or as an
alternative to cash flow from operating activities, as a measure
of liquidity, or as an alternative to any other measure determined
in accordance with GAAP. The Company has significant uses of cash,
including capital expenditures, interest payments and debt
principal repayments, which are not reflected in Adjusted EBITDA.
Because Adjusted EBITDA excludes some, but not all, items that
affect net income (loss) and may vary among companies, Adjusted
EBITDA as presented by the Company may not be comparable to
similarly titled measures of other companies.
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