Peninsula Gaming, LLC Announces Financial Results for the Second Quarter Ended June 30, 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 reports consolidated quarterly net revenue growth of 67% to $67.3 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 144% to $11.0 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 94% to $18.2 million Peninsula Gaming, LLC (the "Company") reported financial results for the second quarter ended June June: see month. 30, 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 Evangeline concerns peaceful village vacated and destroyed during war. [Am. Lit.: “Evangeline” in Magill I, 261–263] See : Disaster Evangeline lifelong search for lover, Gabriel. [Am. Lit. 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 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. 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 four off-track betting off-track betting n. Abbr. OTB A system of placing bets away from a racetrack. parlors in Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. , 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 is scheduled for August 14, 2006 at 1:00 PM EST EST electroshock therapy. EST abbr. electroshock therapy and can be accessed by calling (888) 882-0114, passcode number 21301546. For your convenience, the call can be retrieved for replay for a period of one week (through August 21, 2006) by calling (800) 633-8284, passcode number 21301546. SECOND QUARTER 2006 RESULTS Consolidated Results Net revenues for the second quarter of 2006 increased 67% to $67.3 million, compared to $40.4 million in the second quarter of 2005. Income from operations during the second quarter of 2006 rose 144% to $11.0 million as compared to $4.5 million reported in the second quarter of 2005. Net income to common member's interest for the second quarter of 2006 was $2.9 million, compared to a net loss of $2.3 million for the second quarter of 2005. In the second quarter of 2006, the Company reported Adjusted EBITDA (as defined below) of $18.2 million, an increase of 94% when compared to $9.4 million for the second quarter of 2005. The increase was driven primarily by the opening of the Diamond Jo Worth casino in April 2006 and a 60% increase in Adjusted EBITDA at OED in the second quarter of 2006 over the second quarter of 2005. Adjusted EBITDA margin at the Company for the second quarter of 2006 was 27% as compared to 23% for the second quarter of 2005 due primarily to an increase in consolidated casino revenues. 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.
1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charges) adjusted for development expense, pre-opening expense, affiliate management fees and gain or loss on disposal of assets. See the accompanying tables and footnotes, which discuss the Company's use of Adjusted EBITDA and reconcile Adjusted EBITDA to net income (loss) to common member's interest. The Company ended the quarter with $27.2 million of cash (of which $7.1 million is restricted cash). Total debt outstanding at June 30, 2006 was $318.1 million, including slot financing of $7.7 million and $40.0 million of senior secured notes issued by DJW during the third quarter of 2005 to help fund the construction of DJW's new casino. At June 30, 2006, the Company had $29.6 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; and DJW had full availability of its $2.5 million credit facility. During the quarter ended June 30, 2006, the Company had cash outflows of $7.6 million related to capital expenditures, of which $5.7 million related to construction and development activities of the Diamond Jo Casino in Worth County, Iowa and $0.4 million, $1.3 million and $0.2 million related to facility improvements and maintenance capital expenditures at DJL, OED and DJW, respectively. Evangeline Downs Racetrack and Casino For the second quarter of 2006, OED's net revenues were $35.9 million, an increase of 33% from $27.0 million in 2005. Net revenues for the quarter include casino revenues of $26.7 million, racing and off-track betting revenues of $6.5 million, 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 revenues of $0.9 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 $3.1 million, less promotional allowances of $1.3 million. Revenues at OED increased as a result of an increase in our admissions to the casino, as well as an increase in the average amount spent by our customers per trip which is a direct result of our continued focus on marketing and player development programs and promotions. Adjusted EBITDA at OED increased 60% to $9.3 million in the second quarter of 2006 from $5.8 million in the second quarter of 2005 primarily due to increased casino revenues. Strong casino revenue increases of 25% in the second quarter of 2006 compared to the second quarter of 2005 also contributed to an increase in EBITDA margin to 26% during the second quarter of 2006 from 21% during the second quarter of 2005. Diamond Jo - Dubuque Dubuque (dəby k`), city (1990 pop. 57,546), seat of Dubuque co., NE Iowa, on the Mississippi River; chartered 1841. In the second quarter of 2006, net revenues at the Diamond Jo decreased 9% to $12.1 million from $13.3 million in the second quarter of 2005. Net revenues include casino revenues of $11.3 million, and food and beverage and other revenues of $1.2 million, less promotional allowances of $0.4 million. Adjusted EBITDA at the Diamond Jo decreased 12% to $3.7 million for the second quarter of 2006 from $4.2 million in the second quarter of 2005. We believe this decrease was primarily attributable to the expansion of a local competitor which increased the number of slot machines at its facility from 600 to 1,000 in May 2005 and introduced video poker in February 2006 and table games in March 2006. Diamond Jo - Worth County On April 4, 2006, DJW opened its casino to the public. The facility has 577 slot machines, 15 table games and several dining options, including a 150 seat coffee shop and two fast food dining outlets and parking spaces for approximately 1,100 vehicles. In the second quarter of 2006, net revenues at the Diamond Jo Worth casino were $19.4 million. Net revenues include casino revenues of $16.8 million, food and beverage revenues of $0.7 million, other revenues (primarily related to gasoline gasoline or petrol, light, volatile mixture of hydrocarbons for use in the internal-combustion engine and as an organic solvent, obtained primarily by fractional distillation and "cracking" of petroleum, but also obtained from natural gas, by and merchandise sales at the convenience store located adjacent to the casino) of $2.0 million, less promotional allowances of $0.1 million. Adjusted EBITDA at Diamond Jo Worth for the second quarter of 2006 was $7.7 million resulting in an EBITDA margin of 40%. On July 13, 2006, the Iowa Racing and Gaming Commission approved DJW's request to expand its new casino facility by approximately 30,000 square feet. The proposed expansion is expected to add an additional 300 slot machines, 11 table games, a new poker poker, card game, believed to have originated in Asia and first played in the United States in the 19th cent. A traditional cutthroat gambling game at first, it is now also an internationally popular social pastime. room, a buffet A buffet is a meal serving system where patrons serve themselves. It is a popular method of feeding large numbers of people with minimal staff. The term is also used to describe a sideboard, an antique form of furniture which was sometimes used to offer the dishes of a buffet meal restaurant, an expanded casino bar and additional parking. The expansion is expected to cost approximately $29.1 million and is expected to be completed during the second quarter of 2007. DJW intends to fund the casino expansion with additional senior secured note financing, slot vendor financing Vendor Financing The lending of money by a company to one of its customers so that the customer can buy products from it. By doing this, the company increases its sales even though it is basically buying its own products. and/or cash on hand. SIX MONTHS ENDED JUNE 30, 2006 RESULTS Consolidated Results Net revenues for the six months ended June 30, 2006 increased 46% to $119.8 million, compared to $81.8 million in the six months ended June 30, 2005. Income from operations during the six months ended June 30, 2006 rose 84% to $20.4 million as compared to $11.1 million reported in the six months ended June 30, 2005. Net income to common member's interest for the six months ended June 30, 2006 was $5.0 million, compared to a net loss of $2.5 million for the six months ended June 30, 2005. In the six months ended June 30, 2006, the Company reported Adjusted EBITDA of $33.2 million, an increase of 64% when compared to $20.3 million for the six months ended June 30, 2005. This increase was driven primarily by the opening of the Diamond Jo Worth casino in April 2006 and a 69% increase in Adjusted EBITDA at OED in the six months ended June 30, 2006 over the six months ended June 30, 2005. The Company's Adjusted EBITDA margin for the six months ended June 30, 2006 increased to 28% as compared to 25% for the six months ended June 30, 2005 due primarily to an increase in consolidated casino revenues. Evangeline Downs Racetrack and Casino For the six months ended June 30, 2006, OED's net revenues were $74.5 million, an increase of 36% from $54.8 million in 2005. Net revenues for such period include casino revenues of $56.1 million, racing and off-track betting revenues of $13.3 million, video poker revenues of $1.6 million, and food and beverage and other revenues of $6.3 million, less promotional allowances of $2.8 million. Revenues at OED increased as a result of an increase in our admissions to the casino, as well as an increase in the average amount spent by our customers per trip which is a direct result of our continued focus on marketing and player development programs and promotions. Adjusted EBITDA at OED increased 69% to $22.2 million in the six months ended June 30, 2006 from $13.1 million in the six months ended June 30, 2005. Strong casino revenue increases of 28% in the six months ended June 30, 2006 compared to the six months ended June 30, 2005 contributed to an increase in EBITDA margin to 30% during the six months ended June 30, 2006 from 24% during the six months ended June 30, 2005. Diamond Jo - Dubuque In the six months ended June 30, 2006, net revenues at the Diamond Jo decreased 9% to $24.7 million from $27.0 million in the six months ended June 30, 2005. Net revenues include casino revenues of $23.3 million, and food and beverage and other revenues of $2.3 million, less promotional allowances of $0.9 million. Adjusted EBITDA at the Diamond Jo decreased 12% to $7.4 million for the six months ended June 30, 2006 from $8.4 million in the six months ended June 30, 2005. We believe this decrease was primarily attributable to the expansion of a local competitor which increased the number of slot machines at its facility from 600 to 1,000 in May 2005 and introduced video poker in February 2006 and table games in March 2006. Diamond Jo - Worth County Since DJW's casino did not open until April 4, 2006, results of operations for the six months ended June 30, 2006 are substantially the same as the results for the second quarter of 2006 as discussed above. 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 Six Six
Months Months Months Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2006 2005 2006 2005
-------- -------- --------- ---------
REVENUES:
Casino $54,864 $34,382 $ 96,319 $ 69,965
Racing 6,530 3,723 13,232 7,076
Video poker 882 547 1,621 1,155
Food and beverage 4,094 3,206 7,624 6,198
Other 2,895 298 4,833 549
Less promotional allowances (1,916) (1,787) (3,830) (3,111)
------- ------- -------- --------
Total net revenues 67,349 40,369 119,799 81,832
------- ------- -------- --------
EXPENSES:
Casino 25,942 17,752 46,306 36,086
Racing 5,481 3,394 10,969 6,151
Video poker 724 449 1,247 916
Food and beverage 3,257 2,391 5,786 4,724
Other 1,934 81 3,158 179
Selling, general and
administrative 11,803 6,914 19,091 13,426
Depreciation and amortization 5,628 3,968 9,808 7,906
Pre-opening expense 175 61 874 101
Development expense 106 401 130 536
Affiliate management fees 1,253 306 2,034 613
Loss on sale of assets 74 131 44 93
------- ------- -------- --------
Total expenses 56,377 35,848 99,447 70,731
------- ------- -------- --------
INCOME FROM OPERATIONS 10,972 4,521 20,352 11,101
------- ------- -------- --------
OTHER INCOME (EXPENSE):
Interest income 113 28 316 41
Interest expense, net of
amounts capitalized (8,069) (6,779) (15,485) (13,465)
Interest expense related to
preferred member's interest,
redeemable (90) (90) (180) (180)
------- ------- -------- --------
Total other expense (8,046) (6,841) (15,349) (13,604)
------- ------- -------- --------
NET INCOME (LOSS) TO COMMON
MEMBER'S INTEREST $ 2,926 $(2,320) $ 5,003 $ (2,503)
======= ======= ======== ========
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 Adjusted EBITDA
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -----------------
2006 2005 2006 2005
-------- -------- ------- -------
General corporate $ (2,454) $ (588) $(4,163) $(1,187)
Diamond Jo 3,669 4,195 7,431 8,448
Diamond Jo Worth 7,692 7,743
Evangeline Downs 9,301 5,780 22,231 13,089
-------- -------- ------- -------
Total Adjusted EBITDA (1) 18,208 9,387 33,242 20,350
General corporate:
Development expense (232) (285)
Affiliate management fees (63) (140)
Diamond Jo:
Depreciation and amortization (973) (1,030) (1,968) (2,038)
Development expense (42) (37) (54) (74)
Interest expense, net (2,346) (2,441) (4,700) (4,853)
Gain/(loss) on disposal of
assets (45) 25 (69)
Diamond Jo Worth:
Depreciation and amortization (1,078) (1,096)
Affiliate management fees (724) (843)
Pre-opening expense (175) (13) (855) (13)
Interest expense, net (1,169) (7) (1,589) (7)
Gain/(loss) on disposal of
assets (75) (76)
Development expense (44) (44)
Evangeline Downs:
Depreciation and amortization (3,577) (2,938) (6,744) (5,868)
Development expense (20) (131) (32) (177)
Pre-opening expense (48) (19) (88)
Affiliate management fees (466) (306) (1,051) (613)
Interest expense, net (4,531) (4,393) (9,060) (8,744)
Gain (loss) on disposal of
assets 1 (86) 7 (24)
-------- -------- ------- -------
Net income (loss) to common
member's interest $ 2,926 $ (2,320) $ 5,003 $(2,503)
======== ======== ======= =======
(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 Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. . Management also believes that Adjusted EBITDA is useful because it is reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of operating decisions and other factors that affect operating performance. Management further believes that EBITDA (and varying adjustments thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. ) 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 To reserve a resource such as memory or disk. See memory allocation. capital assets capital assets n. equipment, property, and funds owned by a business. (See: capital, capital account) . Adjusted EBITDA, however, is not a financial measure under accounting principles generally accepted in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (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 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. 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), Adjusted EBITDA may vary among companies and as presented by the Company may not be comparable to similarly titled measures of other companies. |
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