Attached files
| file | filename |
|---|---|
| 8-K - PENINSULA GAMING 8-K - PENINSULA GAMING CORP. | peninsulagaming8k.htm |
EXHIBIT 99.1
For
Immediate Release
March
8, 2010
PENINSULA GAMING REPORTS RESULTS FOR
THE FOURTH QUARTER AND FULL YEAR ENDED DECEMBER 31, 2009
Dubuque, IA – March 8, 2010 –
Peninsula Gaming, LLC (the "Company") today announced financial results for the
fourth quarter and full year ended December 31, 2009. The Company is
the parent of (i) Diamond Jo, LLC ("DJL"), which owns and operates the Diamond
Jo Casino in Dubuque, Iowa, (ii) Diamond Jo Worth, LLC ("DJW"), which owns and
operates the Diamond Jo Casino in Worth County, Iowa, (iii) The Old Evangeline
Downs, L.L.C. ("EVD"), which owns and operates the Evangeline Downs Racetrack
and Casino in Opelousas, Louisiana and four off-track betting parlors in
Louisiana, and (iv) Belle of Orleans, L.L.C. (“ABC”), which owns and operates
the Amelia Belle Casino in Amelia, Louisiana.
|
($
in thousands)
|
||||||||||||||||||||||||
|
Three
months ended December 31,
|
Full
year ended December 31,
|
|||||||||||||||||||||||
|
2009
|
2008
|
%
change
|
2009
|
2008
|
%
change
|
|||||||||||||||||||
|
Total
net revenues
|
$ | 69,611 | $ | 61,844 | 12.6 | % | $ | 286,280 | $ | 259,153 | 10.5 | % | ||||||||||||
|
Consolidated
Adjusted EBITDA (1)
|
$ | 20,517 | $ | 17,136 | 19.7 | % | $ | 87,975 | $ | 79,690 | 10.4 | % | ||||||||||||
|
Income
from operations
|
$ | 12,187 | $ | 10,493 | 16.1 | % | $ | 57,431 | $ | 59,925 | -4.2 | % | ||||||||||||
|
Net
income (loss) – reported
|
$ | (2,094 | ) | $ | 1,109 |
NM
|
$ | (13,441 | ) | $ | 22,756 |
NM
|
||||||||||||
|
($
in thousands)
|
Net
Revenues
|
Net
Revenues
|
||||||||||||||||||||||
|
Three
months ended December 31,
|
Full
year ended December 31,
|
|||||||||||||||||||||||
|
2009
|
2008
|
%
change
|
2009
|
2008
|
%
change
|
|||||||||||||||||||
|
Diamond
Jo Dubuque
|
$ | 15,923 | $ | 11,305 | 40.8 | % | $ | 71,876 | $ | 42,364 | 69.7 | % | ||||||||||||
|
Diamond
Jo Worth
|
$ | 19,886 | $ | 19,578 | 1.6 | % | $ | 83,897 | $ | 84,596 | -0.8 | % | ||||||||||||
|
Evangeline
Downs
|
$ | 26,103 | $ | 30,961 | -15.7 | % | $ | 122,808 | $ | 132,193 | -7.1 | % | ||||||||||||
|
Amelia
Belle
|
$ | 7,699 | $ | - |
NM
|
$ | 7,699 | $ | - |
NM
|
||||||||||||||
|
Total
|
$ | 69,611 | $ | 61,844 | 12.6 | % | $ | 286,280 | $ | 259,153 | 10.5 | % | ||||||||||||
1
|
($
in thousands)
|
Adjusted
EBITDA(1) by
Property
|
Adjusted
EBITDA(1) by
Property
|
||||||||||||||||||||||
|
Three
months ended December 31,
|
Full
year ended December 31,
|
|||||||||||||||||||||||
|
2009
|
2008
|
%
change
|
2009
|
2008
|
%
change
|
|||||||||||||||||||
|
Diamond
Jo Dubuque
|
$ | 4,960 | $ | 2,645 | 87.5 | % | $ | 23,759 | $ | 12,929 | 83.8 | % | ||||||||||||
|
Margin
|
31.1 | % | 23.4 | % | +770 | bp | 33.1 | % | 30.5 | % | +260 | bp | ||||||||||||
|
Diamond
Jo Worth
|
$ | 7,717 | $ | 6,964 | 10.8 | % | $ | 33,567 | $ | 32,602 | 3.0 | % | ||||||||||||
|
Margin
|
38.8 | % | 35.6 | % | +320 | bp | 40.0 | % | 38.5 | % | +150 | bp | ||||||||||||
|
Evangeline
Downs
|
$ | 7,061 | $ | 8,886 | -20.5 | % | $ | 34,355 | $ | 38,941 | -11.8 | % | ||||||||||||
|
Margin
|
27.0 | % | 28.7 | % | -160 | bp | 28.0 | % | 29.5 | % | -150 | bp | ||||||||||||
|
Amelia
Belle
|
$ | 1,932 | $ | - |
NM
|
$ | 1,932 | $ | - |
NM
|
||||||||||||||
|
Margin
|
25.1 | % |
NM
|
NM
|
25.1 | % |
NM
|
NM
|
||||||||||||||||
| Total Consolidated Property Adjusted EBITDA | $ | 21,670 | $ | 18,495 | 17.2 | % | $ | 93,613 | $ | 84,472 | 10.8 | % | ||||||||||||
| Margin | 31.1 | % | 29.9 | % | +120 | bp | 32.7 | % | 32.6 | % | +10 | bp | ||||||||||||
|
(1)
|
See
“Non-GAAP Financial Measures” for a definition of Adjusted EBITDA,
Consolidated Adjusted EBITDA and Consolidated Property Adjusted EBITDA and
more information relating to such non-GAAP financial
measures.
|
“Overall
we are disappointed in our operating results which reflected the challenging
operating environment for each of our properties,” said Brent Stevens, Chief
Executive Officer of the Company. “At Evangeline Downs, we
experienced softening results reflecting the weak economy in the central and
south Louisiana markets. While our Iowa properties experienced
improvements year over year, we did experience softness relative to our own
expectations for the potential of those properties. On a positive
note, our properties in Iowa – Diamond Jo Dubuque and Diamond Jo Worth – saw
margin gains in the quarter – a result of our new facility in Dubuque and the
result of ongoing operating improvement initiatives by our management teams at
both properties. While we believe that 2010 will continue to be a
very difficult operating environment, we remain focused on our strategy and will
continue to concentrate on growing our company in a rational and prudent manner
as we have done for over a decade.”
Mr.
Stevens continued, “Finally, on October 22, 2009, we closed on the acquisition
of the Amelia Belle and in January completed the renovation of that
property. We are eager to experience the operating results at that
property of which we believe it is capable.”
Fourth
Quarter 2009 Results
Net
revenues for the fourth quarter of 2009 were $69.6 million, Consolidated
Property Adjusted EBITDA was $21.7 million and Consolidated Adjusted EBITDA was
$20.5 million. For the fourth quarter of 2008, consolidated revenues
were $61.8 million, Consolidated Property Adjusted EBITDA was $18.5 million and
Consolidated Adjusted EBITDA was $17.1 million.
For
the fourth quarter 2009, on a generally accepted accounting principles ("GAAP")
basis, the Company reported a net loss of $2.1 million. Net income
for the fourth quarter 2008 on a GAAP basis was $1.1 million.
Full
Year 2009 Results
For
the full year ended December 31, 2009, consolidated net revenues were $286.3
million, Consolidated Property Adjusted EBITDA was $93.6 million and
Consolidated Adjusted EBITDA was $88.0 million. For the full year ended December
31, 2008, consolidated net revenues were $259.2 million, Consolidated Property
Adjusted EBITDA was $84.5 million and Consolidated Adjusted EBITDA was $79.7
million.
2
On
a GAAP basis, for 2009, the Company reported a net loss of $13.4
million. The Company took a $22.5 million charge during 2009 due to
the early retirement of debt. Net income for 2008 on a GAAP basis was
$22.8 million.
Property
Highlights
Diamond
Jo Dubuque
Net
revenues at DJL for the fourth quarter of 2009 increased to $15.9 million from
$11.3 million in the fourth quarter of 2008 primarily due to the opening of its
new land-based casino in December 2008. Net revenues for the fourth
quarter of 2009 include casino revenues of $15.7 million and food and beverage
and other revenues of $2.4 million, less promotional allowances of $2.2
million. Adjusted EBITDA at DJL for the fourth quarter of 2009
increased to $5.0 million from $2.6 million for the fourth quarter of
2008.
For
2009, DJL's net revenues increased $29.5 million to $71.9 million, compared to
$42.4 million for 2008. Adjusted EBITDA at DJL increased $10.9
million to $23.8 million for 2009, compared to $12.9 million for
2008.
Diamond
Jo Worth
Net
revenues at DJW during the fourth quarter of 2009 were $19.9 million, an
increase of $0.3 million from $19.6 million in the fourth quarter of
2008. Net revenues include casino revenues of $18.9 million, food and
beverage revenues of $1.1 million, other revenues (primarily related to gasoline
and merchandise sales at the convenience store located adjacent to the casino)
of $1.7 million, less promotional allowances of $1.8
million. Adjusted EBITDA at DJW increased $0.7 million to $7.7
million in the fourth quarter of 2009 from $7.0 million in the fourth quarter of
2008.
For
2009, DJW's net revenues were $83.9 million, a decrease of $0.7 million from
$84.6 million for 2008. Adjusted EBITDA at DJW increased $1.0 million
to $33.6 million for 2009 from $32.6 million for 2008.
Evangeline
Downs Racetrack and Casino
For
the fourth quarter of 2009, EVD's net revenues were $26.1 million, a decrease of
$4.9 million from $31.0 million in the fourth quarter of 2008 due primarily to
continued weakness in the Louisiana gaming market. Net revenues for
the quarter include casino revenues of $22.2 million, racing and off-track
betting revenues of $2.8 million, video poker revenues of $1.2 million, and food
and beverage and other revenues of $2.3 million, less promotional allowances of
$2.4 million. Adjusted EBITDA at EVD during the fourth quarter of 2009 was $7.1
million, a decline of $1.8 million from $8.9 million in the fourth quarter of
2008.
For
2009, EVD's net revenues were $122.8 million, a decrease of $9.4 million from
$132.2 million in 2008. Adjusted EBITDA at EVD decreased $4.5 million
to $34.4 million for 2009 from $38.9 million for 2008.
In
February 2010, EVD opened its new 23,000 square-foot event center adjacent to
the casino. This $4.7 million multi-purpose facility is equipped to
cater to small and large banquets as well as host concerts and other
entertainment acts.
3
In
addition, an independent third party operator recently started construction on
an approximately 100-room hotel adjacent to EVD’s racino. The hotel is expected
to include at least 25 suites, five meeting rooms and an indoor pool and is
expected to be completed in the third quarter of 2010.
Amelia
Belle Casino
On
October 22, 2009, PGL acquired the Amelia Belle Casino, in Amelia, Louisiana,
which is located in the south-central part of the state. The Amelia Belle Casino
is a three-level riverboat with gaming located on the first two decks and
includes 842 slot machines, 17 table games and 3 poker tables. The third deck of
the riverboat includes a 153-seat buffet and a banquet room. The Amelia Belle
Casino is located just 90 miles from Evangeline Downs Racetrack and
Casino.
Net
revenues at ABC from the acquisition date through December 31, 2009 were $7.7
million. Net revenues during that time period include casino revenues
of $8.1 million and food and beverage and other revenues of $0.8 million, less
promotional allowances of $1.2 million. Adjusted EBITDA at ABC from
the acquisition date through December 31, 2009 was $1.9 million.
We recently
finished a $7.5 million renovation of ABC’s riverboat casino that includes
a remodel of the interior of the casino, including new carpet and remodeled
restrooms, replacing 260 slot machines and themes, reconfiguration of the
gaming floor, new slot signage, a new surveillance system and painting of the
exterior of the boat.
General
Corporate
General
corporate Adjusted EBITDA was $(1.2) million for the fourth quarter of 2009
compared to $(1.4) million during the same period in 2008. For 2009,
general corporate Adjusted EBITDA was $(5.6) million compared to $(4.8) million
during 2008.
Liquidity
and Capital Resources
The
Company ended the fourth quarter of 2009 with $34.5 million in cash and cash
equivalents on hand, and $4.4 million in restricted cash. Total debt outstanding
was $539.5 million. After taking into account outstanding letters of credit, the
Company had $56.8 million available under its $58.5 million revolving credit
facility at December 31, 2009.
During
the fourth quarter of 2009, the Company had cash outflows of $6.8 million
related to capital expenditures. Of this amount, $2.4 million related to the
development of the event center at EVD and $3.5 million related to renovations
at ABC. The Company had maintenance capital expenditures at its four
properties of approximately $0.9 million in the aggregate.
On
October 29, 2009, the Company entered into an amended and restated loan and
security agreement with Wells Fargo Foothill, Inc. as the arranger and
agent. The credit facility is a revolving credit facility which
permits the Company to request advances and letters of credit up to the lesser
of the maximum revolver amount of $58.5 million (less amounts outstanding under
letters of credit) and a specified borrowing base. The borrowings
under the credit facility bear interest at a rate equal to the Wells Fargo prime
rate plus a margin of 2.5% with a floor of 6%.
4
Non-GAAP
Financial Measures
We
define EBITDA as earnings (loss) before interest (including loss on early
retirement of debt), taxes, and depreciation and amortization (including
impairment charges). We define Adjusted EBITDA as EBITDA adjusted, as
applicable, for non-cash equity based compensation, development expense,
pre-opening expense, affiliate management fees and gain or loss on disposal of
assets. We define Consolidated Adjusted EBITDA as the Adjusted EBITDA of the
Company on a consolidated basis. We define Consolidated Property
Adjusted EBITDA as the sum of Adjusted EBITDA of each of our gaming properties
at EVD, DJW, DJL and ABC. We believe that Consolidated Adjusted EBITDA and
Consolidated Property Adjusted EBITDA are useful measures in evaluating our
operating performance because (i) our investors and other interested parties use
these measures as a measure of financial performance and debt service
capabilities, (ii) our management uses these measures for internal planning
purposes, including evaluating aspects of our operating budget, our ability to
meet future debt service, and our capital expenditure and working capital
requirements, and (iii) our board of managers and management use these measures
for determining certain management compensation targets and thresholds. We
believe that Consolidated Adjusted EBITDA and Consolidated Property Adjusted
EBITDA are more useful for these purposes than EBITDA because their use
facilitates measuring operating performance on a more consistent basis by
removing the impact of certain items not directly resulting from the operation
of our business in the ordinary course.
However,
EBITDA, Adjusted EBITDA, Consolidated Adjusted EBITDA and Consolidated Property
Adjusted EBITDA are not measures of financial performance under GAAP.
Accordingly, the use of these measures 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 Consolidated Adjusted EBITDA or Consolidated Property Adjusted
EBITDA.
Because
Consolidated Adjusted EBITDA and Consolidated Property Adjusted EBITDA exclude
some items that affect net income (loss), the use of these measures may vary
among companies and may not be comparable to similarly titled measures of other
companies.
A
reconciliation of Consolidated Property Adjusted EBITDA and Consolidated
Adjusted EBITDA to net (loss) income on a GAAP basis is provided at the end of
this release.
FORWARD-LOOKING
STATEMENTS
This
press release contains “forward-looking statements” within the meaning of the
Safe Harbor Provisions of the Private Securities Litigation Reform Act 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 requirements,
legalization 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 hereof. The Company
assumes no obligation to update such information.
5
Peninsula
Gaming, LLC
Condensed
Consolidated Statements of Operations (Unaudited)
(In
thousands)
|
Three Months
Ended
December
31, 2009
|
Three Months
Ended
December
31, 2008
|
Year
Ended
December
31, 2009
|
Year
Ended
December
31, 2008
|
|||||||||||||
|
REVENUES:
|
||||||||||||||||
|
Casino
|
$
|
64,858
|
$
|
55,635
|
$
|
258,427
|
$
|
227,269
|
||||||||
|
Racing
|
2,822
|
3,210
|
16,507
|
17,986
|
||||||||||||
|
Video
poker
|
1,152
|
1,399
|
5,322
|
5,901
|
||||||||||||
|
Food
and beverage
|
5,838
|
4,367
|
23,418
|
16,767
|
||||||||||||
|
Other
|
2,557
|
2,437
|
10,580
|
11,809
|
||||||||||||
|
Less
promotional allowances
|
(7,616
|
)
|
(5,204
|
)
|
(27,974
|
)
|
(20,579
|
)
|
||||||||
|
Total
net revenues
|
69,611
|
61,844
|
286,280
|
259,153
|
||||||||||||
|
EXPENSES:
|
||||||||||||||||
|
Casino
|
27,367
|
24,732
|
107,106
|
97,421
|
||||||||||||
|
Racing
|
3,066
|
3,138
|
15,360
|
15,739
|
||||||||||||
|
Video
poker
|
861
|
1,024
|
3,908
|
4,349
|
||||||||||||
|
Food
and beverage
|
3,813
|
3,514
|
16,471
|
13,174
|
||||||||||||
|
Other
|
1,793
|
1,637
|
7,484
|
7,564
|
||||||||||||
|
Selling,
general and administrative (1)
|
12,194
|
9,995
|
45,564
|
34,657
|
||||||||||||
|
Depreciation
and amortization
|
6,806
|
5,337
|
24,651
|
20,134
|
||||||||||||
|
Pre-opening
expense
|
6
|
580
|
6
|
785
|
||||||||||||
|
Development
expense
|
507
|
(409
|
)
|
1,211
|
(922
|
)
|
||||||||||
|
Affiliate
management fees
|
1,224
|
1,181
|
5,318
|
5,401
|
||||||||||||
|
Impairment
of asset held for sale
|
-
|
831
|
-
|
831
|
||||||||||||
|
(Gain)
loss on disposal of assets
|
(213
|
)
|
(209
|
)
|
1,770
|
95
|
||||||||||
|
Total
expenses
|
57,424
|
51,351
|
228,849
|
199,228
|
||||||||||||
|
INCOME
FROM OPERATIONS
|
12,187
|
10,493
|
57,431
|
59,925
|
||||||||||||
|
OTHER
INCOME (EXPENSE):
|
||||||||||||||||
|
Interest
income
|
505
|
527
|
2,010
|
2,465
|
||||||||||||
|
Interest
expense, net of amounts capitalized
|
(14,786
|
)
|
(9,911
|
)
|
(50,407
|
)
|
(39,634
|
)
|
||||||||
|
Loss
on early retirement of debt
|
-
|
-
|
(22,475
|
)
|
-
|
|||||||||||
|
Total
other expense
|
(14,281
|
)
|
(9,384
|
)
|
(70,872
|
)
|
(37,169
|
)
|
||||||||
|
NET
(LOSS) INCOME
|
$
|
(2,094
|
)
|
$
|
1,109
|
$
|
(13,441
|
)
|
$
|
22,756
|
||||||
|
(1)
|
Includes
a credit to expense for non-cash equity based compensation of $0.7 million
for the three months ended December 31, 2008 and $2.4 million and $6.6
million for the years ended December 31, 2009 and 2008,
respectively. There was no expense for non-cash equity based
compensation during the three months ended December 31,
2009.
|
6
Peninsula
Gaming, LLC
Supplemental
Data Schedule (Unaudited)
(In
thousands)
The
following is a reconciliation of Consolidated Property Adjusted EBITDA and
Consolidated Adjusted EBITDA to Net (Loss) Income:
|
Three Months Ended
December 31,
|
Year Ended
December 31,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
Adjusted
EBITDA by Property (1)
|
||||||||||||||||
|
Diamond
Jo Dubuque
|
$
|
4,960
|
$
|
2,645
|
$
|
23,759
|
$
|
12,929
|
||||||||
|
Diamond
Jo Worth
|
7,717
|
6,964
|
33,567
|
32,602
|
||||||||||||
|
Evangeline
Downs
|
7,061
|
8,886
|
34,355
|
38,941
|
||||||||||||
|
Amelia
Belle
|
1,932
|
-
|
1,932
|
-
|
||||||||||||
|
Consolidated
Property Adjusted EBITDA (1)
|
21,670
|
18,495
|
93,613
|
84,472
|
||||||||||||
|
General
corporate
|
(1,153
|
)
|
(1,359
|
)
|
(5,638
|
)
|
(4,782
|
)
|
||||||||
|
Consolidated
Adjusted EBITDA (1)
|
20,517
|
17,136
|
87,975
|
79,690
|
||||||||||||
|
Non-cash
equity based compensation
|
-
|
668
|
2,412
|
6,559
|
||||||||||||
|
Depreciation
and amortization
|
(6,806
|
)
|
(5,337
|
)
|
(24,651
|
)
|
(20,134
|
)
|
||||||||
|
Pre-opening
expense
|
(6
|
)
|
(580
|
)
|
(6
|
)
|
(785
|
)
|
||||||||
|
Development
expense
|
(507
|
)
|
409
|
(1,211
|
)
|
922
|
||||||||||
|
Affiliate
management fees
|
(1,224
|
)
|
(1,181
|
)
|
(5,318
|
)
|
(5,401
|
)
|
||||||||
|
Impairment
on asset held for sale
|
-
|
(831
|
)
|
-
|
(831
|
)
|
||||||||||
|
Gain
(loss) on disposal of assets
|
213
|
209
|
(1,770
|
)
|
(95
|
)
|
||||||||||
|
Interest
expense, net
|
(14,281
|
)
|
(9,384
|
)
|
(48,397
|
)
|
(37,169
|
)
|
||||||||
|
Loss
on early retirement of debt
|
-
|
-
|
(22,475
|
)
|
-
|
|||||||||||
|
Net
(loss) income
|
$
|
(2,094
|
)
|
$
|
1,109
|
$
|
(13,441
|
)
|
$
|
22,756
|
||||||
|
(1)
|
See
“Non-GAAP Financial Measures” for a definition of Adjusted EBITDA,
Consolidated Adjusted EBITDA and Consolidated Property Adjusted EBITDA and
more information relating to such non-GAAP financial
measures.
|
Contact:
Peninsula
Gaming, LLC
301
Bell Street
Dubuque,
Iowa 52001
Natalie
A. Schramm, 563-690-4977
7