Centerplate (CVP) 8-K Centerplate Reports Strong Fourth Quarter and Full-year 2006 Results

EXHIBIT 99.1

CENTERPLATE REPORTS STRONG FOURTH QUARTER
AND FULL-YEAR 2006 RESULTS

STAMFORD, CONN., March 7, 2007 – Centerplate, Inc. (AMEX: CVP; TSX: CVP.un) today reported financial results for the fourth quarter and fiscal year ended January 2, 2007. Net sales of $681.1 million for fiscal year 2006 increased 5.9% from $643.1 million in fiscal year 2005. Adjusted earnings before interest, income taxes, depreciation and amortization (EBITDA) increased 7.6% to $57.5 million for 2006 compared to $53.5 million in 2005. The increase in adjusted EBITDA for the year was primarily due to higher sales volume and lower selling, general and administrative expenses (SG&A).

“2006 was a great year for Centerplate, capped by a very strong fourth quarter. For the full-year we increased revenues and adjusted EBITDA, made great strides with our core strategic initiatives, strengthened our management team, and implemented an enhanced organizational structure to better serve our customers,” said Janet L. Steinmayer, President and Chief Executive Officer of Centerplate. She added, “We remain focused on executing on our strategic vision in 2007 – delivering creative, value-added solutions, partnering with clients on initiatives that are attractive and profitable to both parties, and being an innovator in all aspects of our business.”

The net sales increase in fiscal year 2006 was primarily due to higher sales at the company’s convention centers, Major League Baseball (MLB) facilities and arenas which increased $15.3 million, $13.6 million and $9.2 million, respectively. Higher sales at convention centers were primarily driven by an increase in the number of events held at these facilities. At the company’s MLB facilities, an overall increase in attendance and per capita spending resulted in higher net sales, while sales at arenas were positively impacted by the resolution of the National Hockey League (NHL) lock-out and an increase in the number of college basketball tournaments held in a number of these facilities. Net sales at all other facilities increased by $6.0 million, primarily due to increases at the company’s National Football League (NFL) venues ($4.8 million).

Partially offsetting this improvement was a decline in sales of $6.1 million (net of new accounts) associated with the non-renewal of some of the company’s contracts.

Net sales in the fourth quarter increased 8.8%, to $158.0 million, compared to net sales of $145.2 million in the fourth quarter of 2005. Adjusted EBITDA increased 6.8% to $10.7 million in the fourth quarter of 2006 compared to $10.1 million in the fourth quarter of 2005. The increase in adjusted EBITDA was primarily due to higher sales in 2006 and non-recurring expenses incurred in 2005. NFL sales in the quarter improved $11.4 million due to five additional games played in the fourth quarter of 2006 compared to 2005. In addition, convention center sales increased $2.3 million and new accounts, net of closed accounts, added an additional $2.4 million in sales. This was partially offset by a $3.3 million decline in MLB sales because the regular MLB baseball season ended in the company’s third quarter in 2006 versus the fourth quarter in 2005.

For the full year 2006, Centerplate reported net income of $3.5 million compared to a loss of $4.6 million in 2005. On a per share basis, Centerplate reported net income of $0.15 per share in 2006 versus a loss of $0.20 per share for fiscal 2005. The improvement in net income and earnings per share in 2006 was primarily due to a one-time charge of $5.8 million related to the refinancing of the company’s senior credit facility in April 2005. For the fourth quarter of 2006, Centerplate reported a net loss of $3.1 million compared to a net loss of $2.2 million in the fourth quarter of 2005. On a per share basis, Centerplate reported a net loss of $0.14 per share for the fourth quarter of 2006 compared to a net loss of $0.10 per share in the fourth quarter of 2005. The decline in net income during the fourth quarter of 2006 was primarily due to lower income tax benefits which was partially offset by an increase in operating income.

As previously announced, Centerplate will make its 39th distribution to IDS holders on March 20, at the annual rate of approximately $1.56 per IDS.

Centerplate will discuss its fourth quarter and year-end 2006 financial results on a conference call at 5:30 p.m. (EST) on Wednesday, March 7, 2007. Interested parties may participate in the call by dialing 877-407-8029 approximately 10 minutes before the call is scheduled to begin. International callers should dial 201-689-8029. An audio web cast of the conference call can also be accessed via www.centerplate.com. For individuals unable to participate in the conference call, a telephone replay will be available from 8:00 p.m. on March 7, 2007 through

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midnight on March 21, 2007. The replay can be accessed domestically by dialing 877-660-6853. For international callers, the dial-in number is 201-612-7415. The replay account number for the call is 252 and the pass code for the replay call is 231822.

About Centerplate

Centerplate is a leading provider of catering, concessions, merchandise and facility management services for sports facilities, convention centers and other entertainment venues. Visit the company online atwww.centerplate.com.

Presentation of Information in this Press Release

Centerplate presents Adjusted EBITDA because covenants in the indenture governing the company’s subordinated notes contain ratios based on this measure. A reconciliation of Adjusted EBITDA to net income or loss is included in the attached tables.

Forward-Looking Statements

This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. These statements may involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. Although Centerplate believes that the expectations reflected in these forward-looking statements are reasonable, the company can give no assurance that these expectations will prove to have been correct or that they will occur. Important factors beyond Centerplate’s control, including general economic conditions, consumer spending levels, changing trends in our business and competitive environment, adverse weather conditions and other factors, as well as the risks identified in our most recent annual report on Form 10-K, could cause actual results to differ materially from Centerplate’s expectations. Centerplate undertakes no obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

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Contact Information
Gael Doar
Director of Communications
203-975-5941
gael.doar@centerplate.com

(Financial Tables Follow)

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CENTERPLATE, INC.
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)

	13 Weeks			14 Weeks			52 Weeks			53 Weeks
	Ended			Ended			Ended			Ended
	January 2,			January 3,			January 2,			January 3,
	2007			2006			2007			2006
	(In thousands, except share data)
Net sales	$	157,987		$	145,202		$	681,120		$	643,112
Cost of sales		128,919			117,657			554,752			519,395
Selling, general and administrative		18,854			18,017			70,538			71,405
Depreciation and amortization		7,517			7,822			28,854			29,255
Transaction related expenses		700			1,006			700			1,006
Contract related losses		258			89			358			369
Operating income		1,739			611			25,918			21,682
Interest expense		6,112			5,796			24,360			31,274
Other income, net		(526	)		(524	)		(1,690	)		(1,151	)
Income (loss) before income taxes		(3,847	)		(4,661	)		3,248			(8,441	)
Income tax benefit		(720	)		(2,467	)		(230	)		(3,853	)
Net income (loss)	$	(3,127	)	$	(2,194	)	$	3,478		$	(4,588	)
Basic and diluted net income (loss) per share with and without conversion option	$	(0.14	)	$	(0.10	)	$	0.15		$	(0.20	)
Weighted average shares outstanding with conversion option		4,060,997			4,060,997			4,060,997			4,060,997
Weighted average shares outstanding without conversion option		18,463,995			18,463,995			18,463,995			18,463,995
Total weighted average shares outstanding		22,524,992			22,524,992			22,524,992			22,524,992
Dividends declared per share	$	0.20		$	0.20		$	0.79		$	0.79

CENTERPLATE, INC.
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EARNINGS BEFORE INTEREST,
INCOME TAXES, DEPRECIATION, AND AMORTIZATION (UNAUDITED)

	13 Weeks			14 Weeks			52 Weeks			53 Weeks
	Ended			Ended			Ended			Ended
	January 2,			January 3,			January 2,			January 3,
	2007			2006			2007			2006
	(In thousands)
Net income (loss)	$	(3,127	)	$	(2,194	)	$	3,478		$	(4,588	)
Income tax benefit		(720	)		(2,467	)		(230	)		(3,853	)
Income (loss) before income taxes		(3,847	)		(4,661	)		3,248			(8,441	)
Adjustments:
Interest expense (1)		6,112			5,796			24,360			31,274
Depreciation and amortization		7,517			7,822			28,854			29,255
EBITDA (2)	$	9,782		$	8,957		$	56,462		$	52,088
The following adjustments to EBITDA were made to compute Adjusted EBITDA:
EBITDA	$	9,782		$	8,957		$	56,462		$	52,088
Adjustments:
Transaction related expenses (3)		700			1,006			700			1,006
Contract related losses (4)		258			89			358			369
Adjusted EBITDA (2)	$	10,740		$	10,052		$	57,520		$	53,463

(1)	Included in interest expense for the 53 weeks ended January 3, 2006 is $5.8 million in expenses related to entering into our credit agreement on April 1, 2005. The $5.8 million includes a prepayment premium of approximately $4.6 million on the prior credit facility and a $1.2 million non-cash charge for the write-off of deferred financing costs. Additionally, for the 13 and 52 weeks ended January 2, 2007 included in interest is a non-cash credit of $1.0 million and $3.4 million, respectively, related to the change in the fair value of our derivatives as compared to $1.0 million and $40,000, respectively, for the 13 and 53 week periods ended January 3, 2006.
(2)	EBITDA is not a measure in accordance with GAAP. EBITDA is not intended to represent cash flows from operations as determined by GAAP and should not be used as an alternative to income (loss) before taxes or net income (loss) as an indicator of operating performance or to cash flows as a measure of liquidity. We believe that EBITDA is an important measure of the cash returned on our investment in capital expenditures under our contracts. Adjusted EBITDA as defined in the indenture governing our subordinated notes issued in 2003, is determined as EBITDA as adjusted for transaction related expenses, contract related losses, other non-cash charges, and the former annual management fee paid to affiliates of Blackstone and GE Capital, less any non-cash credits. We present Adjusted EBITDA because covenants in the indenture governing our 2003 notes contain ratios based on this measure and it is used by management to among other things evaluate our ability to make interest and dividend payments.
(3)	Reflects expenses incurred in connection with the contemplated follow-on offering to the Company’s 2003 initial public offering.
(4)	Reflects non-cash expense for the write-off of impaired assets associated with the Company’s contracts.

CENTERPLATE, INC.
SELECTED CONSOLIDATED CASH FLOW DATA (UNAUDITED)
(in thousands)

	13 Weeks			14 Weeks			52 Weeks			53 Weeks
	Ended			Ended			Ended			Ended
	January 2,			January 3,			January 2,			January 3,
	2007			2006			2007			2006
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	(3,127	)	$	(2,194	)	$	3,478		$	(4,588	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		7,517			7,822			28,854			29,255
Amortization of deferred financing costs		642			649			2,569			3,474
Charge for impaired assets		258			1,095			358			1,375
Non-cash interest earned on restricted cash		(145	)		(104	)		(455	)		(196	)
Derivative non-cash interest		(1,010	)		(1,017	)		(3,364	)		(40	)
Deferred tax change		(710	)		(2,161	)		(707	)		(3,547	)
Loss on disposition of assets		54			62			22			15
Other		(281	)		53			9			157
Changes in assets and liabilities		(9,071	)		(19,709	)		8,562			2,503
Net cash provided by (used in) operating activities		(5,873	)		(15,504	)		39,326			28,408
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		(4,147	)		(2,855	)		(13,752	)		(14,712	)
Proceeds from sale of property and equipment		—			(118	)		250			338
Purchase of contract rights		(1,609	)		(1,369	)		(14,014	)		(10,363	)
Return of unamortized capital investment		—			—			1,828			—
Restricted cash		(13,050	)		—			(13,050	)		—
Net cash used in investing activities		(18,806	)		(4,342	)		(38,738	)		(24,737	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments — revolving loans		(5,000	)		—			(10,000	)		(44,250	)
Borrowings — revolving loans		20,000			—			25,000			44,250
Principal payments on long-term debt		(268	)		(537	)		(1,075	)		(806	)
Proceeds from issuance of long-term debt		—			—			—			107,500
Retirement of existing long-term borrowings		—			—			—			(65,000	)
Payments of financing costs		—			(19	)		—			(7,266	)
Dividend payments		(4,460	)		(4,460	)		(17,840	)		(17,840	)
Increase (decrease) in bank overdrafts		(1,340	)		(4,958	)		1,508			(3,626	)
Net cash provided by (used in) financing activities		8,932			(9,974	)		(2,407	)		12,962
INCREASE (DECREASE) IN CASH		(15,747	)		(29,820	)		(1,819	)		16,633
CASH AND CASH EQUIVALENTS:
Beginning of period		55,338			71,230			41,410			24,777
End of period	$	39,591		$	41,410		$	39,591		$	41,410

CENTERPLATE, INC.
SELECTED CONSOLIDATED BALANCE SHEET DATA (UNAUDITED)

	January 2,		January 3,
	2007		2006
	(in thousands)
ASSETS
Current assets	$	102,194	$	88,790
Property and equipment, net		50,684		49,725
Contract rights, net		79,209		80,557
Cost in excess of net assets acquired		41,142		41,142
Deferred financing costs, net		12,930		15,499
Other assets		46,211		42,312
TOTAL ASSETS	$	332,370	$	318,025
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities	$	98,700	$	70,822
Long-term debt		209,789		210,864
Other liabilities		8,279		6,384
Common Stock with conversion option, par value $0.01, exchangeable for subordinated debt, net of discount		14,352		14,352
Total stockholders’ equity		1,250		15,603
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	332,370	$	318,025