EXHIBIT 99.1
[CTA PUBLIC RELATIONS LETTERHEAD]
FOR IMMEDIATE RELEASE
August 12, 2003
CONTACT: | | Jacobs Entertainment, Inc. |
| | | Stephen R. Roark, President of Casino Operations and |
| | | Chief Financial Officer |
| | | 303-582-1117 ext. 7249 |
Jacobs Entertainment, Inc. Reports Second Quarter and Six Months Results
BLACK HAWK, Colorado – Jacobs Entertainment, Inc. (JEI), an owner and operator of multiple gaming properties, today announced unaudited financial results for its second quarter and six-month period ended June 30, 2003.
Net revenue for the second quarter of 2003 was $43.4 million compared to $43.1 million in the second quarter in the previous year. Net income for the second quarter of 2003 was $1.0 million compared to net income of $1.5 million in the same quarter in the previous year.
Net revenue for the six-month period ended June 30, 2003 was $85.1 million compared to $68.8 million for the six-month period ended June 30, 2002. Net income for the six-month period ended June 30, 2003 was $2.5 million compared to $1.1 million for the same period in the previous year.
Due to the significance of the acquisitions occurring on February 22, 2002, whereby JEI became a geographically diversified gaming and pari-mutuel wagering company with properties in several states, the overall composition of our financial position and the results of our operations have significantly changed for the six month period ended June 30, 2003 as compared to the six month period ended June 30, 2002. As a result of the combination of the different entities and periods covered by the various transactions, a comparison between these two periods on a historical basis is not meaningful. Additional pro forma information is available in JEI’s Form 10-Q filed with the Securities and Exchange Commission on August 12, 2003.
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JEI will host a conference call to discuss its second quarter and six-month period ended June 30, 2003 operating results. The conference call will be held at 11:00 a.m. Eastern Time on Wednesday, August 13, 2003, and will be hosted by Stephen R. Roark, President of Casino Operations and CFO for JEI and Ian M. Stewart, President of Pari-Mutuel and Video Poker Operations, along with other members of the management team of various subsidiary companies of JEI.
To participate in the JEI conference call on Wednesday, August 13, 2003, at 11:00 a.m. Eastern Time, please dial1.800.289.0552 and give confirmation code#726872. Please call 5-7 minutes before the call is to begin.
If you are unable to join the JEI conference call, you may access a replay of the call starting Wednesday, August 13, 2003, at 2:00 p.m. Eastern Time. To access the replay, please dial1.800.203.1112 or1.719.457.0820 and reference the confirmation code#726872. The replay will run until Midnight Eastern Time, Wednesday, August 20, 2003.
Based in Black Hawk, Colorado, Jacobs Entertainment is the owner and operator of the Lodge Casino at Black Hawk, the Gilpin Hotel Casino in Black Hawk, The Gold Dust West Casino in Reno, Nevada (the casino properties), Colonial Downs Racetrack, and four related off-track wagering facilities in Virginia and seven truck plaza video gaming facilities in Louisiana.
Our business and financial performance are subject to a number of risks and uncertainties that might adversely affect our operating results in the future in a material way: intensity of competition, our ability to meet debt obligations, regulatory compliance, taxation levels, effects of national and regional economic and market conditions, labor and marketing costs, success of our diversification plan and the successful integration of our operations.
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JACOBS ENTERTAINMENT, INC.
FINANCIAL HIGHLIGHTS (unaudited)
(dollars in thousands)
SELECTED INCOME STATEMENT DATA
| | | Three Months Ended June 30
| | | Six Months Ended June 30
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| | | 2003
| | | 2002
| | | 2003
| | | 2002
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Revenue: | | | | | | | | | | | | | | | | |
Casinos | | $ | 23,875 | | | $ | 24,917 | | | $ | 46,944 | | | $ | 34,758 | |
Truck stops | | | 5,962 | | | | 5,528 | | | | 12,540 | | | | 10,570 | |
Pari mutuel | | | 7,896 | | | | 7,358 | | | | 14,585 | | | | 13,748 | |
Food, beverage, fuel & other | | | 10,752 | | | | 9,234 | | | | 20,910 | | | | 15,226 | |
Promotional allowances | | | (5,064 | ) | | | (3,928 | ) | | | (9,897 | ) | | | (5,507 | ) |
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Net revenue | | $ | 43,421 | | | $ | 43,109 | | | $ | 85,082 | | | $ | 68,795 | |
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Total Cost and Expenses | | $ | 37,637 | | | $ | 36,610 | | | $ | 72,937 | | | $ | 57,732 | |
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Net Income | | $ | 1,010 | | | $ | 1,512 | | | $ | 2,461 | | | $ | 1,069 | |
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SELECTED BALANCE SHEET DATA |
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| | | June 30 2003
| | | | | | December 31 2002
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Total Assets | | $ | 241,577 | | | | | | | $ | 236,226 | | | | | |
Total Liabilities | | $ | 174,354 | | | | | | | $ | 171,464 | | | | | |
Stockholders’ Equity | | $ | 67,223 | | | | | | | $ | 64,762 | | | | | |
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EBITDA (earnings before interest, taxes, depreciation and amortization) is a non-GAAP financial measure that management believes is useful because it allows investors and management to evaluate and compare the Company’s operating results from continuing operations from period to period in a meaningful and consistent manner in addition to standard GAAP financial measures. Management internally evaluates the performance of its properties using EBITDA measures as do most analysts following the gaming industry. EBITDA is also a component of certain financial covenants in the Company’s debt agreements. This information should not be considered as an alternative to any measure of performance as promulgated under accounting principles generally accepted in the United States of America, such as net income, nor should it be considered as an indicator of our overall financial performance. Our calculation of EBITDA may be different from the calculation used by other companies and comparability may be limited.
EBITDA RECONCILIATION
| | | Three Months Ended June 30
| | Six Months Ended June 30
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| | | 2003
| | 2002
| | 2003
| | 2002
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Net income as reported above | | $ | 1,010 | | $ | 1,512 | | $ | 2,461 | | $ | 1,069 |
Add: | | | | | | | | | | | | |
Interest, net | | | 4,774 | | | 4,987 | | | 9,684 | | | 8,187 |
Depreciation and amortization | | | 2,219 | | | 2,307 | | | 4,370 | | | 3,710 |
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EBITDA | | $ | 8,003 | | $ | 8,806 | | $ | 16,515 | | $ | 12,966 |
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