Greektown Superholdings 8-K Greektown Superholdings, Inc. Reports First Quarter 2013 Financial Results

Exhibit 99.1

FOR IMMEDIATE RELEASE

May 13, 2013

Greektown Superholdings, Inc. Reports First Quarter 2013 Financial Results

DETROIT, May 13, 2013 – Greektown Superholdings, Inc. (“Greektown” or the “company”) today reported financial results for its first quarter ended March 31, 2013. Financial highlights for the first quarter include:

·    Net revenues for the three months ended March 31, 2013 were $81.1 million compared to $91.8 million for the same quarter of 2012, a decrease of 11.7%.

·    Income from operations for the first quarter decreased to $5.8 million compared to $14.9 million a year ago.

·    Net loss increased to $11.2 million compared to $1.3 million a year ago.

·    EBITDA(1) decreased to $12.9 million in the first quarter of 2013 from $23.6 million in the same quarter of 2012.

“We introduced a number of meaningful enhancements to the guest experience at Greektown Casino-Hotel in the first quarter of 2013,” said Michael Puggi, Greektown’s president and chief executive officer. “Like most regional gaming markets, however, the Detroit gaming market contracted in the first quarter compared to the prior year as a result of weather and other factors, and this was the most significant element affecting our revenue performance.”

“We have been encouraged by guests’ response to our recently-completed property improvements,” continued Puggi. “Brizola, our new fine dining restaurant located adjacent to the casino floor, has received numerous accolades, and was voted the ‘Best Casino Restaurant’ by the readers of the Metro Times in Detroit. Our new 900 space valet parking garage, which connects directly to the casino entrance via a moving walkway over Monroe Street, has seen a 20% increase in cars parked compared to our old valet garage.”

“The renovations and amenities recently introduced provide a foundation for further renewal and development of Greektown Casino-Hotel, the pace and scope of which are anticipated to increase under the company’s new ownership.”

Income from operations, net loss, and EBITDA were impacted in the first quarter of 2013 by increased promotional and advertising expenses supporting the launch of several of the company’s property improvements, including the Market District, a collection of five distinctive casual dining outlets, the new valet parking garage, and Brizola. In addition, the company incurred approximately $3.0 million of costs in the first quarter of 2013 related to its ownership transition.

(1)EBITDA (earnings before interest, taxes, depreciation and amortization) is a measurement not in accordance with U.S. Generally Accepted Accounting Principles (GAAP) but is commonly used in the gaming industry as a measure of performance and as a basis for valuation of gaming companies. Reconciliation of net loss to EBITDA is attached to this release. EBITDA is a supplemental financial measure used by management, as well as industry analysts, to evaluate our operations. However, EBITDA should not be construed as an alternative to income from operations (as an indicator of our operating performance) or to cash flows from operating activities (as a measure of liquidity) as determined in accordance with GAAP. All companies do not calculate EBITDA in the same manner. As a result, the company’s EBITDA may not be comparable to similarly titled measures presented by other companies.

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About Greektown Superholdings, Inc.

Greektown Superholdings, Inc. operates, through its subsidiaries, the Greektown Casino-Hotel. Located in the heart of Detroit’s Greektown Dining and Entertainment District, Greektown Casino-Hotel opened on November 10, 2000. Greektown Casino-Hotel offers such amenities as Brizola, The Market District, Asteria, The Fringe, Shotz Sports Bar & Grill, Bistro 555 and a VIP lounge for players. Greektown Casino-Hotel opened its 400-room hotel tower in February 2009, and opened a new 900 space valet parking garage in February 2013. For more information, visit greektowncasinohotel.com.

Safe Harbor Statement

Certain statements in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and may include, but are not limited to, statements about capitalization and performance of Greektown. All forward-looking statements involve risks and uncertainties. All statements contained herein that are not clearly historical in nature are forward-looking, and words such as “anticipate,” “expect,” “will,” “continue,” or other similar words or phrases are generally intended to identify forward-looking statements. Any forward-looking statement contained herein, in other press releases, written statements or documents filed with the Securities and Exchange Commission are subject to known and unknown risks, uncertainties and contingencies, and there can be no assurance that the expected benefits of our new projects will be realized. Many of these risks, uncertainties and contingencies are beyond Greektown’s control, and may cause actual results, performance or achievements to differ materially from anticipated results, performance or achievements. Any forward-looking statements in this release speak only as of the date of this release, and Greektown undertakes no obligation to update any forward-looking statement to reflect events or circumstances after that date or to reflect the occurrence of unanticipated events.

Media Contact:

Greektown Superholdings, Inc.

John Truscott

517-485-9320

jtruscott@truscottrossman.com

Investor Contact:

Greektown Superholdings, Inc.

Glen Tomaszewski

Senior Vice President, Chief Financial Officer and Treasurer

313-223-2999, ext. 5467

gtomaszewski@greektowncasino.com

Greektown Superholdings, Inc.

Consolidated Statements of Operation (unaudited)

(In thousands, except share and per share data)

	Three months ended March 31,
	2013			2012
Revenues
Casino	$	85,613		$	95,368
Food and beverage		5,939			6,420
Hotel		3,070			2,950
Other		1,491			1,337
Gross revenues		96,113			106,075
Less promotional allowances		15,035			14,237
Net revenues		81,078			91,838
Operating expenses
Casino		19,649			21,241
Gaming taxes		18,552			20,564
Food and beverage		4,287			4,759
Hotel		2,685			2,617
Marketing, advertising, and entertainment		2,014			1,334
Facilities		5,389			5,269
Depreciation and amortization		7,595			8,632
General and administrative expenses		12,036			12,340
Ownership transition expenses		2,964			–
Other		131			143
Operating expenses		75,302			76,899
Income from operations		5,776			14,939
Other (expenses) income
Interest expense, net		(12,755	)		(12,653	)
Amortization of finance fees and accretion of discount on senior notes		(2,007	)		(1,838	)
Refinancing expense		(235	)		–
Other (expense) income		(188	)		56
Total other expense, net		(15,185	)		(14,435	)
(Loss) income before income taxes		(9,409	)		504
Income tax expense  – current		(64	)		(74	)
Income tax expense - deferred		(1,682	)		(1,682	)
Net loss	$	(11,155	)	$	(1,252	)
Loss per share:
Basic	$	(100.70	)	$	(38.09	)
Diluted	$	(100.70	)	$	(38.09	)
Weighted average common shares outstanding		153,387			145,544
Weighted average common and common equivalent shares outstanding		153,387			145,544

Greektown Superholdings, Inc.

Consolidated Balance Sheets

(In thousands, except share and per share data)

	March 31,			December 31,
	2013			2012
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	38,407		$	49,442
Accounts receivable – gaming, net		620			710
Accounts receivable – other, net		1,662			1,397
Inventories		437			458
Prepaid expenses		6,185			3,902
Prepaid Michigan Gaming Control Board annual fee		6,456			9,104
Prepaid municipal services fees		2,311			3,411
Deposits		1,632			1,632
Total current assets		57,710			70,056
Property, building, and equipment, net		340,240			342,417
Other assets:
Financing fees - net of accumulated amortization		7,367			8,235
Deposits and other assets		30			30
Casino development rights		117,800			117,800
Trade names		26,300			26,300
Rated player relationships - net of accumulated amortization		31,050			34,500
Goodwill		110,252			110,252
Total assets	$	690,749		$	709,590
Liabilities and shareholders' equity
Current liabilities:
Accounts payable		14,700			17,503
Accrued interest		12,678			25,125
Accrued expenses and other liabilities		14,334			9,858
Current portion of revolving credit facility		3,000			3,000
Total current liabilities		44,712			55,486
Long-term liabilities:
Other accrued income taxes		9,239			9,165
Revolving credit facility, less current portion		12,000			12,000
Senior secured notes - net		372,982			371,843
Obligation under capital lease		2,467			2,472
Deferred income taxes		18,503			16,821
Total long-term liabilities		415,191			412,301
Total liabilities		459,903			467,787
Shareholders' equity (members' deficit):
Series A-1 preferred stock at $0.01 par value;
1,688,268 shares authorized, 1,463,535 shares issued and outstanding at March 31, 2013 and December 31, 2012		185,396			185,396
Series A-2 preferred stock at $0.01 par value;
645,065 shares authorized, 162,255 shares issued and outstanding at March 31, 2013 and December 31, 2012		20,551			20,551
Series A-1 preferred warrants at $0.01 par value;
202,511 shares issued and outstanding at March 31, 2013 and December 31, 2012		25,651			25,651
Series A-2 preferred warrants at $0.01 par value;
460,587 shares issued and outstanding at March 31, 2013 and December 31, 2012		58,342			58,342
Series A-1 common stock at $0.01 par value;
4,354,935 shares authorized, 152,054 shares issued and outstanding at March 31, 2013 and December 31, 2012		1			1
Series A-2 common stock at $0.01 par value; 645,065 shares authorized, no shares issued		–			–
Additional paid-in capital		14,627			14,429
Accumulated deficit		(73,722	)		(62,567	)
Total shareholders' equity		230,846			241,803
Total liabilities and shareholders' equity	$	690,749		$	709,590

Greektown Superholdings, Inc.

Consolidated Statements of Cash Flows

(In thousands)

	Twelve months ended March 31,
	2013			2012
Operating activities
Net loss	$	(11,155	)	$	(1,252	)
Adjustments to reconcile net loss net cash provided by operating activities:
Depreciation and amortization		7,595			8,632
Amortization of finance fees and accretion of discount on senior notes		2,007			1,838
Deferred income taxes		1,682			1,682
Stock based compensation		198			157
Changes in current assets and liabilities:
Accounts receivable - gaming		90			31
Accounts receivable - other		(265	)		(344	)
Inventories		21			(25	)
Prepaid expenses		1,465			1,949
Accounts payable		(2,803	)		(1,285	)
Accrued interest		(12,447	)		(12,513	)
Accrued expenses and other liabilities		10,106			(269	)
Net cash used in operating activities		(3,506	)		(1,399	)
Investing activities
Capital expenditures		(7,529	)		(3,294	)
Net cash used in investing activities		(7,529	)		(3,294	)
Net decrease in cash and cash equivalents		(11,035	)		(4,693	)
Cash and cash equivalents at beginning of period		49,442			50,754
Cash and cash equivalents at end of period	$	38,407		$	46,061
Supplemental disclosure of cash flow information
Cash paid during the period for interest	$	25,126		$	25,101
Cash paid during the period for income taxes	$	-		$	-

 

Greektown Superholdings, Inc.

Reconciliation of Net Loss to EBITDA (1)

(In thousands)

	Three months ended March 31,
	2013			2012
Net loss	$	(11,155	)	$	(1,252	)
Interest expense		14,762			14,491
Income tax expense		1,746			1,756
Depreciation and amortization		7,595			8,632
EBITDA (1)	$	12,948		$	23,627

(1) EBITDA (earnings before interest, taxes, depreciation and amortization) is a measurement not in accordance with U.S. Generally Accepted Accounting Principles (GAAP) but is commonly used in the gaming industry as a measure of performance and as a basis for valuation of gaming companies. EBITDA is a supplemental financial measure used by management, as well as industry analysts, to evaluate our operations. However, EBITDA should not be construed as an alternative to income from operations (as an indicator of our operating performance) or to cash flows from operating activities (as a measure of liquidity) as determined in accordance with GAAP. All companies do not calculate EBITDA in the same manner. As a result, the Company’s EBITDA may not be comparable to similarly titled measures presented by other companies.