Exhibit 99.1
Herbst Gaming, LLC Announces 2010 Financial Results
Las Vegas, NV — April 1, 2011 — Herbst Gaming, LLC, has announced its consolidated operating results for the fiscal year ended December 31, 2010.
For the year ended December 31, 2010, Herbst Gaming, LLC posted Net Income of $388.2 million. Net income includes the effect of fresh start accounting adjustments and reorganization adjustments related to the Company’s emergence from Chapter 11 with an effective date of December 31, 2010. Net fresh start accounting and reorganization items totaled $441.6 million (1). Operating loss for the year ended December 31, 2010 was $53.4 million. Herbst Gaming, LLC’s EBITDA (2) which excludes the effect of fresh start accounting adjustments and reorganization adjustments increased by 8% when compared to the year ended December 31, 2009.
Key Operating Metrics Include:
- Revenue decreased 5% to $701.1 million compared to $738.5 million in 2009
- EBITDA increased 8% to $77.4 million compared to $71.5 million in 2009.
- As of December 31, 2010, the Company had cash and cash equivalents of $103.2 million and total debt of $350.0 million
(1) (2) See footnotes at end of this release for reconciliations relative to non-GAAP financial measures.
“During the restructuring, we took steps to stabilize EBITDA through targeted marketing campaigns and cost savings initiatives at all of our properties,” said David D. Ross, Chief Executive Officer. “We have improved the efficiency of our property operations and reduced costs throughout the Company which led to our improved EBITDA performance for the fiscal year. I am optimistic about the outlook for the Company and grateful to our employees for their dedication and hard work through the challenging restructuring period.”
“We believe that our strategy of offering value-oriented, convenient locations will support our business strategy. We remain focused on enhancing customer satisfaction and loyalty, which are critical to our long-term success,” concluded Mr. Ross.
Emergence From Chapter 11 Reorganization
On December 31, 2010, (i) Herbst Gaming , LLC acquired substantially all of the assets of its Predecessor (Herbst Gaming, Inc. or HGI) in consideration for $350.0 million in aggregate principal amount of Senior Secured Loans and the issuance to Predecessor of all of The Company’s Common Units, (ii) the Senior Secured Loans and Common Units were distributed by Predecessor to the lenders under the HGI Credit Facility on a pro rata basis in accordance with the Bankruptcy Plan, (iii) all of Predecessor’s approximately $1.1 billion in outstanding long-term debt obligations consisting of borrowings under the HGI Credit Facility, $160.0 million of outstanding principal amount of 8.125% senior subordinated notes and $170.0 million of outstanding principal amount of 7% senior subordinated notes were terminated and (iv) 100% of the existing equity in Predecessor was cancelled.
On December 31, 2010, Herbst Gaming, LLC adopted fresh start accounting in accordance with ASC 852-10-15. As a result, the value of Predecessor’s assets, including intangible assets, and liabilities have been adjusted to their fair values with any excess of The Company’s enterprise value over the Company’s tangible and identifiable intangible assets and liabilities reported as goodwill on the Company’s consolidated balance sheet. Please refer to the Herbst Gaming, LLC Form 10-K filed with the Securities and Exchange Commission for additional financial information.
About Herbst Gaming, LLC
Herbst Gaming is a diversified gaming company that focuses on two business lines: casino operations and slot route operations. As of December 31, 2010, the Company’s casino operations consisted of 15 casinos, 12 of which are
