EXHIBIT 99.1
NEWS BULLETIN
FROM FRB
HOLLYWOOD PARK, INC.
1050 South Prairie Avenue
Inglewood, California 90301
TRADED: NYSE: HPK
FOR FURTHER INFORMATION
AT THE COMPANY: AT THE FINANCIAL RELATIONS BOARD:
R.D. Hubbard Paul Goodson Kathy Brunson Sue Dooley Michaelle Burstin
Chairman and CEO General Inquiries Analyst Inquiries Analyst Inquiries Media Inquiries
G. Michael Finnigan (310) 442-0599 (312) 266-7800 (415) 986-1591 (310) 442-0599
President, Realty
Investment Group, CFO
(310) 419-1539
FOR IMMEDIATE RELEASE
TUESDAY, FEBRUARY 23, 1999
HOLLYWOOD PARK REPORTS STRONG GAINS IN 4TH QUARTER AND FULL
YEAR 1998 RESULTS
Highlights:
. Earnings before interest, taxes, depreciation and amortization (EBITDA)
increased 124% for the fourth quarter to $31.7 million.
. Revenues for 1998's 4th quarter were $158 million, an increase of 76%.
. Strategic acquisition of Casino Magic completed in October 1998.
. Key gaming executives hired in January 1999.
. $350 million bond offering completed in February 1999.
. EBITDA increased 87% to $79.3 million and revenues advanced 72% to $427
million for the full year, 1998.
. Earnings Per Share increased to $0.50 in 1998 from $0.33 in 1997.
INGLEWOOD, Calif., February 23,1999--Hollywood Park, Inc. (NYSE: HPK) today
reported gains in revenues, earnings and EBITDA for the fourth quarter and full
year ended December 31, 1998. These improved results reflect the acquisitions
of Casino Magic Corp. in October 1998 and Boomtown, Inc. in June, 1997. Both
acquisitions were accounted for using the purchase accounting method.
For the fourth quarter, EBITDA for all operations was $31.7 million, compared to
$14.2 million for the fourth quarter of 1997, an increase of 124%. Revenues for
the fourth quarter were $158.2 million, an increase of 76%. Net income
increased 177% in the quarter to $4.3 million compared to 1997's fourth quarter
net income of $1.6 million.
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Revenues for the full year increased 72% to $427 million in 1998, primarily as a
result of the full-year effect of the Boomtown acquisition, and 2 1/2-months'
contribution from Casino Magic. EBITDA for 1998 increased 87% to $79.3 million,
and net income increased 52% to $13.2 million, both due to the Casino Magic and
Boomtown acquisitions. Hollywood Park earned $0.50 per basic and diluted share
in 1998, an increase of 52% over 1997's EPS of $0.33 per basic and diluted
share.
"In addition to producing strong financial results, we achieved several
strategic goals in 1998 and early 1999. First, we added to and diversified our
portfolio of steady growth gaming properties. Second, we added critical
expertise in gaming by hiring four key executives. Third, we established a
solid long-term financial structure with our new $350 million Senior
Subordinated Notes offering," said R.D. Hubbard, Chairman and CEO of Hollywood
Park.
Casino Magic Acquisition Completed
In support of Hollywood Park's strategic objective of diversifying its revenue
and earnings base within the gaming industry, the Company completed the
acquisition of Casino Magic Corp. on October 15, 1998. With assets acquired
from Casino Magic, Hollywood Park now owns and operates 8 casinos, owns two card
club casinos in California, owns and operates two pari-mutuel race tracks, and
has total assets of almost $900 million.
Gaming Executives on Board
Hollywood Park's strategy of creating shareholder value through growth requires
continued additions of human resources along with the growth in the earnings
capability of the Company. "We are pleased to have on board four key gaming
executives. Their expertise in our industry will help us assure continued,
profitable growth for Hollywood Park," said Mr. Hubbard.
Senior Subordinated Notes Offering
On February 18, 1999, Hollywood Park completed a $350 million offering of 9 1/4%
Senior Subordinated Notes, due 2007. The Company used the proceeds to pay off
its revolving bank credit facility, with the remaining net proceeds of
approximately $53.3 million to be used for future capital needs. The new notes
offering establishes a solid long-term financial structure.
The Senior Subordinated Notes sold have not been registered under the Securities
Act of 1933, as amended, and may not be offered or sold in the United States
absent such registration or an applicable exemption from such registration
requirements.
This announcement shall not constitute an offer to sell or the solicitation of
an offer to buy nor shall there be any sale of Senior Subordinated Notes in any
jurisdiction in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under applicable securities laws, or absent the
availability of an exemption from such registration or qualification
requirements.
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Commenting on the improved financial performance of Hollywood Park, Mr. Hubbard
said: "We are especially pleased that we were able to make acquisitions that
have considerable strategic importance to the Company, and that also produce
gains in our earnings per share. The increases in 1998's revenues, EBITDA,
earnings, and earnings per share reflect our continuing success in implementing
our growth strategy. These acquisitions, together with the capital improvements
made in 1998 and early in 1999 in completing construction of new hotels and
other improvements at our Boomtown Reno and for Casino Magic Biloxi and Bossier
City properties, should produce continued growth in 1999."
Hollywood Park is a diversified gaming company that owns and/or operates eight
casinos, two pari-mutuel horse racing facilities, and two card casinos at twelve
locations in Nevada, Mississippi, Louisiana, California, Arizona, and Argentina.
The Company has also been approved to receive the final license to conduct
riverboat gaming on the Ohio River in Indiana and has begun development of a
$150 million hotel/casino and golf resort at a site in Switzerland County,
Indiana, 35 miles southwest of Cincinnati, Ohio. In addition to the Company's
operating properties, Hollywood Park has significant excess land available for
future sale or development at four of its other properties.
(The Private Securities Litigation Reform Act of 1995 provides a "safe harbor"
for forward-looking statements. Forward-looking information involves important
risks and uncertainties that could significantly affect future results and,
accordingly, such results may differ from those expressed in forward-looking
statements made by or on behalf of the Company, including statements related to
the ongoing performance of the Boomtown properties, and the impact of the
acquisition of Casino Magic, and the performance of future acquisitions. For
more information on the potential factors that could affect the Company's
financial results, review the Company's filings with the Securities and Exchange
Commission, including the Company's annual report on Form 10-K and the Company's
other filings with the SEC.)
For more information on Hollywood Park, Inc. via facsimile at no cost,
call 1-800-PRO-INFO and dial company code HPK.
(Financial Tables Follow)
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HOLLYWOOD PARK, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31
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1998 1997 1998 1997
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(unaudited)
Revenues:
Hollywood Park, Inc. - Casino Division $ 13,818 $15,053 $ 54,442 $ 59,129
Crystal Park and HP Yakama Inc. 699 20 2,007 2,222
Boomtown Reno 15,442 15,837 67,537 36,815
Boomtown New Orleans 25,608 19,736 95,594 39,116
Boomtown Biloxi 17,441 14,253 65,147 29,281
Casino Magic Bay St. Louis 17,857 - 17,857 -
Casino Magic Biloxi 19,066 - 19,066 -
Casino Magic Bossier City 22,580 - 22,580 -
Casino Magic Argentina 4,076 - 4,076 -
Hollywood Park Race Track 15,648 18,143 60,309 62,670
Turf Paradise, Inc. 5,672 6,022 17,010 17,374
Hollywood Park, Inc. - Corporate 311 715 1,342 1,521
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158,218 89,779 426,967 248,128
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Expenses:
Hollywood Park, Inc. - Casino Division 12,148 12,564 48,123 50,003
Crystal Park and HP Yakama, Inc. 83 425 282 490
Boomtown Reno 13,487 15,531 59,699 32,196
Boomtown New Orleans 17,725 14,266 66,084 28,126
Boomtown Biloxi 13,781 11,973 53,669 24,615
Casino Magic Bay St. Louis 13,637 - 13,637 -
Casino Magic Biloxi 14,283 - 14,283 -
Casino Magic Bossier City 18,562 - 18,562 -
Casino Magic Argentina 2,421 - 2,421 -
Indiana Project 361 - 821 -
Hollywood Park Race Track 12,913 14,100 47,226 49,304
Turf Paradise, Inc. 3,750 4,087 12,579 13,010
Hollywood Park Inc. - Corporate 3,329 2,663 10,317 7,925
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126,480 75,609 347,703 205,669
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Earnings before interest, taxes,
depreciation,
amortization and non-recurring
expenses:
Hollywood Park, Inc. - Casino Division 1,670 2,489 6,319 9,126
Crystal Park and HP Yakama, Inc. 616 (405) 1,725 1,732
Boomtown Reno 1,955 306 7,838 4,619
Boomtown New Orleans 7,883 5,470 29,510 10,990
Boomtown Biloxi 3,660 2,280 11,478 4,666
Casino Magic Bay St. Louis 4,220 - 4,220 -
Casino Magic Biloxi 4,783 - 4,783 -
Casino Magic Bossier City 4,018 - 4,018 -
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HOLLYWOOD PARK, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (continued)
(in thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31,
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1998 1997 1998 1997
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Casino Magic Argentina 1,655 - 1,655 -
Indiana Project (361) - (821) -
Hollywood Park Race Track 2,735 4,043 13,083 13,366
Turf Paradise, Inc. 1,922 1,935 4,431 4,364
Hollywood Park, Inc. - Corporate (3,018) (1,948) (8,975) (6,404)
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31,738 14,170 79,264 42,459
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Non-recurring expenses:
Real Estate Investment Trust
restructuring (50) 1,874 419 2,483
Loss on write off assets 635 - 2,221 -
Depreciation and amortization:
Hollywood Park, Inc. - Casino Division 652 557 2,648 2,906
Crystal Park and HP Yakama, Inc. 476 477 1,909 1,800
Boomtown Reno 1,792 1,379 6,179 2,732
Boomtown New Orleans 1,378 1,019 5,194 2,050
Boomtown Biloxi 940 862 3,667 1,682
Casino Magic Bay St. Louis 1,315 - 1,315 -
Casino Magic Biloxi 1,370 - 1,370 -
Casino Magic Bossier City 1,429 - 1,429 -
Casino Magic Argentina 306 - 306 -
Hollywood park Race Track 1,064 1,051 4,230 4,056
Turf Paradise, Inc. 296 292 1,184 1,172
Hollywood Park, Inc., - Corporate 1,229 446 2,690 1,759
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12,247 6,083 32,121 18,157
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Operating income 18,906 6,213 44,503 21,819
Interest expense 10,691 3,520 22,518 7,302
Minority interests:
Crystal Park - (84) - (3)
Casino Magic Argentina 374 - 374 -
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Income before income tax expense 7,841 2,777 21,611 14,520
Income tax expense 3,539 1,226 8,442 5,850
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Net income $ 4,302 $ 1,551 $ 13,169 $ 8,670
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Dividend requirements on convertible
preferred stock - - - $ 1,520
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Net income available to common
shareholders $ 4,302 $ 1,551 $ 13,169 $ 7,150
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HOLLYWOOD PARK, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (continued)
(in thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31
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1998 1997 1998 1997
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Per common share:
Net income - basic $0.17 $0.06 $0.50 $0.33
Net income - diluted $0.17 $0.06 $0.50 $0.32
Number of shares - basic 25,800 26,209 26,115 22,010
Number of shares - diluted 25,800 26,705 26,115 22,340
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HOLLYWOOD PARK, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
Three Months Ended Year Ended
December 31, December 31
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1998 1997 1998 1997
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Assets
Cash and short-term investments $ 47,413 $ 24,156
Other assets 241,014 94,207
Fixed assets 602,912 300,666
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Total assets $891,339 $419,029
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Liabilities and Stockholders'
Equity
Current Liabilities $117,428 $ 60,190
Notes payable 539,183 135,539
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Total current liabilities 656,611 195,729
Minority interests 3,752 1,946
Stockholders' equity 230,976 221,354
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Total liabilities and
stockholders' equity $891,339 $419,029
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