EXHIBIT 99.1 PRESS RELEASE, ISSUED AUGUST 16, 2004
Peninsula Gaming, LLC Announces Financial Results for the Quarter Ended June 30,
2004
(Dubuque, IA -- Aug 16, 2004) Peninsula Gaming, LLC ("PGL" or the "Company"),
owner and operator of the Diamond Jo, LLC ("DJL"), which owns and operates the
Diamond Jo Casino in Dubuque, Iowa, and of The Old Evangeline Downs, L.L.C.
("OED"), which owns and operates Evangeline Downs Racetrack and Casino in
Opelousas, Louisiana, today reported financial results for the quarter ended
June 30, 2004.
A conference call with management is scheduled for Monday, August 16, 2004 at
4:30 p.m. EST, and can be accessed by calling 800-240-4186. For your
convenience, the call can be retrieved for replay for a period of one week
(through August 23, 2004). The number will be released at the time of the call.
SECOND QUARTER 2004 RESULTS
Consolidated Results
Consolidated net revenue for the second quarter of 2004 was $36.6 million,
compared to $19.6 million in the second quarter of 2003. Consolidated income
from operations during the second quarter of 2004 rose to $4.4 million as
compared to $3.7 million reported in the second quarter of 2003. Consolidated
net loss to common members' interest for the second quarter of 2004 was $39.7
million, compared to $3.0 million for the second quarter of 2003. The increased
net loss was due to a loss on early retirement of debt of $37.6 million as a
result of our refinancing activities discussed below.
In the second quarter of 2004, Peninsula Gaming, LLC reported consolidated
Adjusted EBITDA of $7.6 million, an increase of 61.6 percent when compared to
$4.7 million for the second quarter 2003. The increase is primarily due to the
opening of the casino portion of the Evangeline Downs Racetrack and Casino on
December 19, 2003. (See the accompanying tables and footnotes, which reconciles
Adjusted EBITDA to net loss from common members' interest.)
The Company ended the quarter with $30.7 million of cash (of which $27.6 million
is unrestricted cash and $3.1 million is restricted cash). Total debt
outstanding at June 30, 2004 including the current portion, was $274.4 million.
The Company incurred $10.5 million of capital expenditures during the
three-month period ended June 30, 2004. Of this total, $9.5 million related to
construction and development activities at Evangeline Downs Racetrack and Casino
and $0.5 million and $0.5 million related to non-construction related
improvements and maintenance capital expenditures at DJL and OED, respectively.
The expenditures primarily related to the purchase of new slot machines at the
Diamond Jo and conversions of slot machines at OED to incorporate ticket-in,
ticket-out technology, which we believe enhances customer service and produces
operating efficiencies.
Diamond Jo (property only)
In the second quarter of 2004, Adjusted EBITDA at the Diamond Jo decreased over
the comparable period of the prior year by approximately $0.6 million to $3.7
million. In the second quarter of 2004, net revenues at the Diamond Jo decreased
over the comparable period of the prior year by approximately $0.9 million to
$12.3 million. Net revenues decreased during the 2004 period primarily due to a
decrease in casino revenues of approximately $0.9 million. Net revenues include
casino revenues of approximately $12.2 million and food and beverage and other
revenues of approximately $0.8 million, less promotional allowances of
approximately $0.7 million.
Evangeline Downs Racetrack and Casino (property only)
For the second quarter of 2004, OED's Adjusted EBITDA and net operating revenues
were approximately $3.9 million and $24.2 million, respectively. Net revenues
for the 2004 period include casino revenues of approximately $16.6 million,
racing and off-track betting revenues of approximately $6.5 million, and food
and beverage and other revenues of approximately $2.5 million, less promotional
allowances of approximately $1.4 million. Results from operations of OED for the
periods described above are not comparable to prior periods due to the casino
opening in December 2003.
Refinancing
On April 16, 2004, DJL and The Old Evangeline Downs Capital Corp. completed a
private placement of $233 million 8 3/4% senior secured notes due 2012 in a
transaction exempt from the registration requirements of the Securities Act of
1933, as amended, pursuant to Rule 144A promulgated thereunder (herein referred
to as the "Peninsula Gaming Notes"). The Peninsula Gaming Notes were issued at a
discount of approximately $3.3 million. Interest on the Peninsula Gaming Notes
is payable semi-annually on April 15 and October 15 of each year, beginning on
October 15, 2004.
The Company used the net proceeds from the sale of the Peninsula Gaming Notes as
follows (all payments based on outstanding balances as of April 16, 2004): 1) to
redeem all of DJL's existing senior secured notes in an amount (including call
premium and accrued interest) of approximately $79.9 million; 2) to repurchase
OED's senior secured notes in an amount (including tender premium, accrued
interest and contingent interest) of approximately $134.6 million; 3) to pay
accrued distributions on DJL's outstanding preferred membership
interests-redeemable of approximately $1.1 million; 4) to pay related fees and
expenses of approximately $13.4 million; and 5) for general corporate purposes.
As a result of the issuance of the Peninsula Gaming Notes, DJL incurred a loss
of approximately $8.7 million consisting of the write-off of deferred financing
fees of approximately $2.0 million, the payment of a call premium on the DJL
senior secured notes of approximately $5.7 million, interest on the DJL senior
secured notes of approximately $0.7 million and write-off of bond discount of
approximately $0.3 million. In connection therewith, OED also incurred a loss of
approximately $27.9 million consisting of the write-off of deferred financing
fees of approximately $8.4 million, the payment of a tender premium on the OED
senior secured notes of approximately $16.3 million, write-off of bond discount
of approximately $2.1 million and consent fees of approximately $1.1 million. In
addition, the Company wrote off $0.9 million of deferred financing fees related
to the credit facilities discussed below.
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On June 16, 2004, DJL and OED jointly entered into a Loan and Security Agreement
with Wells Fargo Foothill, Inc. as the Arranger and Agent (the "PGL Credit
Facility"). The PGL Credit Facility consists of a revolving credit facility
which permits DJL and OED to request advances and letters of credit up to the
lesser of the maximum revolver amount of $35 million (less amounts outstanding
under letters of credit) and a specified borrowing base. Immediately upon the
closing of the PGL Credit Facility, the Company borrowed approximately $14.9
million to refinance outstanding obligations under DJL's and OED's existing
senior credit facilities and pay financing related fees and expenses.
The PGL Credit Facility also contains a Term Loan in the amount of $14,666,667.
The proceeds from the Term Loan were used to repay outstanding obligations under
the OED's existing furniture, fixtures and equipment credit facility.
As of June 30, 2004, the Company had $14.9 million and $14.7 million outstanding
under the revolver portion and Term Loan portion of the PGL Credit Facility,
respectively. In addition, as of June 30, 2004, the Company had outstanding
letters of credit of approximately $3.5 million.
Forward-looking Statements
This press release contains forward-looking statements that are made pursuant to
the Safe Harbor Provisions of the Private Securities Litigation Reform Act of
1995. Forward-looking statements involve a number of risks, uncertainties or
other factors beyond PGL's control, which may cause material differences in
actual results, performance or other expectations. These factors include, but
are not limited to general economic conditions, competition, new ventures,
government regulation, legalization of gaming, interest rates, future terrorist
acts, insurance, and other factors detailed in the reports filed by DJL with the
Securities and Exchange Commission. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date
thereof. PGL assumes no obligation to update such information.
Peninsula Gaming, LLC
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands)
Three Months Three Months
Ended Ended
June 30, 2004 June 30, 2003
------------- -------------
REVENUES:
Casino $ 28,813,123 $ 13,196,976
Racing 6,494,040 5,810,395
Food and beverage 2,957,716 1,157,327
Other 408,084 104,735
Less promotional allowances (2,107,294) (710,186)
------------- -------------
Total net revenues 36,565,669 19,559,247
------------- -------------
EXPENSES:
Casino 14,234,665 5,446,088
Racing 5,426,800 4,921,420
Food and beverage 2,523,221 869,126
Boat operations 545,986 575,000
Other 543,737 47,946
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Selling, general and administrative 5,686,185 2,993,694
Depreciation and amortization 2,959,151 829,624
Pre-opening expense 50,997 196,045
Development costs 37,961
Management fee 149,577
------------- -------------
Total expenses 32,158,280 15,878,943
------------- -------------
INCOME FROM OPERATIONS 4,407,389 3,680,304
OTHER INCOME (EXPENSE):
Interest income 72,518 211,199
Interest expense, net of amounts capitalized (6,471,234) (6,797,433)
Interest expense related to early retirement
of debt (36,471,069)
Interest expense related to preferred
members' interest, redeemable (90,000)
Loss on disposal of assets (192) (17,421)
------------- -------------
Total other expense (42,959,977) (6,603,655)
NET LOSS BEFORE PREFERRED
MEMBER DISTRIBUTIONS (38,552,588) (2,923,351)
LESS PREFERRED MEMBER DISTRIBUTIONS (90,000)
------------- -------------
NET LOSS TO COMMON MEMBERS' INTEREST $ (38,552,588) $ (3,013,351)
============= ==============
Peninsula Gaming, LLC
Supplemental Data Schedule (Unaudited)
(In thousands)
The following is a reconciliation of Adjusted EBITDA to Net Loss from Common
Members' Interest:
Adjusted EBITDA
Three Months Ended June 30,
2004 2003
----------- -----------
Diamond Jo $ 3,704 $ 4,306
Evangeline Downs 3,901 400
----------- -----------
Total Adjusted EBITDA (1) 7,605 4,706
Diamond Jo:
Development costs.............................. (38)
Depreciation and amortization.................. (588) (751)
Interest expense, net.......................... (11,495) (2,722)
Loss on sale of assets......................... (17)
Preferred member distributions................. (90)
Evangeline Downs:
Depreciation and amortization.................. (2,372) (79)
Pre-opening expense............................ (51) (196)
Management fee................................. (150)
Interest expense, net.......................... (31,464) (3,864)
----------- -----------
Net loss to common members' interest........... $ (38,553) $ (3,013)
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(1) Adjusted EBITDA is defined as net loss to common members' interest plus
depreciation and amortization, pre-opening expense, net interest
expense (including loss on early retirement of debt), development
expense, loss on sale of assets, preferred member distributions and
management fees.
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Contacts:
Diamond Jo, LLC
Natalie A. Schramm, 563-690-2120
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