EXHIBIT 99.1 PRESS RELEASE, ISSUED NOVEMBER 15, 2004
Peninsula Gaming, LLC Announces Financial Results for the Quarter Ended
September 30, 2004
(Dubuque, IA - November 15, 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 September 30, 2004.
A conference call with management is scheduled for November 15, 2004 at 1:00 EST
and can be accessed by calling 800-366-3908. For your convenience, the call can
be retrieved for replay for a period of one week (through November 22, 2004) by
calling 800-405-2236, passcode number 11015325.
THIRD QUARTER 2004 RESULTS
Consolidated Results
Consolidated net revenue for the third quarter of 2004 was $37.3 million,
compared to $21.0 million in the third quarter of 2003. Consolidated income from
operations during the third quarter of 2004 rose to $5.0 million as compared to
$4.5 million reported in the third quarter of 2003. Consolidated net loss to
common members' interest for the third quarter of 2004 was $1.2 million,
compared to $2.2 million for the third quarter of 2003.
In the third quarter of 2004, Peninsula Gaming, LLC reported consolidated
segment operating earnings of $8.9 million, an increase of 57.1 percent when
compared to $5.7 million for the third 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 segment operating earnings to net loss from common members'
interest.)
The Company ended the quarter with $19.1 million of cash (of which $16.9 million
is unrestricted cash and $2.2 million is restricted cash). Total debt
outstanding at September 30, 2004 including the current portion, was $270.3
million. The Company incurred $6.7 million of capital expenditures during the
three-month period ended September 30, 2004. Of this total, $5.2 million related
to construction and development activities at Evangeline Downs Racetrack and
Casino and $1.2 million and $0.3 million related to non-construction related
improvements and maintenance capital expenditures at DJL and OED, respectively.
The non-construction 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 third quarter of 2004, segment operating earnings at the Diamond Jo
decreased over the comparable period of the prior year by approximately $0.8
million to $5.0 million. In the third quarter of 2004, net revenues at the
Diamond Jo decreased over the comparable period of the prior year by
approximately $1.6 million to $13.9 million. Net revenues decreased during the
2004 period primarily due to a decrease in casino revenues of approximately $1.6
million. Net revenues include casino revenues of approximately $13.6 million and
food and beverage and other revenues of approximately $1.1 million, less
promotional allowances of approximately $0.8 million.
Evangeline Downs Racetrack and Casino (property only)
For the third quarter of 2004, OED's segment operating earnings and net
operating revenues were approximately $4.4 million and $23.4 million,
respectively. Net revenues for the 2004 period include casino revenues of
approximately $16.5 million, racing and off-track betting revenues of
approximately $5.7 million, and food and beverage and other revenues of
approximately $2.5 million, less promotional allowances of approximately $1.3
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.
Worth County
On November 10, 2004 the Company submitted an application to the Iowa Racing and
Gaming Commission to operate a moored barge in Worth County, Iowa. The Company
anticipates the Iowa Racing and Gaming Commission to award licenses in the
Spring of 2005.
The Company's proposal contains approximately 500 slot machines, 12 table games
and 5 poker tables. In addition the facility includes a buffet, two fast food
outlets and a bar with entertainment space.
The estimated cost of the project is $40.4 million. If a license is granted to
the Company by the Iowa Racing and Gaming Commission, the Company will finance
the project through operating cash flow, it's existing PGL Credit Facility and
vendor equipment financing.
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 PGL 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)
Three Months Three Months
Ended Ended
September 30, 2004 September 30, 2003
------------------ ------------------
REVENUES:
Casino $ 30,088,557 $ 15,220,028
Racing 5,685,045 5,081,518
Food and beverage 3,143,626 1,293,510
Other 504,824 309,003
Less promotional allowances (2,131,165) (888,309)
------------------ ------------------
Total net revenues 37,290,887 21,015,750
------------------ ------------------
EXPENSES:
Casino 14,490,417 5,762,110
Racing 4,859,240 4,413,576
Food and beverage 2,362,853 1,071,510
Boat operations 563,585 591,622
Other 445,467 302,690
Selling, general and administrative 5,652,111 3,196,909
Depreciation and amortization 2,989,628 685,667
Pre-opening expense 512,445
Development expense 70,472
Management severance and recruiting 569,983
Affiliate management fees 276,186
------------------ ------------------
Total expenses 32,279,942 16,536,529
------------------ ------------------
INCOME FROM OPERATIONS 5,010,945 4,479,221
OTHER INCOME (EXPENSE):
Interest income 21,368 121,042
Interest expense, net of amounts capitalized (6,107,209) (6,680,187)
Interest expense related to preferred members' interest, redeemable (90,000) (90,000)
Gain (loss) on disposal of assets (17,493) 135
------------------ ------------------
Total other expense (6,193,334) (6,649,010)
------------------ ------------------
NET LOSS TO COMMON MEMBERS' INTEREST $ (1,182,389) $ (2,169,789)
================== ==================
Peninsula Gaming, LLC
Supplemental Data Schedule (Unaudited)
(In thousands)
The following is a reconciliation of segment operating earnings to Net Loss to
Common Members' Interest:
Segment Operating Earnings
Three Months Ended September 30,
2004 2003
------------ ------------
General corporate $ (413) $ 0
Diamond Jo 4,962 5,738
Evangeline Downs 4,368 (61)
------------ ------------
Total Segment Operating Earnings (1) 8,917 5,677
General corporate:
Management severance and recruiting........................... (101)
Diamond Jo:
Depreciation and amortization................................. (633) (607)
Development expense........................................... (70)
Management severance and recruiting........................... (290)
Interest expense, net......................................... (2,387) (2,801)
Loss on disposal of assets.................................... (17)
Evangeline Downs:
Depreciation and amortization................................. (2,357) (79)
Pre-opening expense........................................... (512)
Management severance and recruiting........................... (179)
Affiliate management fees..................................... (276)
Interest expense, net......................................... (3,789) (3,848)
------------ ------------
Net loss to common members' interest.......................... (1,182) (2,170)
============ ============
(1) Segment operating earnings is defined as net loss to common members'
interest plus depreciation and amortization, pre-opening expense,
development expense, management severance and recruiting expense, affiliate
management fees, interest expense (net) (including loss on early retirement
of debt) and loss on disposal of assets.
Contacts:
Diamond Jo, LLC
Natalie A. Schramm, 563-690-2120