Exhibit 99.1
Peninsula Gaming, LLC Announces Financial Results for the Quarter and Year Ended
December 31, 2004 and the Month Ended January 31, 2005
(Dubuque, IA - March 7, 2005) Peninsula Gaming, LLC (the "Company"), the parent
of Diamond Jo, LLC ("DJL"), which owns and operates the Diamond Jo Casino in
Dubuque, Iowa, and 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 and year ended December 31, 2004 and
operating results for the month ended January 31, 2005.
FOURTH QUARTER 2004 RESULTS
Consolidated Results
Net revenues for the fourth quarter of 2004 were approximately $35.4 million,
compared to $20.2 million in the fourth quarter of 2003. Income from operations
during the fourth quarter of 2004 rose to $4.2 million as compared to $0.9
million reported in the fourth quarter of 2003. Net loss to common members'
interest for the fourth quarter of 2004 was $1.6 million, compared to $5.6
million for the fourth quarter of 2003.
In the fourth quarter of 2004, Peninsula Gaming, LLC reported segment operating
earnings of $8.0 million, an increase of 75.0 percent when compared to $4.6
million for the fourth quarter of 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 reconcile
segment operating earnings to net loss to common members' interest.)
The Company ended the quarter with $14.2 million of cash (of which $10.5 million
is unrestricted cash and $3.7 million is restricted cash). Total debt
outstanding at December 31, 2004 including the current portion, was $279.4
million, including slot financing of $8.0 million. The Company made $13.9
million of capital expenditures during the quarter ended December 31, 2004. Of
this total, $3.6 million related to construction and development activities at
Evangeline Downs Racetrack and Casino and $4.3 million and $6.0 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 and conversions at DJL and OED to
incorporate ticket-in, ticket-out technology, which we believe enhances customer
service and operating efficiencies.
Diamond Jo
In the fourth quarter of 2004, segment operating earnings and net revenues at
the Diamond Jo remained substantially unchanged from the comparable period of
the prior year at $4.3 million and $13.4 million, respectively. Net revenues
include casino revenues of approximately $13.0 million and food and beverage and
other revenues of approximately $0.8 million, less promotional allowances of
approximately $0.4 million.
Evangeline Downs Racetrack and Casino
For the fourth quarter of 2004, OED's segment operating earnings and net
revenues were approximately $4.2 million and $22.0 million, respectively. Net
revenues for such period include casino revenues of approximately $17.8 million,
racing and off-track betting revenues of approximately $3.5 million, and food
and beverage and other revenues of approximately $2.0 million, less promotional
allowances of approximately $1.3 million. Results from operations of OED for the
fourth quarter are not comparable to prior periods due to the casino opening in
December 2003.
YEAR END 2004 RESULTS
Consolidated Results
Net revenue for 2004 was $144.9 million, compared to $76.5 million in 2003.
Income from operations during 2004 rose to $18.7 million as compared to $12.2
million reported in 2003. Net loss to common members' interest for 2004 was
$45.1 million, compared to $12.7 million for 2003. The net loss in 2004 is
primarily due to premiums, fees and expenses of approximately $37.6 million
associated with the Company's debt refinancing in April 2004.
In 2004, Peninsula Gaming, LLC reported segment operating earnings of $33.1
million, an increase of 73.0 percent relative to $19.1 million for 2003. The
increase is primarily due to the opening of the casino portion of the Evangeline
Downs Racetrack and Casino in December 2003. (See the accompanying tables and
footnotes, which reconcile segment operating earnings to net loss to common
members' interest.)
Diamond Jo
In 2004, segment operating earnings at the Diamond Jo decreased over the prior
year by approximately $1.3 million to $16.7 million. In 2004, net revenues at
the Diamond Jo decreased over the prior year by approximately $2.3 million to
$51.7 million, primarily due to a decrease in casino revenues of approximately
$2.6 million. Net revenues include casino revenues of approximately $51.0
million and food and beverage and other revenues of approximately $3.3 million,
less promotional allowances of approximately $2.6 million.
Evangeline Downs Racetrack and Casino
For 2004, OED's segment operating earnings and net revenues were approximately
$17.3 million and $93.1 million, respectively. Net revenues for 2004 include
casino revenues of approximately $69.0 million, racing and off-track betting
revenues of approximately $20.0 million, and food and beverage and other
revenues of approximately $9.4 million, less promotional allowances of
approximately $5.3 million. Results from operations of OED for 2004 are not
comparable to the prior year due to the casino opening in December 2003.
JANUARY 2005 RESULTS
In January 2005, Diamond Jo net revenues and segment operating earnings
increased over the comparable period of the prior year by approximately $0.3
million to $4.3 million and $0.1 million to $1.2 million, respectively. Net
revenues increased primarily due to an increase in casino revenues of
approximately $0.2 million.
In January 2005, OED's net revenues and segment operating earnings increased
over the comparable period of the prior year by approximately 11.4% or $0.9
million to $8.6 million and 49.8% or $0.7 million to $2.2 million, respectively.
Net revenues increased primarily due to an increase in casino revenues of
approximately $1.0 million. The increase in segment operating earnings was also
due to a decrease in salaries and wages of $0.4 million or 24.6%
February results continue to show revenue growth at both properties. Gaming
revenues will be released by the Iowa and Louisiana state gaming agencies within
the first two weeks of March.
OFF TRACK BETTING PARLORS (OTB)
OED is in the process of constructing an OTB with video poker machines at a
location in Henderson, LA, which is expected to open in the second quarter of
2005. Related construction costs are expected to be approximately $1.6 million.
In addition to the Henderson location, OED is looking at potentially opening two
additional OTBs during the third quarter of 2005.
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 proposed facility is expected to contain approximately 500 slot
machines, 12 table games and 5 poker tables. In addition, the proposed facility
is expected to include a restaurant, two fast food outlets and a bar with
entertainment space.
The estimated cost of the project is expected to be approximately $40.4 million.
If a license is granted to the Company by the Iowa Racing and Gaming Commission,
the Company intends to finance the project through operating cash flow,
borrowings under its senior credit facility and vendor equipment financing.
Based on a schedule set by the Iowa Racing and Gaming Commission, any licenses
granted are expected to be granted at a meeting on May 11, 2005. If we are able
to obtain a license at such meeting, we plan on having the facility open by the
third quarter of 2006.
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 the Company'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, risks associated
with new ventures, government regulation, including, licensure requirements,
legalization of gaming, availability of financing on commercially reasonable
terms, changes in interest rates, future terrorist acts, and other factors
detailed in the reports filed by the Company 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. The Company
assumes no obligation to update such information.
Peninsula Gaming, LLC
Condensed Consolidated Statements of Operations (Unaudited)
Three Months
Ended
Three Months Ended December 31, Year Ended Year Ended
December 31, 2004 2003 December 31, 2004 December 31, 2003
--------------- -------------- --------------- ----------------
REVENUES:
Casino $ 30,825,906 $ 16,594,547 $ 119,920,935 $ 56,794,529
Racing 3,456,015 3,237,238 20,000,703 17,773,481
Food and beverage 2,544,954 1,255,009 11,464,094 4,565,438
Other 320,109 94,053 1,434,135 589,268
Less promotional allowances (1,714,854) (968,412) (7,965,784) (3,221,134)
--------------- -------------- --------------- ----------------
Total net revenues 35,432,130 20,212,435 144,854,083 76,501,582
--------------- -------------- --------------- ----------------
EXPENSES:
Casino 15,985,251 7,203,397 60,910,752 24,091,470
Racing 3,096,978 2,723,519 16,958,738 14,646,351
Food and beverage 2,110,240 1,339,796 9,218,345 4,282,010
Boat operations 548,591 588,156 2,231,223 2,322,126
Other 164,575 59,223 1,075,864 442,964
Selling, general and administrative 5,479,223 3,699,963 21,404,627 11,609,084
Depreciation and amortization 3,510,661 989,234 12,355,503 3,323,541
Pre-opening expense 110,040 2,539,597 367,488 3,256,963
Development expense 111,988 102,272 241,691 102,272
Management severance and recruiting 22,844 592,827
Affiliate management fees 81,243 43,750 757,430 175,000
--------------- -------------- --------------- ----------------
Total expenses 31,221,634 19,288,907 126,114,488 64,251,781
--------------- -------------- --------------- ----------------
INCOME FROM OPERATIONS 4,210,496 923,528 18,739,595 12,249,801
--------------- -------------- --------------- ----------------
OTHER INCOME (EXPENSE):
Interest income 19,441 79,167 170,411 489,800
Interest expense, net of amounts
capitalized (6,466,488) (6,562,133) (26,775,110) (25,071,656)
Loss on early retirement of debt (37,566,234)
Interest expense related to
preferred members' interest,
redeemable (90,000) (90,000) (360,000) (180,000)
Gain (loss) on disposal of assets 733,875 54,814 716,190 (49,735)
--------------- -------------- --------------- ----------------
Total other expense (5,803,172) (6,518,152) (63,814,743) (24,811,591)
--------------- -------------- --------------- ----------------
PREFERRED MEMBERS' INTEREST, REDEEMABLE
DISTRIBUTIONS (180,544)
--------------- -------------- --------------- ----------------
NET LOSS TO COMMON MEMBERS' INTEREST $ (1,592,676) $ (5,594,624) $ (45,075,148) $ (12,742,334)
=============== ============== =============== ================
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 December 31, Segment Operating Earnings
Year Ended December 31,
2004 2003 2004 2003
---- ---- ---- ----
General corporate $ (513) $ 0 $ (927) $ 0
Diamond Jo 4,329 4,331 16,700 18,003
Evangeline Downs 4,232 268 17,282 1,105
------------ ------------ ------------ ------------
Total Segment Operating Earnings (1) 8,048 4,599 33,055 19,108
General corporate:
Development expense........................... (242) (242)
Management severance and recruiting........... (7) (108)
Diamond Jo:
Depreciation and amortization................. (881) (390) (2,678) (2,500)
Development expense........................... 130 (102) (102)
Management severance and recruiting........... (4) (294)
Interest expense, net......................... (2,421) (2,796) (19,089) (11,050)
Gain (loss) on disposal of assets............. 515 54 498 (50)
Preferred member distributions................ (181)
Evangeline Downs:
Depreciation and amortization................. (2,629) (599) (9,677) (824)
Pre-opening expense........................... (110) (2,540) (367) (3,257)
Management severance and recruiting........... (12) (191)
Affiliate management fees..................... (81) (44) (757) (175)
Interest expense, net......................... (4,117) (3,777) (45,443) (13,711)
Gain on disposal of assets.................... 218 218
------------ ------------ ------------ ------------
Net loss to common members' interest.......... $ (1,593) $ (5,595) $ (45,075) $ (12,742)
============ ============ ============ ============
(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 gain or loss on disposal of assets.
Contacts:
Peninsula Gaming, LLC
Natalie A. Schramm, 563-690-2120