EXHIBIT 99
FOR IMMEDIATE RELEASE
CONTACT:
JON S. BENNETT
VICE PRESIDENT AND
CHIEF FINANCIAL OFFICER
MAJESTIC STAR CASINO
(702) 388-2224
MAJESTIC STAR CASINO ANNOUNCES
SECOND QUARTER 2003 RESULTS
AUGUST 13, 2003, GARY, IND. -- The Majestic Star Casino, LLC (the "Company")
today announced financial results for the three- and six-month periods ended
June 30, 2003. The Company is a multi-jurisdictional gaming company that
directly owns and operates one dockside gaming facility located in Gary, Indiana
("Majestic Star") and, through its unrestricted subsidiary, Majestic Investor
Holdings, LLC ("Holdings"), three Fitzgeralds brand casinos located in Tunica,
Mississippi ("Fitzgeralds Tunica" or "Barden Mississippi Gaming, LLC"), Black
Hawk, Colorado ("Fitzgeralds Black Hawk" or "Barden Colorado Gaming, LLC") and
downtown Las Vegas, Nevada ("Fitzgeralds Las Vegas" or "Barden Nevada Gaming,
LLC").
Majestic Star (Gary Property)
Net loss for the three-month period ended June 30, 2003 for Majestic Star was
approximately $651,000, compared to net income of approximately $1.1 million in
the same period last year, a decline of approximately $1.8 million. The decrease
in net income is principally attributable to $2.8 million in incremental gaming
taxes. During the second quarter, Majestic Star recorded an additional $2.1
million of retroactive gaming tax required by recent legislation in the State of
Indiana, which changed the effective dates of Indiana's tiered gaming tax
structure. Net revenues for the three-month period ended June 30, 2003 were
approximately $34.3 million, compared to approximately $32.4 million for the
same period last year, an increase of $1.9 million.
Operating income for the three-month period ended June 30, 2003 was
approximately $2.9 million, compared to approximately $4.7 million in the same
period last year, a decrease of approximately $1.8 million. The decrease in
operating income is primarily attributable to the recognition of the retroactive
charge of approximately $2.1 million in incremental gaming taxes being reflected
in the second quarter as previously discussed.
-more-
MAJESTIC STAR ANNOUNCES Page 2
SECOND QUARTER 2003 RESULTS
Net income for the six-month period ended June 30, 2003 for Majestic Star was
approximately $1.4 million, compared to approximately $2.1 million in the same
period last year, a decrease of approximately $710,000. Net revenues for the
six-month period ended June 30, 2003 were approximately $70.2 million, compared
to approximately $64.2 million for the same period last year, an increase of
$6.0 million. Operating income for the six-month period ended June 30, 2003 was
approximately $8.7 million compared to approximately $9.4 million in the same
period last year, a decrease of approximately $685,000. The decrease in net
income and operating income for the six-month period ended June 30, 2003 is
primarily attributable to the recognition of the retroactive tax charge of
approximately $2.1 million as previously discussed.
EBITDA (defined as earnings from operations before interest, taxes, depreciation
and amortization) for Majestic Star was approximately $7.0 million and
approximately $14.8 million during the three and six months ended June 30, 2003,
before the $2.1 million of incremental retroactive gaming taxes, compared to
approximately $7.0 million and $13.9 million in the prior year periods. EBITDA
for the three- and six-month periods ended June 30, 2003 included $422,000 and
$1,022,000, respectively, for corporate expenditures allocated to the Gary
property, compared to $432,000 and $633,000, respectively, in the prior year
periods. During the three- and six-month periods ended June 30, 2003, the
Company also incurred $512,000 and $1,028,000, respectively, for parking garage
lease expense. For the comparable three and six month periods in 2002, Majestic
Star incurred parking garage lease expenses of $127,000. The parking garage
opened in May, 2002. EBITDA is presented solely as a supplemental disclosure
because management believes that it is a widely used measure of operating
performance in the gaming industry, and a principal basis for valuation of
gaming companies. Management uses EBITDA as a measure of the Company's operating
performance. Other companies may calculate EBITDA differently. EBITDA should not
be construed as an alternative to operating income, as an indicator of the
Company's operating performance, or as an alternative to cash flow from
operating activities, as a measure of liquidity, or as any other measure
determined in accordance with generally accepted accounting principles of the
United States of America. The Company has significant uses of cash including
capital expenditures, interest payments, taxes and debt principal repayments,
which are not reflected in EBITDA. A reconciliation of operating income (loss)
to EBITDA is included in the financial schedules accompanying this release.
Don H. Barden, the Company's Chairman and CEO stated, "the second quarter of
2003 presented us with a challenging operating environment. The war with Iraq
together with a soft economy constrained our revenue growth. Despite these
factors, net revenues grew
-more-
MAJESTIC STAR ANNOUNCES Page 3
SECOND QUARTER 2003 RESULTS
$1.9 million. Our operating results, however, were negatively impacted by gaming
tax legislation that required us to take a $2.1 million charge in the second
quarter. Majestic Star, with Indiana Gaming Commission approval, began operating
the casino 24 hours a day on July 11, 2003. We believe around the clock casino
action will create greater convenience for our casino guests. Guests will now be
able to play as long as they choose. Previously, our casino shut down from 5
a.m. to 8 a.m. daily."
The following table reflects casino revenues, gaming devices, win per gaming
device and win per state passenger count for the three- and six-month periods
ended June 30, 2003 and June 30, 2002.
($ in millions, except for win per gaming unit and win per state passenger
count)
THREE MONTHS ENDED JUNE 30, INCREASE % INCREASE
2003 2002 (DECREASE) (DECREASE)
------- ------- ---------- ----------
Casino revenues $ 33.6 $ 31.6 $ 2.0 6.3 %
Slot revenues $ 28.4 27.5 $ 0.9 3.3 %
Table game revenues $ 5.2 4.1 $ 1.1 26.8 %
Average number of slot machines 1,545 1,519 26 1.7 %
Average win per slot machine per day $ 202 $ 199 $ 3 1.5 %
Average number of table games 54 52 2 3.8 %
Average win per table game per day $ 1,068 $ 872 $ 196 22.5 %
Average daily win per state passenger $ 84 $ 70 $ 14 20.0 %
SIX MONTHS ENDED JUNE 30, INCREASE % INCREASE
2003 2002 (DECREASE) (DECREASE)
------- ------- --------- ----------
Casino revenues $ 68.9 $ 62.8 $ 6.1 9.7 %
Slot revenues $ 57.7 $ 54.1 $ 3.6 6.7 %
Table game revenues $ 11.2 $ 8.7 $ 2.5 28.7 %
Average number of slot machines 1,544 1,473 71 4.8 %
Average win per slot machine per day $ 207 $ 203 $ 4 2.0 %
Average number of table games 55 52 3 5.8 %
Average win per table game per day $ 1,128 $ 931 $ 197 21.2 %
Average daily win per state passenger $ 86 $ 70 $ 16 22.9 %
-more-
MAJESTIC STAR ANNOUNCES Page 4
SECOND QUARTER 2003 RESULTS
Capital expenditures for the three and six-month periods ending June 30, 2003
were approximately $1,413,000 and approximately $2,336,000, respectively.
Majestic Star is also in the process of transitioning to Ticket-In, Ticket-Out
("TITO") slot machines as part of its overall maintenance capital plan based on
the anticipated efficiencies from TITO, as well as customer preference for TITO.
As of June 30, 2003, 220 slot machines were equipped with the TITO technology.
Majestic Star anticipates having approximately 800 TITO slot machines by year
end and replacing or converting the majority of its remaining slot machines by
year end 2004. Majestic Star also plans to implement new slot monitoring and
casino management systems during the second half of 2003. We believe these two
new systems together with TITO will enhance the overall guest experience and
allow better tracking of customer preferences.
As of June 30, 2003, Majestic Star had approximately $17.8 million in cash on
hand, and had no borrowings under its $20.0 million credit facility. As of June
30, 2003, Majestic Star had total debt outstanding of $130.0 million of 10-7/8%
Senior Secured Notes (the "Star Notes") and net debt of approximately $112.2
million. The Star Notes are secured by the Majestic Star assets only, are
independent of the 11.653% Senior Secured Notes issued by Holdings (the
"Holdings Notes"), and are not secured by the Fitzgeralds properties acquired by
Holdings.
Majestic Investor Holdings (Fitzgeralds Properties)
On a consolidated basis, for the three-month period ended June 30, 2003,
Holdings had a net loss of approximately $1.0 million, compared to a net loss of
approximately $1.2 million in the same period last year, an improvement of
approximately $190,000. Consolidated net revenues for the three months ended
June 30, 2003 were approximately $43.2 million, compared to approximately $44.5
million in the same three-month period last year, a decrease of approximately
$1.3 million. Consolidated operating income for both the three-month periods
ended June 30, 2003 and June 30, 2002 was approximately $3.4 million.
Consolidated EBITDA was approximately $7.1 million, compared to EBITDA of
approximately $6.9 million in the same three-month period last year, an increase
of approximately $242,000.
On a consolidated basis, for the six-month period ended June 30, 2003, Holdings
had a net loss of approximately $29,000, compared to a net loss of approximately
$174,000 in the same period last year, an improvement of approximately $145,000.
Consolidated net revenues for the six months ended June 30, 2003 were
approximately $86.4 million, compared to approximately $90.8 million in the same
six-month period last year, a
-more-
MAJESTIC STAR ANNOUNCES Page 5
SECOND QUARTER 2003 RESULTS
decrease of approximately $4.4 million. Consolidated operating income for the
six-month period ended June 30, 2003 was approximately $8.8 million, compared to
approximately $8.9 million in the same six-month period last year, a decrease of
approximately $114,000. Consolidated EBITDA was approximately $16.1 million,
compared to EBITDA of approximately $15.8 million in the same six-month period
last year, an increase of approximately $368,000.
Capital expenditures for the three and six-month periods ending June 30, 2003
were approximately $2,424,000 and $3,487,000, respectively. Capital expenditures
primarily consist of gaming and non-gaming equipment. The Company also plans to
implement a new casino management system at Fitzgeralds Tunica later this year
and has introduced TITO on a limited basis at its Fitzgeralds Las Vegas
property.
Mr. Barden stated that, "through continuation of our cost containment strategies
we've been able to improve EBITDA on a consolidated basis despite the
challenging environment. Poor weather in Colorado, the war with Iraq and soft
economic conditions impacted our revenue results. However, we continue to
believe that as economic conditions improve so will our revenues and overall
operating results."
The following tables reflect operating income, EBITDA, casino revenues, gaming
devices, win per gaming device and, hotel statistical information (except for
Fitzgeralds Black Hawk), for the three- and six-month periods ended June 30,
2003 and June 30, 2002 at our Fitzgeralds properties.
-more-
MAJESTIC STAR ANNOUNCES Page 6
SECOND QUARTER 2003 RESULTS
($ in millions, except for win per gaming unit, hotel occupancy and hotel
average daily rate)
FITZGERALDS TUNICA
THREE MONTHS ENDED JUNE 30, INCREASE % INCREASE
2003 2002 (DECREASE) (DECREASE)
------- ------- ---------- -----------
Operating income $ 2.9 $ 3.3 $ (0.4) (12.1)%
EBITDA $ 4.8 $ 5.1 $ (0.3) (5.9)%
Net revenues $ 22.7 $ 23.6 $ (0.9) (3.8)%
Casino revenues $ 21.4 $ 22.3 $ (0.9) (4.0)%
Slot revenues $ 19.4 $ 20.0 $ (0.6) (3.0)%
Table game revenues $ 2.0 $ 2.3 $ (0.3) (13.0)%
Average number of slot machines 1,350 1,377 (27) (2.0)%
Average win per slot machine per day $ 158 $ 159 $ (1) (0.6)%
Average number of table games 34 35 (1) (2.9)%
Average win per table game per day $ 661 $ 743 $ (82) (11.0)%
Hotel occupancy 92.3% 92.0% 0.3% 0.3 %
Hotel average daily rate $ 46 $ 49 $ (3) (6.1)%
SIX MONTHS ENDED JUNE 30, INCREASE % INCREASE
2003 2002 (DECREASE) (DECREASE)
------- ------- --------- -----------
Operating income $ 7.4 $ 7.9 $ (0.5) (6.3)%
EBITDA $ 11.3 $ 11.6 $ (0.3) (2.6)%
Net revenues $ 45.7 $ 47.9 $ (2.2) (4.6)%
Casino revenues $ 43.2 $ 45.7 $ (2.5) (5.5)%
Slot revenues $ 39.0 $ 40.8 $ (1.8) (4.4)%
Table game revenues $ 4.2 $ 4.9 $ (0.7) (14.3)%
Average number of slot machines 1,349 1,379 (30) (2.2)%
Average win per slot machine per day $ 160 $ 164 $ (4) (2.4)%
Average number of table games 34 34 - - %
Average win per table game per day $ 679 $ 778 $ (99) (12.7)%
Hotel occupancy 91.3% 93.8% (2.5)% (2.7)%
Hotel average daily rate $ 47 $ 49 $ (2) (4.1)%
-more-
MAJESTIC STAR ANNOUNCES Page 7
SECOND QUARTER 2003 RESULTS
($ in millions, except for win per gaming unit)
FITZGERALDS BLACK HAWK
THREE MONTHS ENDED JUNE 30, INCREASE % INCREASE
2003 2002 (DECREASE) (DECREASE)
------ ------ ---------- ----------
Operating income $ 1.6 $ 1.5 $ 0.1 6.7 %
EBITDA $ 2.0 $ 1.9 $ 0.1 5.3 %
Net revenues $ 8.5 $ 8.3 $ 0.2 2.4 %
Casino revenues $ 8.8 $ 8.6 $ 0.2 2.3 %
Slot revenues $ 8.6 $ 8.4 $ 0.2 2.4 %
Table game revenues $ 0.2 $ 0.2 $ - - %
Average number of slot machines 592 594 (2) (0.3)%
Average win per slot machine per day $ 160 $ 156 $ 4 2.6 %
Average number of table games 6 6 - - %
Average win per table game per day $ 306 $ 276 $ 30 10.9 %
SIX MONTHS ENDED JUNE 30, INCREASE % INCREASE
2003 2002 (DECREASE) (DECREASE)
------ ------ ---------- ----------
Operating income $ 2.8 $ 2.8 $ - - %
EBITDA $ 3.6 $ 3.5 $ 0.1 2.9 %
Net revenues $ 16.5 $ 17.3 $ (0.8) (4.6)%
Casino revenues $ 16.9 $ 17.8 $ (0.9) (5.1)%
Slot revenues $ 16.6 $ 17.4 $ (0.8) (4.6)%
Table game revenues $ 0.3 $ 0.3 $ - - %
Average number of slot machines 592 594 (2) (0.3)%
Average win per slot machine per day $ 155 $ 162 $ (7) (4.3)%
Average number of table games 6 6 - - %
Average win per table game per day $ 288 $ 320 $ (32) (10.0)%
-more-
MAJESTIC STAR ANNOUNCES Page 8
SECOND QUARTER 2003 RESULTS
($ in millions, except for win per gaming unit, hotel occupancy and hotel
average daily rate)
FITZGERALDS LAS VEGAS
THREE MONTHS ENDED JUNE 30, INCREASE % INCREASE
2003 2002 (DECREASE) (DECREASE)
------ ------ ---------- ----------
Operating loss $ (0.3) $ (0.7) $ 0.4 57.1 %
EBITDA $ 0.4 $ - $ 0.4 N/A %
Net revenues $ 11.9 $ 12.6 $ (0.7) (5.6)%
Casino revenues $ 9.3 $ 9.6 $ (0.3) (3.1)%
Slot revenues $ 6.9 $ 7.6 $ (0.7) (9.2)%
Table game revenues $ 2.4 $ 2.0 $ 0.4 20.0 %
Average number of slot machines 888 873 15 1.7 %
Average win per slot machine per day $ 86 $ 95 $ (9) (9.5)%
Average number of table games 26 24 2 8.3 %
Average win per table game per day $ 891 $ 776 $ 115 14.8 %
Hotel occupancy 81.3 % 93.4 % (12.1)% (13.0)%
Hotel average daily rate $ 34 $ 34 $ - - %
SIX MONTHS ENDED JUNE 30, INCREASE % INCREASE
2003 2002 (DECREASE) (DECREASE)
------ ------ ---------- ----------
Operating loss $ (0.1) $ (0.4) $ 0.3 75.0 %
EBITDA $ 1.3 $ 0.8 $ 0.5 62.5 %
Net revenues $ 24.3 $ 25.6 $ (1.3) (5.0)%
Casino revenues $ 18.8 $ 19.3 $ (0.5) (2.6)%
Slot revenues $ 13.8 $ 14.9 $ (1.1) (7.4)%
Table game revenues $ 5.0 $ 4.4 $ 0.6 13.6 %
Average number of slot machines 890 907 (17) (1.9)%
Average win per slot machine per day $ 86 $ 91 $ (5) (5.5)%
Average number of table games 25 24 1 4.2 %
Average win per table game per day $ 960 $ 896 $ 64 7.1 %
Hotel occupancy 81.5 % 89.1 % (7.6)% (8.5)%
Hotel average daily rate $ 37 $ 37 $ - - %
On a consolidated basis, Holdings ended the six-month period ending June 30,
2003 with approximately $16.1 million in cash and cash equivalents after making
an interest payment on May 31, 2003 on the Holdings Notes of approximately $8.8
million. As of June 30, 2003, Holdings had total debt outstanding of
approximately $151.8 million of Holding Notes and net debt of approximately
$135.6 million. Holdings also had no borrowings under its $15.0 million credit
facility.
-more-
MAJESTIC STAR ANNOUNCES Page 9
SECOND QUARTER 2003 RESULTS
This press release includes statements that constitute "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and
are subject to the safe harbor provisions of those sections and the Private
Securities Litigation Reform Act of 1995. Words such as "believes",
"anticipates", "estimates", "plans", "intends", "expects", "will" or "could"
used in the Company's and Holdings' press releases and reports filed with the
Securities and Exchange Commission are intended to identify forward-looking
statements. All forward-looking statements involve risks and uncertainties.
Although each of the Company and Holdings believes its expectations are based
upon reasonable assumptions within the bounds of its current knowledge of its
business and operations, there can be no assurances that actual results will not
materially differ from expected results. The Company and Holdings caution that
these and similar statements included in this press release and in previously
filed periodic reports are further qualified by important factors that could
cause actual results to differ materially from those in the forward-looking
statements. Such factors include, without limitation: the risk of the Company's
joint venture partner not making its lease payments when due in connection with
the parking facility at Majestic Star; the ability to fund planned development
needs and to service debt from existing operations and from new financing;
increased competition in existing markets or the opening of new gaming
jurisdictions; a decline in the public acceptance of gaming; the limitation,
conditioning or suspension of our gaming licenses; increases in or new taxes
imposed on gaming revenues, admissions and gaming devices; a finding of
unsuitability by regulatory authorities with respect to the Company, Holdings or
their officers or key employees; loss and/or retirement of key employees;
significant increase in fuel or transportation prices; adverse economic
conditions in the Company's or Holdings' markets; severe and unusual weather in
the Company's or Holdings' markets; adverse results of significant litigation
matters; non-renewal of the Company's or Holdings' gaming licenses from the
appropriate governmental authorities; and continuing effects of terrorist
attacks and any future occurrences of terrorist attacks or other destabilizing
events.
For more information on these and other factors, see the Company's and Holdings'
most recently filed Form 10-Ks. We caution readers not to place undue reliance
on forward-looking statements, which speak only as of the date hereof. All
subsequent written and oral forward-looking statements attributable to us are
expressly qualified in their entirety by the cautionary statements and factors
that may affect future results contained throughout this press release. Neither
the Company nor Holdings undertakes any obligation to publicly release any
revisions to such forward-looking statements to reflect events or circumstances
after the date hereof.
The Company and Holdings make available free of charge their annual reports on
Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and all
amendments to those reports as soon as reasonably practicable after such
material is electronically filed with or furnished to the Securities and
Exchange Commission. In addition, you may obtain a copy of such filings at
www.sec.gov or from the applicable web site, www.majesticstar.com or
www.fitzgeralds.com.
(Condensed Statements of Operations, Reconciliation of GAAP earnings to EBITDA
and Other Statistical Data attached).
##
THE MAJESTIC STAR CASINO, LLC
STATEMENTS OF OPERATIONS (GARY PROPERTY ONLY)
(UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, FOR THE SIX MONTHS ENDED JUNE 30,
2003 2002 2003 2002
-------------- --------------- --------------- ---------------
REVENUES:
Casino $ 33,598,792 $ 31,640,532 $ 68,930,965 $ 62,779,197
Food and beverage 343,563 402,014 735,485 835,159
Other 629,151 548,852 1,199,949 945,183
-------------- --------------- --------------- ---------------
Gross revenues 34,571,506 32,591,398 70,866,399 64,559,539
Less promotional allowances (320,055) (191,249) (639,526) (407,009)
-------------- --------------- --------------- ---------------
Net revenues 34,251,451 32,400,149 70,226,873 64,152,530
COSTS AND EXPENSES:
Casino 9,130,864 7,926,459 17,933,934 15,433,730
Food and beverage 419,726 418,917 803,588 870,475
Gaming taxes (1) 11,427,754 8,649,780 21,168,527 17,226,612
Advertising and promotion 1,487,895 1,508,823 3,202,880 2,923,325
General and administrative 5,878,410 5,984,860 12,363,452 11,888,846
Economic incentive - City of Gary 1,011,164 948,882 2,071,411 1,887,142
Depreciation and amortization 1,989,766 2,284,216 4,007,882 4,561,854
-------------- --------------- --------------- ---------------
Total costs and expenses 31,345,579 27,721,937 61,551,674 54,791,984
-------------- --------------- --------------- ---------------
Operating income 2,905,872 4,678,212 8,675,199 9,360,546
OTHER INCOME (EXPENSE):
Interest income 15,935 8,292 30,092 16,166
Interest expense (3,534,451) (3,526,978) (7,068,889) (7,175,603)
Gain (loss) on disposal of assets (1,199) 8,850 (125,919) 8,850
Other non-operating expense (37,219) (31,415) (75,554) (64,916)
-------------- --------------- --------------- ---------------
Total other expense (3,556,934) (3,541,251) (7,240,270) (7,215,503)
-------------- --------------- --------------- ---------------
Net income (loss) $ (651,062) $ 1,136,961 $ 1,434,929 $ 2,145,043
============== =============== =============== ===============
RECONCILIATION OF OPERATING INCOME TO EBITDA
Operating income (1) $ 2,905,872 $ 4,678,212 $ 8,675,199 $ 9,360,546
Depreciation and amortization 1,989,766 2,284,216 4,007,882 4,561,854
-------------- --------------- --------------- ---------------
EBITDA (2) $ 4,895,638 $ 6,962,428 $ 12,683,081 $ 13,922,400
============== =============== =============== ===============
(1) Gaming taxes in the Statement of Operations and in the Reconciliation
of Operating Income to EBITDA contain a retroactive charge of
$2,072,000 for the three and six months ended June 30, 2003. The
charge relates to the recognition of additional gaming tax liability
associated with the State of Indiana's clarification of the start date
for paying gaming taxes under the current tiered tax structure.
Indiana's clarification now provides that a casino operating dockside
would pay taxes under the tiered structure effective July 1, 2002.
Previously, Majestic Star began paying taxes under the tiered tax
structure the date it commenced dockside gaming on August 5, 2002.
(2) EBITDA is presented solely as a supplemental disclosure because
management believes that it is a widely used measure of operating
performance in the gaming industry, and a principal basis for
valuation of gaming companies. Management uses EBITDA as a measure of
the Company's operating performance. Other companies may calculate
EBITDA differently. EBITDA should not be construed as an alternative
to operating income, as an indicator of the Company's operating
performance or as an alternative to cash flow from operating
activities, as a measure of liquidity, or as any other measure
determined in accordance with generally accepted accounting
principles. The Company has significant uses of cash including capital
expenditures, interest payments, taxes and debt principal repayments,
which are not reflected in EBITDA.
MAJESTIC INVESTOR HOLDINGS, LLC
CONSOLIDATING STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2003
(UNAUDITED)
BARDEN BARDEN BARDEN
MISSISSIPPI COLORADO NEVADA
PARENT GAMING, LLC GAMING, LLC GAMING, LLC CONSOLIDATED
----------- ------------ ----------- ----------- -------------
REVENUES:
Casino $ - $ 21,430,097 $ 8,773,386 $ 9,337,991 $ 39,541,474
Rooms - 1,960,836 - 1,624,077 3,584,913
Food and beverage - 2,292,361 506,613 1,955,873 4,754,847
Other - 355,725 64,494 412,419 832,638
----------- ------------ ----------- ----------- -------------
Gross revenues - 26,039,019 9,344,493 13,330,360 48,713,872
Less promotional allowances - (3,350,861) (809,833) (1,383,736) (5,544,430)
----------- ------------ ----------- ----------- -------------
Net revenues - 22,688,158 8,534,660 11,946,624 43,169,442
----------- ------------ ----------- ----------- -------------
COSTS AND EXPENSES:
Casino - 9,625,916 2,899,532 4,086,540 16,611,988
Rooms - 660,398 - 980,889 1,641,287
Food and beverage - 692,629 265,982 1,605,539 2,564,150
Other - 109,983 157,504 142,962 410,449
Gaming taxes - 2,365,428 1,372,942 720,937 4,459,307
Advertising and promotion - 1,452,453 625,558 1,214,523 3,292,534
General and administrative 22,687 2,961,635 1,242,489 2,817,544 7,044,355
Depreciation and amortization 665,819 1,928,336 411,700 702,699 3,708,554
----------- ------------ ----------- ----------- -------------
Total costs and expenses 688,506 19,796,778 6,975,707 12,271,633 39,732,624
----------- ------------ ----------- ----------- -------------
Operating income (loss) (688,506) 2,891,380 1,558,953 (325,009) 3,436,818
----------- ------------ ----------- ----------- -------------
OTHER INCOME (EXPENSE):
Interest income 6,973 3,358 - 871 11,202
Interest expense (4,421,439) - - (5,556) (4,426,995)
Gain on disposal of assets - 5,700 4,261 - 9,961
Other non-operating expense (9,421) - - - (9,421)
----------- ------------ ----------- ----------- -------------
Total other income (expense) (4,423,887) 9,058 4,261 (4,685) (4,415,253)
----------- ------------ ----------- ----------- -------------
Net income (loss) $(5,112,393) $ 2,900,438 $ 1,563,214 $ (329,694) $ (978,435)
=========== ============ =========== =========== =============
RECONCILIATION OF OPERATING INCOME TO EBITDA
Operating income $ (688,506) $ 2,891,380 $ 1,558,953 $ (325,009) $ 3,436,818
Depreciation and amortization 665,819 1,928,336 411,700 702,699 3,708,554
----------- ------------ ----------- ----------- -------------
EBITDA (1) $ (22,687) $ 4,819,716 $ 1,970,653 $ 377,690 $ 7,145,372
=========== ============ =========== =========== =============
(1) EBITDA is presented solely as a supplemental disclosure because
management believes that it is a widely used measure of operating
performance in the gaming industry, and a principal basis for valuation
of gaming companies. Management uses EBITDA as a measure of the
Company's operating performance. Other companies may calculate EBITDA
differently. EBITDA should not be construed as an alternative to
operating income, as an indicator of the Company's operating performance
or as an alternative to cash flow from operating activities, as a
measure of liquidity, or as any other measure determined in accordance
with generally accepted accounting principles. The Company has
significant uses of cash including capital expenditures, interest
payments, taxes and debt principal repayments, which are not reflected
in EBITDA.
MAJESTIC INVESTOR HOLDINGS, LLC
CONSOLIDATING STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2002
(UNAUDITED)
BARDEN BARDEN BARDEN
MISSISSIPPI COLORADO NEVADA
PARENT GAMING, LLC GAMING, LLC GAMING, LLC CONSOLIDATED
-------------- ----------- ----------- ----------- -------------
REVENUES:
Casino $ - $22,299,988 $ 8,556,874 $ 9,569,479 $ 40,426,341
Rooms - 2,075,539 - 1,863,336 3,938,875
Food and beverage - 2,314,354 452,951 2,119,439 4,886,744
Other - 385,403 58,654 533,455 977,512
-------------- ----------- ----------- ----------- -------------
Gross revenues - 27,075,284 9,068,479 14,085,709 50,229,472
Less promotional allowances - (3,501,279) (755,589) (1,497,430) (5,754,298)
-------------- ----------- ----------- ----------- -------------
Net revenues - 23,574,005 8,312,890 12,588,279 44,475,174
-------------- ----------- ----------- ----------- -------------
COSTS AND EXPENSES:
Casino - 9,863,864 2,734,007 4,677,528 17,275,399
Rooms - 919,408 - 944,401 1,863,809
Food and beverage - 794,577 270,474 1,878,540 2,943,591
Other - 82,759 158,928 154,914 396,601
Gaming taxes - 2,653,370 1,362,580 763,124 4,779,074
Advertising and promotion - 1,542,658 841,754 1,269,726 3,654,138
General and administrative 118,377 2,571,693 1,051,794 2,910,853 6,652,717
Depreciation and amortization 646,178 1,835,362 363,668 647,942 3,493,150
Pre-opening expenses 6,103 - - - 6,103
-------------- ----------- ----------- ----------- -------------
Total costs and expenses 770,658 20,263,691 6,783,205 13,247,028 41,064,582
-------------- ----------- ----------- ----------- -------------
Operating income (loss) (770,658) 3,310,314 1,529,685 (658,749) 3,410,592
-------------- ----------- ----------- ----------- -------------
OTHER INCOME (EXPENSE):
Interest income 18,286 7,553 1,747 2,610 30,196
Interest expense (4,585,293) - (625) (7,553) (4,593,471)
Loss on disposal of assets - - (5,964) - (5,964)
Other non-operating expense (9,883) - - - (9,883)
-------------- ----------- ----------- ----------- -------------
Total other income (expense) (4,576,890) 7,553 (4,842) (4,943) (4,579,122)
-------------- ----------- ----------- ----------- -------------
Net income (loss) $ (5,347,548) $ 3,317,867 $ 1,524,843 $ (663,692) $ (1,168,530)
============== =========== =========== =========== =============
RECONCILIATION OF OPERATING INCOME (LOSS) TO EBITDA
Operating income (loss) $ (770,658) $ 3,310,314 $ 1,529,685 $ (658,749) $ 3,410,592
Depreciation and amortization 646,178 1,835,362 363,668 647,942 3,493,150
-------------- ----------- ----------- ----------- -------------
EBITDA (1) $ (124,480) $ 5,145,676 $ 1,893,353 $ (10,807) $ 6,903,742
============== =========== =========== =========== =============
(1) EBITDA is presented solely as a supplemental disclosure because
management believes that it is a widely used measure of operating
performance in the gaming industry, and a principal basis for
valuation of gaming companies. Management uses EBITDA as a measure of
the Company's operating performance. Other companies may calculate
EBITDA differently. EBITDA should not be construed as an alternative
to operating income, as an indicator of the Company's operating
performance or as an alternative to cash flow from operating
activities, as a measure of liquidity, or as any other measure
determined in accordance with generally accepted accounting
principles. The Company has significant uses of cash including capital
expenditures, interest payments, taxes and debt principal repayments,
which are not reflected in EBITDA.
MAJESTIC INVESTOR HOLDINGS, LLC
CONSOLIDATING STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2003
(UNAUDITED)
BARDEN BARDEN BARDEN
MISSISSIPPI COLORADO NEVADA
PARENT GAMING, LLC GAMING, LLC GAMING, LLC CONSOLIDATED
------------ ----------- ------------ ----------- -------------
REVENUES:
Casino $ - $43,240,166 $ 16,887,347 $18,849,668 $ 78,977,181
Rooms - 3,886,505 - 3,497,193 7,383,698
Food and beverage - 4,637,252 989,998 3,988,537 9,615,787
Other - 657,846 126,740 848,890 1,633,476
------------ ----------- ------------ ----------- -------------
Gross revenues - 52,421,769 18,004,085 27,184,288 97,610,142
Less promotional allowances - (6,768,253) (1,553,928) (2,839,360) (11,161,541)
------------ ----------- ------------ ----------- -------------
Net revenues - 45,653,516 16,450,157 24,344,928 86,448,601
------------ ----------- ------------ ----------- -------------
COSTS AND EXPENSES:
Casino - 18,530,793 5,469,104 8,170,809 32,170,706
Rooms - 1,263,235 - 1,923,948 3,187,183
Food and beverage - 1,327,314 548,038 3,186,998 5,062,350
Other - 191,201 328,457 300,399 820,057
Gaming taxes - 4,927,248 2,645,970 1,461,402 9,034,620
Advertising and promotion - 2,723,931 1,341,033 2,478,989 6,543,953
General and administrative 22,687 5,417,514 2,503,877 5,537,970 13,482,048
Depreciation and amortization 1,331,557 3,833,304 823,402 1,373,751 7,362,014
------------ ----------- ------------ ----------- -------------
Total costs and expenses 1,354,244 38,214,540 13,659,881 24,434,266 77,662,931
------------ ----------- ------------ ----------- -------------
Operating income (loss) (1,354,244) 7,438,976 2,790,276 (89,338) 8,785,670
------------ ----------- ------------ ----------- -------------
OTHER INCOME (EXPENSE):
Interest income 25,271 6,645 - 2,229 34,145
Interest expense (8,842,799) - - (12,286) (8,855,085)
Gain on disposal of assets - 20,700 4,261 - 24,961
Other non-operating expense (18,900) - - - (18,900)
------------ ----------- ------------ ----------- -------------
Total other income (expense) (8,836,428) 27,345 4,261 (10,057) (8,814,879)
------------ ----------- ------------ ----------- -------------
Net income (loss) $(10,190,672) $ 7,466,321 $ 2,794,537 $ (99,395) $ (29,209)
============ =========== ============ =========== =============
RECONCILIATION OF OPERATING INCOME TO EBITDA
Operating income $ (1,354,244) $ 7,438,976 $ 2,790,276 $ (89,338) $ 8,785,670
Depreciation and amortization 1,331,557 3,833,304 823,402 1,373,751 7,362,014
------------ ----------- ------------ ----------- -------------
EBITDA (1) $ (22,687) $11,272,280 $ 3,613,678 $ 1,284,413 $ 16,147,684
============ =========== ============ =========== =============
(1) EBITDA is presented solely as a supplemental disclosure because
management believes that it is a widely used measure of operating
performance in the gaming industry, and a principal basis for valuation
of gaming companies. Management uses EBITDA as a measure of the
Company's operating performance. Other companies may calculate EBITDA
differently. EBITDA should not be construed as an alternative to
operating income, as an indicator of the Company's operating performance
or as an alternative to cash flow from operating activities, as a
measure of liquidity, or as any other measure determined in accordance
with generally accepted accounting principles. The Company has
significant uses of cash including capital expenditures, interest
payments, taxes and debt principal repayments, which are not reflected
in EBITDA.
MAJESTIC INVESTOR HOLDINGS, LLC
CONSOLIDATING STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2002
(UNAUDITED)
BARDEN BARDEN BARDEN
MISSISSIPPI COLORADO NEVADA
PARENT GAMING, LLC GAMING, LLC GAMING, LLC CONSOLIDATED
-------------- ----------- ----------- ----------- -------------
REVENUES:
Casino $ - $45,656,947 $17,774,179 $19,349,966 $ 82,781,092
Rooms - 4,161,059 - 3,866,327 8,027,386
Food and beverage - 4,789,455 959,011 4,234,379 9,982,845
Other - 721,382 117,238 1,027,382 1,866,002
-------------- ----------- ----------- ----------- -------------
Gross revenues - 55,328,843 18,850,428 28,478,054 102,657,325
Less promotional allowances - (7,407,302) (1,575,761) (2,894,690) (11,877,753)
-------------- ----------- ----------- ----------- -------------
Net revenues - 47,921,541 17,274,667 25,583,364 90,779,572
-------------- ----------- ----------- ----------- -------------
COSTS AND EXPENSES:
Casino - 19,772,855 6,278,505 9,250,198 35,301,558
Rooms - 1,641,176 - 1,991,133 3,632,309
Food and beverage - 1,473,493 541,594 3,698,622 5,713,709
Other - 167,799 325,344 282,112 775,255
Gaming taxes - 5,432,706 2,845,663 1,520,459 9,798,828
Advertising and promotion - 2,908,449 1,575,144 2,467,081 6,950,674
General and administrative 122,582 4,971,168 2,192,851 5,527,316 12,813,917
Depreciation and amortization 1,272,525 3,615,275 727,336 1,265,029 6,880,165
Pre-opening expenses 13,390 - - - 13,390
-------------- ----------- ----------- ----------- -------------
Total costs and expenses 1,408,497 39,982,921 14,486,437 26,001,950 81,879,805
-------------- ----------- ----------- ----------- -------------
Operating income (loss) (1,408,497) 7,938,620 2,788,230 (418,586) 8,899,767
-------------- ----------- ----------- ----------- -------------
OTHER INCOME (EXPENSE):
Interest income 34,798 14,447 5,380 7,179 61,804
Interest expense (9,092,319) - (625) (15,914) (9,108,858)
Gain on disposal of assets - 6,542 (5,964) - 578
Other non-operating expense (27,375) - - - (27,375)
-------------- ----------- ----------- ----------- -------------
Total other income (expense) (9,084,896) 20,989 (1,209) (8,735) (9,073,851)
-------------- ----------- ----------- ----------- -------------
Net income (loss) $ (10,493,393) $ 7,959,609 $ 2,787,021 $ (427,321) $ (174,084)
============== =========== =========== =========== =============
RECONCILIATION OF OPERATING INCOME (LOSS) TO EBITDA
Operating income (loss) $ (1,408,497) $ 7,938,620 $ 2,788,230 $ (418,586) $ 8,899,767
Depreciation and amortization 1,272,525 3,615,275 727,336 1,265,029 6,880,165
-------------- ----------- ----------- ----------- -------------
EBITDA (1) $ (135,972) $11,553,895 $ 3,515,566 $ 846,443 $ 15,779,932
============== =========== =========== =========== =============
(1) EBITDA is presented solely as a supplemental disclosure because
management believes that it is a widely used measure of operating
performance in the gaming industry, and a principal basis for
valuation of gaming companies. Management uses EBITDA as a measure of
the Company's operating performance. Other companies may calculate
EBITDA differently. EBITDA should not be construed as an alternative
to operating income, as an indicator of the Company's operating
performance or as an alternative to cash flow from operating
activities, as a measure of liquidity, or as any other measure
determined in accordance with generally accepted accounting
principles. The Company has significant uses of cash including capital
expenditures, interest payments, taxes and debt principal repayments,
which are not reflected in EBITDA.