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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED) -- DECEMBER 22, 2000
BOCA RESORTS, INC.
(Exact Name of Registrant as Specified in its Charter)
DELAWARE 1-13173 65-0676005
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
501 EAST CAMINO REAL, BOCA RATON, FLORIDA 33432
(Address of Principal Executive Offices) (Zip Code)
Registrants Telephone Number, Including Area Code: (561) 447-5300
NOT APPLICABLE
Former Name or Former Address, if Changed Since Last Report
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ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS.
On December 22, 2000, Boca Resorts, Inc. (the "Company") executed a
definitive agreement and closed on the sale of the Arizona Biltmore Resort & Spa
(the "Biltmore") to KSL Recreation Corporation for $335 million, consisting of
$275.6 million in cash and the assumption of $59.4 million in indebtedness. The
Company received an additional $8.3 million in cash for the amount of working
capital (as defined in the Agreement of Purchase and Sale attached as an exhibit
hereto) available at the Biltmore on the date of closing.
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ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
PAGE
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(a) Financial Statements of Business Acquired
Not applicable
(b) Unaudited Pro forma Condensed Consolidated Financial
Statements
Introduction to Unaudited Pro forma Condensed Consolidated
Financial Statements...................................... 4
Unaudited Pro forma Condensed Consolidated Statement of
Operations for the Year Ended June 30, 2000............... 5
Unaudited Pro forma Condensed Consolidated Balance Sheet as
of September 30, 2000..................................... 6
Unaudited Pro forma Condensed Consolidated Statement of
Operations for the Three Months Ended September 30,
2000...................................................... 7
Notes to Unaudited Pro forma Condensed Consolidated
Financial Statements...................................... 8
(c) Exhibits
EXHIBIT NUMBER DESCRIPTION
-------------- -----------
Exhibit 99.1 Agreement of Purchase and Sale entered into December 22,
2000 by and between Biltmore Hotel Partners, LLLP and KSL
Recreation Corporation
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BOCA RESORTS, INC.
INTRODUCTION TO UNAUDITED PRO FORMA CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
The Company is an owner and operator of leisure and recreation businesses
and entertainment/sports businesses. The leisure and recreation business
currently consists of the ownership and operation of five luxury resorts with
hotels, conference facilities, golf courses, spas, marinas and private clubs.
The Company's resorts include: the Boca Raton Resort and Club (Boca Raton,
Florida), the Registry Resort at Pelican Bay (Naples, Florida), the Edgewater
Beach Hotel (Naples, Florida), the Hyatt Regency Pier 66 Hotel and Marina (Fort
Lauderdale, Florida), and the Radisson Bahia Mar Resort and Yachting Center
(Fort Lauderdale, Florida). The Company also owns and operates two championship
golf courses named Grande Oaks Golf Club (Davie, Florida) and Naples Grande Golf
Club (Naples, Florida).
The entertainment and sports business primarily includes the operations of
the Florida Panthers Hockey Club (the "Panthers"), a National Hockey League
("NHL") franchise and related arena management operations. The Panthers generate
revenue through the sale of tickets to Panthers' home games, the licensing of
local market television, cable network, and radio rights, from distributions
under revenue-sharing arrangements with the NHL covering national broadcasting
contracts, as well as other ancillary sources including expansion franchise
fees. In addition, the Company generates revenue through its participation in
the net operating income of the National Car Rental Center (a multi-purpose
entertainment and sports complex), where the Panthers play their home games.
On December 22, 2000 the Company executed a definitive agreement and closed
on the sale of the Arizona Biltmore Resort & Spa to KSL Recreation Corporation
for $335 million, consisting of $275.6 million in cash and the assumption of
$59.4 million in indebtedness. The Company received an additional $8.3 million
in cash for certain working capital adjustments. The gain on sale of the
Biltmore was nominal and as a non-recurring credit has been excluded from the
accompanying Pro forma Condensed Consolidated Financial Statements.
The Company intends to use the net proceeds of the asset sale to make
additional investments in its business, repay indebtedness, which may include
repurchases of a portion of the Company's outstanding 9.875% Senior Subordinated
Notes (the "Notes"), and for general corporate purposes.
For purposes of the accompanying pro forma financial information, it is
assumed that the Company will repay its indebtedness under secured revolving
credit facilities. The remaining net proceeds are assumed to be invested in
short-term instruments receiving the highest rating assigned by Standard and
Poor's Rating Services and/or Moody's Investor Services. Alternatively, if the
Company paid its credit line, retired the $98.5 million outstanding under a
mortgage note payable secured by the Boca Raton Resort and Club (the "Boca
Mortgage") and invested the excess cash, it would incur a nominal fee to unwind
an interest rate swap agreement relating to the Boca Mortgage. In the event the
Company elected to repurchase a portion of the outstanding Notes with the
proceeds from the asset sale, it would incur a non-cash extraordinary loss
(before taxes) on the early extinguishment of debt relating to the charge-off of
a portion of the $9.6 million in unamortized debt issuance costs previously
capitalized in connection with the issuance of the Notes.
SEASONALITY
The Company has historically experienced, and expects to continue to
experience, seasonal fluctuations in its gross revenue and net earnings. Peak
season at its resorts extends from January through April, while regular season
for the Panthers commences in October and ends in April.
GENERAL
The unaudited pro forma financial statements included herein, reflect
adjustments to the Company's historical results of operations to give effect to
the sale of the Arizona Biltmore Resort & Spa as if such transaction had been
consummated at the beginning of the periods presented.
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BOCA RESORTS, INC.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED JUNE 30, 2000
(IN THOUSANDS, EXCEPT PER SHARE DATA)
SALE OF
BOCA ARIZONA
RESORTS, BILTMORE DISPOSITION
INC. RESORT & SPA ADJUSTMENTS PRO FORMA
-------- ------------ ----------- ---------
Revenue:
Leisure and recreation............................ $361,360 $(93,616) $ -- $267,744
Entertainment and sports.......................... 60,187 -- -- 60,187
-------- -------- ------- --------
Total revenue............................. 421,547 (93,616) -- 327,931
Operating expenses:
Cost of leisure and recreation services........... 156,620 (35,558) -- 121,062
Cost of entertainment and sports services......... 56,866 -- -- 56,866
Selling, general and administrative expenses...... 109,271 (23,247) (936)(a) 85,088
Amortization and depreciation..................... 36,334 (8,739) -- 27,595
-------- -------- ------- --------
Total operating expenses.................. 359,091 (67,544) (936) 290,611
-------- -------- ------- --------
Operating income.................................... 62,456 (26,072) 936 37,320
Interest and other income........................... 8,709 -- 13,453(b) 22,162
Interest and other expense.......................... (57,524) 5,017 5,254(c) (47,253)
Minority interest................................... (155) -- -- (155)
-------- -------- ------- --------
Net income(d)............................. $ 13,486 $(21,055) $19,643 $ 12,074
======== ======== ======= ========
Basic and diluted net income per share.............. $ 0.33 $ 0.30
======== ========
Shares used in computing net income per
share -- basic.................................... 40,861 40,861
======== ========
Shares used in computing net income per
share -- diluted.................................. 40,868 40,868
======== ========
The accompanying notes are an integral part of this statement.
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BOCA RESORTS, INC.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
AS OF SEPTEMBER 30, 2000
(IN THOUSANDS)
SALE OF
BOCA ARIZONA
RESORTS, BILTMORE REPAY
INC. RESORT & SPA INDEBTEDNESS PRO FORMA
---------- ------------ ------------ ----------
ASSETS
Current assets:
Cash and cash equivalents.................. $ 13,269 $ 275,479 $(43,569)(e) $ 245,179
Restricted cash............................ 37,975 (3,996) -- 33,979
Accounts receivable, net................... 25,951 (4,478) -- 21,473
Inventory.................................. 8,571 (1,496) -- 7,075
Current portion of Premier Club notes
receivable.............................. 4,308 -- -- 4,308
Other current assets....................... 7,273 (353) -- 6,920
---------- --------- -------- ----------
Total current assets............... 97,347 265,156 (43,569) 318,934
Property and equipment, net.................. 1,068,549 (290,420) -- 778,129
Intangible assets, net....................... 108,770 (48,043) -- 60,727
Long-term portion of Premier Club notes
receivable................................. 7,454 -- -- 7,454
Other assets................................. 28,075 (54) -- 28,021
---------- --------- -------- ----------
Total assets....................... $1,310,195 $ (73,361) $(43,569) $1,193,265
========== ========= ======== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses...... $ 61,229 $ (4,305) $ -- $ 56,924
Current portion of deferred revenue........ 67,982 (9,384) -- 58,598
Current portion of credit lines and notes
payable................................. 129,876 (1,548) -- 128,328
Other current liabilities.................. 7,659 -- -- 7,659
---------- --------- -------- ----------
Total current liabilities.......... 266,746 (15,237) -- 251,509
Credit lines and notes payable............... 102,194 (58,124) (43,569)(e) 501
Premier Club refundable membership fees...... 59,818 -- -- 59,818
Deferred revenue, net of current portion..... 29,641 -- -- 29,641
Other non-current liabilities................ 1,543 -- -- 1,543
Deferred income taxes payable................ 35,918 -- -- 35,918
Senior subordinated notes payable............ 340,000 -- -- 340,000
Shareholders' equity:
Class A Common Stock, $0.01 par value...... 406 -- -- 406
Class B Common Stock, $0.01 par value...... 3 -- -- 3
Contributed capital........................ 484,574 -- -- 484,574
Accumulated deficit........................ (10,648) -- -- (10,648)
---------- --------- -------- ----------
Total shareholders' equity......... 474,335 -- -- 474,335
---------- --------- -------- ----------
Total liabilities and shareholders'
equity........................... $1,310,195 $ (73,361) $(43,569) $1,193,265
========== ========= ======== ==========
The accompanying notes are an integral part of this statement.
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BOCA RESORTS, INC.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000
(IN THOUSANDS, EXCEPT PER SHARE DATA)
SALE OF
BOCA ARIZONA
RESORTS, BILTMORE DISPOSITION
INC. RESORT & SPA ADJUSTMENTS PRO FORMA
-------- ------------ ----------- ---------
Revenue:
Leisure and recreation......................... $ 59,585 $(14,494) $ -- $ 45,091
Entertainment and sports....................... 2,403 -- -- 2,403
-------- -------- ------ --------
Total revenue.......................... 61,988 (14,494) -- 47,494
Operating expenses:
Cost of leisure and recreation services........ 32,919 (7,169) -- 25,750
Cost of entertainment and sports services...... 4,645 -- -- 4,645
Selling, general and administrative expenses... 26,574 (4,821) (145)(a) 21,608
Amortization and depreciation.................. 10,015 (2,389) -- 7,626
-------- -------- ------ --------
Total operating expenses............... 74,153 (14,379) (145) 59,629
-------- -------- ------ --------
Operating loss................................... (12,165) (115) 145 (12,135)
Interest and other income........................ 364 -- 3,514(b) 3,878
Interest and other expense....................... (15,783) 1,236 1,295(c) (13,252)
-------- -------- ------ --------
Net loss(d)............................ $(27,584) $ 1,121 $4,954 $(21,509)
======== ======== ====== ========
Basic and diluted net loss per share............. $ (0.68) $ (0.53)
======== ========
Shares used in computing net loss per
share -- basic................................. 40,861 40,861
======== ========
Shares used in computing net loss per
share -- diluted............................... 40,861 40,861
======== ========
The accompanying notes are an integral part of this statement.
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BOCA RESORTS, INC.
NOTES TO UNAUDITED PRO FORMA CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
(a) Represents a reduction to a management fee equal to 1% of revenue which
was payable to Huizenga Holdings, a related party controlled by the
Chairman of the Company.
(b) Represents the increase in interest income associated with excess cash
invested in short-term investments with underlying government
securities yielding a return of 6.26%.
(c) Represents the reduction in interest expense associated with the
repayment of indebtedness under a revolving credit facility secured by
certain hotel properties. In addition, interest expense has been
reduced for the repayment of indebtedness under a credit facility
secured by certain hockey assets. The Company repaid such indebtedness
in July 2000.
(d) A pro forma tax provision has been excluded from the presentation due
to an offsetting change in the Company's valuation allowance.
(e) Represents the repayment of indebtedness under a revolving credit
facility secured by certain hotel properties.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
BOCA RESORTS, INC.
By: /s/ WILLIAM M. PIERCE
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William M. Pierce
Senior Vice President, Treasurer and
Chief Financial Officer
By: /s/ STEVEN M. DAURIA
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Steven M. Dauria
Vice President, Corporate Controller
and Chief Accounting Officer
Date: January 8, 2001
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