SeaEscape Hosts Party for Financial Community; Announces Expansion Plans
FORT LAUDERDALE, Fla., Sep 20, 2000 (BUSINESS WIRE) -- SeaEscape Entertainment, Inc. (OTC:SEPI), operator of the M.V. Island Adventure, which sails from Ft. Lauderdale, FL, on 13 mini-cruises a week, hosted a party for brokers, financial analysts and investment bankers on board the ship last night, to tell the financial community about some of the Company's expansion plans.
The event, which was attended by over 100 people, featured a presentation by Bruce Yasukochi, Executive Vice President of SEPI, explaining the Company's vision. Mr. Yasukochi stated that the Company plans to acquire the M.V. Island Adventure and refurbish the ship (or acquire and refurbish a comparable ship) to increase its capacity from 1,150 to over 1,800 and to greatly expand the ship's casino and dining areas and other public rooms. He indicated that the entire project, including the cost of acquiring the ship would cost the approximately $25 million, which would probably be financed by a combination of debt and equity.
Mr. Yasukochi stated that the entire cost of the $25 million project, which would greatly enhance the ability of the Company to generate significant additional revenue, could be paid for on a debt-only basis out of the savings to the Company from the elimination of the charter hire payments, which are $2.8 million annually along with other cost reductions. Mr. Yasukochi said, "We are now in the position where we could tremendously increase our capacity and more than double our casino space, while at the same time reduce our costs. This would give the Company the potential to earn more, even before the first dollar of additional revenue from the renovations."
Mr. Yasukochi went on to explain that, at the present time, the Company is marginally profitable, but suffers from not having enough capacity for all of the customers who want to book at peak times and not enough gaming space to allow all of the passengers to gamble. He said that about 60% of the additional revenue generated from the additional capacity and increased gaming space should fall to the bottom line since the Company has reached profitability with all of the fixed costs of operations being covered at present levels.
"We are totally energized by the new ship project," Mr. Yasukochi added. "Our new concept vessel is not only going to dramatically change and improve the Company's financial performance, but we believe that it's going to completely change our industry, by raising the entertainment and service standards to a level never achieved before in the day cruise business."
The Company's expansion plans are contingent on locating financing on terms acceptable to the Company. Although the Company is optimistic it will be successful in accomplishing this, there can be no assurances if or when the funding will be finalized or when the expansion plans will be completed.
About SeaEscape Entertainment, Inc. ("SeaEscape")
SeaEscape is believed to be the originator of the "mini-cruise," operating 13, five- and six-hour cruises weekly from Port Everglades in Ft. Lauderdale on the M.V. Island Adventure, which is 512 feet long and over 15,000 tons. The M.V. Island Adventure is the largest such vessel in this type of service and has a capacity of over 1,150 passengers per cruise. With over 370,000 passengers carried in the past 12 months and a total of over 6 million in its 18-year history, the SeaEscape name is believed to be the best known in the "mini-cruise" industry.
This press release may contain forward-looking statements that involve a number of risks and uncertainties. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, but are not limited to, conditions affecting the entertainment, cruise and gaming environments in South Florida; the region's economy in general; the Company's ability to finance its planned expansion efforts; and changes in regulations affecting the Company's core business.
To be added to SeaEscape's email list for company news, please send your email address to april@springir.com.
CONTACT: JumpStart IR, Boca Raton
April Spring, 561/362-4343 april@springir.com or SeaEscape Entertainment, Inc.,
Fort Lauderdale
Bruce Yasukochi, 954/453-2200 |
