Detailed report as below!
Tuesday April 27, 10:16 am Eastern Time
Company Press Release
SOURCE: Argosy Gaming Company
Argosy Reports Record First Quarter Revenues and EBITDA
ALTON, Ill., April 27 /PRNewswire/ -- Argosy Gaming Company (NYSE: AGY - news) today announced earnings for its first quarter ended March 31, 1999. The Company reported net income attributable to common shareholders of $4.7 million or $0.17 per diluted share for the first quarter ended March 31, 1999, before giving effect to a charge of approximately $1.8 million related to a one-time severance package and settlement agreement with its former President. After giving effect to this first quarter charge, the Company reported net income attributable to common shareholders of $2.9 million or $0.10 per diluted share as compared to a net loss of $(2.5) million or $(0.10) per diluted share for the prior year.
Three Months Ended
March 31, 1999 March 31, 1998
(unaudited) (unaudited)
Casino Revenues
Western Properties $ 56,049 $ 52,753
Lawrenceburg 73,079 55,570
Total $129,128 $108,323
EBITDA
Western Properties $ 10,891 $ 6,802
Lawrenceburg 27,739 20,166
Corporate/Other (excluding a one-time
1999 charge of $1.8 million) (3,766) (3,251)
Total $ 34,864 $23,717
The Company reported record first quarter casino revenues of $129.1 million reflecting an increase of $20.8 million over the first quarter 1998. Net revenues increased $21.7 million for the first quarter 1999 to a record $137.4 million from $115.7 million in 1998. Casino revenues for the first quarter 1999 increased 6% at the western properties (Alton, Riverside, Baton Rouge and Sioux City) and 32% at Lawrenceburg over 1998 amounts.
The Company reported record first quarter EBITDA (earnings before interest, taxes, depreciation and amortization) before giving effect to the one-time charge, of $34.9 million as compared to EBITDA of $23.7 million in 1998. EBITDA for the first quarter 1999 increased 60% at the western properties and 38% at Lawrenceburg. The Company's EBITDA margins were favorably impacted by the focused marketing programs, new gaming product and cost controls at the western properties and by operating efficiencies achieved as a result of having a more experienced workforce in Lawrenceburg.
James B. Perry, President and Chief Executive Officer, commenting on the results of the first quarter said, ''The first quarter results clearly demonstrate continued momentum we are achieving from the implementation of the strategic plan introduced last year. The significant improvement in operating results at each of the properties is due in large part to our investment in new gaining product, focused marketing programs, and cost control initiatives implemented throughout last year. Additionally, the Lawrenceburg results reflect the benefits derived from the opening of our 300 room hotel in June 1998.'' Perry further stated, ''We are very encouraged by the positive trends we have seen since implementing our strategic plan and will continue to aggressively implement these same initiatives in 1999.''
The Company said it is planning additional investments in gaming equipment, as well as renovations at their properties located in Alton, Ill. Baton Rouge, La. and Sioux City, Iowa. Construction is under way to renovate and retheme the Alton property to create a colorful and exciting environment for customers and will feature significantly enhanced restaurant and entertainment facilities. Argosy anticipates opening the newly renovated facilities in the fourth quarter of this year. In Baton Rouge, construction is under way to complete the renovation and retheming of the Belle of Baton Rouge Casino. Upon completion of the renovation, the third deck will feature a new video poker area with approximately 200 of the newest and most updated video poker machines. The Company anticipates completing this project in June in preparation for the July 1, 1999 closing of approximately $80 million of video poker competition in the Baton Rouge market. Argosy also recently completed a renovation of the interior of the Sioux City casino to include a substantial increase in video poker product in an effort to increase their market share in this popular local game.
Perry said, ''As we continue to focus on our cost structure, we will introduce a major cross-training and pay-for-skills program for our employees. This human resources program should allow us to better service our customers while reducing turnover and the associated costs.'' ''In closing,'' Perry said, ''We continue to monitor interest rates and market conditions to determine the appropriate time to pursue our financial strategy of improving our capital structure by reducing our cost of capital while retaining the flexibility to grow. Our primary goals remain the same -- to be the premier riverboat casino operator and to further enhance shareholder value.''
This press release contains statements relating to future results, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of any number of risks and uncertainties, including but not limited to, competitive and general economic conditions in the markets in which the Company operates, significant changes in interest rates or market conditions, construction delays related to the renovation projects and the effect of future legislation or regulatory changes on the Company's operation as well as other risks and uncertainties detailed from time to time in the Company's Securities and Exchange Commission filings.
Argosy is a leading multi-jurisdictional owner and operator of riverboat casinos and related entertainment and hotel facilities in the midwestern and southern United States. Argosy, through its subsidiaries and joint ventures, owns and operates the Alton Belle Casino in Alton, Illinois, serving the St. Louis metropolitan market; the Argosy Casino in Riverside, Missouri, serving the greater Kansas City metropolitan market; and the Belle of Baton Rouge in Baton Rouge, Louisiana. Argosy is also a majority partner and operator of the Belle of Sioux City in Sioux City, Iowa, and the Argosy Casino & Hotel in Lawrenceburg, Indiana, serving the Cincinnati and Dayton metropolitan markets.
ARGOSY GAMING COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Share and Per Share Data)
Three Months Ended
March 31, March 31,
1999 1998
(unaudited) (unaudited)
Revenues:
Casino $129,128 $108,323
Admissions 4,278 3,191
Food, beverage and other 13,593 11,133
146,999 122,647
Less promotional allowances (9,608) (6,947)
Net revenues 137,391 115,700
Costs and expenses:
Casino 59,450 52,623
Food, beverage and other 9,637 9,349
Other operating expenses 6,588 6,618
Selling, general and administrative 26,722 23,267
Depreciation and amortization 8,473 8,066
Development and preopening costs 130 126
Severance package and settlement arrangement 1,800 -
112,800 100,049
Income from operations 24,591 15,651
Other income (expense):
Interest income 907 810
Interest expense (14,134) (14,292)
(13,227) (13,482)
Income before minority interest and income taxes 11,364 2,169
Minority interests (7,843) (4,606)
Income tax expense (600) (100)
Net income (loss) 2,921 (2,537)
Preferred Stock dividends and accretion (27) -
Net income (loss) attributable
to Common Stockholders 2,894 $ (2,537)
Basic income (loss) per share $0.11 $(0.10)
Diluted income (loss) per share $0.10 $(0.10)
Basic average shares outstanding 27,114,690 24,333,333
Diluted average shares outstanding 28,362,329 24,333,333
ARGOSY GAMING COMPANY AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
(In Thousands)
Three Months Ended
March 31, March 31,
1999 1998
(unaudited) (unaudited)
Casino Revenues
Alton Belle Casino $18,109 $17,029
Argosy Casino Riverside 19,198 18,359
Belle of Baton Rouge Casino 12,579 12,104
Belle of Sioux City Casino 6,163 5,261
Argosy Casino & Hotel in Lawrenceburg 73,079 55,570
Total $129,128 $108,323
Net Revenues
Alton Belle Casino $18,993 $18,058
Argosy Casino Riverside 20,415 19,614
Belle of Baton Rouge Casino 13,026 12,704
Belle of Sioux City Casino 6,369 5,477
Argosy Casino & Hotel in Lawrenceburg 78,469 59,751
Other 119 96
Total $137,391 $115,700
Income (loss) from Operations(A)
Alton Belle Casino $3,982 $3,393
Argosy Casino Riverside 2,035 614
Belle of Baton Rouge Casino (107) (1,457)
Belle of Sioux City Casino 845 264
Argosy Casino & Hotel in Lawrenceburg 24,424 17,287
Corporate© (5,026) (2,863)
Jazz (1,231) (1,220)
Other (331) (367)
Total $24,591 $15,651
EBITDA(A)(B)
Alton Belle Casino 5,008 4,357
Argosy Casino Riverside 3,494 2,091
Belle of Baton Rouge Casino 1,264 (164)
Belle of Sioux City Casino 1,125 518
Argosy Casino & Hotel in Lawrenceburg 27,739 20,166
Corporate© (5,019) (2,657)
Jazz (556) (569)
Other 9 (25)
Total 33,064 23,717
ARGOSY GAMING COMPANY AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
(In Thousands)
A) Income from operations and EBITDA are presented before consideration
of any management fee paid to the Company and in the case of Sioux
City and Lawrenceburg before the 30% and 42.5% minority interests,
respectively.
B) "EBITDA" is defined as earnings before interest, taxes, depreciation
and amortization and is presented before any management fees paid to
Argosy. EBITDA should not be construed as an alternative to operating
income, or net income (as determined in accordance with generally
accepted accounting principles) as an indicator of the Company's
operating performance, or as an alternative to cash flows generated by
operating, investing and financing activities (as an indicator of cash
flow or a measure of liquidity). 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 for companies with a significant amount of depreciation and
amortization. EBITDA may not be comparable to similarly titled
measures reported by other companies. The Company has other
significant uses of cash flows, including debt service and capital
expenditures, which are not reflected in EBITDA.
C) Includes expenses related to a severance package and settlement
arrangement of approximately $1.8 million for the three months ended
March 31, 1999.
SOURCE: Argosy Gaming Company
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