SOURCE: Jacobs Entertainment, Inc.
GOLDEN, CO–(Marketwire – August 11, 2010) – Jacobs Entertainment, Inc. (“JEI”), an owner and
operator of multiple gaming properties, today announced unaudited financial
results for its second quarter and six-month period ended June 30, 2010.
Net revenues for the second quarter of 2010 were $88.2 million compared to
$77.8 million for the second quarter of the previous year. Net income for
the second quarter of 2010 was $1.8 million compared to $2.5 million for
the same quarter of the previous year.
Net revenues for the six-month period ended June 30, 2010 were $167.2
million compared to $155.8 million for the six-month period ended June 30,
2009. Net income for the six-month period ended June 30, 2010 was $3.2
million compared to $5.6 million for the same period of the previous year.
Jacobs Entertainment, Inc. will host a conference call to discuss its
second quarter and six-month 2010 operating results. The conference call
will be held at 11:00 a.m. Eastern Time on Thursday, August 12, 2010, and
will be hosted by Stephen R. Roark, President of JEI, and Ian M. Stewart,
President of Pari-Mutuel Wagering Operations, along with other members of
the JEI management team.
To participate in the JEI conference call on Thursday, August 12, 2010, at
11:00 a.m. Eastern Time, please dial 800-769-8320 and a live operator will
put you through. Please call 5-7 minutes before the call is to begin.
If you are unable to join the JEI conference call, you may access a replay
of the call starting Thursday, August 12, at 2:00 p.m. Eastern Time. To
access the replay, please dial 800-408-3053 and reference the confirmation
code 4655086. The replay will continue until midnight Eastern Time,
Thursday, August 19, 2010.
Based in Golden, CO, Jacobs Entertainment is the owner and operator of The
Lodge Casino at Black Hawk and the Gilpin Casino, both located in Black
Hawk, Colorado; the Gold Dust West-Reno Casino in Reno, Nevada; the Gold
Dust West-Carson City Casino in Carson City, Nevada; the Gold Dust
West-Elko Casino in Elko, Nevada (the casino properties); Colonial Downs
Racetrack in Virginia and nine related off-track wagering facilities
located in Virginia; and 18 truck plaza video gaming facilities located in
Louisiana with a share in the gaming revenues of an additional truck plaza
located in Louisiana.
Our business and financial performance are subject to a number of risks and
uncertainties that might adversely affect our operating results in the
future in a material way, such as the intensity of competition, our ability
to meet debt obligations, regulatory compliance, taxation levels, effects
of national and regional economic and market conditions, labor and
marketing costs, success of our diversification plan and the successful
integration of our operations.
JACOBS ENTERTAINMENT, INC.
FINANCIAL HIGHLIGHTS (unaudited)
(dollars in thousands)
SELECTED INCOME STATEMENT DATA
Three Months Ended Six Months Ended
June 30, June 30,
2010 2009 2010 2009
----------- ----------- ----------- -----------
Revenues:
Total revenues $ 97,096 $ 86,110 $ 185,036 $ 172,670
Promotional allowances (8,920) (8,298) (17,791) (16,881)
----------- ----------- ----------- -----------
Net revenues 88,176 77,812 167,245 155,789
Costs and expenses 79,914 69,006 151,296 137,625
----------- ----------- ----------- -----------
Operating income 8,262 8,806 15,949 18,164
Interest expense, net (6,476) (6,305) (12,744) (12,602)
----------- ----------- ----------- -----------
Net income $ 1,786 $ 2,501 $ 3,205 $ 5,562
=========== =========== =========== ===========
SELECTED BALANCE SHEET DATA
June 30, December 31,
2010 2009
----------- -----------
Total assets $ 340,319 $ 340,649
Total liabilities $ 313,381 $ 315,916
Stockholder's equity $ 26,938 $ 24,733
EBITDA represents earnings before interest, income taxes, depreciation and
amortization and is a non-GAAP financial measure that management believes
is useful because it allows holders of our debt and management to evaluate
and compare the Company’s operating results from continuing operations from
period to period in a meaningful and consistent manner in addition to
standard GAAP financial measures. Adjusted EBITDA represents EBITDA plus
expenses that we do not consider representative of our ongoing operations
and that could result in comparison distortions. Management internally
evaluates the performance of its segments using EBITDA and Adjusted EBITDA
measures as do most analysts following the gaming industry. EBITDA is also
a key component of certain financial covenants in the Company’s debt
agreements. This information should not be considered as an alternative to
any measure of performance as promulgated under accounting principles
generally accepted in the United States of America, such as net income
(loss), nor should it be considered as an indicator of our overall
financial performance. Our calculation of EBITDA and Adjusted EBITDA may
be different from the calculation used by other companies and comparability
may be limited.
EBITDA AND ADJUSTED EBITDA RECONCILIATION
(dollars in thousands)
Three Months Ended Six Months Ended
June 30, June 30,
2010 2009 2010 2009
------------ ----------- ----------- -----------
Net income as reported
above $ 1,786 $ 2,501 $ 3,205 $ 5,562
Add:
Interest expense, net 6,476 6,305 12,744 12,602
Depreciation and
amortization 5,298 5,272 10,625 10,530
------------ ----------- ----------- -----------
EBITDA $ 13,560 $ 14,078 $ 26,574 $ 28,694
Unrealized loss
(gain) on change
in fair value of
investment in
equity securities 326 (1,302) (260) (667)
Costs incurred for
2010 Credit
Agreement Amendment 46 -- 482 --
------------ ----------- ----------- -----------
ADJUSTED EBITDA $ 13,932 $ 12,776 $ 26,796 $ 28,027
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