GARY, Ind., Aug. 8 /PRNewswire/ -- The Majestic Star Casino, LLC today announced operating results for the three and six month periods ended June 30, 2000.  During the three month period ended June 30, 2000 the Company had net revenues of $29.8 million, compared to $31.2 million in the same period in the prior year, a decrease of approximately 4.6%. Loss before extraordinary items for the three month period ended June 30, 2000, was $793,000 compared to income before extraordinary items of $1.7 million in the prior period ended June 30, 1999. During the second quarter of 2000, the Company redeemed $6.0 million principal amount of 12-3/4% Senior Secured Notes, resulting in a loss on redemption of approximately $383,000.  EBITDA (earnings before interest, taxes, depreciation, amortization and loss on bond redemption) during the three months ended June 30, 2000 was approximately $5.7 million, compared to approximately $8.1 million during the same period in the prior year. The $2.4 million decrease in EBITDA is primarily the result of an increase in casino and marketing expenditures of $1.3 million combined with a 2.1% decrease in the table hold and 7.2% decline in table drop.

    As of June 30, 2000 the Company had year-to-date net revenues of $61.1 million, compared to $60.7 million in the prior year. The Company's year-to-date EBITDA was $12.0 million, compared to $15.1 million during the same period last year. The decline in EBITDA is attributable to an increase in casino and marketing expenditures and a lower than anticipated year to date table game hold of 17.1% verses a prior year historical of 19.2% for the same six month period.

    Casino revenues during the three months ended June 30, 2000 totaled approximately $29.1 million, of which slot machines accounted for approximately $23.1 million (79.4%) and table games accounted for approximately $6.0 million (20.6%). For the quarter ended June 30, 2000, slot coin-in and slot revenues were flat with prior year. The average win per slot machine per day was approximately $178. The average win per table game per day was $1,182 and the average win per state passenger count was approximately $38 and the average win per patron was $67.

    The Company ended the quarter with cash and cash equivalents of $19.4 million.

    Majestic Star was founded in December 1993 as an Indiana limited liability company, to develop a riverboat casino in the City of Gary as its sole operation. The Company's operations began on June 7, 1996.  The Company through October 19, 1997 conducted its operations onboard a Chartered Vessel. On October 27, 1997 the Company placed into service the $50.1 million Permanent Vessel which contains approximately 43,000 square feet of gaming on three expansive levels.

    The Company and Trump Indiana, the holder of a second license to operate from the City, formed BHR to own and operate certain common facilities at Buffington Harbor such as the guest pavilion, vessel berths, parking lots and other infrastructure. The Company and Trump each have a fifty-percent ownership interest in BHR.

    This press release includes various "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, which represent the Company's expectations or beliefs concerning future events.

    Statements containing expressions such as "believes", "anticipates", "estimates" or "expects" used in the Company's press releases and reports filed with the Securities and Exchange Commission (including period reports on Form 10-K and Form 10-Q) are intended to identify forward-looking statements. All forward-looking statements involve risks and uncertainties. Although the Company believes its expectations are based upon reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurances that actual results will not materially differ from expected results. The Company cautions 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 following:  the purchase of real estate for, and the design and construction of, a covered parking facility located at the Company's gaming complex; 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 the Company's gaming license; increases in or new taxes imposed on gaming revenues or gaming devices; a finding of unsuitability by regulatory authorities with respect to the Company's officers, or key employees; loss and/or retirement of key executives; significant increase in fuel or transportation prices; adverse economic conditions in the Company's markets; severe and unusual weather in the Company's market and adverse results of significant litigation matters.

    Inquiries for additional information should be directed to Michael E. Kelly, Chief Operating and Financial Officer at 219-977-7823. (Condensed Statements of Operations and Other Statistical Data attached).

 

The Majestic Star Casino, LLC

 

Balance Sheets

 

                                                  June 30,        Dec. 31

                                                    2000            1999

                                                 (unaudited)

 

    ASSETS

    Current Assets:

      Cash and cash equivalents                 $19,365,922     $20,145,044

      Accounts receivable, less allowance

        for doubtful accounts of $120,420

        and $36,548, respectively                 1,458,993       1,995,904

      Inventories                                    50,937          67,049

      Prepaid expenses                            1,411,810       1,041,748

      Restricted Cash                                    --       7,357,874

      Due from affiliate                          2,000,000              --

        Total current assets                     24,287,662      30,607,619

   

    Property, equipment, and vessel

      improvements, net                          51,441,051      53,550,817

 

    Other Assets:

    Deferred financing costs, less accumulated

      amortization of $844,602 and $419,823,

      respectively                                4,831,890       5,205,917

    Deferred costs, less accumulated amortization

      of $4,546,862 and $3,994,262, respectively  1,105,167       1,657,767

    Investment in Buffington Harbor Riverboats,

      L.L.C.                                     36,854,289      38,146,213

    Other assets and deposits                     4,152,129       3,981,710

      Total other assets                         46,943,475      48,991,607

      Total Assets                             $122,672,188    $133,150,043

 

    LIABILITIES AND MEMBERS' EQUITY

      Current Liabilities 

      Current maturities

        of long-term debt                        $1,911,608      $8,208,002

      Accounts payable                              657,876         859,087

      Other accrued liabilities:                         

        Payroll and related                         674,419         936,608

        Interest                                  7,068,750       7,903,260

        Other accrued liabilities                 3,122,756       3,227,147

        Due to Buffington Harbor

          Riverboats, L.L.C.                        196,848         176,861

          Total current liabilities              13,632,257      21,310,965

 

    Long-term debt, net of current maturities   128,263,685     128,922,062

    Commitments and contingencies                        --              --

      Total long-term liabilities               128,263,685     128,922,062

      Total Liabilities                         141,895,942     150,233,027

 

    Members' Equity:

      Members' contributions                     24,000,000      24,000,000

      Retained earnings (Accumulated deficit)   (43,223,754)    (41,082,984) 

         Total members' (deficit)               (19,223,754)    (17,082,984)

 

         Total Liabilities and Members' Equity $122,672,188    $133,150,043

 

THE MAJESTIC STAR CASINO, LLC

Statements of Income

(Unaudited)

 

                        Three Months  Three Months    Six Months    Six Months

                            Ended         Ended         Ended         Ended

                           June 30,      June 30,      June 30,      June 30,

                            2000           1999          2000          1999

 

    Revenues:

      Casino            $29,115,712   $30,527,215   $59,746,813   $59,413,287

      Food and beverage     460,080       500,081       990,003       967,982

      Other                 282,967       248,596       504,045       467,999

 

        Gross revenues   29,858,759    31,275,892    61,240,86l    60,849,268

        Less promotional

         allowances         (90,897)      (76,943)     (192,029)     (139,291)

 

        Net revenues     29,767,862    31,198,949    61,048,832    60,709,977

 

    Costs and Expenses:

      Casino              6,251,717     5,057,329    12,173,478    10,215,549

      Gaming and admission

       taxes              8,110,737     8,515,879    16,691,532    16,662,969

      Food and beverage     615,417       615,620     1,178,057     1,236,089

      Advertising and

       promotion          1,908,997     1,810,690     4,251,642     3,318,786

      General and

       administrative     6,278,485     6,196,377    12,894,928    12,379,477

      Economic incentive

       - City of Gary       900,255       941,821     1,847,026     1,835,392

      Depreciation and

       amortization       2,289,274     1,971,806     4,549,150     3,914,526

        Total costs and

         expenses        26,354,882    25,109,522    53,585,813    49,562,788

        Operating income  3,412,980     6,089,427     7,463,019    11,147,189

 

    Other Income (Expense):

      Loss on investment in

       Buffington Harbor

       Riverboats, L.L.C.  (720,663)     (599,977)   (1,451,837)   (1,403,991)

 

      Interest income       241,184       201,805       432,466       396,130

      Interest expense   (3,700,107)   (3,880,151)   (7,526,208)   (7,758,023)

      Interest expense

       to affiliate              --       (68,254)           --      (167,454)

      Line of credit fees   (26,131)           --       (78,100)           --

 

        Total other income

         (expense)       (4,205,717)   (4,346,577)   (8,623,679)   (8,933,338)

 

        Income (loss) before

         extraordinary

         item              (792,737)    1,742,850    (1,191,660)    2,213,851

 

    Extraordinary Item:

    Loss on bond

     redemption            (382,500)  (15,238,156)     (382,500)  (15,238,156)

 

    Net (Loss)          $(1,175,237) $(13,495,306)  $(1,574,160) $(13,024,305)

 

 

THE MAJESTIC STAR CASINO, LLC

Summary Data (in Millions)

(Unaudited)

 

                    Three Months   Three Months    Six Months     Six Months

                   Ended June 30, Ended June 30, Ended June 30, Ended June 30,

                       2000            1999          2000            1999

 

    Gross Revenues:   $29.9           $31.3         $61.2           $60.8

      Casino           29.1            30.5          59.7            59.4

      Other              .8              .2           1.5             0.5

 

    Operating Income    3.4             6.1           7.5            11.2

 

    EBITDA(a)          $5.7            $8.1         $12.0           $15.1

 

 

    NOTES: 

    (a) EBITDA (defined as earnings before interest, income taxes,

        depreciation and amortization) is presented solely as a supplemental

        disclosure to assist in the evaluation of the Company's ability to

        generate cash flow. In particular, the Company believes that an

        analysis of EBITDA enhances the understanding of the financial

        performance of companies with substantial depreciation and

        amortization.

 

SOURCE  Majestic Star Casino, LLC

    -0-                             08/08/2000

    /CONTACT:  Michael E. Kelly of Majestic Star Casino, LLC, 219-977-7823/

    /Web site:  http://www.majesticstar.com/

 

CO:  Majestic Star Casino, LLC

ST:  Indiana

IN:  CNO

SU:  ERN