Empire Resorts, Inc. (NASDAQ: NYNY) today reported financial
results for the third quarter and nine months ended September 30,
2005. Net revenue for the third quarter was $25.6 million, up 17%
from the $21.9 million reported in the third quarter of 2004.
Revenue from racing increased by approximately $1.4 million, or
56%, while revenue from the company's video gaming machine (VGM)
operations rose by approximately $2.5 million, or 14%, offset
slightly by an increase in complimentary expenses of approximately
$0.2 million. The growth in racing revenue was a result of higher
revenue allocations from off-track betting facilities. In the
company's VGM operations, the daily win per unit for the quarter
ended September 30, 2005 was $123.17, compared with $113.12 for the
corresponding quarter in 2004 - an increase of nearly 9%. Operating
costs declined by approximately $0.2 million, or 1%, for the
quarter versus the prior-year period. EBITDA rose to $0.6 million
from $(0.5) million in 2004. Net loss for the third quarter was
$(1.6) million, or $(0.06) per diluted share, compared to $(1.9)
million, or $(0.07) per diluted share, in the prior-year period.
For the first nine months of fiscal 2005, Empire reported net
revenue of $64.3 million versus $27.1 million in the same period
last year, reflecting the impact of the VGM business, which began
in June, 2004. EBITDA was $(2.2) million for the first three
quarters of 2005, as compared to $(8.2) million in 2004. Empire's
net loss for the period was $(8.0) million, or $(0.31) per share,
versus $(11.0) million, or $(0.44) per share, last year. Reflecting
on these results, David Hanlon, CEO and president, commented,
"Given the seasonally-strong nature of the third quarter, we
achieved positive EBITDA - marking continued progress in our
operations, which have improved substantially since the
introduction of VGM machines last year. During the quarter, we
added 20,000 individuals to our Player's Club and now have over
140,000 members. In addition, on-track betting was up 27% over last
year and Monticello Raceway purses rose by 123%. "Most importantly,
Empire took a significant step towards building a Class III casino
resort in the Catskills by teaming up again with the St. Regis
Mohawk Tribe of New York. We are pleased that the Mohawks chose to
work exclusively with Empire Resorts, committing to a presence at
the Monticello Raceway, and we look forward to making this dream a
reality for the Mohawk Tribe and people of Sullivan County. As we
make headway in bringing a casino to the area, we continue to study
the purchase of the Concord and Grossinger properties." The company
makes use of EBITDA (earnings before interest, taxes, depreciation
and amortization) as a financial measure which it believes is a
useful performance indicator. EBITDA is not a recognized term under
generally accepted accounting principles, or "GAAP," and should not
be considered as an alternative to net income/(loss) or net cash
provided by operating activities, which are GAAP measures. A
reconciliation of EBITDA to net income/(loss) appears at the end of
this release, as do both actual results for the quarter and
year-to-date periods. About Empire Resorts, Inc. Empire Resorts
operates the Monticello Raceway and is involved in the development
of other legal gaming venues. Empire's Mighty M Gaming facility now
features over 1,500 video gaming machines and amenities including a
350-seat buffet and live entertainment. Empire is also working to
develop a $500 million "Class III" Native American casino and
resort on a site adjacent to the Raceway and other gaming and
non-gaming resort projects in the Catskills region and other areas.
Additional information can be found at www.empireresorts.com.
Statements in this press release regarding the company's business
that are not historical facts are "forward-looking statements" that
involve risks and uncertainties, including the need for regulatory
approvals, financing and successful completion of construction. The
company wishes to caution readers not to place undue reliance on
such forward-looking statements, which statements are made pursuant
to the Private Securities Litigation Reform Act of 1994, and as
such, speak only as of the date made. To the extent the content of
this press release includes forward-looking statements, they
involve various risks and uncertainties including (i) the risk that
the various approvals necessary as described herein and other
approvals required to be obtained from the United States Congress,
the Bureau of Indian Affairs, the National Indian Gaming Regulatory
Commission, the Governor of the State of New York and various other
federal, State and local governmental entities are not received,
(ii) the risk that financing necessary for the proposed programs or
projects may not be able to be obtained because of credit factors,
market conditions or other contingencies, (iii) the risk that
sovereign Native American governments may exercise certain broad
rights with regard to termination of its agreements with the
company (iv) the risk of non-compliance by various counterparties
of the related agreements, and (v) general risks affecting the
company as described from time to time in it's reports filed with
the Securities and Exchange Commission. For a full discussion of
such risks and uncertainties, which could cause actual results to
differ from those contained in the forward-looking statements, see
"Risk Factors" in the company's Annual Report or Form 10-K for the
most recently ended fiscal year. -0- *T EMPIRE RESORTS, INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In
thousands, except per share data) (Unaudited) Three Months Ended
Nine Months Ended September 30, September 30, 2005 2004 2005 2004
------- ------- ------- ------ Net Revenues $25,648 $21,856 $64,291
$27,086 Operating Costs 20,166 20,376 54,168 27,559 Selling,
General & Administrative 4,885 2,013 9,988 7,738 Depreciation
& Amortization 428 372 1,268 636 Interest Expense 1,318 628
3,314 965 -------------------------------- ------- ------- -------
-------- Total Costs & Expenses 26,797 23,389 68,738 36,898
-------------------------------- ------- ------- ------- --------
Loss From Operations (1,149) (1,533) (4,447) (9,812) Write Off of
Advances to Tribal Gaming Authorities & Gaming License &
Development Costs 45 2,363 --------------------------------
---------------- ------------------ Net (Loss) (1,194) (1,533)
(6,810) (9,812) Dividends Paid on Preferred Stock 30 Cumulative
Undeclared Dividends on Preferred Stock 388 388 1,164 1,122
-------------------------------- ------- ------- ------- ---------
Net Loss Applicable to Common Shareholders $(1,582) $(1,921)
$(7,974) $(10,964) ============================== ======= =======
======= ======== Weighted Average Common Shares Outstanding 26,147
26,075 26,111 24,905 Loss Per Common Share $ (0.06) $ (0.07) $
(0.31) $ (0.44) ============================== ======= =======
======= ======== Reconciliation of Net Loss to EBITDA Net Loss
$(1,194) $(1,533) $(6,810) $ (9,812) Less: Depreciation and
Amortization 428 372 1,268 636 Less: Provision for Income Taxes - -
- - Less: Interest 1,318 628 3,314 965
------------------------------- -------- ------- ------- --------
EBITDA $ 552 $ (533) $(2,228) $ (8,211)
============================== ======= ======== ======= ======== *T
-0- *T EMPIRE RESORTS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED
BALANCE SHEETS (in thousands) September 30, December 31, 2005 2004
(Unaudited) (Audited) ------------ ------------- Assets Current
Assets: Cash and Cash Equivalents $ 6,297 $ 7,164 Restricted Cash
611 159 Accounts Receivable 5,099 2,680 Prepaid Expenses and Other
Current Assets 1,547 874 ------------------------------------------
----------- ----------- Total Current Assets 13,554 10,877 Property
and Equipment - Net 32,808 33,147 Deferred Financing Costs - Net
3,119 3,009 Advances - Tribal Gaming Authorities 700 925 Deferred
Development Costs 3,890 3,890 Gaming License and Development Costs
10,533 8,905 ------------------------------------------ -----------
----------- Total Assets $ 64,604 $ 60,753
========================================== =========== ===========
Liabilities and Stockholders' Deficit Current Liabilities: Accounts
Payable $ 3,565 $ 3,805 Revolving Credit Facility 7,345
Construction Costs Payable 1,447 Accrued Expenses and Other Current
Liabilities 6,747 5,493 ------------------------------------------
----------- ----------- Total Current Liabilities 17,657 10,745
Senior Convertible Notes 65,000 65,000
------------------------------------------ ----------- -----------
Total Liabilities 82,657 75,745 Stockholders' Deficit (18,053)
(14,992) ------------------------------------------ -----------
----------- Total Liabilities and Stockholders' Deficit $ 64,604 $
60,753 ========================================== ===========
=========== *T
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