Press Release: Boca Resorts, Inc.
August 17, 2000
BOCA RATON, FL -- Boca Resorts, Inc. (NYSE: RST), a leading owner and operator of luxury resorts and entertainment
and sports businesses, yesteday reported operating results for its fourth quarter ended June 30. Net income for
the three months ended June 30, 2000, was $7.8 million, or $0.19 per diluted share, compared to a loss of $9.6
million, or $0.23 per diluted share for the three months ended June 30, 1999. The operating results for the prior
year quarter includes an extraordinary loss on the early retirement of debt totaling $4.3 million or $0.10 per
diluted share. The results for the recently completed record setting quarter were $.01 better than consensus estimates
as reported by market service, First Call/Thomson Financial.
Fourth quarter financial highlights include:
The Company continues to focus on internal growth opportunities at each of its properties. The Boca Raton Resort
& Club has moved forward with plans for construction of a new Marina Wing. The 8-story complex is expected
to consist of 112 water-view suites with superior guest services as well as additional meeting rooms. Other waterfront
development includes a Tuscan- style restaurant, retail space and new marina slips. The restaurant will be operated
by renowned restauranteur Drew Nieporent of the Myriad Restaurant Group. Ground breaking is also planned this year
on a new state-of-the-art 40,000-square-foot spa and a new golf clubhouse and casual restaurant.
The Company expects to add 6,000 square feet of flexible meeting space at the Registry Resort providing it with
the largest meeting venue in the Naples market. In addition, a new pool complex, featuring a free-form pool situated
in a tropical setting, a separate Olympic-sized pool and private cabana rentals are currently under construction.
The Company has undertaken several technological and e-commerce initiatives, such as launching several redesigned
Web sites, including the Boca Raton Resort & Club (www.bocaresort.com). This interactive site enables customers
to book on-line real-time within the Company's central reservations system and features, among other things, a
live beach and golf cam.
As previously announced, the Company has engaged Allen & Company, a New York City-based investment banking
company, to review prospects for a potential sale of the Company's entertainment and sports businesses, the primary
component of which is the Florida Panthers Hockey Club and related arena management operations.
Richard C. Rochon, President of Boca Resorts, Inc., commented, ``We are very pleased with our operating results
and the continued growth in the leisure and recreation business resulting, in part, from capital improvements and
a strong economy. Over the next two years, we will continue the implementation of our business strategy of capitalizing
on the internal growth opportunities in each of our existing resort markets.''
Quarterly Results
Revenue during the three months ended June 30, 2000, rose to $98.3 million, up from $87.9 million during the three
months ended June 30, 1999. Higher revenue during the recently completed quarter was primarily attributable to
an increase in the average daily rate charged at the Company's resorts, an increase in the number of available
and occupied rooms at the Arizona Biltmore Resort & Spa and an increase in food and beverage sales and golf
fees. In addition, entertainment and sports revenue increased during the three-month period ended June 30, 2000,
versus the same period of the prior year substantially because the Florida Panthers Hockey Club participated in
the first round of Stanley Cup playoffs.
Operating income for the recently completed quarter totaled $14.8 million compared to $6.1 million for the corresponding
quarter of the prior year. In addition to an increase in revenue, the Company experienced stronger profit margins
during the recently concluded quarter due to a reduction in cost of services and selling, general and administrative
expenses as a percent of revenue. Management continues to focus on cost efficiencies from business integration
in an effort to improve profitability.
Interest and other income amounted to $7.5 million and $4.3 million during the three months ended June 30, 2000,
and 1999, respectively. The increase in interest and other income during the three months ended June 30, 2000,
versus the same period last year was primarily the result of a $3.2 million increase in expansion fees earned by
the Florida Panthers Hockey Club for their share of franchise fees paid by new NHL clubs.
Interest and other expense decreased to $14.4 million during the three months ended June 30, 2000, from $15.6 million
during the comparable period last year. The decrease in interest and other expense during the three months ended
June 30, 2000, versus the same period last year was primarily the result of a reduction in the average cost of
borrowing.
Net income was $7.8 million during the three months ended June 30, 2000, versus a loss of $9.6 million in the year-ago
period. The net loss for the three months ended June 30, 1999, includes an extraordinary loss on the early retirement
of debt totaling $4.3 million.
Twelve Month Results
Revenue for the twelve months ended June 30, 2000, increased to $421.5 million, up from $389.6 million for the
twelve months ended June 30, 1999. Higher revenue during the year ended June 30, 2000, was primarily attributable
to an increase in the average daily rate and occupancy at the Company's resorts, an increase in the number of available
and occupied rooms at the Arizona Biltmore Resort & Spa and an increase in other non-room sources of revenue
in the Company's resort portfolio.
Operating income during fiscal 2000 totaled $62.5 million, compared to $60.2 million during the prior year. While
certain cost efficiencies were realized in the leisure and recreation business during the twelve months ended June
30, 2000, the consolidated results of operations were adversely impacted primarily by an increase in Florida Panthers
Hockey Club players' costs and higher depreciation on recently completed capital projects. Net income was $13.5
million during the twelve months ended June 30, 2000, versus $5.4 million for the prior year.
Boca Resorts, Inc. owns luxury resort properties in Florida and Arizona. The Company's resort portfolio includes
the Boca Raton Resort & Club, the Arizona Biltmore Resort & Spa, the Registry Resort at Pelican Bay, the
Edgewater Beach Hotel, the Hyatt Regency Pier 66 Hotel and Marina, the Radisson Bahia Mar Resort and Yachting Center,
Grande Oaks Golf Club and Naples Grande Golf Club. The Company also owns the Florida Panthers Hockey Club and manages
and operates the National Car Rental Center (a multi-purpose entertainment complex where the Panthers play their
home games) as well as the Incredible Ice skating rink.
Table to follow.
BOCA RESORTS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three and Twelve Months Ended June 30
(In thousands, except per share data)
Unaudited
Three Months Twelve Months
2000 1999(1) 2000 1999(1)
Revenue:
Leisure and
recreation $92,430 $82,641 $361,360 $327,001
Entertainment
and sports 5,905 5,291 60,187 62,608
Total revenue 98,335 87,932 421,547 389,609
Operating expenses:
Cost of leisure
and recreation
services 41,373 37,694 156,620 141,456
Cost of entertainment
and sports services 5,995 7,325 56,866 51,619
Selling, general
and administrative
expenses 26,294 28,867 109,271 105,179
Amortization and
depreciation 9,879 7,989 36,334 31,176
Total operating
expenses 83,541 81,875 359,091 329,430
Operating income 14,794 6,057 62,456 60,179
Interest and
other income 7,525 4,341 8,709 6,097
Interest and
other expense (14,367) (15,633) (57,524) (56,249)
Minority interest (125) (45) (155) (339)
Income (loss)
before
extraordinary
item (2) 7,827 (5,280) 13,486 9,688
Extraordinary
item - loss on
early retirement
of debt --- (4,287) --- (4,287)
Net income
(loss) (2) $7,827 $(9,567) $13,486 $5,401
Income (loss)
per share before
extraordinary
item - basic
and diluted $0.19 $(0.13) $0.33 $0.26
Extraordinary item
- loss on early
retirement of debt --- (0.10) --- (0.11)
Net income (loss)
per share
- basic and diluted $0.19 $(0.23) $0.33 $0.15
Shares used in
computing net
income (loss)
per share - basic 40,861 40,786 40,861 36,993
Shares used in
computing net
income (loss)
per share - diluted 40,861 40,786 40,868 37,146
(1) Certain prior period amounts have been reclassified to conform to the
current year presentation.
(2) No tax provision has been recorded for the twelve-month periods due to
an offsetting decrease in the Company's valuation allowance.
``Safe Harbor'' Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press
release regarding Boca Resorts, Inc.'s business which are not historical facts are ``forward-looking statements''
that involve risks and uncertainties. For a 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 on Form 10-K.
SOURCE: Boca Resorts, Inc.