Company Press Release: Boca Resorts, Inc.
January 27, 2000
FORT LAUDERDALE, FL -- Boca Resorts, Inc. (NYSE: RST), a leading owner of luxury resorts and entertainment and
sports businesses, yesterday reported operating results for its second quarter ended December 31. Net income for
the three months ended December 31, 1999 was $3.5 million, or $0.09 per diluted share, and was $0.01 better than
consensus estimates as reported by market service, First Call/Thomson Financial. Second quarter financial and operational
highlights include:
The leisure and recreation business outperformed most key budgeted measures including occupancy rate, room revenue
per available room, (``RevPar'') total revenue per available room and profit margins.
RevPar rose 9.7% over the year-ago period due to increases in both ADR and occupancy rate in spite of slow millennium
period travel patterns. The Company's RevPar increase was better than the lodging industry average and continues
to validate management's strategy of owning, managing and operating premier luxury resorts in markets with significant
barriers to new properties.
Total revenue per available room climbed 8.6% over the prior year three-month period.
Earnings before interest, taxes, depreciation and amortization (``EBITDA'') for the leisure and recreation business
rose 4.1% over the comparable period last year with the Company's Arizona Biltmore Hotel posting double-digit EBITDA
percentage gains.
Naples Grande Golf Club scheduled to open in early February and will begin booking rounds from the Company's nearby
Registry and Edgewater Resorts.
Analyst performance expectations for consolidated business operations for fiscal 2000 include an 8.8% increase
in revenue, a 12.0% increase in EBITDA and at least a 12.5% increase in Adjusted EBITDA over fiscal 1999.
``The leisure and recreation business fundamentals have remained very strong, said Richard C. Rochon, President
of Boca Resorts, Inc. Occupancy, rate and advance conference bookings remain well ahead of last year and we have
the sources of capital to execute our business plan.''
Quarterly Results
Revenue for the three months ended December 31, 1999 increased to $114.6 million, up from $105.0 million for the
three months ended December 31, 1998. Operating income for the recently completed quarter totaled $16.7 million
compared to $20.5 million for the corresponding quarter of the prior year. The decrease was caused by a $4.0 million
decline in operating income from the entertainment and sports business partially due to higher Panthers' player
salaries. Net income was $3.5 million for the three months ended December 31, 1999 versus $9.0 million in the year-ago
period. The current period net income includes higher interest expense due to a higher overall cost of capital
than during the same quarter last year as well as decreased operating income from the entertainment and sports
business.
Six Month Results
Revenue for the six months ended December 31, 1999 increased to $168.7 million, up from $157.3 million for the
six months ended December 31, 1998. Operating loss for the first half of fiscal 2000 totaled $1.1 million compared
to operating income of $10.9 million for the corresponding period of the prior year. Lower operating results were
caused by a $8.7 million reduction in operating income from the entertainment and sports business resulting principally
from higher Panthers' player salaries and the buyout of certain player contracts. In addition, consolidated corporate
general and administrative expense included certain non-recurring corporate legal charges during the six months
ended December 31, 1999. Net loss was $27.5 million for the six months ended December 31, 1999 versus $11.1 million
for the year-ago period. Besides the factors discussed above, the current period net loss includes higher interest
expense due to a higher overall cost of capital than during the six months last year. The Company expected losses
for the first half of the year because of lower demand for its South Florida resorts in the summer months and because
the Florida Panthers Hockey Club recognizes revenue over the regular hockey season, which commenced during the
second fiscal quarter.
Boca Resorts, Inc., formerly known as Florida Panthers Holdings, Inc., owns luxury resort properties in Florida
and Arizona. The Company's resort portfolio includes the Boca Raton Resort & Club, the Arizona Biltmore Hotel,
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 and the Grande Oaks Golf Club. The Company also owns the Florida
Panthers Hockey Club and has interests in the operations of the National Car Rental Center located in Broward County,
Florida, the Miami Arena and two ice skating rinks.
BOCA RESORTS, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three and Six Months Ended December 31,
(In thousands, except per share data)
Three Months Six Months
1999 1998 1999 1998
Revenue:
Leisure and recreation $91,478 $80,233 $142,896 $128,872
Entertainment and
sports 23,159 24,816 25,840 28,455
Total revenue 114,637 105,049 168,736 157,327
Operating Expenses:
Cost of leisure and
recreation services 40,912 35,485 70,629 63,042
Cost of entertainment and
sports services 20,841 18,736 28,368 22,161
Selling, general and
administrative expenses (1) 27,479 22,824 53,711 46,226
Amortization and
depreciation expense 8,697 7,552 17,114 15,031
Total operating expenses 97,929 84,597 169,822 146,460
Operating income (loss) 16,708 20,452 (1,086) 10,867
Interest and other income 498 1,033 915 1,470
Interest and other expense (13,661) (12,554) (27,383) (23,217)
Minority interest (13) 55 51 (180)
Net income (loss)(2) $3,532 $8,986 $ (27,503) $ (11,060)
Net income (loss) per share
- basic and diluted $0.09 $0.26 $ (0.67) $ (0.31)
Shares used in computing net
income (loss) per share
- basic 40,861 35,145 40,861 35,145
Shares used in computing
net income (loss) per
share - diluted 40,876 35,145 40,861 35,145
(1) Includes corporate general and administrative expense of $5.9 million and $4.1 million for the six months ended
December 31, 1999 and 1998, respectively. The 1999 six-month period includes certain non-recurring legal charges.
(2) No tax benefit has been recorded for the six-month periods due to an offsetting increase 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 for the most recently ended fiscal year.
SOURCE: Boca Resorts, Inc.