Press Release
October 18, 2000
ST. LOUIS, MO -- President Casinos, Inc. (OTC Bulletin Board: PREZ) yesterday announced results of operations for
the second quarter ended August 31, 2000.
For the three-month period ended August 31, 2000, President Casinos had earnings before interest, taxes, depreciation
and amortization (EBITDA) and impairment of long-lived assets of $3.8 million, compared to $6.4 million for the
three-month period ended August 31, 1999. Revenues for the three-month period ended August 31, 2000 were $47.3
million, compared to revenues of $52.7 million for the three-month period ended August 31, 1999.
For the three-month period ended August 31, 2000, the Company reported EBITDA from its casino and hotel operations
of $5.3 million, compared to $7.5 for the three-month period ended August 31, 1999, a decrease of $2.2 million.
For the three-month period ended August 31, 2000, the Company reported a net loss of $15.7 million, or $3.13 per
share, compared to a net loss of $1.4 million, or $0.29 per share, for the three-month period ended August 31,
1999.
During August 2000, management evaluated the estimated net realizable value of its assets based on their intended
future use and current market conditions. As a result, the Company reduced the carrying value of two of its casino
vessels that are currently not in use by $11.4 million.
For the six-month period ended August 31, 2000, President Casinos had EBITDA before impairment of long-lived assets
of $9.7 million, compared to $14.1 million for the six-month period ended August 31, 1999. Revenues for the six-month
period ended August 31, 2000 were $97.7 million, compared to revenues of $107.1 million for the six-month period
ended August 31, 1999.
For the six-month period ended August 31, 2000, the Company reported a net loss of $19.0 million, or $3.77 per
share, compared to a loss of $2.4 million, or $0.48 per share, for the six-month period ended August 31, 1999.
Other Recent Developments
As previously reported, on October 10, 2000, the Company executed an agreement with Isle of Capri Casinos, Inc.
under which Isle of Capri acquired the assets of the Company's Davenport casino and hotel operations for $58.2
million in cash. The Company intends to use the proceeds to pay down debt as part of its plan to restructure its
balance sheet. The Company estimates it will recognize a gain of approximately $33.0 million from the sale.
In addition, the Company said it has entered into an agreement with certain of its noteholders holding its 13%
notes of which $75 million of principal is outstanding, as well as all of the noteholders of its 12% notes of which
$25 million is outstanding. The agreement contemplates a restructuring of the foregoing Company indebtedness to
be affected through an exchange offer, including an extension of maturity until September 15, 2003, a paydown of
certain obligations, including interest and principal, escrowing of certain amounts, a grant of security with respect
to the majority of the Company's property not heretofore subject to security agreements and the issuance of warrants
to purchase 10% of its common stock at an exercise price of $2.625 per share.
The actual documentation to effect the agreement has not been prepared and is subject to preparation in form and
substance satisfactory to the unofficial committee of noteholders and its counsel.
The Company is continuing to negotiate other outstanding debt.
President Casinos, Inc. owns and operates dockside gaming facilities in Biloxi, Mississippi and downtown St. Louis,
Missouri near the base of the Gateway Arch.
PRESIDENT CASINO, INC.
FINANCIAL HIGHLIGHTS
(in thousands except per share data)
Three Months Ended Six Months Ended
August 31, August 31,
2000 1999 2000 1999
Condensed Consolidated Statements of Operations
Total operating
revenues $47,283 $52,703 $97,734 $107,058
Operating costs
and expenses 57,683 49,011 105,806 99,263
Operating income
(loss) (10,400) 3,692 (8,072) 7,795
Interest expense, net 4,976 4,769 10,163 9,516
Loss before income
taxes and minority
interest (15,376) (1,077) (18,235) (1,721)
Income tax expense -- -- -- --
Minority interest 366 359 736 691
Net loss $ (15,742) $(1,436) $ (18,971) $(2,412)
Loss per share $ (3.13) $ (0.29) $ (3.77) $ (0.48)
Weighted average common
and dilutive potential
shares outstanding 5,033 5,033 5,033 5,033
Selected Statement of Operations Data
Net Revenues:
Biloxi Properties $14,221 $15,999 $29,108 $31,341
Davenport Properties 17,930 20,036 36,850 40,971
St. Louis Properties 15,132 16,276 31,776 32,926
Corporate Leasing
Operation -- 392 -- 1,820
Total Net Revenues $ 47,283 $52,703 $ 97,734 $107,058
Operating Income (Loss):
Biloxi Properties $997 $1,805 $2,723 $3,036
Davenport Properties 2,455 2,825 4,515 5,227
St. Louis Properties (349) 627 481 1,319
Casino and Hotel
Properties 3,103 5,257 7,719 9,582
Corporate Leasing
Operation (12,295) (338) (13,263) 536
Corporate
Administration (1,112) (1,189) (2,364) (2,190)
Corporate
Development (96) (38) (164) (133)
Total Operating
Income (Loss) $(10,400) $3,692 $(8,072) $7,795
EBITDA:
Biloxi Properties $1,640 $1,916 $4,140 $3,887
Davenport Properties 2,825 3,895 6,002 7,413
St. Louis Properties 811 1,704 2,689 3,802
Casino and Hotel
Properties 5,276 7,515 12,831 15,102
Corporate Leasing
Operation (11,668) 55 (12,000) 1,322
Corporate
Administration (1,106) (1,151) (2,351) (2,124)
Corporate
Development (96) (67) (164) (181)
Total EBITDA $(7,594) $6,352 $ (1,684) $14,119
Selected Balance Sheet Data
August 31, February 29,
2000 2000
Cash and cash equivalents $10,213 $12,408
Restricted cash and
short-term investments 3,869 3,740
Current assets 20,237 21,495
Current liabilities 177,341 171,755
Long-term debt -- --
Minority interest 13,857 13,220
Stockholders' deficit (38,552) (19,581)