Black Hawk Gaming & Development Company, Inc. Reports Third Quarter and Nine-Month Results

Press Release: Black Hawk Gaming & Development Company, Inc.
November 7, 2000
BLACK HAWK, CO -- Black Hawk Gaming & Development Company, Inc. (Nasdaq: BHWK), owner and operator of the Gilpin Hotel Casino and 75% owner and operator of The Lodge Casino at Black Hawk, yesterday announced its third quarter and nine-month results for the period ended September 30, 2000.

THIRD QUARTER RESULTS

Net income for the third quarter decreased to $1,501,948, or $0.36 per fully diluted share, compared to net income of $2,049,946, or $0.49 per fully diluted share, for the comparable quarter last year. Third quarter net revenue decreased to $22,256,482 from $23,342,163 for the same quarter last year.

NINE-MONTH RESULTS

Net income for the nine-month period ended September 30, 2000, increased to $4,844,484, or $1.17 per fully diluted share, compared to $3,942,330, or $0.94 per fully diluted share, for the same period last year. Nine-month revenue increased to $66,750,562 from $64,449,186 for the corresponding period last year.

``Although the third quarter was not as strong as it was last year, our two casinos still performed well in light of the additional competition which has been introduced into Black Hawk. Our nine-month results are significantly above last year. We will continue to be competitive in the Black Hawk market and look forward to our forthcoming acquisition in Nevada. Our efforts to acquire the Gold Dust West Casino in Reno as well as our licensing application in Nevada are moving along on schedule,'' said Jeffrey P. Jacobs, Chairman of the Board and Chief Executive Officer of Black Hawk Gaming and Development.

The combined operations of the Gilpin Hotel Casino and The Lodge Casino at Black Hawk give Black Hawk Gaming approximately 1,300 gaming devices under management, making it the largest gaming operator based in Colorado.

The Gold Dust West is a casino located a few blocks to the west of Reno's downtown gaming district and offers 478 slot machines. The casino has been successful in catering to the ``locals'' market for the past 22 years.

This press release contains statements of a forward-looking nature regarding future events. These statements are only predictions and actual events may differ materially. Please refer to documents that Black Hawk Gaming & Development Company, Inc. files from time to time with the Securities and Exchange Commission for a discussion of certain factors that could cause actual results to differ materially from those contained in the forward-looking statements.

    FINANCIAL HIGHLIGHTS
     (unaudited)          Three Months Ended          Nine Months Ended
                              September 30               September 30
                           2000         1999          2000          1999

    Net Revenue        $22,256,482  $23,342,163   $66,750,562   $64,449,186
    Net Income          $1,501,948   $2,049,946    $4,844,484    $3,942,330
    Net Income Per
     Common Share
      Diluted                $0.36        $0.49         $1.17         $0.94
    Weighted Average
     Shares Outstanding
      Diluted            4,198,300    4,164,888     4,155,112     4,173,111


    BALANCE SHEET DATA
     (unaudited)                  September 30          December 31
                                      2000                 1999

    Total Assets                  $98,356,206          $101,079,942
    Total Liabilities
     and Minority Interest        $56,910,321           $64,581,391
    Stockholders' Equity          $41,445,885           $36,498,551


SOURCE: Black Hawk Gaming & Development Company, Inc.