Press Release: Argosy Gaming Company
August 1, 2001
ALTON, IL -- Argosy Gaming Company (NYSE: AGY) yesterday announced that it has closed its $465 million purchase
of the Empress Casino and Hotel located in Joliet, Illinois from Horseshoe Gaming Holding Corp. The purchase was
funded with proceeds from the Company's recently issued $200 million 9% Senior Subordinated Notes due 2011 and
borrowings under the Company's amended and restated senior credit facility.
``This transaction meets all of the criteria outlined in our framework for continued growth,'' said James B. Perry,
President and Chief Executive Officer, commenting on the transaction. ``The Empress acquisition provides us the
opportunity to compete in the dynamic Chicago market, the largest riverboat market in the country. The significant
cash generated by the Empress Casino will not only greatly diversify our cash flows but will be immediately accretive
to earnings and free cash flow.'' Argosy said the Empress casino has significantly increased casino revenues for
the six-month period ended June 30, 2001 by 13% and has historically posted strong margins of approximately 30%.
Argosy said that it would evaluate additional opportunities that would enhance the operations of the Empress Casino.
The site has approximately 300 acres available for development opportunities including the possibility of replacing
the two riverboat gaming vessels with a barge facility. Other potential opportunities include a hotel expansion
(the Empress Hotel currently has 102 rooms), a parking garage and other retail venues that would contribute to
the casino operations. Perry further stated, ``It is premature at this time to determine which of these or other
investment opportunities we will pursue, however, any project we undertake must increase value for our shareholders.''
In closing, Perry said, ``With the enormous contribution of all employees throughout the Company, we have made
significant progress in furthering our strategic plan this year. We are proud to welcome the talented, dedicated
and motivated Empress employees to our organization.''
The Company said it expects to hold a conference call for all interested parties on August 9, 2001 at 10:30 a.m.
CST to discuss the financial impact of this transaction on its earnings outlook and capital structure. For those
interested in participating in the call, please dial (785) 832-1077 ten to fifteen minutes prior to the call start
time. A telephonic replay of the conference call will be made available through 12:00 a.m., August 30, 2001 and
can be accessed by dialing (402) 530-0411. The call will also be broadcast live via the Internet and may be accessed
through our web site at www.argosycasinos.com or through www.prnewswire.com
. A replay of the web cast will be made available through August 30, 2001, 12:00 a.m., and can be accessed through
our web site: www.argosycasinos.com or through www.prnewswire.com
.
Argosy is a leading multi-jurisdictional owner and operator of riverboat casinos and related entertainment and hotel facilities in the midwestern and southern United States. Argosy, through its subsidiaries, owns and operates the Alton Belle Casino in Alton, Illinois, serving the St. Louis metropolitan market; the Argosy Casino in Riverside, Missouri, serving the greater Kansas City metropolitan market; the Argosy Casino-Baton Rouge in Louisiana; the Belle of Sioux City in Iowa; the Empress Casino and Hotel in Joliet, Illinois, serving the greater Chicagoland market; and the Argosy Casino & Hotel in Lawrenceburg, Indiana, serving the Cincinnati and Dayton metropolitan markets. Argosy was named "Company of the Year" at the Gaming Industry Annual Awards ceremony in October 2000.
This press release contains statements relating to future results, which are forward-looking statements as that
term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally
can be identified by phrases such as the Company or its management ``believes,'' ``anticipates,'' ``expects,''
``forecasts,'' ``estimates,'' ``foresees,'' or other words or phrases of similar import. Similarly, such statements
herein that describe the Company's business outlook, objectives, strategy, intentions or goals are also forward-looking
statements. All such forward- looking statements are subject to certain risks and uncertainties that could cause
actual results to differ materially from those projected, including but not limited to, competitive and general
economic conditions in the markets in which the Company operates, the effect of future legislation or regulatory
changes on the Company's operations, as well as other risks and uncertainties detailed from time to time in the
Company's Securities and Exchange Commission filings.
SOURCE: Argosy Gaming Company