Press Release: Black Hawk Gaming & Development Co., Inc.
February 23, 2001
BLACK HAWK, CO -- Black Hawk Gaming & Development Company, Inc. (Nasdaq: BHWK), owner and operator of the Gilpin
Hotel Casino in Black Hawk, Colorado, the Gold Dust West Casino in Reno, Nevada, and 75% owner and operator of
The Lodge Casino at Black Hawk, yesterday announced unaudited financial results for its fourth quarter and year
ended December 31, 2000.
FOURTH QUARTER RESULTS
Net income for the fourth quarter was $616,000 or $0.14 per diluted share, versus net income of $1,480,000, or
$0.36 per diluted share, in the comparable quarter in the previous year. Stephen R. Roark, president of Black Hawk
Gaming stated, ``While we managed to reduce our fourth quarter costs and expenses by $1,536,000, this decrease
was offset by a decrease in revenues of $2,400,000. One key element contributing to the decrease in our revenues
in the fourth quarter is the increased level of competition within the Black Hawk market. We believe these aggressive
marketing campaigns should begin to stabilize in the near future. We will continue to monitor very closely our
marketing programs and expenditures.''
YEAR-END RESULTS
Net income for 2000 increased to $5,461,000 from $5,423,000 for 1999. Net income per diluted share for the year
was $1.31 compared to $1.30 in 1999. Total revenues for 2000 increased to $93,218,000 from $92,800,000 in 1999.
Our EBITDA (earnings before interest, taxes, depreciation and amortization) for the year totaled approximately
$19,666,000.
Roark added, ``We maintained earnings from our two Colorado properties despite the opening of two additional casinos
in Black Hawk that increased the number of devices by approximately 18%. In light of the additional competition,
we believe our management and staff performed very well last year. The second half of the year was a tough one
for the Company due primarily to the increased competition in the marketplace. Additionally, we recently closed
the acquisition of the Gold Dust West in Reno which should be accretive to our earnings and provide us with valuable
geographic diversification.''
The combined operations of the Gilpin Hotel Casino, The Lodge Casino at Black Hawk and the Gold Dust West Casino
in Reno, Nevada, give Black Hawk Gaming approximately 1,875 gaming devices under management.
BLACK HAWK GAMING & DEVELOPMENT COMPANY, INC.
Financial Highlights (Unaudited)
Three Months Ended Year Ended
December 31 December 31
2000 1999 2000 1999
Total Revenue $21,469,000 $23,869,000 $93,218,000 $92,800,000
Net Income $616,000 $1,480,000 $5,461,000 $5,423,000
Net Income Per
Common Share
Diluted $0.14 $0.36 $1.31 $1.30
Weighted Average
Shares Outstanding
Diluted 4,184,760 4,134,954 4,160,217 4,183,519
BALANCE SHEET DATA December 31, December 31
2000 1999
Total Assets $97,476,000 $101,080,000
Total Liabilities and Minority Interest $55,414,000 $64,581,000
Shareholders' Equity $42,062,000 $36,499,000
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.
Note: News releases and other information about Black Hawk Gaming & Development are available at http://www.bhwk.com
For further information, please contact Stephen R. Roark, President and Chief Financial Officer, or Stan Politano,
Vice President, both of Black Hawk Gaming & Development Co., Inc., 303-582-1117; or Carl Thompson, Chief Executive
Officer of Carl Thompson Associates, 800-959-9677, for Black Hawk Gaming & Development Co., Inc.
SOURCE: Black Hawk Gaming & Development Co., Inc.