Press Release
June 1, 2001
CHOCTAW RESERVATION, MS -- Choctaw Resort Development Enterprise has announced its results for the second quarter
ended March 31, 2001.
Net income for the quarter ended March 31, 2001, was $31.1 million compared with net income, before the one-time
payment of the management agreement termination fee of $31.4 million for the quarter ended March 31, 2000. Net
revenues were $63.4 million for the quarter ended March 31, 2001, compared to $65.4 million for the quarter ended
March 31, 2000.
The following table reports selected financial results for the second quarter ended March 31, 2001, and 2000 as
well as the fiscal year-to-date results. The results presented in the table include the one-time payment of the
management agreement termination fee of $72.0 million made on Feb. 1, 2000.
Choctaw Resort Development Enterprise
Selected Financial Results
(in thousands)
Three Months Ended Six Months Ended
March 31, March 31,
2001 2000 2001 2000
Net Revenue 63,426 65,424 119,916 123,307
Operating Income 33,008 (39,694) 58,609 (20,871)
EBITDAM (1) 35,970 38,905 64,380 73,244
EBITDA (2) 35,970 (36,950) 64,380 (15,170)
Termination Fee (3) -- 72,000 -- 72,000
EBITDAM Margin 57% 59% 54% 59%
EBITDA Margin 57% -56% 54% -12%
Distributions to MBCI 28,396 13,764 42,160 9,531
(1) "EBITDAM" means earnings before interest, taxes,
depreciation, amortization, certain non-cash expenses,
certain non-recurring items and management fees. The
Enterprise paid management fees to Boyd Gaming Inc. under the
terms of its management agreement until such agreement was
terminated on Feb. 1, 2000. The Enterprise believes
EBITDAM is a supplemental financial measurement useful in the
evaluation of its operating performance. EBITDAM should not
be construed as an alternative to operating income or net
income (as determined in accordance with generally accepted
accounting principles, or "GAAP"), as an indicator of cash
flows or a measure of liquidity. All companies do not
calculate EBITDAM in the same manner. As a result, EBITDAM as
presented here may not be comparable to a similarly titled
measure presented by other companies.
(2) "EBITDA" means earnings before interest, taxes, depreciation,
amortization, certain non-cash expenses and certain
non-recurring items. EBITDA should not be construed as an
alternative to operating income or net income (as determined
in accordance with GAAP), as an indicator of cash flows or a
measure of liquidity. All companies do not calculate EBITDA
in the same manner. As a result, EBITDA as presented here may
not be comparable to a similarly titled measure presented by
other companies.
(3) Represents a one-time fee paid on Feb. 1, 2000 to Boyd for
early termination of the management agreement.
The following table reports selected balance sheet information at March 31, 2001, and Sept. 30, 2000:
Choctaw Resort Development Enterprise
Selected Balance Sheet Information
(in thousands)
March 31, September 30,
2001 2000
Cash 42,450 33,266
Restricted Cash 209,142 2,443
Bonds 200,000 --
Revolving Loan -- --
Term Loan 53,125 62,500
Owners' Equity 127,096 88,047
Construction on the Golden Moon Project is proceeding on budget and on schedule. The Enterprise expects the Golden
Moon to open in August 2002.
On April 4, 2001, the local community was devastated by heavy rains, resulting in wide-spread flash flooding that
enveloped approximately one-half of the Silver Star's casino area. As a result, the company was forced to inactivate
as many as 2,110 slot machines and six table games for periods ranging from several hours to several days.
Additionally, the clean up and restoration process continued to significantly affect casino revenue for several
weeks. Although to a lesser degree, the company expects that casino revenue will continue to be affected by the
April storm until all the damage is repaired, which the company expects to occur in mid-July 2001. Consequently,
the full extent of the lost revenue and clean up costs has yet to be determined. Casino revenue for April 2001
was 12.9% below April 2000.
Due partly to the recovery from the April storm noted above, in addition to increasing energy prices, May 2001
casino revenue is expected to be lower than casino revenue in May 2000 by approximately 6 percent.
Disclosure Regarding Forward-Looking Statements
This news release contains forward-looking statements, within the meaning of Section 21E of the Securities Exchange
Act of 1934. Such statements include information relating to plans for future expansion and other business development
activities as well as other capital spending, financing sources and the effects of regulation (including gaming
and tax regulation) and competition. The forward-looking statements in this news release are subject to numerous
risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such
results may differ from those expressed in any forward-looking statements made by or on behalf of the Enterprise.
These risks and uncertainties include, but are not limited to, those relating to development and construction activities,
dependence on existing management, leverage and debt service, domestic or global economic conditions, pending litigation,
changes in federal tax laws or the administration of such laws and changes in gaming laws or regulations (including
the legalization of gaming in certain jurisdictions).
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Contact:
Choctaw Resort Development Enterprise
Creda Stewart, 601/650-1537
cstewart@choctaw.org