Empire Resorts Announces Fourth Quarter and Full Year Results
March 18 2008 - 8:00AM
Business Wire
Empire Resorts, Inc. (NASDAQ: NYNY) announces financial results for
the fourth quarter and twelve months ended December 31, 2007. Net
revenue for the fourth quarter was $15.4 million compared to $20.7
million in the fourth quarter of 2006 reflecting heightened
regional competition for the company�s video gaming machine
business and reduced racing revenue from OTB facilities. The
company�s operating loss for the quarter was $(13.6) million versus
$(3.5) million in the prior-year period. Included in the operating
loss is a charge of approximately $12.8 million related to the
impairment of deferred development costs associated with the
company�s efforts to build a Class III casino with the St. Regis
Mohawk Tribe. The company posted a net loss for the fourth quarter
of $(15.4) million, or $(0.52) per diluted share, compared with a
net loss of $(5.5) million, or $(0.20) per diluted share, in 2006.
For fiscal 2007, Empire reported net revenue of $75.7 million
versus $97.9 million in the same period last year, reflecting
declines in the company�s racing and VGM operations. Empire�s net
loss for 2007 was $(26.2) million, or $(0.89) per diluted share,
versus a net loss of $(8.6) million, or $(0.32) per diluted share,
for 2006. �Empire Resorts opened the door to a new chapter in its
history with the signing of a joint venture agreement with Concord
Associates to relocate, reestablish and reinvent our harness track
and VGM operations, and develop a world-class gaming, hotel,
convention center and entertainment facility, at the site of the
historic Concord Hotel,� said David Hanlon, chief executive officer
and president. �Since signing the agreement this past February, we
have been making progress toward securing the necessary regulatory
approvals and, if all closing conditions are met, we expect to
close the agreement later this year. Although we were disappointed
that the Tribe application to take land into trust to develop a
Class III Casino was denied by the Department of the Interior, we
recognized that our shareholders had placed their faith and trust
in us to explore new growth initiatives that leverage our gaming
and hospitality expertise and vision for reinvigorating the upstate
economy.� About Empire Resorts, Inc. Empire Resorts operates the
Monticello Gaming & Raceway and is involved in the development
of other gaming and non-gaming resort projects in the Catskills.
Additional information can be found at www.empiresorts.com.
Statements in this press release regarding the company's business
that are not historical facts are "forward-looking statements" that
involve risks and uncertainties, including the need for regulatory
approvals, financing and successful completion of construction. The
company wishes to caution readers not to place undue reliance on
such forward-looking statements, which statements are made pursuant
to the Private Securities Litigation Reform Act of 1994, and as
such, speak only as of the date made. To the extent the content of
this press release includes forward-looking statements, they
involve various risks and uncertainties including (i) the risk that
the Company�s proposed joint venture with Concord Associates is not
completed or the Company is not able to develop a Class II or Class
III casino; (ii) the risk that financing necessary for the proposed
programs or projects may not be able to be obtained because of
credit factors, market conditions or other contingencies, (iii) the
risk of non-compliance by various counterparties of the related
agreements, and (iv) general risks affecting the company as
described from time to time in it's reports filed with the
Securities and Exchange Commission. For a full discussion of such
risks and uncertainties, which could cause actual results to differ
from those contained in the forward-looking statements, see "Risk
Factors" in the company's Annual Report or Form 10-K for the most
recently ended fiscal year. EMPIRE RESORTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands,
except per share data) � � � � Three Months Ended December 31, Year
Ended December 31, 2007 2006 2007 2006 Unaudited Unaudited Audited
Audited Net Revenues $ 15,390 $ 20,726 $ 75,693 $ 97,871 �
Operating Costs 13,201 16,876 65,760 79,108 Selling, General &
Administrative 2,619 7,051 14,990 18,235 Depreciation 298 288 1,180
1,144 Impairment Loss - Deferred Development Costs � � 12,822 � � �
� � 12,822 � � � Total Costs & Expenses � � 28,940 � � � 24,215
� � � 94,752 � � � 98,487 � � Income (Loss) From Operations (13,550
) (3,489 ) (19,059 ) (616 ) � Amortization of Deferred Financing
Costs (103 ) (169 ) (419 ) (655 ) Interest Expense (1,473 ) (1,492
) (5,932 ) (5,989 ) Interest Income � � 156 � � � 65 � � 761 � � �
184 � � Net (Loss) (14,970 ) (5,085 ) (24,649 ) (7,076 ) �
Cumulative Undeclared Dividends on Preferred Stock � � 387 � � �
387 � � 1,551 � � � 1,551 � � Net Loss Applicable to Common
Shareholders � $ (15,357 ) � $ (5,472 ) $ (26,200 ) � $ (8,627 )
Weighted Average Common Shares Outstanding 29,582 26,969 29,523
26,703 � Loss Per Common Share � $ (0.52 ) � $ (0.20 ) $ (0.89 ) �
$ (0.32 ) � � Reconciliation of Net Loss to EBITDA � Net Loss $
(14,970 ) $ (5,085 ) $ (24,649 ) $ (7,076 ) Less: Depreciation and
Amortization 195 119 761 489 Less: Provision for Income Taxes - - -
- Less: Interest (net) � � 1,317 � � � 1,427 � � 5,171 � � � 5,805
� � EBITDA (Negative) � $ (13,458 ) � $ (3,539 ) $ (18,717 ) � $
(782 ) EMPIRE RESORTS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED
BALANCE SHEETS (in thousands) � � December 31, December 31, 2007
2006 (Audited) (Audited) Assets Current Assets: Cash and Cash
Equivalents $ 15,008 $ 9,471 Restricted Cash 1,266 1,747 Accounts
Receivable 1,401 3,802 Prepaid Expenses and Other Current Assets �
� 2,967 � � 2,996 � Total Current Assets 20,642 18,016 � Property
and Equipment - Net 30,860 31,703 Deferred Financing Costs - Net
2,697 3,116 Deferred Development Costs � � - � � 7,729 � � Total
Assets � $ 54,199 � $ 60,564 � � � Liabilities and Stockholders'
Deficit Current Liabilities: Accounts Payable $ 3,530 $ 3,734
Accrued Expenses and Other Current Liabilities � � 6,129 � � 9,936
� � Total Current Liabilities 9,659 13,670 Revolving Credit
Facility 7,617 7,617 Senior Convertible Notes � � 65,000 � � 65,000
� � Total Liabilities 82,276 86,287 � Stockholders' Deficit � �
(28,077 ) � (25,723 ) � Total Liabilities and Stockholders' Deficit
� $ 54,199 � $ 60,564 �
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