SOURCE: Jacobs Entertainment, Inc.

May 13, 2008 18:14 ET

Jacobs Entertainment, Inc. Reports First Quarter Results

GOLDEN, CO--(Marketwire - May 13, 2008) - Jacobs Entertainment, Inc. ("JEI"), an owner and operator of multiple gaming properties, today announced unaudited financial results for its first quarter ended March 31, 2008.

Net revenues for the first quarter of 2008 were $87.0 million compared to $84.6 million in the first quarter of the previous year. Net income for the first quarter of 2008 was $911 thousand compared to $2.5 million in the same quarter of the previous year.

Jacobs Entertainment, Inc. will host a conference call to discuss its operating results for its first quarter ended March 31, 2008. The conference call will be held at 12:00 p.m. Eastern Time on Wednesday, May 14, 2008, and will be hosted by Stephen R. Roark, President of Jacobs Entertainment, Inc., and Ian M. Stewart, President of Pari-Mutuel Wagering Operations, along with other members of the JEI management team.

To participate in the JEI conference call on Wednesday, May 14, 2008, at 12:00 p.m. Eastern Time, please dial (800) 768-6544 and give confirmation code 8075413. Please call 5-7 minutes before the call is to begin.

If you are unable to join the JEI conference call, you may access a replay of the call starting Wednesday, May 14, 2008 at 3:00 p.m. Eastern Time. To access the replay, please dial 888-203-1112 and reference the confirmation code 8075413. The replay will run until midnight Eastern Time, Wednesday, May 21, 2008.

Based in Golden, CO, Jacobs Entertainment is the owner and operator of The Lodge Casino at Black Hawk and the Gilpin Casino, both located in Black Hawk, Colorado; the Gold Dust West-Reno Casino in Reno, Nevada; the Gold Dust West-Carson City Casino in Carson City, Nevada; the Gold Dust West-Elko Casino in Elko, Nevada (the casino properties); Colonial Downs Racetrack in Virginia and nine related off-track wagering facilities located in Virginia; and 18 truck plaza video gaming facilities located in Louisiana with a share in the gaming revenues of an additional truck plaza located in Louisiana.

Our business and financial performance are subject to a number of risks and uncertainties that might adversely affect our operating results in the future in a material way, such as the intensity of competition, our ability to meet debt obligations, regulatory compliance, taxation levels, effects of national and regional economic and market conditions, labor and marketing costs, success of our diversification plan and the successful integration of our operations.

                        JACOBS ENTERTAINMENT, INC.
                     FINANCIAL HIGHLIGHTS (unaudited)
                          (dollars in thousands)

                      SELECTED INCOME STATEMENT DATA

                                                   Three Months Ended
                                                        March 31,
                                                   2008           2007
                                              -------------  -------------
Revenues:
  Total revenues                              $      95,558  $      91,833
  Promotional allowances                             (8,515)        (7,211)
                                              -------------  -------------
Net revenues                                         87,043         84,622

Costs and expenses                                   79,151         75,296
                                              -------------  -------------
Operating income                                      7,892          9,326
Interest expense, net                                (6,981)        (6,841)
                                              -------------  -------------
NET INCOME                                    $         911  $       2,485
                                              =============  =============


                       SELECTED BALANCE SHEET DATA

                                                 March 31,    December 31,
                                                   2008           2007
                                              -------------  -------------
Total assets                                  $     357,937  $     355,798
Total liabilities                             $     328,547  $     327,490
Stockholder's equity                          $      29,390  $      28,308

EBITDA represents earnings before interest, income taxes, depreciation and amortization and is a non-GAAP financial measure that management believes is useful because it allows holders of our debt and management to evaluate and compare the Company's operating results from continuing operations from period to period in a meaningful and consistent manner in addition to standard GAAP financial measures. Management internally evaluates the performance of its segments using EBITDA measures as do most analysts following the gaming industry. EBITDA is also a key component of certain financial covenants in the Company's debt agreements. This information should not be considered as an alternative to any measure of performance as promulgated under accounting principles generally accepted in the United States of America, such as net income, nor should it be considered as an indicator of our overall financial performance. Our calculation of EBITDA may be different from the calculation used by other companies and comparability may be limited.

                  RECONCILIATION OF EBITDA TO NET INCOME
                          (dollars in thousands)

                                                      Three Months Ended
                                                          March 31,
                                                        2008      2007
                                                     ---------  ---------
Net income as reported above                         $     911  $   2,485
Add:
  Interest expense, net                                  6,981      6,841
  Depreciation and amortization                          4,898      4,075
                                                     ---------  ---------
EBITDA                                               $  12,790  $  13,401
                                                     =========  =========

Contact Information

  • CONTACT:
    Jacobs Entertainment, Inc.
    Stephen R. Roark
    President
    303-215-5201