SYS-CON MEDIA Authors: Pat Romanski, Nikita Ivanov, Yeshim Deniz, Elizabeth White, Sean Houghton

News Feed Item

/C O R R E C T I O N -- Greektown Holdings, L.L.C./

In the news release, Greektown Holdings, L.L.C. Reports Fourth Quarter and Full Year 2013 Financial Results, issued 14-Feb-2014 by Greektown Holdings, L.L.C. over PR Newswire, we are advised by the company that multiple updates have been made to the release. The complete, corrected release follows:

Greektown Holdings, L.L.C. Reports Fourth Quarter and Full Year 2013 Financial Results

DETROIT, Feb. 14, 2014 /PRNewswire/ -- Greektown Holdings, L.L.C. ("Greektown" or the "company") today reported financial results for its fourth quarter and full year ended December 31, 2013.

  • Net revenues for the three months ended December 31, 2013 were $71.5 million compared to $76.9 million for the same quarter of 2012, a decrease of 7.1%.
  • Net loss for the quarter was $9.7 million compared to $9.5 million a year ago, inclusive of $36.4 million of fourth quarter 2013 income resulting from the reversal of the company's deferred tax liability associated with the previously-announced restructuring, and the resulting $42.1 million impairment of the company's goodwill.
  • Adjusted EBITDA(1) decreased to $12.4 million in the fourth quarter of 2013 from $16.5 million in the same quarter of 2012, exclusive of the $42.1 million goodwill impairment during the fourth quarter of 2013.
  • For the year ended December 31, 2013, the company generated net revenues of $305.8 million, net loss of $30.9 million and Adjusted EBITDA(1) of $56.0 million, compared to net revenues of $331.7 million, net loss of $23.8 million and Adjusted EBITDA(1) of $75.9 million for the year ended December 31, 2012.

Cash and cash equivalents were $37.2 million at December 31, 2013, compared to $49.4 million at December 31, 2012. The company's borrowing capacity under its existing revolving credit facility was approximately $28.6 million at December 31, 2013. As of February 14, 2014, the company has $20.6 million of borrowing capacity.  The company has engaged an investment bank and expects to begin discussions with investors relating to potential refinancing transactions in the near term that, subsequent to the refinancing, could result in additional secured indebtedness of the company. The company can provide no assurance that any refinancing transactions will occur.

The company's management has identified various strategic initiatives which are expected to result in cost savings and operational efficiencies, as well as enhanced guest experience and additional revenue opportunities.  Management believes that these initiatives, which have commenced and will continue to be implemented throughout 2014, would have resulted in a run-rate impact of approximately $10-$15 million of additional EBITDA for the year ended December 31, 2013.  Additionally, the company intends to commence a significant renovation of its casino, which will result in improvements to the floorplan, gaming equipment, amenities and overall guest experience. The company expects to invest approximately $125-$150 million to complete these renovations over 18-24 months from the time of commencement. The renovation is subject to available debt and equity financing and operating cash flows, and the company can provide no assurance that it will be completed within the expected time frame or at all.

In February 2014, the Board of Directors approved the sale of the company's Fort Street and Brush Street parking garages and two surface lots to affiliates of our owner, consistent with the receipt of a third party fairness opinion. The total proceeds are anticipated to be approximately $25 million.

"Under new, local ownership and with a cohesive approach to reinvestment, Greektown's operational and physical opportunities are substantial," said Mark Dunkeson, president and chief operating officer of Rock Gaming LLC, the casino-hotel's operator. "I am proud to be leading the Greektown team through this process and confident in our continued progress," he said.

(1) EBITDA (earnings before interest, taxes, depreciation and amortization, goodwill impairment and other income/expense) and Adjusted EBITDA are measurements not in accordance with U.S. Generally Accepted Accounting Principles (GAAP) but are commonly used in the gaming industry as a measure of performance and as a basis for valuation of gaming companies. Adjusted EBITDA represents EBITDA adjusted to eliminate (i) a refund of prior year use taxes, (ii) ownership transition and termination benefit expenses and (iii) certain costs, fees and expenses related to a prior proposed refinancing of our Senior Secured Notes. EBITDA and Adjusted EBITDA are supplemental financial measures used by management, as well as industry analysts, to evaluate our operations. However, EBITDA and Adjusted EBITDA should not be construed as alternatives to income from operations (as an indicator of our operating performance) or to cash flows from operating activities (as a measure of liquidity) as determined in accordance with GAAP. Not all companies calculate EBITDA or Adjusted EBITDA in the same manner. As a result, the company's EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures presented by other companies. 

About Greektown Holdings, L.L.C.
Greektown Holdings, L.L.C.  owns and operates, through its subsidiaries, Greektown Casino-Hotel. Located in downtown Detroit's historic Greektown Entertainment District, Greektown Casino-Hotel opened in November 2000 as the state's third commercial casino. Greektown Casino-Hotel expanded its gaming floor and developed a modern 400-room, 30-story hotel in February 2009. The urban casino employs 1,800 team members and features 2,850 slot machines, 63 table games, and a poker room, along with five restaurants, including a five-outlet food court, four bars and a VIP players' lounge.  Greektown Casino-Hotel has also partnered with 14 local restaurants to offer fine dining rewards to guests. For more information, visit www.greektowncasino.com.  

Safe Harbor Statement
Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and may include, but are not limited to, statements about capitalization and performance of Greektown and the expected results of Greektown's cost savings and operational efficiencies and their run-rate impact on EBITDA. All forward-looking statements involve risks and uncertainties. All statements contained herein that are not clearly historical in nature are forward-looking, and words such as "anticipate," "expect," "will," "continue," or other similar words or phrases are generally intended to identify forward-looking statements. Any forward-looking statement contained herein, in other press releases, written statements or documents filed with the Securities and Exchange Commission are subject to known and unknown risks, uncertainties and contingencies, and there can be no assurance that the expected benefits of our new projects will be realized. Many of these risks, uncertainties and contingencies are beyond Greektown's control, and may cause actual results, performance or achievements to differ materially from anticipated results, performance or achievements. Any forward-looking statements in this release speak only as of the date of this release, and Greektown undertakes no obligation to update any forward-looking statement to reflect events or circumstances after that date or to reflect the occurrence of unanticipated events.

 

Greektown Holdings, L.L.C.

Consolidated Statements of Operations 

(In thousands)









Successor

Predecessor


Successor

Predecessor


Three Months Ended
December 31,

Three Months Ended
December 31,


Nine Months Ended
December 31,

Three Months Ended
March 31,

Year Ended
December 31,


2013

2012


2013

2013

2012

Revenues 







Casino

$                     74,460

$                       79,703


$                   236,912

$                       85,613

$        346,544

Food and beverage

5,864

5,330


17,627

5,939

22,827

Hotel

2,909

2,801


9,595

3,070

12,117

Other

1,627

1,366


4,811

1,491

5,414

Gross revenues

84,860

89,200


268,945

96,113

386,902

Less promotional allowances

13,366

12,303


44,272

15,035

55,186

Net revenues 

71,494

76,897


224,673

81,078

331,716








Operating expenses







Casino

17,043

18,511


54,616

19,649

79,169

Gaming taxes 

16,231

17,309


51,302

18,552

74,823

Food and beverage

4,237

3,350


12,611

4,287

15,492

Hotel

2,561

2,355


7,882

2,685

10,019

Marketing, advertising, and entertainment  

1,566

2,360


6,122

2,014

7,899

Facilities

5,010

4,818


15,354

5,389

19,907

Depreciation and amortization

6,016

7,641


18,516

7,595

32,264

General and administrative expenses 

11,202

11,643


35,559

12,036

48,155

Ownership transition and termination benefit expenses

1,472

-


3,145

2,964

Other

186

96


497

131

370

Goodwill impairment

42,055


42,055

Operating expenses

107,579

68,083


247,659

75,302

288,098

(Loss) income from operations

(36,085)

8,814


(22,986)

5,776

43,618








Other expenses 







Interest expense, net

(12,768)

(12,674)


(38,224)

(12,755)

(50,581)

Amortization of financing fees and accretion of premium (discount) on senior notes

2,852

(1,929)


8,358

(2,007)

(7,540)

Refinancing expense

(1,732)


(157)

(235)

(1,732)

Other income (expense)

(70)

(323)


85

(188)

(622)

Total other expense, net

(9,986)

(16,658)


(29,938)

(15,185)

(60,475)








Loss before income taxes 

(46,071)

(7,844)


(52,924)

(9,409)

(16,857)








Income tax (expense) benefit – current

(74)

10


(221)

(64)

(211)

Income tax benefit (expense) – deferred

36,412

(1,682)


33,414

(1,682)

(6,727)

Net loss

$                      (9,733)

$                        (9,516)


$                   (19,731)

$                      (11,155)

$         (23,795)








 

Greektown Holdings, L.L.C.

Consolidated Balance Sheets

(In thousands)





Successor

Predecessor


December 31,

December 31,


2013

2012




Assets



Current assets:



Cash and cash equivalents

$            37,237

$              49,442

Accounts receivable – gaming, less allowance for doubtful accounts of $220 and $236 in 2013 and 2012, respectively

628

710

Accounts receivable – other, less allowance for doubtful accounts of $178 and $163 in 2013 and 2012, respectively 

1,548

1,397

Inventories

432

458

Prepaid expenses

5,415

3,902

Prepaid Michigan Gaming Control Board annual fee

9,280

9,104

Prepaid municipal service fees

3,362

3,411

Deposits

175

1,632

Total current assets

58,077

70,056




Property, building, and equipment, net 

335,805

342,417




Other assets:



Financing fees - net of accumulated amortization of $8,530 in 2012

152

8,235

Deposits and other assets

30

30

Casino development rights 

177,700

117,800

Trade names - net of accumulated amortization of $2,130 in 2013

12,070

26,300

Rated player relationships -  - net of accumulated amortization of $2,655 and $34,500 in 2013 and 2012, respectively

15,045

34,500

Goodwill

81,011

110,252




Total assets

$         679,890

$            709,590




Liabilities and shareholders' equity 



Current liabilities:



Accounts payable

10,003

17,503

Accrued interest

25,202

25,125

Accrued expenses and other liabilities

11,436

9,858

Current portion of revolving credit facility

3,000

3,000

Total current liabilities

49,641

55,486




Long-term liabilities:



Other accrued income taxes

9,460

9,165

Leasehold liability

1,929

Revolving credit facility, less current portion

9,750

12,000

Senior secured notes - net

403,592

371,843

Obligation under capital lease

4,693

2,472

Deferred income taxes

16,821

Total long-term liabilities

429,424

412,301




Total liabilities

479,065

467,787




Shareholders' equity:



Series A-1 preferred stock at $0.01 par value;



1,688,268 shares authorized, 1,463,535 shares issued and outstanding at December 31, 2012

185,396

Series A-2 preferred stock at $0.01 par value;



645,065 shares authorized, 162,255 shares issued and outstanding at December 31, 2012

20,551

Series A-1 preferred warrants at $0.01 par value;



202,511 shares issued and outstanding at December 31, 2012

25,651

Series A-2 preferred warrants at $0.01 par value;



460,587 shares issued and outstanding at December 31, 2012

58,342

Series A-1 common stock at $1,045.00 par value;



4,354,935 shares authorized, 152,054 shares issued and outstanding at December 31, 2012

1

Series A-2 common stock at $0.01 par value; 645,065 shares authorized, no shares issued

Additional paid-in capital

14,429

Accumulated deficit

(62,567)

Membership interest

200,825

Total Greektown Superholdings, Inc. shareholders' equity/membership interest

200,825

241,803

Total liabilities and shareholders' equity /membership interest

$         679,890

$            709,590




 

Greektown Holdings, L.L.C.

Consolidated Statements of Cash Flows

(In thousands)





Successor

Predecessor


Nine Months Ended

December 31,

Three Months

Ended March 31, 

Year Ended

December 31,


2013

2013

2012

Operating activities 




Net loss 

$                       (19,731)

$                         (11,155)

$                  (23,795)

Adjustments to reconcile net loss to net cash provided by operating activities:




Depreciation and amortization

18,516

7,595

32,264

Amortization of finance fees and accretion of (premium)/discount on senior notes

(8,358)

2,007

7,540

Goodwill impairment

42,055

Deferred income taxes

(33,414)

1,682

6,727

Stock based compensation

871

198

777

Changes in current assets and liabilities:




Accounts receivable - gaming

(8)

90

24

Accounts receivable - other

114

(265)

(181)

Inventories

5

21

(60)

Prepaid expenses 

(3,105)

1,465

1,357

Deposits

1,457

-

(1)

Accounts payable

(4,697)

(2,803)

(1,121)

Accrued interest

12,524

(12,447)

62

Accrued expenses and other liabilities

(3,209)

10,106

503

Net cash provided by (used in) operating activities

3,020

(3,506)

24,096





Investing activities




Capital expenditures

(1,788)

(7,529)

(40,300)

Net cash used in investing activities

(1,788)

(7,529)

(40,300)





Financing activities




Borrowings under revolving credit facility

15,000

Payments on revolving credit facility

(2,250)

Financing fees paid 

(152)

(108)

Net cash (used in) provided by financing activities 

(2,402)

14,892





Net decrease in cash and cash equivalents 

(1,170)

(11,035)

(1,312)

Cash and cash equivalents at beginning of period  

38,407

49,442

50,754

Cash and cash equivalents at end of period

$                         37,237

$                          38,407

$                    49,442





Supplemental disclosure of cash flow information 




Cash paid during the period for interest

$                         25,354

$                          25,126

$                    50,268

Cash paid during the period for income taxes

$                                   -

$                                    -

$                              -





 

Greektown Holdings, L.L.C.

Reconciliation of Net Loss to EBITDA (1)

(In thousands)









Successor

Predecessor


Successor

Predecessor


Three Months Ended December 31, 

Three Months Ended December 31, 


Nine Months Ended December 31, 

Three Months Ended March 31, 

Year Ended December 31, 


2013

2012


2013

2013

2012

Net loss

$                         (9,733)

$                         (9,516)


$                           (19,731)

$                     (11,155)

$              (23,795)

Interest expense

9,916

14,603


29,866

14,762

58,121

Income tax (benefit)/expense

(36,338)

1,672


(33,193)

1,746

6,938

Depreciation and amortization

6,016

7,641


18,516

7,595

32,264

Goodwill impairment

42,055

-


42,055

-

-

Other expense/(income)

70

323


(85)

188

622

EBITDA (1)

$                        11,986

$                        14,723


$                            37,428

$                       13,136

$                74,150

 Use tax refund 

(1,048)

-


(1,048)

-

-

 Ownership transition and termination benefit expenses 

1,472

-


3,145

2,964

-

 Refinancing expense 

-

1,732


157

235

1,732

Adjusted EBITDA (1)

$                        12,410

$                        16,455


$                            39,682

$                       16,335

$                75,882








(1) EBITDA (earnings before interest, taxes, depreciation and amortization, goodwill impairment and other income/expense) and Adjusted EBITDA are measurements not in accordance with U.S. Generally Accepted Accounting Principles (GAAP) but are commonly used in the gaming industry as a measure of performance and as a basis for valuation of gaming companies. Adjusted EBITDA represents EBITDA adjusted to eliminate (i) a refund of prior year use taxes, (ii) ownership transition and termination benefit expenses and (iii) certain costs, fees and expenses related to a prior proposed refinancing of our Senior Secured Notes. EBITDA and Adjusted EBITDA are supplemental financial measures used by management, as well as industry analysts, to evaluate our operations. However, EBITDA and Adjusted EBITDA should not be construed as alternatives to income from operations (as an indicator of our operating performance) or to cash flows from operating activities (as a measure of liquidity) as determined in accordance with GAAP. Not all companies calculate EBITDA or Adjusted EBITDA in the same manner. As a result, the company's EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures presented by other companies. 

SOURCE Greektown Holdings, L.L.C.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and asse...
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
DevOps is all about agility. However, you don't want to be on a high-speed bus to nowhere. The right DevOps approach controls velocity with a tight feedback loop that not only consists of operational data but also incorporates business context. With a business context in the decision making, the right business priorities are incorporated, which results in a higher value creation. In his session at DevOps Summit, Todd Rader, Solutions Architect at AppDynamics, discussed key monitoring techniques...
We are reaching the end of the beginning with WebRTC, and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will w...
The 3rd International @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to th...
SYS-CON Media announced that Centrify, a provider of unified identity management across cloud, mobile and data center environments that delivers single sign-on (SSO) for users and a simplified identity infrastructure for IT, has launched an ad campaign on Cloud Computing Journal. The ads focus on security: how an organization can successfully control privilege for all of the organization’s identities to mitigate identity-related risk without slowing down the business, and how Centrify provides ...
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
The term culture has had a polarizing effect among DevOps supporters. Some propose that culture change is critical for success with DevOps, but are remiss to define culture. Some talk about a DevOps culture but then reference activities that could lead to culture change and there are those that talk about culture change as a set of behaviors that need to be adopted by those in IT. There is no question that businesses successful in adopting a DevOps mindset have seen departmental culture change, ...
In her General Session at 15th Cloud Expo, Anne Plese, Senior Consultant, Cloud Product Marketing, at Verizon Enterprise, focused on finding the right mix of renting vs. buying Oracle capacity to scale to meet business demands, and offer validated Oracle database TCO models for Oracle development and testing environments. Anne Plese is a marketing and technology enthusiast/realist with over 19+ years in high tech. At Verizon Enterprise, she focuses on driving growth for the Verizon Cloud platfo...
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the ...
This builds on Puppet Labs' first class Windows support, including native .MSI packages for x32 and x64 operating systems, modules to extend common Windows server management tools, including Powershell, and integrations with Microsoft Azure and Visual Studio. By automating common Windows administration tasks, Puppet Labs is enabling users to adopt DevOps practices, thereby reducing the time needed to deploy applications from weeks to hours.
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete...
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, discussed how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.