Boca Resorts, Inc. Announces That First Quarter Results Exceed Prior Year By $0.08
BOCA RATON, Fla., Nov. 1 /PRNewswire/ — Boca Resorts, Inc. (NYSE: RST), a
leading owner of luxury resorts and entertainment and sports businesses, today
reported operating results for its first fiscal quarter ended September 30.
Net loss for the three months ended September 30, 2000, was $27.6 million, or
$0.68 per share, and was $0.03 better than consensus estimates as reported by
market service, First Call/Thomson Financial and $0.08 better than reported in
the year earlier period. This compares to a loss of $31.0 million, or $0.76
per share, for the three months ended September 30, 1999.
The Company's quarterly revenue is historically lowest during the first
fiscal quarter because of the lower summer demand for its Florida resorts and
because the Florida Panthers Hockey Club recognizes revenue over the regular
hockey season which commences during the second fiscal quarter.
First quarter financial highlights include:
* Consolidated revenue increased 14.6% to $62.0 million during the three
months ended September 30, 2000, compared to $54.1 million during the three
months ended September 30, 1999.
* Room revenue per available room (RevPar) for the three months ended
September 30, 2000, rose 9.7% over the prior year period driven by increases
in average daily rates and occupancy.
* Total revenue per available room (which includes revenue generated from
non-room sources such as food and beverage sales, yachting and marina revenue,
golf, club memberships and retail sales) increased 12.0% over the prior year
three-month period.
The Company's capital development activities include:
* At the Boca Raton Resort and Club, a new Tuscan restaurant, designed by
David Rockwell and managed by Drew Nieporent, will open in November 2000,
along with a Mizner-style retail Piazza. Construction has also begun on a new
Marina Wing with 112 water-view rooms, a new state-of-the-art 40,000 square
foot spa and a new golf clubhouse with a casual restaurant offering dramatic
views of the championship golf course.
* At the Registry Resort located in Naples, Florida, waterfront
enhancements have been undertaken, including the recent completion of a new
beach pavilion. The Company has also moved forward with its plans to add
6,000 square feet of flexible meeting space providing the Registry Resort with
the largest meeting venue in the Naples market. In addition, a new pool
complex, featuring a free-form pool situated in a tropical setting, a separate
Olympic-sized pool and private rental cabanas are currently under construction
and are scheduled to open in December 2000.
Quarterly Results
Revenue for the three months ended September 30, 2000, increased to
$62.0 million, up from $54.1 million for the three months ended September 30,
1999. Higher revenue during the recently completed quarter was primarily
attributable to a 7.1% increase in the average daily rate charged at the
Company's resorts, a 2.5% increase in occupancy, an increase in the number of
available and occupied rooms at the Arizona Biltmore Resort & Spa and an
increase in food and beverage sales and golf fees.
Operating loss for the recently completed quarter totaled $12.2 million
compared to a loss of $17.8 million for the corresponding quarter of the prior
year. The improvement for the three months ended September 30, 2000, was
primarily due to an increase in leisure and recreation revenue and gross
margins, partially offset by a $1.6 million increase in depreciation expense
on recently completed capital projects at the Company's resorts. Operating
results of the entertainment and sports business improved during the three
months ended September 30, 2000, primarily because the three months ended
September 30, 1999, included non-recurring charges totaling approximately
$3.2 million associated with the buyout of certain Panthers' player contracts.
Net loss was $27.6 million for the three months ended September 30, 2000,
versus a net loss of $31.0 million in the year-ago period. The improvement
was primarily associated with the factors discussed in the preceding
paragraphs, partially offset by an increase in interest and other expense.
Richard C. Rochon, President of Boca Resorts, Inc., commented, I am very
pleased that the Company achieved double-digit revenue growth and reduced
business segment costs as a percent of revenue during the seasonally slow
first quarter. Our outlook for the future is extremely positive with
contracted bookings for current year group business well ahead of last year's
pace. In addition, the exciting new capital enhancements underway at the Boca
Raton Resort and Club and Registry Resort provide us with the opportunity to
substantially grow revenue and further enrich our guests' resort experience.
Boca Resorts, Inc. owns luxury resort properties in Florida and Arizona.
The Company's resort portfolio includes the Boca Raton Resort & Club, the
Arizona Biltmore Resort & Spa, the Registry Resort at Pelican Bay, the
Edgewater Beach Hotel, the Hyatt Regency Pier 66 Hotel and Marina, the
Radisson Bahia Mar Resort and Yachting Center, Grande Oaks Golf Club and
Naples Grande Golf Club. The Company also owns the Florida Panthers Hockey
Club and manages and operates the National Car Rental Center (a multi-purpose
entertainment complex where the Panthers play their home games) as well as the
Incredible Ice skating rink.
– table to follow-
BOCA RESORTS, INC.
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30
UNAUDITED
(In Thousands Except Per Share Data)
Three Months
2000 1999
Revenue:
Leisure and recreation $59,585 $51,417
Entertainment and sports 2,403 2,681
Total revenue 61,988 54,098
Operating expenses:
Cost of leisure and recreation services 32,919 29,717
Cost of entertainment and sports services 4,645 7,528
Selling, general and administrative expenses 26,574 26,238
Amortization and depreciation 10,015 8,418
Total operating expenses 74,153 71,901
Operating loss (12,165) (17,803)
Interest and other income 364 427
Interest and other expense (15,783) (13,722)
Minority interest — 64
Net loss (1) $(27,584) $(31,034)
Net loss per share – basic and diluted $(0.68) $(0.76)
Shares used in computing net loss
per share – basic and diluted 40,861 40,861
(1) No tax benefit has been recorded due to an offsetting increase in the
Company's valuation allowance.
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995: Statements in this press release regarding Boca Resorts, Inc.'s
business which are not historical facts are forward-looking statements that
involve risks and uncertainties. For a 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 on Form 10-K for the most recently ended fiscal year.
SOURCE Boca Resorts, Inc.
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