GARY, Ind., Feb. 24 /PRNewswire/ -- The Majestic Star Casino, LLC (the "Company") today announced financial results for both the three and twelve- month periods ended December 31, 2002. The Company is a multi-jurisdictional gaming company that directly owns and operates one dockside gaming facility located in Gary, Indiana ("Majestic Star") and, pursuant to a 2001 acquisition through its unrestricted subsidiary, Majestic Investor Holdings, LLC, ("Holdings"), owns and operates three Fitzgeralds brand casinos located in Tunica, Mississippi ("Fitzgeralds Tunica" or "Barden Mississippi Gaming"), Black Hawk, Colorado ("Fitzgeralds Black Hawk" or "Barden Colorado Gaming") and downtown Las Vegas, Nevada ("Fitzgeralds Las Vegas" or "Barden Nevada Gaming").


As a result of the Fitzgeralds acquisition in the fourth quarter of 2001, a comparison of the Company's results between 2002 and 2001 is not meaningful on a consolidated basis. Accordingly, in this release the Company has provided separate discussion of the Majestic Star operations (Gary property only) and each of the Fitzgeralds operations.


Majestic Star (Gary Property)


Net loss for the three-month period ended December 31, 2002 for Majestic Star was approximately $149,000, compared to a loss of approximately $380,000 in the same period last year, an improvement approximately $231,000. Net revenues for the three-month period ended December 31, 2002 were approximately $33.0 million, compared to approximately $27.7 million for the prior year. The increase of approximately $5.3 million in net revenues was the primary contributor for the significant increase in net income. Adjusted EBITDA (defined as earnings before interest, taxes, depreciation, amortization, gain or loss on disposal of assets and certain non-recurring, infrequent and unusual items) for Majestic Star was approximately $6.2 million, compared to approximately $5.6 million in the prior year, an increase of approximately $600,000 or 10.7%.


Net income for the twelve-month period ended December 31, 2002 for Majestic Star was approximately $3.2 million, a new property record, compared to net loss of approximately $280,000 in the prior twelve-month period, an improvement of approximately $3.5 million. The increase in net income was principally attributed to a $7.5 million increase in net revenues. Net revenues for the twelve-month period ended December 31, 2002 were approximately $127.3 million, compared to $119.8 million in the same twelve- month period last year. Majestic Star's Adjusted EBITDA for the twelve-month period ended December 31, 2002 was approximately $27.8 million, compared to approximately $25.4 million during the same twelve-month period last year, an increase of $2.4 million or 9.4%. Don H. Barden, the Company's Chairman and CEO stated "Majestic Star in 2002 set new property records for casino revenues, Adjusted EBITDA and net income." Mr. Barden went on to state that he was "proud of the financial achievements and very gratified that Majestic Star in 2002 was chosen Best Indiana Casino by a poll taken by Midwest Gaming and also named Best Overall Northwest Indiana Casino by a poll taken by the Chicago Sun Times."


Casino revenues for Majestic Star during the three-months ended December 31, 2002 totaled approximately $34.0 million, compared to approximately $28.4 million in the same period last year, an increase of approximately $5.6 million or 19.7%. Of this amount, slot revenues were $28.0 million, compared to $24.1 million in the same period last year, an increase of $3.9 million or 16.2%. The average number of slot machines in operation increased by 128 units or 9.1% to 1,541, with an average win per slot per day of $197, compared to 1,413 slot machines in operation in the prior period, with an average win per slot per day of $186. Table revenues increased approximately $1.7 million or 41.9% to $6.0 million. The average number of tables in operation increased by 5, or 10.0%, to 55, with an average win per table per day of $1,199, compared to an average of 50 tables in operation in the prior period, with an average win per table per day of $918.


Casino revenues for Majestic Star during the twelve-month period ended December 31, 2002 totaled approximately $132.6 million, compared to approximately $122.2 million in the prior twelve-month period. The average win per slot per day during the twelve-month period ended December 31, 2002 was $205 compared to $199 in the same twelve-month period last year.


Majestic Star believes that its $10.4 million increase in 2002 casino revenues can be attributed to increased patronage that resulted after commencement of dockside gaming in August 2002 and the June 2002 opening of the 2,000 space-parking garage at the Gary property.


As of December 31, 2002, Majestic Star had $8.6 million in cash on hand, after paying its January 10-7/8% Senior Secured Notes (the "Star Notes") interest payment of approximately $7.1 million, and had no borrowings under its $20.0 million credit facility. As of December 31, 2002, Majestic Star had total debt outstanding of $130.0 million of 10-7/8% Senior Secured Notes. The Star Notes are secured by the Majestic Star assets only, are independent of the 11.653% Senior Secured Notes issued by Majestic Investor Holdings, and are not secured by the Fitzgeralds properties acquired by Majestic Investor Holdings.


Majestic Investor Holdings (Fitzgeralds Properties)


On December 6, 2001, Majestic Investor Holdings, ("Holdings") completed the acquisition of substantially all of the assets of Fitzgeralds Tunica, Fitzgeralds Black Hawk and Fitzgeralds Las Vegas. The acquisition was funded by the issuance of $152.6 million of 11.653% Senior Secured Notes due 2007 (the "Holdings Notes"). The Holdings Notes were initially sold via a 144A private placement and in September 2002 were exchanged for notes that are registered with the Securities and Exchange Commission. The assets of the three Fitzgeralds casinos secure the Holdings Notes. During the fourth quarter of 2002, Majestic Investor Holdings redeemed $865,000 of the 11.653% Senior Secured Notes due 2007 and recognized a gain of $69,000.


For comparative purposes the 2001 historical financial information for the Fitzgeralds properties include 25 days of post acquisition operations combined with information derived from the predecessor's unaudited financial statements for the period October 1, 2001 through December 6, 2001 and January 1, 2001 through December 6, 2001.


On a consolidated basis, for the three-month period ended December 31, 2002, Holdings had net revenues of approximately $40.4 million, compared to $38.6 million in the same three-month period last year. Consolidated net loss for the three-month period ended December 31, 2002, before the gain recognized on purchase of the Holdings Notes, was approximately $1.9 million. Consolidated Adjusted EBITDA (defined as earnings before interest, taxes, depreciation, amortization, gain or loss on disposal of assets and certain non-recurring, infrequent and unusual items) was approximately $6.4 million compared to Adjusted EBITDA of $4.4 million in the same three-month period last year, an increase of approximately $2.0 million or 45.5%.


For the twelve-month period ended December 31, 2002, Holdings had net revenues of approximately $169.4 million. Consolidated net loss, before gain from purchase of the Holdings Notes, for the twelve-month period ended December 31, 2002 was approximately $2.0 million. Consolidated Adjusted EBITDA for the twelve-month period ended December 31, 2002 was approximately $30.7 million compared to $28.5 million in the twelve-month period ended December 31, 2001. Mr. Barden stated that "all three Fitzgeralds property's exceeded the prior year's fourth quarter and that on a consolidated basis Majestic Investor Holdings posted improved Adjusted EBITDA for the twelve month period ended December 31, 2002."


During the three-month period ended December 31, 2002, Fitzgeralds Tunica had net revenues of approximately $20.9 million, compared to $18.9 million in the same period last year, an increase of $2.0 million or 10.6%. Casino revenues during the three-month period ended December 31, 2002 were approximately $19.6 million, compared to approximately $19.5 million for the same period last year. The average number of slot machines in operation during the three-months ended December 31, 2002 was 1,351, with an average win per slot per day of $142, and the hotel occupancy was 88.5%, with an average daily rate of $47, compared to the average number of slot machines in operation of 1,353 during the same period last year, with an average win per slot per day of $143, and hotel occupancy of 94.3%, with an average daily rate of $45. Adjusted EBITDA for the three-month period ended December 31, 2002 was approximately $4.4 million compared to approximately $3.5 million in the prior year's period, an improvement of approximately $900,000 or 25.7%.


For the twelve-month period ended December 31, 2002, Fitzgeralds Tunica had net revenues of approximately $87.4 million, compared to $82.1 million in the prior twelve-month period, an increase of $5.3 million or 6.5%. Casino revenues during the twelve-month period ended December 31, 2002 were approximately $88.2 million, compared to approximately $83.0 million for the twelve-month period ended December 31, 2001. Adjusted EBITDA for the twelve- month period ended December 31, 2002 was approximately $21.7 million, a new record, compared to $19.1 million in the prior twelve-month period, an improvement of approximately $2.6 million or 13.6%.


During the three-month period ended December 31, 2002, Fitzgeralds Black Hawk, had net revenues of approximately $8.1 million, compared to approximately $7.7 million in the prior three-month period. Adjusted EBITDA for the three-month period ended December 31, 2002 was approximately $2.1 million, compared to approximately $1.8 million in the same period last year. The average number of slot machines in operation during the three-month period ended December 31, 2002 was 592, with an average win per slot per day of $150, compared to an average number of slot machines of 596 during the three-months ended December 31, 2001 with an average win per slot per day of $162.


For the twelve-month period ended December 31, 2002, Fitzgeralds Black Hawk had net revenues of approximately $33.1 million, compared to $33.7 million in the same period last year. Adjusted EBITDA for the twelve- month period ended December 31, 2002 was approximately $8.2 million, compared to approximately $8.0 million in the prior twelve-month period.


Fitzgeralds Las Vegas reported net revenues of approximately $11.4 million during the three-month period ended December 31, 2002, compared to approximately $11.9 million in the same period last year. Adjusted EBITDA for the three-month period ended December 31, 2002 was approximately $113,000, compared to a loss of $864,000 in Adjusted EBITDA in the same period last year, an improvement of approximately $977,000. The average number of slot machines in operation during the three-months ended December 31, 2001 was 901, with an average win per slot per day of $77, and the hotel occupancy was 79.9%, with an average daily rate of $38, compared to the average number of slot machines during the three-months ended December 31, 2001 of 951, with an average win per slot per day of $81, and hotel occupancy of 83.5 %, with an average daily rate of $38.


For the twelve-month period ended December 31, 2002, Fitzgeralds Las Vegas had net revenues of approximately $48.9 million, compared to $52.5 million in the prior twelve-month period. Adjusted EBITDA for the twelve-month period ended December 31, 2002 was approximately $1.0 million compared to approximately $1.5 million for the prior twelve-month period.


On a consolidated basis, Holdings ended the quarter with $16.0 million in cash and cash equivalents. As of December 31, 2002, Holdings had total debt outstanding of $151.8 million of 11.658% Senior Secured Notes and had no borrowings under its $15.0 million Credit Facility.


Certain reclassifications have been made to the 2001 financial statements to conform to the 2002 presentations. These reclassifications have no effect on previously reported net income.


This press release includes statements that constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor provisions of those sections and the Private Securities Litigation Reform Act of 1995. Words such as "anticipates," "believes," "estimates," "plans," "intends," "will," "could," or "expects" used in the Company's press releases and reports filed with the Securities and Exchange Commission are intended to identify forward-looking statements. All forward-looking statements involve risks and uncertainties. Although the Company believes its expectations are based upon reasonable assumptions within the bounds of its current knowledge of its business and operations, there can be no assurances that actual results will not materially differ from expected results. The Company cautions that these and similar statements included in this press release and in previously filed periodic reports are further qualified by important factors that could cause actual results to differ materially from those in the forward-looking statements. Such factors include, without limitation, the following: the ability to fund planned development needs and to service debt from existing operations and from new financing; increased competition in existing markets or the opening of new gaming jurisdictions; a decline in the public acceptance of gaming; the limitation, conditioning or suspension of the Company's gaming licenses; increases in or new taxes imposed on gaming revenues, admission taxes or gaming devices; a finding of unsuitability by regulatory authorities with respect to the Company's officers, or key employees; loss and/or retirement of key executives; significant increase in fuel or transportation prices; adverse economic conditions in the Company's markets; severe and unusual weather in the Company's markets; adverse results of significant litigation matters; non- renewal of the Company's or any of its operating subsidiaries' gaming licenses from the appropriate regulatory authorities and the occurrences of destabilizing events. The Company has based these forward-looking statements on information currently available and disclaims any intentions or obligation to update or revise any forward-looking statement. In light of the foregoing, readers of this release are cautioned not to place undue reliance on the forward-looking statements contained herein.


The Company has scheduled a conference call for Tuesday, February 25, 2003 10:00 a.m. (Eastern time) to discuss the both fourth quarter and calendar year 2002 results. The dial-in number is (800) 366-3964, and the moderator is Michael E. Kelly. A replay number will also be available, (800) 405-2236, pass-code 527105. Inquiries for additional information should be directed to Michael E. Kelly, Executive Vice President / Chief Operating Officer at 702-388-2240.