-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, L2Hzc25Oq4+xtWDww2M711Dp7pvXYwWW/lUG5RoelVVS2jDhKX6+UhOzi2+I0/zQ YcsaEdWnovbo9SP6hF8b9A== 0000912057-01-531838.txt : 20010911 0000912057-01-531838.hdr.sgml : 20010911 ACCESSION NUMBER: 0000912057-01-531838 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20010809 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: FILED AS OF DATE: 20010910 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ARGOSY GAMING CO CENTRAL INDEX KEY: 0000895385 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-AMUSEMENT & RECREATION SERVICES [7900] IRS NUMBER: 371304247 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11853 FILM NUMBER: 1734831 BUSINESS ADDRESS: STREET 1: 219 PIASA ST CITY: ALTON STATE: IL ZIP: 62002 BUSINESS PHONE: 6184747500 MAIL ADDRESS: STREET 1: 219 PIASA STREET CITY: ALTON STATE: IL ZIP: 62002 8-K 1 a2059036z8-k.txt FORM 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): AUGUST 9, 2001 -------------- ARGOSY GAMING COMPANY (Exact name of Registrant as specified in its charter) DELAWARE 1-11853 37-1304247 (State or other (Commission File Number) (IRS Employer jurisdiction of Identification incorporation) Number) 219 PIASA STREET, ALTON, ILLINOIS 62002 (Address of principal executive offices) (Zip Code) (618) 474-7500 (Registrant's telephone number, including area code) N/A (Former name or former address, if changed since last report) ITEM 9. REGULATION FD DISCLOSURE On August 9, 2001, shortly after closing the acquisition of the outstanding stock of Empress Casino Joliet Corporation (the "Acquisition"), Argosy Gaming Company (the "Company") held a conference call to discuss the Acquisition and update its financial guidance for its third quarter and fiscal year ending 2001 taking into account the Acquisition. In accordance with its customary practice, the Company made a recording of the conference call available on its public website. The Company recently removed the recording from its website and is filing as an exhibit to this Form 8-K a script of the conference call. ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
EXHIBIT NO. DESCRIPTION ----------- ----------- 99.1 Script of August 9, 2001 Argosy Gaming Company Conference Call.
2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized. ARGOSY GAMING COMPANY, a Delaware corporation Date: September 10, 2001 By: /s/ Dale R. Black ------------------------------------- Name: Dale R. Black Title: Senior Vice President and Chief Financial Officer 3 EX-99.1 3 a2059036zex-99_1.txt EXHIBIT 99.1 EXHIBIT 99.1 Thank you _________________. Good morning everyone. Today I would like to update you on the forecast for our existing properties for the balance of 2001, and to walk you through the impact of the Empress acquisition on our financial statements. We indicated earlier that we felt that EBITDA from the 5 existing properties would be approximately $200 million for 2001, and we are still comfortable with this range. As it related to the Empress Acquisition, I would like to share the following: INCOME STATEMENT - The property has generated $76 million of EBITDA on a LTM basis through June. Horseshoe recently reported 2nd Quarter EBITDA of $21 million on revenues of $70 million, and 6 month EBITDA of $42 million on revenues of $138 million. We expect EBITDA for the balance of 2001 to be approximately $28-30 million (for the 5 months) with the recent trends continuing through the 3rd quarter and allowing for some negative impact in the 4th quarter from the anticipated opening of Harrah's barge in October. DEPRECIATION & AMORT - Based on our preliminary estimate of the purchase price allocation, we expect depreciation expense to increase by approximately $8.0 million per year. In addition, we expect to record approximately $12-13 million amortizable intangibles that will amortize at approximately $2.5 million per year. Fixed Asset Base approximately $60-65 million Based on Preliminary Purchase Price Allocation, which will be finalized by the time we report 3rd quarter earnings. INTEREST EXPENSE - Interest expense will increase because of the additional borrowings to complete the purchase. $200m Sub Notes @ 9.0% = 18m/yr $275m Term B @ 8.0% = 22m/yr DFC $13m BALANCE SHEET - Book value of Fixed Assets approximately $60 million - Intangibles increase just under $400 million - Def Fin Costs $13 million - LTD Pro Forma at 6/30/01
-------------- ---------------- ------------- -------------- ACT ADJ PRO FORMA -------------- ---------------- ------------- -------------- LOC 227.2 227.2 -------------- ---------------- ------------- -------------- Sub Dbt 350.0 200.0 550.0 -------------- ---------------- ------------- -------------- Un Prem 8.7 8.7 -------------- ---------------- ------------- -------------- Term Debt 275.0 275.0 -------------- ---------------- ------------- -------------- Jazz 5.4 5.4 -------------- ---------------- ------------- -------------- 591.3 475.0 1066.3 -------------- ---------------- ------------- --------------
Based on the combination of these factors we expect Joliet to generate an incremental 70-75(cent) per share in free cash flow on an annual basis. Capital for Joliet for the first year will be approximately $10 million then maintenance capital will stabilize at the $6-7 million range. Additionally, we are now comfortable in estimating 3rd quarter earnings at $.60 to $.63 and $2.10 to $2.15 for 2001. During our 3rd quarter conference call, we plan to provide guidance for 2002 which is consistent with our past practice, at that time we should have the final purchase price allocation completed for Joliet. As most of you are aware, one of the conditions of getting this license, we will be getting out of the Kenosha project. Therefore, in the 3rd quarter, we will be taking an approximate $2.0 million charge or $.04 per share after tax related to that investment. Please note that while we are comfortable with these 2001 estimates, there are still factors that could impact fiscal 2001 results, including: - The continued maturation of the Cincinnati market including the performance of Belterra. - Market growth has slowed in all markets, except Chicago, in last several months. - Harrah's Joliet expansion expected to be completed in October. - General economic conditions in light of recent news of financial markets, profit forecasts, layoffs, energy prices, etc. At this time I would entertain any questions you may have, however, we don't want to answer property-specific forecasts except Joliet. -----END PRIVACY-ENHANCED MESSAGE-----