Choctaw Resort Development Enterprise Announces Second Quarter Results

Business Wire, May 14, 2004

Business Editors

CHOCTAW RESERVATION, Miss.--(BUSINESS WIRE)--May 14, 2004

The Choctaw Resort Development Enterprise (CRDE) today announced revenues and results for its second quarter, which ended March 31, 2004.

Revenues continued to increase with net revenues at $78.2 million and $75.7 million for the quarters ended March 31, 2004 and 2003. Net revenues were $151.6 million for the six months ended March 31, 2004, compared to $144.2 million for the six months ended March 31, 2003. The $2.5 million and $7.5 million increases, or 3.3% and 5.2% increases for the three and six months ended March 31, 2004, respectively, were primarily attributable to increases in gaming, food and beverage and room revenue due to the improving overall performance of the gaming properties. Complimentary revenues are included in gross revenues but are deducted as a promotional allowance to arrive at net revenues.

"As we begin our second year of operations at the Golden Moon, we continue to build on our expertise and success with continued increases in net revenues," said Jay Dorris, president of the CRDE.

Revenues grew in all areas with gaming revenues increasing $1.8 million, or 2.6%, to $71.9 million for the quarter ended March 31, 2004, from $70.1 million for the quarter ended March 31, 2003. Gaming revenues were $138.9 million for the six months ended March 31, 2004, compared to $132.0 million for the six months ended March 31, 2003, an increase of $6.9 million, or 5.2%.

During the same period, food and beverage revenues were $8.5 million, an increase of approximately $0.2 million or 2.4% from $8.3 million for the quarter ended March 31, 2003. For the six months ended March 31, 2004, food and beverage revenues were $16.5 million, an increase of approximately $0.9 million, or 5.8%, from $15.6 million for the six months ended March 31, 2003.

Room revenues were $4.0 million for the quarter ended March 31, 2004, compared to $3.7 million for the quarter ended March 31, 2003. Room revenues were $8.0 million and $7.5 million for the six months ended March 31, 2004 and 2003, respectively.

Operating income was $24.4 million for the quarter ended March 31, 2004, compared to $20.0 million for the quarter ended March 31, 2003, an increase of $4.4 million, or 22.0%. Operating income was $45.2 million for the six months ended March 31, 2004, compared to $35.3 million for the six months ended March 31, 2003, an increase of $9.9 million, or 28.0%.

"As the Pearl River Resort continues building its regional brand strength, we have managed our revenue growth alongside strong management oversight in controlling our costs and expenses. We have been pleased with the response from our customers and believe our vision of an all-inclusive resort destination is being proven out," Dorris added.

The Enterprise will file its Quarterly Report on form 10-Q for its quarter ended March 31, 2004, on or about May 14, 2004.

EBITDA for the three and six months ended March 31, 2004, was $33.3 million and $62.0 million, respectively, compared to $27.9 million and $50.2 million, respectively, for the three and six months ended March 31, 2003, an increase of $5.4 million and $11.8 million or 19.4% and 23.5%, respectively.

Management of the Enterprise uses EBITDA as one measure of financial performance and operational efficiency. EBITDA means earnings before interest, taxes, depreciation, amortization, certain non-cash expenses and certain non-recurring items. During the three and six months ended March 31, 2004, the only non-recurring item was the loss on disposal of the Enterprise's aircraft. EBITDA is presented because management believes it is widely used as a measure of operating performance in the gaming industry. EBITDA is not a measure under generally accepted accounting principles ("GAAP") and should not be construed as an alternative to operating income (as determined in accordance with GAAP) as an indicator of cash flows or a measure of liquidity. All companies do not calculate EBITDA in the same manner. As a result, EBITDA as presented here may not be comparable to a similarly titled measure presented by other companies.

EBITDA is calculated as follows:

                         Three Months Ended       Six Months Ended
                             March 31,               March 31,
                      ----------------------- ------------------------
                         2004        2003        2004        2003
                      ----------- ----------- ----------- ------------

Net Income            $18,514,828 $13,952,460 $33,337,424 $23,366,062

Depreciation            7,955,761   7,896,868  15,906,204  14,878,932

Other income (expense)  5,869,773   6,032,793  11,852,868  11,942,418

Loss on disposal of
 aircraft                 944,090           -     944,090           -
                      ----------- ----------- ----------- ------------

EBITDA                $33,284,452 $27,882,121 $62,040,586 $50,187,412
                      ----------- ----------- ----------- ------------

Forward-Looking Statements. Certain information included in this release and other materials filed or to be filed by the Enterprise with the Securities and Exchange Commission contain forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934. Such statements include information relating to plans for future expansion and other business development activities as well as other capital spending, financing sources and the effects of regulation (including gaming and tax regulation) and competition. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of the Enterprise. These risks and uncertainties include, but are not limited to, those relating to development and construction activities, dependence on existing management, leverage and debt service, domestic or global economic conditions, pending litigation, changes in federal tax laws or the administration of such laws and changes in gaming laws or regulations (including the legalization of gaming in certain jurisdictions).