Greektown Holdings reported financial results for its fourth quarter and full year ended December 31, 2013.
In a release on February 14, the Company noted that highlights include:
-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 percent.
-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 $15.3 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, 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 floor plan, 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, 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.
Greektown Holdings, L.L.C. owns and operates, through its subsidiaries, Greektown Casino-Hotel.
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