Sports Entertainment Enterprises Announces Increases in Revenues and Operating Income
LAS VEGAS (August 15, 2001) -- Sports Entertainment Enterprises Inc. (SPEN) reported revenues from continuing operations for the second quarter of 2001 of $1,535,151, a 5% increase over the second quarter of 2000 revenues of $1,462,829.
Revenues for the six months ended June 30, 2001, increased 3.3% to $2,799,265 compared with $2,710,949 for the comparable period in 2000. Revenues from the company's retail operations increased nearly 4.5% to $872,175 in the second quarter of 2001 compared with 2000 due to increased customer purchases resulting from increased advertising and less competition in the market. Revenues from the Callaway Golf Center increased 7.2% to $662,976 in the second quarter of 2001 compared with 2000 due mainly to increased revenue from tenants.
The company reported a 63% increase in operating income to $50,710 in the second quarter of 2001 compared with 2000. The company reported an operating loss of $13,576 for the six months ended June 30, 2001, a 75% decrease from the loss of $55,324 for the six months ended June 30, 2000. The improved results in 2001 for both periods is due mainly to increased revenues.
Net loss from continuing operations was $103,699, or $0.01 per share, and $322,377, or $0.04 per share, for the three and six month periods ended June 30, 2001, respectively, compared with net loss from continuing operations of $48,884, or $0.01 per share, and $105,213, or $0.01 per share, for the comparable periods in 2000, respectively. The higher losses in 2001 are due to interest expense on debt owed to the company's president. The amount of interest cost incurred by the company has increased significantly since the fourth quarter of 2000 when the company's president incurred costs of approximately $3 million to pay down a portion of the company's loan on the discontinued SportPark business segment. The company's president has agreed to defer payment of this interest and the related notes payable until such time as the company has sufficient cash flow to pay it.
Voss Boreta, president of the company, stated: "We are pleased with the progress we have made in achieving operating profitability. The Callaway Golf Center continues to do well, we have done a good job in controlling corporate overhead, and the Rainbow store is beginning to consistently show better results.
"We believe that our strategies to strengthen our revenue base, keep costs at a minimum, and being innovative in providing the best product for our customers, will result in continued improvements in results of operations."
Sports Entertainment Enterprises Inc. owns approximately two-thirds of AASP.
The company and its subsidiaries continuing operations consist of (1) the ownership and operation of the Callaway Golf Center, one of the premier golf practice facilities in the country, located on 42 acres of Las Vegas "Strip" frontage featuring a night-lit 9-hole par 3 golf course, 113 station two-tiered driving range, full clubhouse featuring the Callaway Golf club fitting swing analyzer, the Saint Andrews Golf Shop with all the latest in Callaway merchandise, the Giant Golf teaching academy, and the Bistro 10 restaurant and bar; and (2) a golf and tennis retail store located in Las Vegas at Rainbow Boulevard and Sahara Avenue.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. This news release may contain forward-looking statements that involve risks and uncertainties. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. Important factors, which could cause actual results to differ materially from those in the forward-looking statements, are detailed in filings with the United States Securities and Exchange Commission made from time to time by SPEN. SPEN undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Sports Entertainment Enterprises Inc. and Subsidiaries Consolidated Statements of Operations Quarter Ended Six Months Ended June 30, June 30, 2001 2000 2001 2000 Revenues 1,535,151 1,462,829 2,799,265 2,710,949 Cost of Revenues 715,077 681,554 1,272,532 1,244,494 Gross profit 820,074 781,275 1,526,733 1,466,455 Operating expenses 769,364 750,170 1,540,309 1,521,779 Operating income (loss) 50,710 31,105 (13,576) (55,324) Interest expense, net (148,659) (79,989) (303,051) (166,619) Loss from continuing operations before minority interest (97,949) (48,884) (316,627) (221,943) Minority interest (5,750) -- (5,750) 116,730 Loss from continuing operations (103,699) (48,884) (322,377) (105,213) Loss from discontinued operations (316,263) (661,666) (260,024) (1,485,107) Net loss (419,962) (710,550) (582,401) (1,590,320) NET LOSS PER SHARE: Basic and diluted: Loss from continuing operations $ (0.01) $ (0.01) $ (0.04) $ (0.01) Loss from discontinued operations (0.04) (0.08) (0.03) (0.18) Net loss per share $ (0.05) $ (0.09) $ (0.07) $ (0.19)
keywords: Sports Entertainment Enterprises, Callaway Golf Center, Voss Boreta, Rainbow