NYNY Empire Resorts Inc

Empire Resorts, Inc. (NASDAQ: NYNY) announces financial results for the fourth quarter and twelve months ended December 31, 2007. Net revenue for the fourth quarter was $15.4 million compared to $20.7 million in the fourth quarter of 2006 reflecting heightened regional competition for the company�s video gaming machine business and reduced racing revenue from OTB facilities. The company�s operating loss for the quarter was $(13.6) million versus $(3.5) million in the prior-year period. Included in the operating loss is a charge of approximately $12.8 million related to the impairment of deferred development costs associated with the company�s efforts to build a Class III casino with the St. Regis Mohawk Tribe. The company posted a net loss for the fourth quarter of $(15.4) million, or $(0.52) per diluted share, compared with a net loss of $(5.5) million, or $(0.20) per diluted share, in 2006. For fiscal 2007, Empire reported net revenue of $75.7 million versus $97.9 million in the same period last year, reflecting declines in the company�s racing and VGM operations. Empire�s net loss for 2007 was $(26.2) million, or $(0.89) per diluted share, versus a net loss of $(8.6) million, or $(0.32) per diluted share, for 2006. �Empire Resorts opened the door to a new chapter in its history with the signing of a joint venture agreement with Concord Associates to relocate, reestablish and reinvent our harness track and VGM operations, and develop a world-class gaming, hotel, convention center and entertainment facility, at the site of the historic Concord Hotel,� said David Hanlon, chief executive officer and president. �Since signing the agreement this past February, we have been making progress toward securing the necessary regulatory approvals and, if all closing conditions are met, we expect to close the agreement later this year. Although we were disappointed that the Tribe application to take land into trust to develop a Class III Casino was denied by the Department of the Interior, we recognized that our shareholders had placed their faith and trust in us to explore new growth initiatives that leverage our gaming and hospitality expertise and vision for reinvigorating the upstate economy.� About Empire Resorts, Inc. Empire Resorts operates the Monticello Gaming & Raceway and is involved in the development of other gaming and non-gaming resort projects in the Catskills. Additional information can be found at www.empiresorts.com. Statements in this press release regarding the company's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties, including the need for regulatory approvals, financing and successful completion of construction. The company wishes to caution readers not to place undue reliance on such forward-looking statements, which statements are made pursuant to the Private Securities Litigation Reform Act of 1994, and as such, speak only as of the date made. To the extent the content of this press release includes forward-looking statements, they involve various risks and uncertainties including (i) the risk that the Company�s proposed joint venture with Concord Associates is not completed or the Company is not able to develop a Class II or Class III casino; (ii) the risk that financing necessary for the proposed programs or projects may not be able to be obtained because of credit factors, market conditions or other contingencies, (iii) the risk of non-compliance by various counterparties of the related agreements, and (iv) general risks affecting the company as described from time to time in it's reports filed with the Securities and Exchange Commission. For a full discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the company's Annual Report or Form 10-K for the most recently ended fiscal year. EMPIRE RESORTS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) � � � � Three Months Ended December 31, Year Ended December 31, 2007 2006 2007 2006 Unaudited Unaudited Audited Audited Net Revenues $ 15,390 $ 20,726 $ 75,693 $ 97,871 � Operating Costs 13,201 16,876 65,760 79,108 Selling, General & Administrative 2,619 7,051 14,990 18,235 Depreciation 298 288 1,180 1,144 Impairment Loss - Deferred Development Costs � � 12,822 � � � � � 12,822 � � � Total Costs & Expenses � � 28,940 � � � 24,215 � � � 94,752 � � � 98,487 � � Income (Loss) From Operations (13,550 ) (3,489 ) (19,059 ) (616 ) � Amortization of Deferred Financing Costs (103 ) (169 ) (419 ) (655 ) Interest Expense (1,473 ) (1,492 ) (5,932 ) (5,989 ) Interest Income � � 156 � � � 65 � � 761 � � � 184 � � Net (Loss) (14,970 ) (5,085 ) (24,649 ) (7,076 ) � Cumulative Undeclared Dividends on Preferred Stock � � 387 � � � 387 � � 1,551 � � � 1,551 � � Net Loss Applicable to Common Shareholders � $ (15,357 ) � $ (5,472 ) $ (26,200 ) � $ (8,627 ) Weighted Average Common Shares Outstanding 29,582 26,969 29,523 26,703 � Loss Per Common Share � $ (0.52 ) � $ (0.20 ) $ (0.89 ) � $ (0.32 ) � � Reconciliation of Net Loss to EBITDA � Net Loss $ (14,970 ) $ (5,085 ) $ (24,649 ) $ (7,076 ) Less: Depreciation and Amortization 195 119 761 489 Less: Provision for Income Taxes - - - - Less: Interest (net) � � 1,317 � � � 1,427 � � 5,171 � � � 5,805 � � EBITDA (Negative) � $ (13,458 ) � $ (3,539 ) $ (18,717 ) � $ (782 ) EMPIRE RESORTS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) � � December 31, December 31, 2007 2006 (Audited) (Audited) Assets Current Assets: Cash and Cash Equivalents $ 15,008 $ 9,471 Restricted Cash 1,266 1,747 Accounts Receivable 1,401 3,802 Prepaid Expenses and Other Current Assets � � 2,967 � � 2,996 � Total Current Assets 20,642 18,016 � Property and Equipment - Net 30,860 31,703 Deferred Financing Costs - Net 2,697 3,116 Deferred Development Costs � � - � � 7,729 � � Total Assets � $ 54,199 � $ 60,564 � � � Liabilities and Stockholders' Deficit Current Liabilities: Accounts Payable $ 3,530 $ 3,734 Accrued Expenses and Other Current Liabilities � � 6,129 � � 9,936 � � Total Current Liabilities 9,659 13,670 Revolving Credit Facility 7,617 7,617 Senior Convertible Notes � � 65,000 � � 65,000 � � Total Liabilities 82,276 86,287 � Stockholders' Deficit � � (28,077 ) � (25,723 ) � Total Liabilities and Stockholders' Deficit � $ 54,199 � $ 60,564 �