PRNewswire-FirstCall BOCA RATON, Fla. Nov. 4 :

Boca Resorts, Inc. , an owner and operator of luxury resorts in Florida,
reported a net loss of $9.5 million, or $0.24 per share, for the three
months ended September 30, 2003, compared to a net loss of $9.1 million,
or $0.23 per share, for the three months ended September 30, 2002. The
decrease in operating results for the three months ended September 30,
2003, versus the three months ended September 30, 2002, was primarily due
to an increase in depreciation expense.
QUARTERLY COMPARISON TO PRIOR YEAR
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The Company`s quarterly revenue is historically lowest during the first
fiscal quarter because of lower demand for its South Florida resorts in
the summer months. Historically, approximately 16%, 25%, 35% and 24% of
annual revenue has been derived during the first, second, third and fourth
fiscal quarters, respectively. Accordingly, the results of operations for
the three months ended September 30 are not necessarily indicative of the
results to be expected for the full fiscal year. Additional details
relating to the comparative operating results for the three months ended
September 30 are set forth below.
Leisure and recreation revenue totaled $47.0 million and $46.3 million for
the three months ended September 30, 2003 and 2002, respectively. The
slight increase in revenue for the three months ended September 30, 2003,
compared to the three months ended September 30, 2002, followed increases
in revenue at each of the Company`s properties, except for the Boca Raton
Resort & Club.
Revenue increases at the Company`s Naples properties during the three
months ended September 30, 2003, versus the three months ended September
30, 2002, were primarily a result of room renovations being performed
during the prior period at both the Registry Resort and Edgewater Beach
Hotel. An increase in revenue at the Company`s Fort Lauderdale properties
during the three months ended September 30, 2003, compared to the three
months ended September 30, 2002, was primarily the result of more group
business. Group business represented 30% and 29% of the total occupied
rooms at the Company`s Fort Lauderdale resorts during the three months
ended September 30, 2003 and 2002, respectively. Despite an increase in
leisure bookings at the Boca Raton Resort & Club, group business was down
during the three months ended September 30, 2003, versus the three months
ended September 30, 2002. Group business represented 68% and 72% of the
total occupied rooms at the Boca Raton Resort & Club during the three
months ended September 30, 2003 and 2002, respectively.
Cost of leisure and recreation services totaled $26.6 million, or 57% of
revenue, for the three months ended September 30, 2003, compared to cost
of leisure and recreation services of $26.4 million, or 57% of revenue,
for the three months ended September 30, 2002. Cost of leisure and
recreation services primarily consisted of direct costs to service rooms,
marinas, food and beverage operations, retail establishments, spas and
other amenities at the resorts.

Selling, general and administrative expenses (“S,G&A”) totaled $20.9
million for the three months ended September 30, 2003, compared to S,G&A
of $20.1 million for the three months ended September 30, 2002. The
increase in S,G&A during the three months ended September 30, 2003,
compared to the three months ended September 30, 2002, was primarily
because the 2003 period included certain non-cash, non-recurring
compensation expense associated with stock options totaling $453,000.

Depreciation expense totaled $10.0 million and $8.9 million for the three
months ended September 30, 2003 and 2002, respectively. The increase in
depreciation expense for the three months ended September 30, 2003,
compared to the three months ended September 30, 2002, was primarily the
result of an increase in depreciation expense following the completion of
room renovations at the Registry Resort and Edgewater Beach Hotel.

Interest expense totaled $5.1 million and $5.6 million for the three
months ended September 30, 2003 and 2002, respectively. The decrease in
interest expense during the three months ended September 30, 2003, versus
the three months ended September 30, 2002, was the result of a $207,000
increase in the amount of interest capitalized on projects under
construction together with a $254,000 decrease in interest expense
resulting from lower average outstanding indebtedness during the 2003
period.
The Company recorded a benefit for income taxes totaling $6.0 million, or
38.5% of pretax loss, and $5.7 million, or 38.5% of pretax loss, for the
three months ended September 30, 2003 and 2002, respectively.

At September 30, 2003, the Company had cash and cash equivalents of $7.2
million and indebtedness totaling $205.2 million. The Company also
maintains a revolving credit line, which expires in June 2005 that
represents an additional and immediate potential source of liquidity. As
of September 30, 2003, the Company had $15.0 million outstanding under the
credit facility and was eligible to borrow up to an additional $77.9
million.
During the three months ended September 30, 2003, capital enhancements
totaled $11.5 million and incorporated the work on completing a marina
renovation at the Bahia Mar Resort and Yachting Center. The extensive
marina renovation results in 242 reconfigured boat slips, sized to
accommodate larger yachts ranging from 80 feet to over 200 feet, without
reducing the rentable linear feet. Improved amenities at the marina
include a revamped floating fuel dock offering a high-speed diesel system,
as well as telephone lines, fiber optic high-speed Internet service and
cable TV for each slip. The Company also continued to enhance the amenity
base at the Boca Raton Resort & Club with the complete renovation of the
central pool area and pool-side restaurant, the addition of a new fleet of
golf carts with global positioning systems, a redesigned driving range, an
improved golf staging area, an enlarged croquet lawn and renovations of
Cappy`s restaurant at the beach club. At Pier 66, the Company is preparing
to open a newly renovated and themed restaurant with outdoor seating
fronting the intracoastal waterway. The Company has also begun renovating
its popular Gulf coast view restaurant at the Edgewater Beach Hotel.

David S. Feder, President and Chief Operating Officer of Boca Resorts,
Inc. commented, “We are pleased with our operating performance for the
recently completed three-month period which is seasonally our lowest
operating quarter. In spite of the continued difficult operating
environment, our results were slightly better than the street consensus
and we continue to be encouraged with the monthly revenue progression and
the strength of both call centers and web booking trends. We believe our
solid fundamentals are largely due to the quality of our assets, our
capital initiatives, the appeal of Florida as a vacation and meeting
destination, strong guest loyalty and a favorable market mix that combines
high-end leisure travelers and corporate groups.”

Boca Resorts, Inc. owns luxury resort properties and golf courses in
Florida. The Company`s Florida resort and golf portfolio includes the Boca
Raton Resort & Club with its two golf courses in Boca Raton; the Registry
Resort at Pelican Bay, the Edgewater Beach Hotel and Naples Grande Golf
Club in Naples; and the Hyatt Regency Pier 66 Resort and Marina, the
Radisson Bahia Mar Resort and Yachting Center and Grande Oaks Golf Club in
Fort Lauderdale.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act
of 1995: Statements in this press release regarding Boca Resorts, Inc.`s
business which are not historical facts are “forward-looking statements”
that involve risks and uncertainties. For a 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 on Form 10-K.

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