EXHIBIT 99.1
NEWS RELEASE
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| FOR: | | Trump Hotels & Casino Resorts, Inc. (OTCBB:DJTCQ.OB) |
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| CONTACT: | | Scott C. Butera, President and Chief Operating Officer (212) 891-1500 |
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| FOR RELEASE: | | March 18, 2005 - 5PM |
TRUMP HOTELS & CASINO RESORTS, INC.
ANNOUNCES FOURTH QUARTER AND YEAR END RESULTS
New York, NY – Trump Hotels & Casino Resorts, Inc. (“THCR” or the“Company”) (OTCBB:DJTCQ.OB) today reported consolidated net revenues (defined as gross revenues less promotional allowances) for the quarter ended December 31, 2004 of $268.0 million, compared to $265.8 million for the quarter ended December 31, 2003. Consolidated loss from operations for the quarter ended December 31, 2004 was $46.9 million, compared to income from operations of $18.6 million for the quarter ended December 31, 2003. During the fourth quarter, in connection with its reorganization proceedings as commenced on November 21, 2004 and described below, the Company recorded reorganization expenses of $61.4 million (approximately $39.5 million in the write-off of deferred financing costs and unamortized discounts of the public debt issues being restructured as part of the reorganization proceedings and $21.9 million in professional fees expensed in connection with the process). The net loss for the 2004 fourth quarter was $99.8 million, or $3.34 per share, compared to a net loss of $40.9 million, or $1.37 per share in the fourth quarter of 2003. Also, in the fourth quarter of 2004, the Company announced the transfer of the management of Trump 29
Casino in Coachella, California back to the casino’s owner, the Twenty-Nine Palms Band of Luiseno Mission Indians, a federally recognized Native American tribe (the “Tribe”). As such, the quarterly and year-to-date results from THCR Management Services, LLC, the holder of the management contract, are reflected in the statement of operations as discontinued operations. The $6.0 million gain from the transfer of the management contract is also reflected in discontinued operations. EBITDA (defined as income from operations before depreciation, amortization, non-cash CRDA write-downs, reorganization expenses, debt renegotiation costs and corporate expenses) for the quarter ended December 31, 2004 was $43.5 million, compared to $48.4 million reported for the quarter ended December 31, 2003. Readers are advised that the term “EBITDA” is not a measure of financial performance under generally accepted accounting principles. The Company uses EBITDA because it believes that it is used by certain investors in measuring an entity’s operating performance. A reconciliation of EBITDA to income from operations and net loss is included in the attached schedules.
THCR’s consolidated net revenues for the year ended December 31, 2004 were $1,141 million, compared to $1,158 million for the year ended December 31, 2003. Consolidated income from operations for the year ended December 31, 2004 was $51.0 million, compared to $135.9 million for the year ended December 31, 2003. Consolidated net loss for the year ended December 31, 2004 was $191.3 million, or $6.40 per share, compared to a net loss of $87.3 million, or $3.39 per share, net of minority interest of $5.1 million, for the year ended December 31, 2003. EBITDA for the year ended December 31, 2004 was $232.3 million, compared to $251.4 million reported for the year ended December 31, 2003.
On November 21, 2004, the Company commenced its reorganization proceedings. For information on the process, including the detailed disclosure statement and plan of reorganization, interested parties are encouraged to visit the Company’s website atwww.thcrrecap.com. The disclosure statement and plan have been mailed to the relevant parties, and the hearings to confirm the Company’s proposed plan of reorganization are scheduled to commence April 5, 2005, in Camden, New Jersey.
The Company’s recapitalization efforts, including the aforementioned $61.4 million in reorganization charges, have impacted the results for both the 2004 fourth quarter and full year. The Company also has previously disclosed a $19.1 million charge to income taxes for the first quarter ended March 31, 2004, resulting from the non-deductibility of wagering taxes in computing Indiana State income taxes. Also included in general and administrative expenses for the fourth quarter and year ended December 31, 2004, is an $8.0 million charge setting up a reserve by the Company’s subsidiary, Trump Plaza Associates, against a receivable from the city of Atlantic City for a real estate taxes claim that originated in 1997. Discontinued operations include a $6.0 million gain for the previously disclosed transfer of the management contract of Trump 29 Casino in Coachella, California back to the Tribe.
Trump Taj Mahal Associates (“Taj Associates”) reported net revenues of $110.3 million for the 2004 fourth quarter, compared to $110.8 million for the same quarter in 2003. Income from operations for the quarter ended December 31, 2004 was $6.5 million, compared to $13.0 million for the quarter ended December 31, 2003. EBITDA was $22.4 million for the quarter ended December 31, 2004, compared to $25.2 million, for the quarter ended December 31, 2003. Taj Associates reported net revenues of $470.0 million for the year ended December 31, 2004, compared to $487.3 million for 2003. Income from operations for the year ended December 31, 2004 was $54.4 million, compared to $72.4 million for the year ended December 31, 2003. EBITDA decreased to $108.5 million in 2004, compared to $120.2 million in 2003.
Trump Plaza Associates (“Plaza Associates”) reported net revenues of $68.8 million for the 2004 fourth quarter, compared to $65.8 million for the same quarter in 2003. Loss from operations for the 2004 fourth quarter was $4.1 million, compared to income from operations of $4.0 million for the 2003 fourth quarter. EBITDA decreased to $3.2 million for the quarter ended December 31, 2004, compared to $11.7 million for the same quarter in 2003. Included in general and administrative expenses is an $8.0 million charge setting up a reserve against Plaza Associates against a receivable from the city of Atlantic City for a real estate taxes claim that originated in 1997. Plaza Associates reported net revenues of $284.8 million for the year ended December 31, 2004, compared to $291.4 million for 2003. Plaza Associates’ income from operations for the year ended December 31, 2004 was $13.4 million, compared to $35.4 million for the year ended December 31, 2003. EBITDA was $41.3 million for the year ended
December 31, 2004 (after the $8.0 million charge for the real estate tax reserve mentioned above), compared to $60.1 million for the year ended December 31, 2003.
Trump Marina Associates (“Marina Associates”) reported net revenues of $57.6 million for the 2004 fourth quarter, compared to net revenues of $55.4 million for the 2003 fourth quarter. Loss from operations for the quarter ended December 31, 2004 was $6.6 million, compared to income from operations of $3.9 million for the quarter ended December 31, 2003. EBITDA was $10.4 million for the quarter ended December 31, 2004, compared to $10.0 million for the quarter ended December 31, 2003. For the year ended December 31, 2004, Marina Associates reported net revenues of $248.1 million, compared to net revenues of $250.4 million for the year ended December 31, 2003. Income from operations for the year ended December 31, 2004 was $15.5 million, compared to $24.2 million for the year ended December 31, 2003. Marina Associates’ EBITDA for 2004 was $49.5 million, compared to $48.5 million for 2003.
Trump Indiana, Inc. (“Trump Indiana”) reported net revenues of $31.3 million for the fourth quarter ended December 31, 2004, compared to net revenues of $33.8 million for the quarter ended December 31, 2003. Income from operations for the quarter ended December 31, 2004 was $2.3 million, compared to loss from operations of $1.2 million for the quarter ended December 31, 2003. Trump Indiana’s EBITDA for the 2004 fourth quarter was $7.5 million, compared to EBITDA of $1.6 million for the 2003 fourth quarter. Included in EBITDA for the 2003 fourth quarter is the effect of an increase in accrued real estate taxes of $6.5 million at Trump Indiana due to a retroactive two-year reassessment of the property. For the year ended December 31,
2004, Trump Indiana reported net revenues of $137.7 million, compared to net revenues of $128.4 million for the year ended December 31, 2003. For the year ended December 31, 2004, Trump Indiana’s income from operations was $17.2 million, compared to $9.7 million for the year ended December 31, 2003. Trump Indiana’s 2004 EBITDA was $33.0 million, compared to $22.6 million for 2003.
Trump Atlantic City Associates’ (“TACA”) combined net revenues of Plaza Associates and Taj Associates for the quarter ended December 31, 2004 was $179.1 million, compared to $176.7 million for the quarter ended December 31, 2003. Loss from operations for the quarter ended December 31, 2004 was $12.7 million, compared to income from operations of $16.9 million for the quarter ended December 31, 2003. EBITDA for the 2004 fourth quarter was $25.6 million, compared to $36.9 million for the same period in 2003. For the year ended December 31, 2004, TACA reported net revenues of $754.8 million, compared to net revenues of $778.7 million for 2003. Income from operations for the year ended December 31, 2004 was $50.6 million, compared to $107.2 million for the year ended December 31, 2003. EBITDA was $149.8 million for the year ended December 31, 2004, compared to a 2003 EBITDA of $180.3 million.
Trump Casino Holdings, LLC’s (“TCH”) combined net revenues of Marina Associates and Trump Indiana for the quarter ended December 31, 2004 were $88.9 million, compared to $89.1 million for the quarter ended December 31, 2003. Loss from operations for the quarter ended December 31, 2004 was $32.6 million, compared to income from operations of $3.5 million for the quarter ended December 31, 2003.
EBITDA for the quarter ended December 31, 2004 was $17.9 million, compared to EBITDA of $11.6 million for the same period in 2003. For the year ended December 31, 2004, TCH reported combined net revenues of $385.8 million, compared to net revenues of $378.8 million for 2003. Income from operations for the year ended December 31, 2004 was $7.2 million, compared to $36.7 million for the year ended December 31, 2003. TCH’s 2004 EBITDA was $ 82.5 million, compared to $71.1 million for 2003. THCR Management Services results are reflected in discontinued operations.
About Our Company:
THCR is a leading gaming company that owns and operates four properties. THCR’s assets include Trump Taj Mahal Casino Resort and Trump Plaza Hotel and Casino, located on the Boardwalk in Atlantic City, New Jersey, Trump Marina Hotel Casino, located in Atlantic City’s Marina District, and the Trump Casino Hotel, a riverboat casino located in Gary, Indiana. Together, the properties comprise approximately 371,300 square feet of gaming space and 3,180 hotel rooms and suites. The Company is the sole vehicle through which Donald J. Trump conducts gaming activities and strives to provide customers with outstanding casino resort and entertainment experiences consistent with the Donald J. Trump standard of excellence. THCR is separate and distinct from Mr. Trump’s real estate and other holdings.
PSLRA Safe Harbor for Forward-Looking Statements
and Additional Available Information
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements so long as those statements are identified as forward-
looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those projected in such statements.
All statements, trend analysis and other information contained in this release relative to THCR’s or its subsidiaries’ performance, trends in THCR’s or its subsidiaries’ operations or financial results, plans, expectations, estimates and beliefs, as well as other statements including words such as “anticipate,” “believe,” “plan,” “estimate,” “expect,” “intend,” “will,” “could” and other similar expressions, constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995. In connection with certain forward-looking statements contained in this release and those that may be made in the future by or on behalf of THCR, THCR notes that there are various factors that could cause actual results to differ materially from those set forth in any such forward-looking statements. The forward-looking statements contained in this release were prepared by management and are qualified by, and subject to, significant business, economic, competitive, regulatory and other uncertainties and contingencies, all of which are difficult or impossible to predict and many of which are beyond the control of THCR. Accordingly, there can be no assurance that the forward-looking statements contained in this release will be realized or that actual results will not be significantly higher or lower. The forward-looking statements in this release reflect the opinion of the Company’s management as of the date of this release. Readers are hereby advised that developments subsequent to this release are likely to cause these statements to become outdated with the passage of time or other factors beyond the control of the Company. This Company does not intend, however, to update the guidance provided herein prior to its next release or unless otherwise required to do so. Readers of this release should consider these facts in evaluating the information contained herein. In addition, the business and operations of THCR are subject to substantial risks, including, but not limited to risks relating to liquidity and cash flows, which increase the uncertainty inherent in the forward-looking statements contained in this release. The inclusion of the forward-looking statements contained in this release should not be regarded as a representation by THCR or any other person that the
forward-looking statements contained in the release will be achieved. In light of the foregoing, readers of this release are cautioned not to place undue reliance on the forward-looking statements contained herein.
Additional information concerning the potential risk factors that could affect the Company’s future performance are described from time to time in the Company’s periodic reports filed with the SEC, including, but not limited to, the Company’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. These reports may be viewed free of charge on the SEC’s website, www.sec.gov, or on the Company’s website, www.trump.com.
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TRUMP HOTELS & CASINO RESORTS, INC.
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except share data)
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| | | 3 MONTHS
| | | 12 MONTHS
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| | | 31-Dec-04
| | | 31-Dec-03
| | | 31-Dec-04
| | | 31-Dec-03
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| REVENUES | | | | | | | | | | | | | | | | |
CASINO | | $ | 288,404 | | | $ | 279,847 | | | $ | 1,210,065 | | | $ | 1,218,318 | |
ROOMS | | | 19,444 | | | | 18,687 | | | | 79,200 | | | | 78,941 | |
FOOD & BEVERAGE | | | 31,068 | | | | 28,159 | | | | 130,498 | | | | 125,353 | |
OTHER | | | 10,087 | | | | 8,765 | | | | 44,570 | | | | 38,389 | |
PROMOTIONAL ALLOWANCES | | | (80,987 | ) | | | (69,647 | ) | | | (323,727 | ) | | | (303,486 | ) |
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| NET REVENUES | | $ | 268,016 | | | $ | 265,811 | | | $ | 1,140,606 | | | $ | 1,157,515 | |
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| COSTS & EXPENSES | | | | | | | | | | | | | | | | |
GAMING | | $ | 138,639 | | | $ | 133,533 | | | $ | 570,892 | | | $ | 570,825 | |
ROOMS | | | 7,269 | | | | 7,227 | | | | 29,063 | | | | 30,287 | |
FOOD & BEVERAGE | | | 11,213 | | | | 11,216 | | | | 46,605 | | | | 46,695 | |
GENERAL & ADMIN | | | 67,387 | | | | 65,420 | | | | 261,753 | | | | 258,333 | |
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TOTAL EXPENSES | | $ | 224,508 | | | $ | 217,396 | | | $ | 908,313 | | | $ | 906,140 | |
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| EBITDA (a) | | $ | 43,508 | | | $ | 48,415 | | | $ | 232,293 | | | $ | 251,375 | |
| Less: | | | | | | | | | | | | | | | | |
CRDA | | | 1,100 | | | | 3,329 | | | | 4,608 | | | | 9,191 | |
DEPRECIATION & AMORTIZATION | | | 25,102 | | | | 24,454 | | | | 102,705 | | | | 94,406 | |
CORPORATE EXPENSES | | | 2,764 | | | | 2,070 | | | | 9,675 | | | | 8,928 | |
REORGANIZATION EXPENSES (b) | | | 61,414 | | | | — | | | | 61,414 | | | | — | |
DEBT RENEGOTIATION COSTS (c) | | | — | | | | — | | | | 2,857 | | | | 2,951 | |
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| INCOME (LOSS) FROM OPERATIONS | | $ | (46,872 | ) | | $ | 18,562 | | | $ | 51,034 | | | $ | 135,899 | |
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INTEREST INCOME | | | (529 | ) | | | (324 | ) | | | (1,090 | ) | | | (1,531 | ) |
INTEREST EXPENSE | | | 57,289 | | | | 58,763 | | | | 228,539 | | | | 228,521 | |
GAIN ON DEBT RETIREMENT, NET ( d) | | | — | | | | — | | | | — | | | | (2,892 | ) |
OTHER NON-OPERATING (INCOME) EXPENSE, NET | | | 440 | | | | (45 | ) | | | (1,649 | ) | | | (25 | ) |
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TOTAL NON-OPERATING EXPENSE, NET | | $ | 57,200 | | | $ | 58,394 | | | $ | 225,800 | | | $ | 224,073 | |
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LOSS BEFORE LOSS IN JOINT VENTURE, INCOME TAXES MINORITY INTEREST & DISCONTINUED OPERATIONS | | $ | (104,072 | ) | | $ | (39,832 | ) | | $ | (174,766 | ) | | $ | (88,174 | ) |
LOSS IN JOINT VENTURE | | | (1,019 | ) | | | (541 | ) | | | (2,449 | ) | | | (2,396 | ) |
PROVISION FOR INCOME TAXES (e) | | | (2,283 | ) | | | (1,370 | ) | | | (27,555 | ) | | | (5,305 | ) |
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LOSS BEFORE MINORITY INTEREST & DISCONTINUED OPERATIONS | | $ | (107,374 | ) | | $ | (41,743 | ) | | $ | (204,770 | ) | | $ | (95,875 | ) |
MINORITY INTEREST (f) | | | — | | | | — | | | | — | | | | 5,061 | |
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| LOSS BEFORE DISCONTINUED OPERATIONS | | $ | (107,374 | ) | | $ | (41,743 | ) | | $ | (204,770 | ) | | $ | (90,814 | ) |
| DISCONTINUED OPERATIONS: (g) | | | | | | | | | | | | | | | | |
INCOME FROM OPERATIONS OF TRUMP 29 | | | 1,583 | | | | 880 | | | | 7,480 | | | | 3,523 | |
GAIN ON TERMINATION OF TRUMP 29 MANAGEMENT CONTRACT | | | 6,000 | | | | — | | | | 6,000 | | | | — | |
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| NET LOSS | | $ | (99,791 | ) | | $ | (40,863 | ) | | $ | (191,290 | ) | | $ | (87,291 | ) |
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| WEIGHTED AVERAGE # SHARES-BASIC | | | 29,904,764 | | | | 29,904,764 | | | | 29,904,764 | | | | 25,773,545 | |
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| WEIGHTED AVERAGE # SHARES-DILUTED | | | 29,904,764 | | | | 29,904,764 | | | | 29,904,764 | | | | 25,773,545 | |
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| BASIC AND DILUTED LOSS PER SHARE | | | | | | | | | | | | | | | | |
LOSS BEFORE DISCONTINUED OPERATIONS | | $ | (3.59 | ) | | $ | (1.40 | ) | | $ | (6.85 | ) | | $ | (3.52 | ) |
DISCONTINUED OPERATIONS | | $ | 0.25 | | | $ | 0.03 | | | $ | 0.45 | | | $ | 0.14 | |
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NET LOSS | | $ | (3.34 | ) | | $ | (1.37 | ) | | $ | (6.40 | ) | | $ | (3.39 | ) |
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| (a) | EBITDA (Earnings before interest, taxes, depreciation and amortization, valuation allowances on casino reinvestment obligations, corporate expenses, debt renegotiation costs and reorganization expenses) is a measure of financial performance commonly used in the casino hotel industry. |
We provide EBITDA results to enhance an investor’s understanding of our operating results.
EBITDA is a non-GAAP financial statement measure and should not be construed as an alternative to operating income as determined under generally accepted accounting principles as an indicator of operating performance.
All companies do not calculate EBITDA in the same manner; accordingly, the EBITDA results presented above may not be comparable to EBITDA results as reported by other companies.
Corporate expenses include administrative expenses associated with the operation of THCR Holdings and lobbying and developmental costs in other gaming jurisdictions.
| (b) | On November 21, 2004, the Company filed voluntary petitions in the Bankruptcy Court under Chapter 11 of the United States Bankruptcy Code. The Company is preparing its financial information in accordance with AICPA Statement of Position 90-7, “Financial Reporting by Entities under the Bankruptcy Code”. Reorganization expenses principally include (i) the write-off of deferred financing fees and the accretion of debt discounts in the amount of $39.5 million on the TCH and TACA Mortgage Notes in order to reflect the debt balance at the estimated amount of the claim that is expected to be allowed in the Chapter 11 proceedings and (ii) professional fees in the amount of $21.9 million associated with the reorganization and bankruptcy proceedings. |
| (c) | Debt renegotiation costs in 2004 represent costs incurred in connection with the proposed recapitalization of the Company by the DLJ Merchant Banking Partners proposed investment which was terminated on September 22, 2004. |
Debt renegotiation costs in 2003 include the costs expensed with debt refinancing and transactional fees earned upon the successful completion of debt refinancing in 2003.
| (d) | Includes a net gain of $10.4 million of the Trump Marina PIK Notes and First Mortgage Notes, which is offset by the $2.8 million call premium on the retirement of THCR Holdings 15.5% Senior Notes, Trump Indiana’s interest rate swap of approximately $0.9 million and unamortized loan costs of approximately $3.8 million. All of these transactions occurred on March 25, 2003 in connection with the Company’s issuance of Priority Mortgage Notes and the related use of proceeds. |
| (e) | Represents Indiana state income taxes and New Jersey state income taxes due under the Business Tax Reform Act passed in July 2002 and the New Jersey Profits Tax passed in July 2003. Year ended December 2004 includes $19.1 million of Indiana state income taxes due to the Indiana state waging tax add back adjustment, as a result of a ruling in the Indiana tax court for the period from commencement of operations in June 1996 through the quarter ended March 31, 2004. |
| (f) | Minority interest credit is limited to the Balance Sheet amount at December 31, 2002. |
| (g) | Quarter and year ended December 31, 2004 discontinued operations includes operating results from the management contract with the Twenty-Nine Palms Band of Luiseno Mission Indians of California and a gain of $6 million related to the termination of the management contract. |
TRUMP ATLANTIC CITY ASSOCIATES
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands)
| | | | | | | | | | | | | | | | |
| | | 3 MONTHS
| | | 12 MONTHS
| |
| | | 31-Dec-04
| | | 31-Dec-03
| | | 31-Dec-04
| | | 31-Dec-03
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| REVENUES | | | | | | | | | | | | | | | | |
CASINO | | $ | 195,369 | | | $ | 186,527 | | | $ | 809,217 | | | $ | 825,068 | |
ROOMS | | | 14,195 | | | | 13,651 | | | | 57,445 | | | | 57,511 | |
FOOD & BEVERAGE | | | 22,496 | | | | 20,804 | | | | 94,498 | | | | 90,982 | |
OTHER | | | 7,214 | | | | 6,000 | | | | 31,020 | | | | 25,259 | |
PROMOTIONAL ALLOWANCES | | | (60,157 | ) | | | (50,312 | ) | | | (237,387 | ) | | | (220,141 | ) |
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| NET REVENUES | | $ | 179,117 | | | $ | 176,670 | | | $ | 754,793 | | | $ | 778,679 | |
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| COSTS & EXPENSES | | | | | | | | | | | | | | | | |
GAMING | | $ | 92,904 | | | $ | 88,732 | | | $ | 377,848 | | | $ | 379,903 | |
ROOMS | | | 5,676 | | | | 5,758 | | | | 22,605 | | | | 23,996 | |
FOOD & BEVERAGE | | | 7,916 | | | | 7,959 | | | | 32,130 | | | | 31,985 | |
GENERAL & ADMIN (b) | | | 46,992 | | | | 37,368 | | | | 172,429 | | | | 162,543 | |
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TOTAL EXPENSES | | $ | 153,488 | | | $ | 139,817 | | | $ | 605,012 | | | $ | 598,427 | |
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| EBITDA (a) | | $ | 25,629 | | | $ | 36,853 | | | $ | 149,781 | | | $ | 180,252 | |
| Less: | | | | | | | | | | | | | | | | |
CRDA | | $ | 841 | | | $ | 3,081 | | | $ | 3,512 | | | $ | 7,303 | |
DEPRECIATION & AMORTIZATION | | | 17,304 | | | | 16,710 | | | | 72,753 | | | | 64,555 | |
CORPORATE EXPENSES | | | 641 | | | | 156 | | | | 1,322 | | | | 853 | |
REORGANIZATION EXPENSES (c) | | | 19,569 | | | | — | | | | 19,569 | | | | — | |
DEBT RENEGOTIATION COSTS (d) | | | — | | | | — | | | | 2,000 | | | | 300 | |
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| INCOME (LOSS) FROM OPERATIONS | | $ | (12,726 | ) | | $ | 16,906 | | | $ | 50,625 | | | $ | 107,241 | |
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INTEREST INCOME | | | (364 | ) | | | (242 | ) | | | (766 | ) | | | (774 | ) |
INTEREST EXPENSE | | | 38,846 | | | | 42,105 | | | | 155,786 | | | | 158,026 | |
OTHER NON-OPERATING (INCOME) EXPENSE, NET | | | — | | | | (45 | ) | | | (1,480 | ) | | | (45 | ) |
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TOTAL NON-OPERATING EXPENSE, NET | | $ | 38,482 | | | $ | 41,818 | | | $ | 153,540 | | | $ | 157,207 | |
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| LOSS BEFORE INCOME TAXES | | | (51,208 | ) | | | (24,912 | ) | | | (102,915 | ) | | | (49,966 | ) |
| | | | |
PROVISION FOR INCOME TAXES (e) | | | (1,026 | ) | | | (983 | ) | | | (4,225 | ) | | | (3,930 | ) |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
NET LOSS | | $ | (52,234 | ) | | $ | (25,895 | ) | | $ | (107,140 | ) | | $ | (53,896 | ) |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
| (a) | EBITDA (Earnings before interest, taxes, depreciation and amortization, valuation allowances on casino reinvestment obligations, corporate expenses, debt renegotiation costs and reorganization expenses) is a measure of financial performance commonly used in the casino hotel industry. |
We provide EBITDA results to enhance an investor’s understanding of our operating results.
EBITDA is a non-GAAP financial statement measure and should not be construed as an alternative to operating income as determined under generally accepted accounting principles as an indicator of operating performance.
All companies do not calculate EBITDA in the same manner; accordingly, the EBITDA results presented above may not be comparable to EBITDA results as reported by other companies.
| (b) | The increase in general and administrative expense for the quarter and year ended December 31, 2004 is due to a reserve of $8.0 million which was recorded for the real estate tax assessment appeal against the City of Atlantic City. |
| (c) | On November 21, 2004, the Company filed voluntary petitions in the Bankruptcy Court under Chapter 11 of the United States Bankruptcy Code. The Company is preparing its financial information in accordance with AICPA Statement of Position 90-7, “Financial Reporting by Entities under the Bankruptcy Code”. Reorganization expenses principally include (i) the write-off of deferred financing fees and the accretion of debt discounts in the amount of $4.5 million on the TACA Mortgage Notes in order to reflect the debt balance at the estimated amount of the claim that is expected to be allowed in the Chapter 11 proceedings and (ii) professional fees in the amount of $15.1 million associated with the reorganization and bankruptcy proceedings. |
| (d) | Debt renegotiation costs in 2004 represent costs incurred in connection with the proposed recapitalization of the Company by the DLJ Merchant Banking Partners proposed investment which was terminated on September 22, 2004. |
Debt renegotiation costs in 2003 include the costs expensed with debt refinancing.
| (e) | Represents New Jersey state income taxes due under the Business Tax Reform Act passed in July 2002 and the New Jersey Profits Tax passed in July 2003. |
TRUMP CASINO HOLDINGS, LLC
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands)
| | | | | | | | | | | | | | | | |
| | | 3 MONTHS
| | | 12 MONTHS
| |
| | | 31-Dec-04
| | | 31-Dec-03
| | | 31-Dec-04
| | | 31-Dec-03
| |
| REVENUES | | | | | | | | | | | | | | | | |
CASINO | | $ | 93,035 | | | $ | 93,320 | | | $ | 400,848 | | | $ | 393,250 | |
ROOMS | | | 5,249 | | | | 5,036 | | | | 21,755 | | | | 21,430 | |
FOOD & BEVERAGE | | | 8,572 | | | | 7,355 | | | | 36,000 | | | | 34,371 | |
OTHER | | | 2,873 | | | | 2,765 | | | | 13,550 | | | | 13,130 | |
PROMOTIONAL ALLOWANCES | | | (20,830 | ) | | | (19,335 | ) | | | (86,340 | ) | | | (83,345 | ) |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
| NET REVENUES | | $ | 88,899 | | | $ | 89,141 | | | $ | 385,813 | | | $ | 378,836 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
| COSTS & EXPENSES | | | | | | | | | | | | | | | | |
GAMING | | $ | 45,735 | | | $ | 44,801 | | | $ | 193,044 | | | $ | 190,922 | |
ROOMS | | | 1,593 | | | | 1,469 | | | | 6,458 | | | | 6,291 | |
FOOD & BEVERAGE | | | 3,297 | | | | 3,257 | | | | 14,475 | | | | 14,710 | |
GENERAL & ADMIN | | | 20,395 | | | | 28,052 | | | | 89,324 | | | | 95,790 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
TOTAL EXPENSES | | $ | 71,020 | | | $ | 77,579 | | | $ | 303,301 | | | $ | 307,713 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
| EBITDA (a) | | $ | 17,879 | | | $ | 11,562 | | | $ | 82,512 | | | $ | 71,123 | |
| Less: | | | | | | | | | | | | | | | | |
CRDA | | | 259 | | | | 248 | | | | 1,096 | | | | 1,888 | |
DEPRECIATION & AMORTIZATION | | | 7,762 | | | | 7,737 | | | | 29,870 | | | | 29,823 | |
CORPORATE EXPENSES | | | 653 | | | | 115 | | | | 1,667 | | | | 2,356 | |
REORGANIZATION EXPENSES (b) | | | 41,845 | | | | — | | | | 41,845 | | | | — | |
DEBT RENEGOTIATION COSTS (c) | | | — | | | | — | | | | 857 | | | | 401 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
| INCOME (LOSS) FROM OPERATIONS | | $ | (32,640 | ) | | $ | 3,462 | | | $ | 7,177 | | | $ | 36,655 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
INTEREST INCOME | | | (146 | ) | | | (78 | ) | | | (304 | ) | | | (735 | ) |
INTEREST EXPENSE | | | 18,088 | | | | 16,658 | | | | 72,398 | | | | 72,188 | |
GAIN ON DEBT RETIREMENT, NET (d) | | | — | | | | — | | | | — | | | | (7,931 | ) |
OTHER NON-OPERATING (INCOME) EXP | | | 36 | | | | — | | | | (573 | ) | | | 20 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
TOTAL NON-OPERATING EXPENSE, NET | | $ | 17,978 | | | $ | 16,580 | | | $ | 71,521 | | | $ | 63,542 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
LOSS BEFORE LOSS IN JOINT VENTURE INCOME TAXES & DISCONTINUED OPERATIONS | | | (50,618 | ) | | | (13,118 | ) | | | (64,344 | ) | | | (26,887 | ) |
LOSS IN JOINT VENTURE | | | (1,019 | ) | | | (541 | ) | | | (2,449 | ) | | | (2,396 | ) |
PROVISION FOR INCOME TAXES (e) | | | (1,257 | ) | | | (387 | ) | | | (23,330 | ) | | | (1,375 | ) |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
| LOSS BEFORE DISCONTINUED OPERATIONS | | $ | (52,894 | ) | | $ | (14,046 | ) | | $ | (90,123 | ) | | $ | (30,658 | ) |
| DISCONTINUED OPERATIONS: (f) | | | | | | | | | | | | | | | | |
INCOME FROM OPERATIONS OF TRUMP 29 | | | 1,583 | | | | 880 | | | | 7,480 | | | | 3,523 | |
GAIN ON TERMINATION OF TRUMP 29 MANAGEMENT CONTRACT | | | 6,000 | | | | — | | | | 6,000 | | | | — | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
| NET LOSS | | $ | (45,311 | ) | | $ | (13,166 | ) | | $ | (76,643 | ) | | $ | (27,135 | ) |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
| (a) | EBITDA (Earnings before interest, taxes, depreciation and amortization, valuation allowances on casino reinvestment obligations, corporate expenses, debt renegotiation costs and reorganization expenses) is a measure of financial performance commonly used in the casino hotel industry. |
We provide EBITDA results to enhance an investor’s understanding of our operating results.
EBITDA is a non-GAAP financial statement measure and should not be construed as an alternative to operating income as determined under generally accepted accounting principles as an indicator of operating performance.
All companies do not calculate EBITDA in the same manner; accordingly, the EBITDA results presented above may not be comparable to EBITDA results as reported by other companies.
| (b) | On November 21, 2004, the Company filed voluntary petitions in the Bankruptcy Court under Chapter 11 of the United States Bankruptcy Code. The Company is preparing its financial information in accordance with AICPA Statement of Position 90-7, “Financial Reporting by Entities under the Bankruptcy Code”. Reorganization expenses principally include (i) the write-off of deferred financing fees and the accretion of debt discounts in the amount of $35.0 million on the TCH Mortgage Notes in order to reflect the debt balance at the estimated amount of the claim that is expected to be allowed in the Chapter 11 proceedings and (ii) professional fees in the amount of $6.8 million associated with the reorganization and bankruptcy proceedings. |
| (c) | Debt renegotiation costs in 2004 represent costs incurred in connection with the proposed recapitalization of the Company by the DLJ Merchant Banking Partners proposed investment which was terminated on September 22, 2004. |
Debt renegotiation costs in 2003 include transactional fees earned upon the successful completion of debt refinancing in 2003.
| (d) | Includes a net gain of $10.4 million of the Trump Marina PIK Notes and First Mortgage Notes, which is offset by Trump Indiana’s interest rate swap of approximately $0.9 million and unamortized loan costs of approximately $1.6 million. |
All of these transactions occurred on March 25, 2003 in connection with the Company’s issuance of Priority Mortgage Notes and the related use of proceeds.
| (e) | Represents Indiana state income taxes and New Jersey state income taxes due under the Business Tax Reform Act passed in July 2002 and the New Jersey Profits Tax passed in July 2003. Year ended December 2004 includes $19.1 million of Indiana state income taxes due to the Indiana state waging tax add back adjustment, as a result of a ruling in the Indiana tax court for the period from commencement of operations in June 1996 through the quarter ended March 31, 2004. |
| (f) | Quarter and year ended December 31, 2004 discontinued operations includes operating results from the management contract with the Twenty-Nine Palms Band of Luiseno Mission Indians of California and a gain of $6 million related to the termination of the management contract. |
TRUMP TAJ MAHAL ASSOCIATES
Condensed Statements of Operations
(Unaudited)
(In thousands, except statistical information)
| | | | | | | | | | | | | | | | |
| | | 3 MONTHS
| | | 12 MONTHS
| |
| | | 31-Dec-04
| | | 31-Dec-03
| | | 31-Dec-04
| | | 31-Dec-03
| |
| REVENUES | | | | | | | | | | | | | | | | |
| CASINO | | $ | 118,658 | | | $ | 116,673 | | | $ | 496,350 | | | $ | 511,896 | |
| | | | |
# of Slots | | | 4,419 | | | | 4,670 | | | | 4,405 | | | | 4,695 | |
Win per Slot/Day | | $ | 194 | | | $ | 171 | | | $ | 206 | | | $ | 196 | |
| Slot Win | | $ | 78,734 | | | $ | 73,476 | | | $ | 330,662 | | | $ | 336,462 | |
| | | | |
# of Tables | | | 127 | | | | 127 | | | | 127 | | | | 127 | |
Win per Table/Day | | $ | 2,887 | | | $ | 3,248 | | | $ | 3,040 | | | $ | 3,309 | |
| Table Win | | $ | 33,736 | | | $ | 37,949 | | | $ | 141,225 | | | $ | 153,379 | |
Table Drop | | $ | 225,725 | | | $ | 211,535 | | | $ | 879,025 | | | $ | 896,706 | |
Hold % | | | 14.9 | % | | | 17.9 | % | | | 16.1 | % | | | 17.1 | % |
| | | | |
| Poker, Keno, Race Win | | $ | 6,188 | | | $ | 5,248 | | | $ | 24,463 | | | $ | 22,055 | |
| | | | |
| ROOMS | | $ | 8,124 | | | $ | 7,928 | | | $ | 33,028 | | | $ | 33,435 | |
# of Rooms Sold | | | 103,855 | | | | 103,697 | | | | 428,187 | | | | 428,447 | |
Avg Room Rates | | $ | 78.22 | | | $ | 76.45 | | | $ | 77.13 | | | $ | 78.04 | |
Occupancy % | | | 90.3 | % | | | 90.2 | % | | | 93.6 | % | | | 93.9 | % |
| | | | |
| FOOD & BEVERAGE | | $ | 13,185 | | | $ | 12,458 | | | $ | 56,120 | | | $ | 54,973 | |
OTHER | | | 4,404 | | | | 3,945 | | | | 20,223 | | | | 16,888 | |
PROMOTIONAL ALLOWANCES | | | (34,043 | ) | | | (30,156 | ) | | | (135,691 | ) | | | (129,899 | ) |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
NET REVENUES | | $ | 110,328 | | | $ | 110,848 | | | $ | 470,030 | | | $ | 487,293 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
| COSTS & EXPENSES | | | | | | | | | | | | | | | | |
GAMING | | $ | 56,013 | | | $ | 54,193 | | | $ | 227,281 | | | $ | 232,018 | |
ROOMS | | | 3,474 | | | | 3,517 | | | | 13,804 | | | | 14,867 | |
FOOD & BEVERAGE | | | 4,638 | | | | 4,896 | | | | 18,975 | | | | 19,632 | |
GENERAL & ADMIN | | | 23,803 | | | | 23,071 | | | | 101,457 | | | | 100,597 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
TOTAL EXPENSES | | $ | 87,928 | | | $ | 85,677 | | | $ | 361,517 | | | $ | 367,114 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
EBITDA (a) | | $ | 22,400 | | | $ | 25,171 | | | $ | 108,513 | | | $ | 120,179 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
| |
| A reconciliation of EBITDA to income from operations for each of the periods is as follows: | | | | | |
| | | | |
EBITDA | | $ | 22,400 | | | $ | 25,171 | | | $ | 108,513 | | | $ | 120,179 | |
Depreciation and amortization | | | (12,699 | ) | | | (11,704 | ) | | | (49,269 | ) | | | (44,405 | ) |
Reorganization expenses | | | (2,697 | ) | | | — | | | | (2,697 | ) | | | — | |
Non-cash write-downs and charges related to required regulatory obligations (CRDA) | | | (505 | ) | | | (507 | ) | | | (2,100 | ) | | | (3,405 | ) |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Income from operations | | $ | 6,499 | | | $ | 12,960 | | | $ | 54,447 | | | $ | 72,369 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
| (a) | EBITDA (Earnings before interest, taxes, depreciation and amortization, valuation allowances on casino reinvestment obligations, corporate expenses, debt renegotiation costs and reorganization expenses) is a measure of financial performance commonly used in the casino hotel industry. |
We provide EBITDA results to enhance an investor’s understanding of our operating results.
EBITDA is a non-GAAP financial statement measure and should not be construed as an alternative to operating income as determined under generally accepted accounting principles as an indicator of operating performance.
All companies do not calculate EBITDA in the same manner; accordingly, the EBITDA results presented above may not be comparable to EBITDA results as reported by other companies.
TRUMP PLAZA ASSOCIATES
Condensed Statements of Operations
(Unaudited)
(In thousands, except statistical information)
| | | | | | | | | | | | | | | | |
| | | 3 MONTHS
| | | 12 MONTHS
| |
| | | 31-Dec-04
| | | 31-Dec-03
| | | 31-Dec-04
| | | 31-Dec-03
| |
| REVENUES | | | | | | | | | | | | | | | | |
| CASINO | | $ | 76,711 | | | $ | 69,854 | | | $ | 312,867 | | | $ | 313,172 | |
| | | | |
# of Slots | | | 2,850 | | | | 2,907 | | | | 2,864 | | | | 2,941 | |
Win per Slot/Day | | $ | 210 | | | $ | 184 | | | $ | 220 | | | $ | 209 | |
| Slot Win | | $ | 55,155 | | | $ | 49,342 | | | $ | 229,978 | | | $ | 224,647 | |
| | | | |
# of Tables | | | 91 | | | | 90 | | | | 91 | | | | 90 | |
Win per Table/Day | | $ | 2,575 | | | $ | 2,477 | | | $ | 2,496 | | | $ | 2,695 | |
| Table Win | | $ | 21,556 | | | $ | 20,512 | | | $ | 82,889 | | | $ | 88,525 | |
Table Drop | | $ | 134,270 | | | $ | 131,518 | | | $ | 555,158 | | | $ | 574,812 | |
Hold % | | | 16.1 | % | | | 15.6 | % | | | 14.9 | % | | | 15.4 | % |
| | | | |
ROOMS | | $ | 6,071 | | | $ | 5,723 | | | $ | 24,417 | | | $ | 24,076 | |
# of Rooms Sold | | | 75,147 | | | | 71,548 | | | | 307,963 | | | | 302,198 | |
Room Rates | | $ | 80.79 | | | $ | 79.99 | | | $ | 79.29 | | | $ | 79.67 | |
Occupancy % | | | 90.4 | % | | | 86.0 | % | | | 93.1 | % | | | 91.6 | % |
| | | | |
| FOOD & BEVERAGE | | $ | 9,311 | | | $ | 8,346 | | | $ | 38,378 | | | $ | 36,009 | |
OTHER | | | 2,810 | | | | 2,055 | | | | 10,797 | | | | 8,371 | |
PROMOTIONAL ALLOWANCES | | | (26,114 | ) | | | (20,156 | ) | | | (101,696 | ) | | | (90,242 | ) |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
NET REVENUES | | $ | 68,789 | | | $ | 65,822 | | | $ | 284,763 | | | $ | 291,386 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
| COSTS & EXPENSES | | | | | | | | | | | | | | | | |
GAMING | | $ | 36,891 | | | $ | 34,539 | | | $ | 150,567 | | | $ | 147,885 | |
ROOMS | | | 2,202 | | | | 2,241 | | | | 8,801 | | | | 9,129 | |
FOOD & BEVERAGE | | | 3,278 | | | | 3,063 | | | | 13,155 | | | | 12,353 | |
GENERAL & ADMIN (b) | | | 23,189 | | | | 14,297 | | | | 70,972 | | | | 61,946 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
TOTAL EXPENSES | | $ | 65,560 | | | $ | 54,140 | | | $ | 243,495 | | | $ | 231,313 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
EBITDA (a) | | $ | 3,229 | | | $ | 11,682 | | | $ | 41,268 | | | $ | 60,073 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
|
| A reconciliation of EBITDA to income from operations for each of the periods is as follows: | |
| | | | |
EBITDA | | $ | 3,229 | | | $ | 11,682 | | | $ | 41,268 | | | $ | 60,073 | |
Depreciation and amortization | | | (4,605 | ) | | | (5,006 | ) | | | (23,484 | ) | | | (20,150 | ) |
Reorganization expenses | | | (1,795 | ) | | | — | | | | (1,795 | ) | | | — | |
Non-cash write-downs and charges related to required regulatory obligations(CRDA) | | | (336 | ) | | | (2,574 | ) | | | (1,412 | ) | | | (3,898 | ) |
Corporate charges | | | (610 | ) | | | (120 | ) | | | (1,175 | ) | | | (660 | ) |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Income (loss) from operations | | $ | (4,117 | ) | | $ | 3,982 | | | $ | 13,402 | | | $ | 35,365 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
| (a) | EBITDA (Earnings before interest, taxes, depreciation and amortization, valuation allowances on casino reinvestment obligations, corporate expenses, debt renegotiation costs and reorganization expenses) is a measure of financial performance commonly used in the casino hotel industry. |
We provide EBITDA results to enhance an investor’s understanding of our operating results.
EBITDA is a non-GAAP financial statement measure and should not be construed as an alternative to operating income as determined under generally accepted accounting principles as an indicator of operating performance.
All companies do not calculate EBITDA in the same manner; accordingly, the EBITDA results presented above may not be comparable to EBITDA results as reported by other companies.
| (b) | The increase in general and administrative expense for the quarter and year ended December 31, 2004 is due to a reserve of $8.0 million which was recorded for the real estate tax assessment appeal against the City of Atlantic City. |
TRUMP MARINA ASSOCIATES
Condensed Statements of Operations
(Unaudited)
(In thousands, except statistical information)
| | | | | | | | | | | | | | | | |
| | | 3 MONTHS
| | | 12 MONTHS
| |
| | | 31-Dec-04
| | | 31-Dec-03
| | | 31-Dec-04
| | | 31-Dec-03
| |
| REVENUES | | | | | | | | | | | | | | | | |
| CASINO | | $ | 61,256 | | | $ | 57,828 | | | $ | 260,246 | | | $ | 258,399 | |
| | | | |
# of Slots | | | 2,543 | | | | 2,501 | | | | 2,522 | | | | 2,506 | |
Win per Slot/Day | | $ | 217 | | | $ | 193 | | | $ | 225 | | | $ | 216 | |
| Slot Win | | $ | 50,755 | | | $ | 44,361 | | | $ | 207,243 | | | $ | 197,424 | |
| | | | |
# of Tables | | | 76 | | | | 75 | | | | 76 | | | | 80 | |
Win per Table/Day | | $ | 1,484 | | | $ | 1,935 | | | $ | 1,886 | | | $ | 2,068 | |
| Table Win | | $ | 10,377 | | | $ | 13,354 | | | $ | 52,470 | | | $ | 60,395 | |
Table Drop | | $ | 81,394 | | | $ | 75,973 | | | $ | 348,019 | | | $ | 354,529 | |
Hold % | | | 12.7 | % | | | 17.6 | % | | | 15.1 | % | | | 17.0 | % |
| | | | |
| Poker, Keno, Race Win | | $ | 124 | | | $ | 113 | | | $ | 533 | | | $ | 580 | |
| | | | |
| ROOMS | | $ | 4,496 | | | $ | 4,241 | | | $ | 18,551 | | | $ | 18,149 | |
# of Rooms Sold | | | 56,391 | | | | 51,545 | | | | 230,302 | | | | 230,626 | |
Avg Room Rates | | $ | 79.73 | | | $ | 82.28 | | | $ | 80.55 | | | $ | 78.69 | |
Occupancy % | | | 84.2 | % | | | 77.0 | % | | | 86.4 | % | | | 86.8 | % |
| | | | |
| FOOD & BEVERAGE | | $ | 7,845 | | | $ | 6,576 | | | $ | 32,850 | | | $ | 31,303 | |
OTHER | | | 2,434 | | | | 2,599 | | | | 11,588 | | | | 11,189 | |
PROMOTIONAL ALLOWANCES | | | (18,423 | ) | | | (15,872 | ) | | | (75,090 | ) | | | (68,609 | ) |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
NET REVENUES | | $ | 57,608 | | | $ | 55,372 | | | $ | 248,145 | | | $ | 250,431 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
| COSTS & EXPENSES | | | | | | | | | | | | | | | | |
GAMING | | $ | 28,540 | | | $ | 27,510 | | | $ | 120,601 | | | $ | 122,587 | |
ROOMS | | | 1,103 | | | | 1,062 | | | | 4,435 | | | | 4,359 | |
FOOD & BEVERAGE | | | 2,152 | | | | 2,120 | | | | 9,757 | | | | 10,173 | |
GENERAL & ADMIN | | | 15,442 | | | | 14,693 | | | | 63,814 | | | | 64,781 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
TOTAL EXPENSES | | $ | 47,237 | | | $ | 45,385 | | | $ | 198,607 | | | $ | 201,900 | |
| | |
|
|
| |
|
|
| |
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| EBITDA (a) | | $ | 10,371 | | | $ | 9,987 | | | $ | 49,538 | | | $ | 48,531 | |
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A reconciliation of EBITDA to income from operations for each of the periods is as follows: | |
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EBITDA | | $ | 10,371 | | | $ | 9,987 | | | $ | 49,538 | | | $ | 48,531 | |
Depreciation and amortization | | | (5,950 | ) | | | (5,875 | ) | | | (22,256 | ) | | | (22,535 | ) |
Reorganization expenses | | | (10,722 | ) | | | — | | | | (10,722 | ) | | | — | |
Non-cash write-downs and charges related to required regulatory obligations | | | (259 | ) | | | (248 | ) | | | (1,096 | ) | | | (1,888 | ) |
| Debt renegotiation costs | | | — | | | | — | | | | — | | | | 47 | |
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Income (loss) from operations | | $ | (6,560 | ) | | $ | 3,864 | | | $ | 15,464 | | | $ | 24,155 | |
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Note: Certain prior year reclassifications have been made to conform to current year presentation.
| (a) | EBITDA (Earnings before interest, taxes, depreciation and amortization, valuation allowances on casino reinvestment obligations, corporate expenses, debt renegotiation costs and reorganization expenses) is a measure of financial performance commonly used in the casino hotel industry. |
We provide EBITDA results to enhance an investor’s understanding of our operating results.
EBITDA is a non-GAAP financial statement measure and should not be construed as an alternative to operating income as determined under generally accepted accounting principles as an indicator of operating performance.
All companies do not calculate EBITDA in the same manner; accordingly, the EBITDA results presented above may not be comparable to EBITDA results as reported by other companies.
TRUMP INDIANA, INC.
Condensed Statements of Operations
(Unaudited)
(In thousands, except statistical information)
| | | | | | | | | | | | | | | | |
| | | 3 MONTHS
| | | 12 MONTHS
| |
| | | 31-Dec-04
| | | 31-Dec-03
| | | 31-Dec-04
| | | 31-Dec-03
| |
| REVENUES | | | | | | | | | | | | | | | | |
| CASINO | | $ | 31,779 | | | $ | 35,492 | | | $ | 140,602 | | | $ | 134,851 | |
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# of Slots | | | 1,628 | | | | 1,693 | | | | 1,682 | | | | 1,600 | |
Win per Slot/Day | | $ | 170 | | | $ | 195 | | | $ | 189 | | | $ | 199 | |
| Slot Win | | $ | 25,438 | | | $ | 30,299 | | | $ | 116,214 | | | $ | 115,983 | |
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# of Tables | | | 39 | | | | 43 | | | | 40 | | | | 42 | |
Win per Table/Day | | $ | 1,349 | | | $ | 1,283 | | | $ | 1,289 | | | $ | 1,234 | |
| Table Win | | $ | 4,842 | | | $ | 5,076 | | | $ | 18,869 | | | $ | 18,751 | |
Table Drop | | $ | 29,272 | | | $ | 30,609 | | | $ | 122,138 | | | $ | 116,045 | |
Hold % | | | 16.5 | % | | | 16.6 | % | | | 15.4 | % | | | 16.2 | % |
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| Poker (Start 12/16/03) | | $ | 1,499 | | | $ | 117 | | | $ | 5,519 | | | $ | 117 | |
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| ROOMS | | $ | 753 | | | $ | 795 | | | $ | 3,204 | | | $ | 3,281 | |
# of Rooms Sold | | | 13,136 | | | | 13,470 | | | | 56,337 | | | | 58,164 | |
Avg Room Rates | | $ | 57.32 | | | $ | 59.02 | | | $ | 56.87 | | | $ | 56.41 | |
Occupancy % | | | 47.6 | % | | | 48.8 | % | | | 51.3 | % | | | 53.1 | % |
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| FOOD & BEVERAGE | | $ | 727 | | | $ | 779 | | | $ | 3,150 | | | $ | 3,068 | |
OTHER | | | 439 | | | | 166 | | | | 1,962 | | | | 1,941 | |
PROMOTIONAL ALLOWANCES | | | (2,407 | ) | | | (3,463 | ) | | | (11,250 | ) | | | (14,736 | ) |
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NET REVENUES | | $ | 31,291 | | | $ | 33,769 | | | $ | 137,668 | | | $ | 128,405 | |
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| COSTS & EXPENSES | | | | | | | | | | | | | | | | |
GAMING | | $ | 17,195 | | | $ | 17,291 | | | $ | 72,443 | | | $ | 68,335 | |
ROOMS | | | 490 | | | | 407 | | | | 2,023 | | | | 1,932 | |
FOOD & BEVERAGE | | | 1,145 | | | | 1,137 | | | | 4,718 | | | | 4,537 | |
GENERAL & ADMIN (b) | | | 4,953 | | | | 13,359 | | | | 25,510 | | | | 31,009 | |
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TOTAL EXPENSES | | $ | 23,783 | | | $ | 32,194 | | | $ | 104,694 | | | $ | 105,813 | |
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| EBITDA (a) | | $ | 7,508 | | | $ | 1,575 | | | $ | 32,974 | | | $ | 22,592 | |
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| A reconciliation of EBITDA to income from operations for each of the periods is as follows: | |
| | | | |
EBITDA | | $ | 7,508 | | | $ | 1,575 | | | $ | 32,974 | | | $ | 22,592 | |
Depreciation and amortization | | | (1,812 | ) | | | (1,862 | ) | | | (7,614 | ) | | | (7,288 | ) |
Reorganization expenses | | | (2,133 | ) | | | — | | | | (2,133 | ) | | | — | |
Management and services agreement | | | (1,262 | ) | | | (928 | ) | | | (6,038 | ) | | | (5,568 | ) |
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Income (loss) from operations | | $ | 2,301 | | | $ | (1,215 | ) | | $ | 17,189 | | | $ | 9,736 | |
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| (a) | EBITDA (Earnings before interest, taxes, depreciation and amortization, valuation allowances on casino reinvestment obligations, corporate expenses, debt renegotiation costs and reorganization expenses) is a measure of financial performance commonly used in the casino hotel industry. |
We provide EBITDA results to enhance an investor’s understanding of our operating results.
EBITDA is a non-GAAP financial statement measure and should not be construed as an alternative to operating income as determined under generally accepted accounting principles as an indicator of operating performance.
All companies do not calculate EBITDA in the same manner; accordingly, the EBITDA results presented above may not be comparable to EBITDA results as reported by other companies.
| (b) | Property tax expense decreased $4.5 million for the twelve month period ended December 31, 2004 and $7.3 million for the three month period ended December 31, 2004 when compared to the comparable period in 2003. This change resulted from the unstable property tax situation in Indiana and revisions to the property tax payable in response to both legislated and anticipated changes in tax rates and assessed values. |
TRUMP HOTELS & CASINO RESORTS, INC.
Supplemental Information
(Unaudited)
(In thousands)
| | | | | | | | | | | | |
| | | 3 MONTHS
| | 12 MONTHS
|
| | | 31-Dec-04
| | 31-Dec-03
| | 31-Dec-04
| | 31-Dec-03
|
| CRDA WRITE-DOWN | | | | | | | | | | | | |
TAJ | | $ | 505 | | $ | 507 | | $ | 2,100 | | $ | 3,405 |
PLAZA | | | 336 | | | 2,574 | | | 1,412 | | | 3,898 |
MARINA | | | 259 | | | 248 | | | 1,096 | | | 1,888 |
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TOTAL CRDA WRITE-DOWN | | $ | 1,100 | | $ | 3,329 | | $ | 4,608 | | $ | 9,191 |
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| DEPRECIATION & AMORTIZATION | | | | | | | | | | | | |
TAJ | | $ | 12,699 | | $ | 11,704 | | $ | 49,269 | | $ | 44,405 |
PLAZA | | | 4,605 | | | 5,006 | | | 23,484 | | | 20,150 |
THCR HOLDINGS | | | 36 | | | 7 | | | 82 | | | 28 |
MARINA | | | 5,950 | | | 5,875 | | | 22,256 | | | 22,535 |
INDIANA | | | 1,812 | | | 1,862 | | | 7,614 | | | 7,288 |
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TOTAL DEPRECIATION/AMORT | | $ | 25,102 | | $ | 24,454 | | $ | 102,705 | | $ | 94,406 |
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| INTEREST EXPENSE | | | | | | | | | | | | |
TAJ | | $ | 24,605 | | $ | 24,613 | | $ | 98,997 | | $ | 98,315 |
PLAZA | | | 14,241 | | | 17,492 | | | 56,789 | | | 59,711 |
TRUMP CASINO HOLDINGS | | | 4,245 | | | 4,183 | | | 17,663 | | | 12,523 |
MARINA | | | 11,643 | | | 10,389 | | | 45,972 | | | 46,236 |
INDIANA | | | 2,200 | | | 2,086 | | | 8,763 | | | 6,962 |
THCR HOLDINGS | | | 355 | | | — | | | 355 | | | 4,533 |
THCR MGMT | | | — | | | — | | | — | | | 241 |
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TOTAL INTEREST EXPENSE | | $ | 57,289 | | $ | 58,763 | | $ | 228,539 | | $ | 228,521 |
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| LOAN COST AMORT/BOND DISC INCL INT EXP | | | | | | | | | | | | |
TAJ | | $ | 297 | | $ | 597 | | $ | 1,989 | | $ | 2,495 |
PLAZA | | | 196 | | | 393 | | | 1,310 | | | 1,642 |
THCR HOLDINGS | | | — | | | — | | | — | | | 192 |
TRUMP CASINO HOLDINGS | | | 434 | | | 743 | | | 2,676 | | | 2,129 |
MARINA | | | 278 | | | 62 | | | 1,778 | | | 3,591 |
INDIANA | | | 53 | | | 38 | | | 340 | | | 409 |
THCR MGMT | | | — | | | — | | | — | | | 223 |
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TOTAL LOAN COST AMORT/BOND DISC | | $ | 1,258 | | $ | 1,833 | | $ | 8,093 | | $ | 10,681 |
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TRUMP HOTELS & CASINO RESORTS, INC.
Supplemental Information
(Unaudited)
| | | | | | |
Cash & Cash Equivalents
(in millions) | | 31-Dec-04
| | 31-Dec-03
|
Trump Atlantic City Consolidated | | $ | 70.3 | | $ | 59.8 |
Trump Casino Holdings Consolidated | | | 33.4 | | | 34.8 |
Trump Hotels & Casino Resorts Holdings, L.P. | | | 1.6 | | | 1.1 |
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Total Cash & Cash Equivalents | | $ | 105.3 | | $ | 95.7 |
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Capital Expenditures (in thousands) | | Purchase
of Property
& Equipment
| | | Capital Lease/ Financed
Additions
| | Total Capital
Expenditures
|
For the Three Months Ended December 31, 2004 | | | | | | | | | | |
TAJ | | $ | 3,693 | | | $ | 7,951 | | $ | 11,644 |
PLAZA | | | 3,650 | | | | 278 | | | 3,928 |
MARINA | | | 2,832 | | | | 167 | | | 2,999 |
INDIANA | | | 880 | | | | — | | | 880 |
THCR HOLDINGS | | | 250 | | | | — | | | 250 |
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TOTAL | | $ | 11,305 | | | $ | 8,396 | | $ | 19,701 |
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For the Three Months Ended December 31, 2003 | | | | | | | | | | |
TAJ | | $ | 16 | | | | 2,620 | | $ | 2,636 |
PLAZA | | | 1,336 | | | | 4,248 | | | 5,584 |
MARINA | | | 1,537 | | | | 2,011 | | | 3,548 |
INDIANA | | | (28 | ) | | | 115 | | | 87 |
THCR HOLDINGS | | | 12 | | | | — | | | 12 |
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TOTAL | | $ | 2,873 | | | $ | 8,994 | | $ | 11,867 |
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| For the Twelve Months Ended December 31, 2004 | | | | | | | | | | |
TAJ | | $ | 9,334 | | | $ | 21,364 | | $ | 30,698 |
PLAZA | | | 6,316 | | | | 12,609 | | | 18,925 |
MARINA | | | 5,493 | | | | 6,159 | | | 11,652 |
INDIANA | | | 2,831 | | | | 89 | | | 2,920 |
THCR HOLDINGS | | | 611 | | | | — | | | 611 |
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TOTAL | | $ | 24,585 | | | $ | 40,221 | | $ | 64,806 |
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| For the Twelve Months Ended December 31, 2003 | | | | | | | | | | |
TAJ | | $ | 14,470 | | | $ | 13,229 | | $ | 27,699 |
PLAZA | | | 4,521 | | | | 11,371 | | | 15,892 |
MARINA | | | 5,505 | | | | 7,842 | | | 13,347 |
INDIANA | | | 1,780 | | | | 4,825 | | | 6,605 |
THCR HOLDINGS | | | 47 | | | | — | | | 47 |
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TOTAL | | $ | 26,323 | | | $ | 37,267 | | $ | 63,590 |
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