SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
February 22, 1994
CAESARS WORLD, INC.
(Exact name of issuer as specified in its charter)
Florida 1-5979 59-0773674
(State or Other (Commission (IRS Employer of
Jurisdiction File Number) Identification
Incorporation Number)
or Organization)
1801 Century Park East 90067
Suite 2600 (Zip Code)
Los Angeles, California
(Address of Principal
Executive Offices)
(310) 552-2711
Registrant's telephone number, including area code
Item 5. Other Events
On February 22, 1994, Registrant issued the following press release:
LOS ANGELES, CALIFORNIA -- Caesars World, Inc. (NYSE: CAW) today
announced net income for the fiscal 1994 second quarter was $21,960,000,
or 90 cents per share, compared with $25,527,000, or $1.05 per share, in the
fiscal 1993 second quarter. Revenue for the quarter ended January 31, 1994,
totaled $257,981,000, compared with $264,473,000 in the prior-year quarter.
Net income for the first six months of fiscal 1994 was a record
$49,808,000, or $2.04 per share, compared with $40,494,000, or $1.66 per
share, in the comparable fiscal 1993 period. Revenue for the six months of
fiscal 1994 amounted to $527,064,000, compared with $497,035,000 in the
same prior-year period.
Henry Gluck, chairman and chief executive officer, noted that a major
contributor to the decline in the quarterly comparisons was lower table-game
win percentages in the company's Nevada operations. "We are nevertheless
pleased that Caesars Palace in Las Vegas continued to maintain its strong
casino play in spite of the opening of three mega-resorts and the ensuing
nationwide publicity and marketing programs that are part of all major
openings," he said.
Gluck pointed out that improved results throughout the company accounted
for the fiscal 1994 six-month performance which established records in revenue,
net income and earnings per share for any comparable period in Caesars
World's history.
In the company's Nevada operations, the table-game win percentage for the
fiscal 1994 second quarter, although above historical averages, was still below
the prior-year quarter and was the principal contributor to declines in both
revenue and contributions to operating income. The level of table-game
activity was about the same during both quarters. Slot machine activity in
Nevada was about 5 percent higher in the 1994 quarter but this was offset by a
lower slot win percentage resulting in a relatively flat quarterly slot revenue
comparison. Higher marketing and staffing expenses were partially offset by a
lower provision for doubtful accounts during the 1994 second quarter.
Six-month results from Nevada in fiscal 1994 reflected all-time record
table-game activity and win, a higher table-game win percentage compared with
the same 1993 six months, and a 7 percent rise in slot win over the comparable
1993 period. The fiscal 1994 six-month results were partially offset by
increased marketing expenses and a higher provision for doubtful accounts.
In New Jersey, the lower results during fiscal 1994 can be primarily
attributed to increased competition and recent bad weather. Caesars Atlantic
City's lower casino revenue during the fiscal 1994 reporting periods was due to
a decline in table-game and slots activity, offset in part by an increase in
table-game win percentages and the opening late in October of a Simulcast
Casino. This new area features high-tech horse race betting, a poker
section and additional casino table games. Caesars Atlantic City's
contributions to operating income in fiscal 1994 benefited from a reduction in
expenses.
Caesars World's net interest expenses have decreased due to lower
outstanding debt and a debt refinancing which was substantially completed
during the fiscal 1993 first quarter.
CAESARS WORLD, INC
SUMMARY OF EARNINGS - Unaudited
(In thousands, except net income per share)
Three Months Six Months
For the periods ended January 31 1994 1993 1994 1993
Revenue
Nevada $168,048 $171,950 $323,272 $290,181
New Jersey 76,048 79,552 170,084 174,615
Casino/hotel operations 244,096 251,502 493,356 464,796
Pocono Resorts 8,882 8,184 23,374 21,910
Other (a) 5,003 4,787 10,334 10,329
Total revenue $257,981 $264,473 $527,064 $497,035
Contributions to operating income
Nevada $ 38,319 $ 42,466 $ 65,803 $ 55,697
New Jersey 7,140 8,939 29,782 28,768
Casino/hotel operations 45,459 51,405 95,585 84,465
Pocono Resorts 371 188 5,448 5,017
Other expenses (a) (6,174) (4,749) (10,775) (8,930)
Operating income 39,656 46,844 90,258 80,552
Interest income and dividend income 719 179 1,647 986
Interest expense (4,668) (5,850) (9,778) (16,225)
Income before income taxes 35,707 41,173 82,127 65,313
Income taxes (b) 13,747 15,646 32,319 24,819
Net income $ 21,960 $ 25,527 $ 49,808 $ 40,494
Net income per share $ .90 $ 1.05 $ 2.04 $ 1.66
Average number of common and common
equivalent shares outstanding 24,535 24,394 24,468 24,328
<FN>
(a) Other revenue is primarily from merchandising operations. Other expenses
include the contribution from merchandising operations and corporate
expenses.
(b) The effective income tax rate during the six months ended January 31, 1994,
was 1.4 percentage points higher than the same period in 1993. The higher
tax rate reflects the impact of two non-recurring tax charges. In August
1993, the Federal tax rate increased, retroactive to January 1, 1993, from
34 to 35 percent. The company also changed its method for income tax
accounting by adopting FASB 109 effective August 1, 1993. The impact of
this cumulative change in accounting and the retroactive change in the
corporate tax rate aggregated a net charge of approximately $750,000 in the
first quarter of fiscal 1994.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CAESARS WORLD, INC.
By /s/Roger Lee
Senior Vice President,
Finance & Administration
February 23, 1994