Exhibit 99.1
NEWS RELEASE
FOR: Trump Hotels & Casino Resorts, Inc.
CONTACT: John P. Burke, Corporate Treasurer
(212) 891-1500
FOR RELEASE: October 24, 2002 - 8 AM
TRUMP HOTELS & CASINO RESORTS, INC. REPORTS
RECORD THIRD QUARTER AND NINE MONTH RESULTS
EBITDA INCREASED $50.2 MILLION (24.2%) THROUGH NINE MONTHS
NEW YORK, NY - Trump Hotels & Casino Resorts, Inc. ("THCR" or the
"Company") (NYSE:DJT) today reported a continuation of record earnings and
EBITDA -- its best third quarter and nine months in its history following its
previously announced record fourth quarter 2001 and first and second quarter
2002.
THCR's EBITDA (defined as earnings before interest, taxes,
depreciation, amortization, CRDA, debt renegotiation expenses, corporate
expenses, and non-operating income/expense) for the quarter ended September 30,
2002 increased to $102.1 million, $9.9 million higher than the $92.2 million
reported for the quarter ended September 30, 2001, or a 10.7% increase.
Consolidated net revenues (defined as gross revenues less promotional
allowances) for the quarter ended September 30, 2002 increased to $342.6 million
from $327.4 million reported for the quarter ended September 30, 2001. For the
nine months ended September 30, 2002, EBITDA increased to $257.6 million, $50.2
million higher than the $207.4 million reported for the nine months ended
September 30, 2001, or a 24.2% increase. Consolidated net revenues for the nine
months ended September 30, 2002 increased to $946.0 million from $896.1 million
reported for the nine months ended September 30, 2001. The net
income for the 2002 third quarter was $9.6 million, or $0.44 per share
(including a $3.7 million charge for state income taxes for the nine-month
period due to a change in the State of New Jersey tax law during the third
quarter 2002), compared to a $9.5 million, or $0.43 per share, in the third
quarter of 2001. Consolidated net income for the nine-month period ended
September 30, 2002 was $5.3 million, or $0.24 per share, compared to a $15.1
million loss, or ($0.69 per share), for the nine-month period ended September
30, 2001.
Donald J. Trump, Chairman, President and Chief Executive Officer, said,
"I am pleased to be able to report that all of our properties have improved both
their net revenues and EBITDA for the quarter and nine month periods. Our
trailing twelve months EBITDA of $320 million exceeds any twelve-month period in
our history. By providing the most popular games, great service, fine dining and
entertainment, the Company has been able to reach its record levels. The
company-wide improvements in operating margins also show that we have maintained
our focus on cost controls."
Trump Taj Mahal Associates reported net revenues of $145.0 million and
an increase in EBITDA to $46.1 million for the quarter ended September 30, 2002,
compared to net revenues of $141.5 million and EBITDA of $44.6 million for the
quarter ended September 30, 2001. For the nine-month period ended September 30,
2002, net revenues increased to $398.4 million and EBITDA increased to $116.4
million, compared to $381.6 million and $101.8 million respectively, for the
nine months ended September 30, 2001. The current year EBITDA of $116.4 million
for the nine-month period ended September 30th is the best ever produced by the
Taj Mahal for this time period. EBITDA margins improved to 31.8% and 29.2% for
the quarter and nine months ended September 30, 2002, respectively, from 31.5%
and 26.7% for the quarter and nine months ended September 30, 2001,
respectively. Mark A. Brown, President and Chief Operating Officer, commented,
"I'm proud that the Taj Mahal continues to be considered by many to be the best
hotel-casino in Atlantic City. Mr. Trump demands that we maintain a level of
quality that is second to none. Both the management and staff are dedicated to
maintaining a level of service that creates the customer loyalty
that allows us to be successful. We continue to improve the property. On the
casino floor, we have added new slot machines and have installed new technology
with the benefit of enhancing customer service and lowering operating costs. By
offering such a wide spectrum of entertainment and dining choices and an
unsurpassed gaming experience, the Taj Mahal continues to be the 'must see
attraction' in Atlantic City. Controlling costs has been paramount to improving
our profitability at all our properties and has helped to offset the higher
insurance costs and real estate taxes which caused the increase in our general
and administrative expenses for the quarter."
Trump Plaza Associates reported an increase in net revenues to $87.7
million and an increase in EBITDA to $25.9 million for the quarter ended
September 30, 2002, compared to net revenues of $83.2 million and EBITDA of
$22.5 million for the quarter ended September 30, 2001. For the nine-month
period ended September 30, 2002, Trump Plaza reported an increase in net
revenues to $242.9 million and an increase in EBITDA to $62.9 million, compared
to net revenues of $232.3 million and EBITDA of $47.1 million for the nine-month
period ended September 30, 2001. EBITDA margins improved to 29.5% and 25.9% for
the quarter and nine months ended September 30, 2002, respectively, from 27.1%
and 20.3% for the quarter and nine months ended September 30, 2001,
respectively. Mr. Brown remarked, "As I have stated in the past, 2002 would be
Trump Plaza's year. In just nine months, Plaza's EBITDA has exceeded its full
year 2001 results. In fact, Plaza has exceeded its prior year EBITDA for each of
the last seven consecutive quarters. Trump Plaza's dynamic marketing and
superior service has allowed this 'center of the boardwalk' to make such
progress. By carefully managing the profitability of the casino floor, and
replacing nearly 60% of the slot product, the property has increased its
revenues by over $10 million for nine months while reducing costs and expenses
by $5 million."
Trump Marina reported an increase in net revenues to $76.9 million and
an increase in EBITDA to $20.6 million for the quarter ended September 30, 2002,
compared to net revenue of $72.2 million and EBITDA of $18.7 million for the
quarter ended September 30, 2001. For the nine-month period ended September 30,
2002,
Trump Marina reported an increase in net revenues to $208.6 million and an
increase in EBITDA to $52.6 million, compared to net revenues of $190.7 million
and EBITDA of $38.7 million for the nine-month period ended September 30, 2001.
EBITDA margins improved to 26.8% and 25.2% for the quarter and nine months ended
September 30, 2002, respectively from 25.9% and 20.3% for the quarter and nine
months ended September 30, 2001, respectively. "Like the Plaza, in just nine
months the Marina's EBITDA has exceeded its full year 2001 results. The
emergence of the Marina district in Atlantic City is benefiting Trump Marina.
New visitors to this section of the city are finding what our loyal Marina
customers have known for a long time. The Marina is a great venue with the
younger and 'wild side' persona in an elegant but relaxed atmosphere. Paul Ryan,
our new Chief Operating Officer for the Marina, knows this property as well as
anyone, having been involved with it since its opening," commented Mr. Brown.
Trump Indiana reported net revenues of $32.3 million and an increase in
EBITDA to $9.1 million for the third quarter ended September 30, 2002, compared
to net revenues of $30.5 million and EBITDA of $6.4 million for the quarter
ended September 30, 2001. For the nine-month period ended September 30, 2002,
Trump Indiana reported an increase in net revenues to $94.3 million and an
increase in EBITDA to $24.3 million, compared to net revenues of $91.5 million
and EBITDA of $19.8 million for the nine-month period ended September 30, 2001.
EBITDA margins improved to 28.1% and 25.8% for the quarter and nine months ended
September 30, 2002, respectively, from 21.1% and 21.7% for the quarter and nine
months ended September 30, 2001, respectively. Mr. Brown remarked, "The addition
of 286 slots in our expanded gaming area, the May opening of the 2,000 car
garage next to the Trump Indiana vessel and the recent inception of dockside
gaming, have helped Trump Indiana to its record breaking third quarter. Dockside
allows our patrons access at anytime to the gaming vessel and the new garage
makes that access so much more convenient. Also, Trump Indiana is the test site
for ticket-in, ticket-out cashless slot machines in the state of Indiana.
Customers who do not want to carry tokens for the slots prefer cashless systems
which save time with redemptions and allows for more playing time on the
machines. Preliminary results have shown an increase in coin-in and win per unit
per day for the test units. As with all our properties, strong cost controls
have resulted in increased operating margins."
Under its five-year management agreement with the Twenty-Nine Palms
Band of Luiseno Mission Indians of California, THCR Management Services manages
the day-to-day operations of the Tribe's recently renovated and expanded casino
renamed Trump 29 Casino in the Palm Springs, California area. The new casino
opened on April 2, 2002 and additional expansion of dining, entertainment and
gaming space was completed in September of this year. During the quarter and the
nine months ended September 30, 2002, THCR Management earned $0.7 and $1.8
million, respectively, in management fees (included in other revenues) and
incurred $0.2 million and $0.3 million, respectively, associated general and
administrative costs and $0.2 million and $0.6 million, respectively, in
pre-opening costs (included in corporate expenses) pursuant to the management
agreement. Interest expense for the quarter includes a $1.7 million write off of
the deferred financing costs incurred with the original $11 million loan used to
assist the Tribe in the construction of the new casino. This loan was paid off
with a $2.2 million financing and the proceeds from the assignment of the note
receivable from the Tribe.
Trump Atlantic City Associates' combined net revenues of Trump Plaza
and Trump Taj Mahal for the quarter ended September 30, 2002 increased to $232.8
million, compared to $224.7 million for the quarter ended September 30, 2001.
EBITDA for the quarter ended September 30, 2002 increased to $72.0 million,
compared to EBITDA of $67.1 million for the same period in 2001. For the
nine-month period ended September 30, 2002, Trump Atlantic City Associates
reported an increase in net revenues to $641.3 million and an increase in EBITDA
to $179.2 million, compared to net revenues of $613.9 million and EBITDA of
$148.9 million for the nine-month period ended September 30, 2001.
THCR, through its wholly-owned subsidiaries, owns and operates Trump
Plaza Hotel and Casino, Trump Taj Mahal Casino Resort and Trump Marina Hotel
Casino in Atlantic City, New Jersey, as well as Trump Indiana, a hotel and
riverboat casino at Buffington Harbor, Indiana on Lake Michigan. Also, THCR,
through a wholly-owned subsidiary, manages Trump 29 Casino located in the Palm
Springs, California area. It is the exclusive vehicle through which Donald J.
Trump will engage in new gaming activities in both emerging and established
gaming jurisdictions in both the United States and abroad.
THCR is a public company which is approximately 46.6% beneficially
owned by Donald J. Trump. The Company is separate and distinct from all of 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, 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 periodical reports filed with the Securities and Exchange Commission
(the "Commission"), 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 Commission's website, www.sec.gov, or on the Company's
website, www.trump.com.
# # #
TRUMP HOTELS & CASINO RESORTS, INC.
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except share data)
3 MONTHS 9 MONTHS
30-Sep-02 30-Sep-01 30-Sep-02 30-Sep-01
---------------------- -----------------------
REVENUES
CASINO $353,042 $343,237 $983,429 $945,383
ROOMS 22,636 23,025 62,402 61,962
FOOD & BEVERAGE 36,077 36,461 98,608 99,849
OTHER 13,150 12,103 32,709 29,094
PROMOTIONAL ALLOWANCES (a) (82,310) (87,442) (231,192) (240,216)
---------------------- -----------------------
NET REVENUES $342,595 $327,384 $945,956 $896,072
---------------------- -----------------------
COSTS & EXPENSES
GAMING (a) $153,096 $153,140 $440,927 $446,432
ROOMS 7,863 7,643 23,950 23,001
FOOD & BEVERAGE 12,801 12,755 35,485 33,919
GENERAL & ADMIN 66,694 61,607 187,967 185,278
---------------------- -----------------------
TOTAL EXPENSES $240,454 $235,145 $688,329 $688,630
---------------------- -----------------------
EBITDA (b) $102,141 $92,239 $257,627 $207,442
---------------------- -----------------------
CRDA/INDIANA STATE & MUNIC OBLIG. $1,327 $1,357 $4,100 $4,943
DEPRECIATION & AMORTIZATION 22,369 17,953 63,387 57,072
INTEREST INCOME (405) (720) (1,499) (2,820)
INTEREST EXPENSE 57,173 55,242 167,627 164,529
CORPORATE EXPENSES & DJT INCENTIVE FEE 3,469 3,336 9,532 7,878
DEBT RENEGOTIATION COSTS 6 - 3,070 -
OTHER NON-OPER (INCOME)EXPENSE, NET (704) 59 (650) (367)
---------------------- -----------------------
TOTAL NON-OPERATING EXPENSE, NET $83,235 $77,227 $245,567 $231,235
---------------------- -----------------------
INCOME (LOSS) BEFORE INCOME TAXES
& MINORITY INTEREST $18,906 $15,012 $12,060 ($23,793)
PROVISION FOR INCOME TAXES (c) (3,718) - (3,718) -
---------------------- -----------------------
INCOME (LOSS) BEFORE MINORITY INT $15,188 $15,012 $8,342 ($23,793)
MINORITY INTEREST (5,555) (5,490) (3,051) 8,701
---------------------- -----------------------
NET INCOME (LOSS) $9,633 $9,522 $5,291 ($15,092)
====================== =======================
WEIGHTED AVERAGE # SHARES-BASIC 22,010,027 22,010,027 22,010,027 22,010,027
====================== =======================
WEIGHTED AVERAGE # SHARES-DILUTED 22,034,816 22,010,027 22,035,535 22,010,027
====================== =======================
BASIC & DILUTED EARNINGS(LOSS)
PER SHARE $0.44 $0.43 $0.24 ($0.69)
====================== =======================
Note: Certain prior year reclassifications have been made to conform to current
year presentation.
(a) Prior period amounts have been reclassed from gaming expense to promotional
allowances, in accordance with EITF 00-22 "Accounting for 'Points' and Certain
Other Time-Based or Sales Incentive Offers, and Offers for Free Products or
Services to Be Delivered in the Future" and EITF 01-09 "Accounting for
Consideration given by a Vendor to a Customer (Including a Reseller of the
Vendor's Products)". In addition, during the quarter ended September 30, 2002,
the Company reclassified certain additional bus coin expenses to be consistent
with prevailing industry presentation. Such amounts were $6.1 million and $17.3
million for the quarter and nine months ended September 30, 2002 and $7.2
million and $21.4 million for the quarter and nine months ended September 30,
2001.
(b) EBITDA amounts are not meant as a substitute for GAAP, but are solely for
informational purposes. EBITDA is used in the casino hotel industry as a measure
of cash flow.
(c) During July 2002, the State of New Jersey passed the New Jersey Tax Act.
This Act placed a two year moratorium on the use of net operating loss
carryforwards and introduced a new alternative minimum tax. The alternative
minimum tax to which the Company is subject is based on gross receipts (as
defined) retroactive to January 1, 2002. Accordingly, the Company has recorded a
provision for income taxes during the three months ended September 30, 2002 for
the cumulative tax due through this date.
TRUMP ATLANTIC CITY ASSOCIATES
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands)
3 MONTHS 9 MONTHS
30-Sep-02 30-Sep-01 30-Sep-02 30-Sep-01
---------------------- -----------------------
REVENUES
CASINO $239,678 $237,323 $667,940 $650,294
ROOMS 16,580 16,649 45,742 44,896
FOOD & BEVERAGE 25,274 26,027 71,007 72,949
OTHER 8,138 7,968 21,538 19,765
PROMOTIONAL ALLOWANCES (a) (56,913) (63,255) (164,968) (174,038)
---------------------- -----------------------
NET REVENUES $232,757 $224,712 $641,259 $613,866
---------------------- -----------------------
COSTS & EXPENSES
GAMING (a) $102,192 $103,662 $294,780 $303,137
ROOMS 6,315 6,218 19,372 18,848
FOOD & BEVERAGE 8,457 8,216 24,050 22,734
GENERAL & ADMIN 43,835 39,488 123,817 120,271
---------------------- -----------------------
TOTAL EXPENSES $160,799 $157,584 $462,019 $464,990
---------------------- -----------------------
EBITDA (b) $71,958 $67,128 $179,240 $148,876
---------------------- -----------------------
CRDA $999 $1,025 $3,244 $3,118
DEPREC & AMORT 14,729 11,452 41,532 36,621
INTEREST INCOME (230) (438) (788) (1,824)
INTEREST EXPENSE 38,383 38,529 114,834 115,294
OTHER NON-OPERATING (INCOME) EXPENSE 191 557 591 332
DEBT RENEGOTIATION COSTS - - 1,570 -
---------------------------------------------------
TOTAL NON-OPERATING EXPENSE, NET $54,072 $51,125 $160,983 $153,541
---------------------- -----------------------
INCOME (LOSS) BEFORE INCOME TAXES $17,886 $16,003 $18,257 ($4,665)
PROVISION FOR INCOME TAXES (c) (2,768) - (2,768) -
---------------------------------------------------
NET INCOME (LOSS) $15,118 $16,003 $15,489 ($4,665)
====================== =======================
Note: Certain prior year reclassifications have been made to conform to current
year presentation.
(a) Prior period amounts have been reclassed from gaming expense to promotional
allowances, in accordance with EITF 00-22 "Accounting for 'Points' and Certain
Other Time-Based or Sales Incentive Offers, and Offers for Free Products or
Services to Be Delivered in the Future" and EITF 01-09 "Accounting for
Consideration given by a Vendor to a Customer (Including a Reseller of the
Vendor's Products)". In addition, during the quarter ended September 30, 2002,
the Company reclassified certain additional bus coin expenses to be consistent
with prevailing industry presentation. Such amounts were $5.4 million and $15.4
million for the quarter and nine months ended September 30, 2002 and $6.6
million and $19.1 million for the quarter and nine months ended September 30,
2001.
(b) EBITDA amounts are not meant as a substitute for GAAP, but are solely for
informational purposes. EBITDA is used in the casino hotel industry as a measure
of cash flow.
(c) During July 2002, the State of New Jersey passed the New Jersey Tax Act.
This Act placed a two year moratorium on the use of net operating carry forwards
and introduced a new alternative minimum tax. The alternative minimum tax to
which the Company is subject is based on gross receipts (as defined) retroactive
to January 1, 2002. Accordingly, the Company has recorded a provision for income
taxes during the three months ended September 30, 2002 for the cummulative tax
due through this date.
TRUMP TAJ MAHAL ASSOCIATES
Condensed Statements of Operations
(Unaudited)
(In thousands, except statistical information)
3 MONTHS 9 MONTHS
30-Sep-02 30-Sep-01 30-Sep-02 30-Sep-01
---------------------- -----------------------
REVENUES
CASINO $146,129 $148,778 $408,507 $400,679
# of Slots 4,823 4,827 4,843 4,696
Win per Slot/Day $222 $212 $208 $201
Slot Win $98,548 $94,199 $275,481 $257,620
# of Tables 139 139 139 141
Win per Table/Day $3,249 $3,794 $3,059 $3,274
Table Win $41,550 $48,521 $116,067 $126,028
Table Drop $257,044 $269,852 $700,590 $755,024
Hold % 16.2% 18.0% 16.6% 16.7%
Poker, Keno, Race Win $6,031 $6,058 $16,959 $17,031
ROOMS $9,793 $9,935 $26,656 $26,339
# of Rooms Sold 112,682 112,015 327,271 325,294
Avg Room Rates $86.91 $88.69 $81.45 $80.97
Occupancy % 98.0% 97.4% 95.9% 95.3%
FOOD & BEVERAGE $15,366 $15,589 $42,850 $42,471
OTHER 6,032 5,613 15,603 13,589
PROMOTIONAL ALLOWANCES (a) (32,288) (38,418) (95,237) (101,505)
---------------------- -----------------------
NET REVENUES $145,032 $141,497 $398,379 $381,573
---------------------- -----------------------
COSTS & EXPENSES
GAMING (a) $62,121 $62,762 $177,275 $179,951
ROOMS 3,876 3,878 11,881 11,839
FOOD & BEVERAGE 5,466 5,652 15,442 15,395
GENERAL & ADMIN 27,465 24,609 77,398 72,632
---------------------- -----------------------
TOTAL EXPENSES $98,928 $96,901 $281,996 $279,817
---------------------- -----------------------
EBITDA (b) $46,104 $44,596 $116,383 $101,756
====================== =======================
Note: Certain prior year reclassifications have been made to conform to current
year presentation.
(a) Prior period amounts have been reclassed from gaming expense to promotional
allowances, in accordance with EITF 00-22 "Accounting for 'Points' and Certain
Other Time-Based or Sales Incentive Offers, and Offers for Free Products or
Services to Be Delivered in the Future" and EITF 01-09 "Accounting for
Consideration given by a Vendor to a Customer (Including a Reseller of the
Vendor's Products)". In addition, during the quarter ended September 30, 2002,
the Company reclassified certain additional bus coin expenses to be consistent
with prevailing industry presentation. Such amounts were $2.1 million and $6.8
million for the quarter and nine months ended September 30, 2002 and $4.1
million and $11.1 million for the quarter and nine months ended September 30,
2001.
(b) EBITDA reflects earnings before depreciation, interest, taxes and CRDA
write-down. EBITDA amounts are not meant as a substitute for GAAP, but are
solely for informational purposes. EBITDA is used in the casino hotel industry
as a measure of cash flow.
TRUMP PLAZA ASSOCIATES
Condensed Statements of Operations
(Unaudited)
(In thousands, except statistical information)
3 MONTHS 9 MONTHS
30-Sep-02 30-Sep-01 30-Sep-02 30-Sep-01
---------------------- -----------------------
REVENUES
CASINO $93,549 $88,545 $259,433 $249,615
# of Slots 2,982 2,868 2,912 2,850
Win per Slot/Day $241 $239 $230 $226
Slot Win $66,182 $63,023 $182,073 $175,725
# of Tables 88 100 88 99
Win per Table/Day $3,380 $2,774 $3,232 $2,734
Table Win $27,367 $25,522 $77,360 $73,890
Table Drop $168,230 $154,517 $458,240 $436,748
Hold % 16.3% 16.5% 16.9% 16.9%
ROOMS $6,787 $6,714 $19,086 $18,557
# of Rooms Sold 80,434 78,415 232,270 227,528
Room Rates $84.38 $85.62 $82.17 $81.56
Occupancy % 96.7% 94.3% 94.1% 92.2%
FOOD & BEVERAGE $9,908 $10,438 $28,157 $30,478
OTHER 2,106 2,355 5,935 6,176
PROMOTIONAL ALLOWANCES (a) (24,625) (24,837) (69,731) (72,533)
---------------------- -----------------------
NET REVENUES $87,725 $83,215 $242,880 $232,293
---------------------- -----------------------
COSTS & EXPENSES
GAMING (a) $40,071 $40,900 $117,505 $123,186
ROOMS 2,439 2,340 7,491 7,009
FOOD & BEVERAGE 2,991 2,564 8,608 7,339
GENERAL & ADMIN 16,370 14,879 46,419 47,639
---------------------- -----------------------
TOTAL EXPENSES $61,871 $60,683 $180,023 $185,173
---------------------- -----------------------
EBITDA (b) $25,854 $22,532 $62,857 $47,120
====================== =======================
Note: Certain prior year reclassifications have been made to conform to current
year presentation.
(a) Prior period amounts have been reclassed from gaming expense to promotional
allowances, in accordance with EITF 00-22 "Accounting for 'Points' and Certain
Other Time-Based or Sales Incentive Offers, and Offers for Free Products or
Services to Be Delivered in the Future" and EITF 01-09 "Accounting for
Consideration given by a Vendor to a Customer (Including a Reseller of the
Vendor's Products)". In addition, during the quarter ended September 30, 2002,
the Company reclassified certain additional bus coin expenses to be consistent
with prevailing industry presentation. Such amounts were $3.3 million and $8.6
million for the quarter and nine months ended September 30, 2002 and $2.5
million and $8.0 million for the quarter and nine months ended September 30,
2001.
(b) EBITDA reflects earnings before depreciation, interest, taxes, CRDA
writedown and other non-operating expense, net. EBITDA amounts are not meant as
a substitute for GAAP, but are solely for informational purposes. EBITDA is used
in the casino hotel industry as a measure of cash flow.
TRUMP'S CASTLE ASSOCIATES
d/b/a TRUMP MARINA
Condensed Statements of Operations
(Unaudited)
(In thousands, except statistical information)
3 MONTHS 9 MONTHS
30-Sep-02 30-Sep-01 30-Sep-02 30-Sep-01
---------------------- -----------------------
REVENUES
CASINO $79,694 $74,870 $217,246 $201,400
# of Slots 2,528 2,523 2,526 2,526
Win per Slot/Day $271 $240 $242 $222
Slot Win $63,139 $55,677 $167,212 $152,787
# of Tables 78 79 79 78
Win per Table/Day $2,264 $2,600 $2,290 $2,254
Table Win $16,249 $18,897 $49,389 $47,999
Table Drop $108,853 $113,170 $287,230 $297,834
Hold % 14.9% 16.7% 17.2% 16.1%
Poker, Keno, Race Win $306 $296 $645 $614
ROOMS $5,133 $5,235 $14,023 $13,757
# of Rooms Sold 66,384 62,708 180,988 171,443
Avg Room Rates $77.32 $83.48 $77.48 $80.24
Occupancy % 99.1% 93.6% 91.1% 86.3%
FOOD & BEVERAGE $10,090 $9,548 $25,281 $24,365
OTHER 3,856 3,725 8,083 8,161
PROMOTIONAL ALLOWANCES (a) (21,915) (21,170) (56,073) (57,026)
---------------------- -----------------------
NET REVENUES $76,858 $72,208 $208,560 $190,657
---------------------- -----------------------
COSTS & EXPENSES
GAMING (a) $34,548 $32,947 $96,856 $93,941
ROOMS 1,095 886 3,345 2,489
FOOD & BEVERAGE 3,327 3,336 8,093 7,836
GENERAL & ADMIN 17,266 16,364 47,700 47,660
---------------------- -----------------------
TOTAL EXPENSES $56,236 $53,533 $155,994 $151,926
---------------------- -----------------------
EBITDA (b) $20,622 $18,675 $52,566 $38,731
====================== =======================
Note: Certain prior year reclassifications have been made to conform to current
year presentation.
(a) Prior period amounts have been reclassed from gaming expense to promotional
allowances, in accordance with EITF 00-22 "Accounting for 'Points' and Certain
Other Time-Based or Sales Incentive Offers, and Offers for Free Products or
Services to Be Delivered in the Future" and EITF 01-09 "Accounting for
Consideration given by a Vendor to a Customer (Including a Reseller of the
Vendor's Products)". In addition, during the quarter ended September 30, 2002,
the Company reclassified certain additional bus coin expenses to be consistent
with prevailing industry presentation. Such amounts were $.7 million and $1.9
million for the quarter and nine months ended September 30, 2002 and $.6 million
and $2.3 million for the quarter and nine months ended September 30, 2001.
(b) EBITDA reflects earnings before depreciation, interest, taxes, CRDA
writedown, debt renegotiation costs and DJT incentive fee. EBITDA amounts are
not meant as a substitute for GAAP, but are solely for informational purposes.
EBITDA is used in the casino hotel industry as a measure of cash flow.
TRUMP INDIANA, INC.
Condensed Statements of Operations
(Unaudited)
(In thousands, except statistical information)
3 MONTHS 9 MONTHS
30-Sep-02 30-Sep-01 30-Sep-02 30-Sep-01
---------------------- -----------------------
REVENUES
CASINO $33,670 $31,044 $98,243 $93,689
# of Slots 1,733 1,360 1,584 1,308
Win per Slot/Day $177 $201 $187 $210
Slot Win $28,212 $25,107 $80,936 $74,899
# of Tables 45 52 47 52
Win per Table/Day $1,329 $1,241 $1,347 $1,322
Table Win $5,458 $5,937 $17,307 $18,789
Table Drop $33,078 $34,403 $100,286 $109,552
Hold % 16.5% 17.3% 17.3% 17.2%
ROOMS $923 $1,141 $2,637 $3,309
# of Rooms Sold 15,200 18,710 42,854 53,423
Avg Room Rates $61.00 $61.00 $62.00 $62.00
Occupancy % 55.1% 67.8% 52.3% 65.2%
FOOD & BEVERAGE $713 $886 $2,320 $2,535
OTHER 463 410 1,281 1,168
PROMOTIONAL ALLOWANCES (a) (3,482) (3,017) (10,151) (9,152)
---------------------- -----------------------
NET REVENUES $32,287 $30,464 $94,330 $91,549
---------------------- -----------------------
COSTS & EXPENSES
GAMING (a) $16,356 $16,531 $49,292 $49,354
ROOMS 453 539 1,233 1,664
FOOD & BEVERAGE 1,017 1,203 3,342 3,349
GENERAL & ADMIN 5,404 5,755 16,138 17,347
---------------------- -----------------------
TOTAL EXPENSES $23,230 $24,028 $70,005 $71,714
---------------------- -----------------------
EBITDA (b) $9,057 $6,436 $24,325 $19,835
====================== =======================
Note: Certain prior year reclassifications have been made to conform to current
year presentation.
(a) Prior period amounts have been reclassed from gaming expense to promotional
allowances, in accordance with EITF 00-22 "Accounting for 'Points' and Certain
Other Time-Based or Sales Incentive Offers, and Offers for Free Products or
Services to Be Delivered in the Future" and EITF 01-09 "Accounting for
Consideration given by a Vendor to a Customer (Including a Reseller of the
Vendor's Products)".
(b) EBITDA reflects earnings before depreciation, interest, taxes, Indiana
regulatory costs, management fees, debt renegotiation costs and other
non-operating expense. EBITDA amounts are not meant as a substitute for GAAP,
but are solely for informational purposes. EBITDA is used in the casino hotel
industry as a measure of cash flow.
TRUMP HOTELS & CASINO RESORTS, INC.
Supplemental Information
(Unaudited)
(In thousands)
3 MONTHS 9 MONTHS
CRDA /INDIANA OBLIGATIONS 30-Sep-02 30-Sep-01 30-Sep-02 30-Sep-01
---------------------- -----------------------
TAJ $602 $623 $2,042 $1,790
PLAZA 397 402 1,202 1,328
MARINA 328 332 856 1,157
INDIANA STATE & MUNICIPAL OBLIG. - - - 668
---------------------------------------------------
TOTAL CRDA/INDIANA OBLIG $1,327 $1,357 $4,100 $4,943
====================== =======================
DEPRECIATION & AMORTIZATION
TAJ $9,764 $8,369 $28,066 $25,241
PLAZA 4,965 3,083 13,466 11,380
THCR HOLDINGS 6 76 18 204
MARINA 5,441 4,580 15,640 13,055
INDIANA (INCL JOINT VENTURE LOSS) 2,193 1,845 6,197 7,192
---------------------- -----------------------
TOTAL DEPRECIATION/AMORT $22,369 $17,953 $63,387 $57,072
====================== =======================
INTEREST EXPENSE
TAJ $24,495 $23,397 $71,907 $69,924
PLAZA 13,888 12,046 38,834 36,087
TRUMP ATLANTIC CITY - 3,086 4,093 9,283
THCR HOLDINGS 4,599 4,602 13,848 13,807
MARINA 11,494 11,094 34,190 32,903
THCR MANAGEMENT 2,087 - 2,914 -
INDIANA 610 1,017 1,841 2,525
---------------------- -----------------------
TOTAL INTEREST EXPENSE $57,173 $55,242 $167,627 $164,529
====================== =======================
LOAN COST AMORT/BOND DISC INCL IN INT EXP
TAJ $660 $673 1,974 $2,079
PLAZA 407 336 1,139 1,039
TRUMP ATLANTIC CITY - 273 183 845
THCR HOLDINGS 191 191 575 575
MARINA 2,246 1,587 5,733 4,592
THCR MANAGEMENT 1,896 - 2,226 -
INDIANA 142 125 384 282
---------------------- -----------------------
TOTAL LOAN COST AMORT/BOND DISC $5,542 $3,185 $12,214 $9,412
====================== =======================
Note: Certain prior year reclassifications have been made to conform to current
year presentation.