NEWS RELEASE
FOR: Trump Hotels & Casino Resorts, Inc. (NYSE:DJT)
CONTACT: Scott C. Butera, Executive Vice President, Director of
Corporate and Strategic Development - (212) 891-1500
FOR RELEASE: October 30, 2003 -- 8:00 A.M. (EST)
TRUMP HOTELS & CASINO RESORTS, INC.
REPORTS 2003 THIRD QUARTER
AND NINE MONTHS RESULTS
NEW YORK, NY - Trump Hotels & Casino Resorts, Inc. ("THCR" or the
"Company") (NYSE:DJT) today reported its operating results for the third
quarter and nine months ended September 30, 2003. THCR reported consolidated
net revenues (defined as gross revenues less promotional allowances) for the
quarter ended September 30, 2003 of $309.0 million, compared to $342.6
million for the quarter ended September 30, 2002. Consolidated income from
operations for the quarter ended September 30, 2003 was $45.4 million,
compared to $75.6 million for the quarter ended September 30, 2002.
Consolidated net loss for the quarter ended September 30, 2003 was ($12.4)
million, or ($0.43) per share, compared to net income of $9.6 million, net
of minority interest of $5.6 million, or $0.44 per share, for the quarter
ended September 30, 2002. EBITDA (defined by the Company as income from
operations before depreciation, amortization, non-cash CRDA write-downs,
non-recurring debt renegotiation costs and corporate expenses) for the
quarter ended September 30, 2003 was $73.4 million, compared to EBITDA of
$102.1 million reported for the quarter ended September 30, 2002. "EBITDA"
is not a measure of financial performance under GAAP. The Company believes
that EBITDA is used by certain investors as one measure to evaluate an
entity's ability to service debt. A reconciliation of EBITDA to income from
operations and net loss is included in the attached schedules.
THCR reported consolidated net revenues (defined as gross revenues
less promotional allowances) for the nine months ended September 30, 2003 of
$894.7 million, compared to $946.0 million for the nine months ended
September 30, 2002. Consolidated income from operations for the nine months
ended September 30, 2003 was $120.0 million, compared to $179.3 million for
the nine months ended September 30, 2002. EBITDA for the nine months ended
September 30, 2003 was $205.6 million compared to EBITDA of $257.6 million
for the nine months ended September 30, 2002. Consolidated net loss for the
nine months ended September 30, 2003 was ($46.4) million, net of minority
interest of $5.1 million, or ($1.90) per share, compared to a net income of
$5.3 million, net of minority interest of $3.1 million, or $0.24 per share,
for the nine months ended September 30, 2002. Mark A. Brown, the Company's
Chief Operating Officer, commented, "As a company, we have been proactive in
managing our costs, and our ongoing implementation of cashless slots at all
of our Atlantic City properties should provide significant cost savings in
future periods."
Trump Taj Mahal Associates reported net revenues of $130.0
million for the quarter ended September 30, 2003, compared to $145.0 million
for the quarter ended September 30, 2002. Income from operations for the
quarter ended September 30, 2003 was $22.0 million, compared to $35.7
million for the quarter ended September 30, 2002. EBITDA was $33.9 million
for the quarter ended September 30, 2003, compared to $46.1 million for the
quarter ended September 30, 2002. Trump Taj Mahal Associates reported net
revenues of $376.4 million for the nine months ended September 30, 2003,
compared to $398.4 million for the nine months ended September 30, 2002.
Income from operations for the nine months ended September 30, 2003 was
$59.4 million, compared to $86.3 million for the nine months ended September
30, 2002. EBITDA was $95.0 million for the nine months ended September 30,
2003, compared to $116.4 million for the nine months ended September 30,
2002.
Trump Plaza Associates reported net revenues of $76.8 million for the
quarter ended September 30, 2003, compared to $87.7 million for the quarter
ended September 30, 2002. Income from operations for the quarter ended
September 30, 2003 was $10.5 million, compared to $20.3 million for the
quarter ended September 30, 2002. EBITDA was $16.5 million for the quarter
ended September 30, 2003, compared to $25.9 million for the quarter ended
September 30, 2002. Trump Plaza Associates reported net revenues of $225.6
million for the nine months ended September 30, 2003, compared to $242.9
million for the nine months ended September 30, 2002.
Income from operations for the nine months ended September 30, 2003 was $31.4
million, compared to $47.6 million for the nine months ended September 30, 2002.
EBITDA was $48.4 million for the nine months ended September 30, 2003, compared
to $62.9 million for the nine months ended September 30, 2002. Mr. Brown said,
"Operating results for the quarter ended September 30, 2003 were reduced by some
$4.5 million as a result of the 3.1% decrease in table hold percentage from
16.3% in 2002 to 13.2% in 2003. With the opening of the Rain Forest Cafe in the
first quarter 2004 and the addition of new Italian and Asian dining venues along
with margin improvements generated by the migration to cashless slots, the Plaza
should be poised to rebound."
For the quarter ended September 30, 2003, Trump Marina Associates
reported net revenues of $68.3 million, compared to $76.9 million for the
quarter ended September 30, 2002. Income from operations for the quarter
ended September 30, 2003 was $8.1 million, compared to $13.6 million for the
quarter ended September 30, 2002. EBITDA was $14.4 million for the quarter
ended September 30, 2003, compared to $20.6 million for the quarter ended
September 30, 2002. For the nine months ended September 30, 2003, Trump
Marina Associates reported net revenues of $195.1 million, compared to
$208.6 million for the nine months ended September 30, 2002. Income from
operations for the nine months ended September 30, 2003 was $20.3 million,
compared to $32.1 million for the nine months ended September 30, 2002.
EBITDA was $38.5 million for the nine months ended September 30, 2003,
compared to $52.6 million for the nine months ended September 30, 2002. Mr.
Brown commented, "It was originally anticipated that the Borgata would
immediately increase traffic flow to Atlantic City and especially to the
Marina district. The absence in improvement in the overall market growth led
to cannibalization from the Boardwalk and other Marina district properties.
Also, the failure of the State to complete the return ramp to Trump Marina
on schedule made it very difficult and confusing for patrons to go from the
Borgata to the Marina, and contributed to Trump Marina's lower revenues. Now
that the return ramp is completed, our customer loyalty programs,
entertainment offerings and fine dining should help bring our customer base
back. Cashless slots and other efficiencies should also result in margin
improvements."
For the quarter ended September 30, 2003, Trump Indiana reported net
revenues of $33.1 million, compared to $32.3 million for the quarter ended
September 30, 2002. Income from operations for the quarter ended September
30, 2003 was $4.6 million, compared to $6.3 million
for the quarter ended September 30, 2002. EBITDA was $7.7 million for the
quarter ended September 30, 2003, compared to $9.1 million for the quarter ended
September 30, 2002. For the nine months ended September 30, 2003, Trump Indiana
reported net revenues of $94.6 million, compared to $94.3 million for the nine
months ended September 30, 2002. Income from operations for the nine months
ended September 30, 2003 was $11.0 million, compared to $16.1 million for the
nine months ended September 30, 2002. EBITDA was $21.0 million for the nine
months ended September 30, 2003, compared to $24.3 million for the nine months
ended September 30, 2002. Mark Brown commented, "The higher revenues in Indiana
were offset by the gaming tax hikes and higher insurance costs. With the
implementation of twenty-four hour gaming and cost effective marketing programs,
Trump Indiana should generate operating improvements next year."
During the quarter ended September 30, 2003, THCR Management Services
earned $0.8 million in management fees under its five-year management
agreement with the Twenty Nine Palms Band of Luiseno Mission Indians of
California for Trump 29 Casino, compared to $0.7 million earned in
management fees for the quarter ended September 30, 2002. For the nine
months ended September 30, 2003, management fees totaled $3.0 million,
compared to $1.8 million for the nine months ended September 30, 2002.
Management fees commenced in April 2002.
For the quarter ended September 30, 2003, Trump Atlantic City
Associates reported combined net revenues of Trump Plaza and Trump Taj Mahal
of $206.8 million, compared to net revenues of $232.8 million for the
quarter ended September 30, 2002. Income from operations for the quarter
ended September 30, 2003 was $32.5 million, compared to $56.0 million for
the quarter ended September 30, 2002. EBITDA was $50.4 million for the
quarter ended September 30, 2003, compared to $72.0 million for the quarter
ended September 30, 2002. For the nine months ended September 30, 2003,
Trump Atlantic City Associates reported combined net revenues of Trump Plaza
and Trump Taj Mahal of $602.0 million, compared to net revenues of $641.3
million for the nine months ended September 30, 2002. Income from operations
for the nine months ended September 30, 2003 was $90.3 million, compared to
$132.3 million for the nine months ended September 30, 2002. EBITDA was
$143.4 million for the nine months ended September 30, 2003, compared to
$179.2 million for the nine months ended September 30, 2002.
For the quarter ended September 30, 2003, Trump Casino Holdings, LLC
("TCH") reported combined net revenues of Trump Marina and Trump Indiana and
management fees for Trump 29 of $102.2 million, compared to net revenues of
$109.8 million for the quarter ended September 30, 2002. Income from
operations for the quarter ended September 30, 2003 was $14.5 million,
compared to $20.2 million for the quarter ended September 30, 2002. EBITDA
was $22.9 million for the quarter ended September 30, 2003, compared to
$30.2 million for the quarter ended September 30, 2002. For the nine months
ended September 30, 2003, TCH reported combined net revenues of Trump Marina
and Trump Indiana and management fees for Trump 29 of $292.7 million,
compared to net revenues of $304.7 million for the nine months ended
September 30, 2002. Income from operations for the nine months ended
September 30, 2003 was $35.8 million, compared to $49.2 million for the nine
months ended September 30, 2002. EBITDA was $62.2 million for the nine
months ended September 30, 2003, compared to $78.4 million for the nine
months ended September 30, 2002.
Scott C. Butera, the Company's recently appointed Executive Vice
President and Director of Corporate and Strategic Development, commented,
"The operating environment in Atlantic City in the last quarter was
extremely challenging. Most casino operators were negatively impacted by
poor weather conditions, including Hurricane Isabel in September and the
arrival of new hotel and gaming capacity. However, the quality of our
assets, locations, brand and management provide a strong platform for the
company to improve its strategic profile and capital structure. As we have
demonstrated in the last quarter, we will continue to explore various
financial strategic initiatives with the goal of improving shareholder
value."
THCR will host a conference call Thursday, October 30, 2003, at 10:00 a.m.
EST to review its 2003 third-quarter results. Those interested in participating
in the call should dial 1-877-329-7558, or 1-201-210-3424 for international
callers, approximately 10 minutes before the call start time. The access code
for the conference call is 072403. A taped replay of the conference call can be
accessed at 1-877-9473, or 1-201-210-3410 for international callers, beginning
at 4:00 p.m. EST on Thursday, October 30th. The replay will be available through
5:00 p.m. EST on Monday, November 3rd. The access code for the replay is 253202.
Interested parties wanting to listen to a replay of the conference call on the
Internet may do so on the Company's web site - www.trump.com.
THCR is a public company which is approximately 56.2% beneficially
owned by Donald J. Trump, and is separate and distinct from all of Mr.
Trump's real estate and other holdings. THCR is a leading gaming company
which owns and operates four properties and manages one property under the
Trump brand name. THCR's owned 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. In addition, the Company manages Trump 29 Casino, a Native American
owned facility located near Palm Springs, California. Together, the
properties comprise approximately 452,360 square feet of gaming space and
3,180 hotel and suites.
The Company is the sole vehicle through which Donald J. Trump conducts
his gaming activities and strives to provide customers with outstanding
casino resort entertainment experiences consistent with the Donald J. Trump
standard of excellence.
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-03 30-Sep-02 30-Sep-03 30-Sep-02
-------------------------- --------------------------
REVENUES
CASINO $324,339 $353,042 $938,471 $983,429
ROOMS 21,905 22,636 60,254 62,402
FOOD & BEVERAGE 35,897 36,077 97,194 98,608
MANAGEMENT FEE 839 693 2,988 1,807
OTHER 12,383 12,457 29,624 30,902
PROMOTIONAL ALLOWANCES (86,334) (82,310) (233,839) (231,192)
-------------------------- --------------------------
NET REVENUES $309,029 $342,595 $894,692 $945,956
-------------------------- --------------------------
COSTS & EXPENSES
GAMING $150,777 $153,096 $437,292 $440,927
ROOMS 7,460 7,863 23,060 23,950
FOOD & BEVERAGE 13,064 12,801 35,479 35,485
GENERAL & ADMIN 64,363 66,694 193,258 187,967
-------------------------- --------------------------
TOTAL EXPENSES $235,664 $240,454 $689,089 $688,329
-------------------------- --------------------------
EBITDA (a) $73,365 $102,141 $205,603 $257,627
Less:
CRDA 1,227 1,327 5,862 4,100
DEPRECIATION & AMORTIZATION 24,515 21,765 69,952 61,583
CORPORATE EXPENSES INCL DJT SERVICES AGREEMENT 2,183 3,469 6,858 9,532
DEBT RENEGOTIATION COSTS - 6 2,951 3,070
-------------------------- --------------------------
INCOME FROM OPERATIONS 45,440 75,574 119,980 179,342
-------------------------- --------------------------
INTEREST INCOME (139) (405) (1,207) (1,499)
INTEREST EXPENSE 55,850 57,173 169,758 167,627
GAIN ON DEBT RETIREMENT, NET (b) - - (2,892) -
OTHER NON-OPERATING (INCOME)EXPENSE, NET (7) (704) 20 (650)
-------------------------- --------------------------
TOTAL NON-OPERATING EXPENSE, NET $55,704 $56,064 $165,679 $165,478
-------------------------- --------------------------
INCOME(LOSS) BEFORE LOSS IN JOINT VENTURE, ($10,264) $19,510 ($45,699) $13,864
INCOME TAXES & MINORITY INTEREST
LOSS IN JOINT VENTURE (625) (604) (1,855) (1,804)
PROVISION FOR INCOME TAXES (c) (1,526) (3,718) (3,935) (3,718)
-------------------------- --------------------------
INCOME(LOSS) BEFORE MINORITY INTEREST ($12,415) $15,188 ($51,489) $8,342
MINORITY INTEREST (d) - (5,555) 5,061 (3,051)
-------------------------- --------------------------
NET INCOME(LOSS) ($12,415) $9,633 ($46,428) $5,291
========================== ==========================
WEIGHTED AVERAGE # SHARES-BASIC 29,046,640 22,010,027 24,381,340 22,010,027
========================== ==========================
WEIGHTED AVERAGE # SHARES-DILUTED 29,046,640 22,034,816 24,381,340 22,035,535
========================== ==========================
BASIC AND DILUTED EARNINGS(LOSS) PER SHARE ($0.43) $0.44 ($1.90) $0.24
========================== ==========================
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 and
DJT services agreement, and debt renegotiation costs) is a measure of financial
performance commonly used in the casino hotel industry as an indicator of a
company's historic ability to service debt. 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. Debt renegotiation costs include the costs associated with 2002
debt refinancing no longer pursued and transactional fees earned upon the
successful completion of debt refinancing in 2003.
(b) 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 $.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.
(c) 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.
(d) Minority interest credit is limited to the Balance Sheet amount at December
31, 2002.
TRUMP ATLANTIC CITY ASSOCIATES
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands)
3 MONTHS 9 MONTHS
30-Sep-03 30-Sep-02 30-Sep-03 30-Sep-02
-------------------------- --------------------------
REVENUES
CASINO $221,313 $239,678 $638,541 $667,940
ROOMS 15,938 16,580 43,860 45,742
FOOD & BEVERAGE 25,595 25,274 70,178 71,007
OTHER 7,743 8,138 19,259 21,538
PROMOTIONAL ALLOWANCES (63,781) (56,913) (169,829) (164,968)
-------------------------- --------------------------
NET REVENUES 206,808 232,757 602,009 641,259
-------------------------- --------------------------
COSTS & EXPENSES
GAMING 100,752 102,192 291,171 294,780
ROOMS 5,821 6,315 18,238 19,372
FOOD & BEVERAGE 8,522 8,457 24,026 24,050
GENERAL & ADMIN 41,275 43,835 125,175 123,817
-------------------------- --------------------------
TOTAL EXPENSES 156,370 160,799 458,610 462,019
-------------------------- --------------------------
EBITDA (a) 50,438 71,958 143,399 179,240
Less:
CRDA 940 999 4,222 3,244
DEPRECIATION & AMORTIZATION 16,772 14,729 47,845 41,532
CORPORATE EXPENSES 275 212 697 612
DEBT RENEGOTIATION COSTS - - 300 1,570
-------------------------- --------------------------
INCOME FROM OPERATIONS 32,451 56,018 90,335 132,282
-------------------------- --------------------------
INTEREST INCOME (91) (230) (532) (788)
INTEREST EXPENSE 38,528 38,383 115,921 114,834
OTHER NON-OPERATING EXPENSE (7) (21) - (21)
-------------------------- --------------------------
TOTAL NON-OPERATING EXPENSE, NET 38,430 38,132 115,389 114,025
-------------------------- --------------------------
INCOME(LOSS) BEFORE INCOME TAXES (5,979) 17,886 (25,054) 18,257
PROVISION FOR INCOME TAXES (b) (1,138) (2,768) (2,947) (2,768)
-------------------------- --------------------------
NET INCOME(LOSS) ($7,117) $15,118 ($28,001) $15,489
========================== ==========================
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 ,
and debt renegotiation costs) is a measure of financial performance commonly
used in the casino hotel industry as an indicator of a company's historic
ability to service debt. 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) 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 9 MONTHS
30-Sep-03 30-Sep-02 30-Sep-03 30-Sep-02
-------------------------- --------------------------
REVENUES
CASINO $103,026 $113,364 $299,930 $315,489
ROOMS 5,967 6,056 16,394 16,660
FOOD & BEVERAGE 10,302 10,803 27,016 27,601
MANAGEMENT FEE 839 693 2,988 1,807
OTHER 4,640 4,319 10,365 9,364
PROMOTIONAL ALLOWANCES (22,553) (25,397) (64,010) (66,224)
-------------------------- --------------------------
NET REVENUES 102,221 109,838 292,683 304,697
-------------------------- --------------------------
COSTS & EXPENSES
GAMING 50,025 50,904 146,121 146,147
ROOMS 1,639 1,548 4,822 4,578
FOOD & BEVERAGE 4,542 4,344 11,453 11,435
GENERAL & ADMIN 23,088 22,859 68,083 64,150
-------------------------- --------------------------
TOTAL EXPENSES 79,294 79,655 230,479 226,310
-------------------------- --------------------------
EBITDA (a) 22,927 30,183 62,204 78,387
Less:
CRDA 287 328 1,640 856
DEPRECIATION & AMORTIZATION 7,737 7,030 22,086 20,033
CORPORATE EXPENSES INCL DJT SERVICES AGREEMENT 389 2,618 2,241 6,931
DEBT RENEGOTIATION COSTS - 6 401 1,417
-------------------------- --------------------------
INCOME FROM OPERATIONS $14,514 $20,201 $35,836 $49,150
-------------------------- --------------------------
INTEREST INCOME (43) (174) (657) (696)
INTEREST EXPENSE 17,322 19,082 55,530 53,527
GAIN ON DEBT RETIREMENT, NET (b) - - (7,931) -
OTHER NON-OPERATING EXPENSE - (33) 20 21
-------------------------- --------------------------
TOTAL NON-OPERATING EXPENSE, NET 17,279 18,875 46,962 52,852
-------------------------- --------------------------
INCOME(LOSS) BEFORE LOSS IN JOINT VENTURE
& INCOME TAXES (2,765) 1,326 (11,126) (3,702)
LOSS IN JOINT VENTURE (625) (604) (1,855) (1,804)
PROVISION FOR INCOME TAXES (c) (388) (950) (988) (950)
-------------------------- --------------------------
NET LOSS ($3,778) ($228) ($13,969) ($6,456)
========================== ==========================
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 and
DJT services agreement, and debt renegotiation costs) is a measure of financial
performance commonly used in the casino hotel industry as an indicator of a
company's historic ability to service debt. 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) 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 $.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.
(c) 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 TAJ MAHAL ASSOCIATES
Condensed Statements of Operations
(Unaudited)
(In thousands, except statistical information)
3 MONTHS 9 MONTHS
30-Sep-03 30-Sep-02 30-Sep-03 30-Sep-02
-------------------------- --------------------------
REVENUES
CASINO $137,858 $146,129 $395,223 $408,507
# of Slots 4,670 4,823 4,703 4,843
Win per Slot/Day $220 $222 $205 $208
Slot Win $94,643 $98,548 $262,985 $275,481
# of Tables 127 139 127 139
Win per Table/Day $3,183 $3,249 $3,329 $3,059
Table Win $37,189 $41,550 $115,430 $116,067
Table Drop $233,611 $257,044 $685,171 $700,590
Hold % 15.9% 16.2% 16.8% 16.6%
Poker, Keno, Race Win $6,026 $6,031 $16,808 $16,959
ROOMS $9,349 $9,793 $25,507 $26,656
# of Rooms Sold 113,270 112,682 324,750 327,271
Avg Room Rates $82.54 $86.91 $78.54 $81.45
Occupancy % 98.5% 98.0% 95.2% 95.9%
FOOD & BEVERAGE $15,351 $15,366 $42,515 $42,850
OTHER 5,390 6,032 12,943 15,603
PROMOTIONAL ALLOWANCES (37,981) (32,288) (99,743) (95,237)
-------------------------- --------------------------
NET REVENUES $129,967 $145,032 $376,445 $398,379
-------------------------- --------------------------
COSTS & EXPENSES
GAMING $61,796 $62,121 $177,825 $177,275
ROOMS 3,627 3,876 11,350 11,881
FOOD & BEVERAGE 4,962 5,466 14,736 15,442
GENERAL & ADMIN 25,655 27,465 77,526 77,398
-------------------------- --------------------------
TOTAL EXPENSES $96,040 $98,928 $281,437 $281,996
-------------------------- --------------------------
EBITDA (a) $33,927 $46,104 $95,008 $116,383
========================== ==========================
A reconciliation of EBITDA to income from operations for each of the periods is
as follows:
EBITDA $33,927 $46,104 $95,008 $116,383
Depreciation and amortization (11,349) (9,764) (32,701) (28,066)
Non-cash write-downs and charges related to
required regulatory obligations (CRDA) (577) (602) (2,898) (2,042)
-------------------------- --------------------------
Income from operations $22,001 $35,738 $59,409 $86,275
========================== ==========================
(a) EBITDA (Earnings before interest, taxes, depreciation and amortization,
valuation allowances on casino reinvestment obligations, corporate expenses ,
and debt renegotiation costs) is a measure of financial performance commonly
used in the casino hotel industry as an indicator of a company's historic
ability to service debt. 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 9 MONTHS
30-Sep-03 30-Sep-02 30-Sep-03 30-Sep-02
-------------------------- --------------------------
REVENUES
CASINO $83,455 $93,549 $243,318 $259,433
# of Slots 2,946 2,982 2,953 2,912
Win per Slot/Day $231 $241 $217 $229
Slot Win $62,552 $66,182 $175,305 $182,073
# of Tables 90 88 90 88
Win per Table/Day $2,525 $3,380 $2,768 $3,220
Table Win $20,903 $27,367 $68,013 $77,360
Table Drop $158,096 $168,230 $443,295 $458,240
Hold % 13.2% 16.3% 15.3% 16.9%
ROOMS $6,589 $6,787 $18,353 $19,086
# of Rooms Sold 80,492 80,434 230,650 232,270
Room Rates $81.86 $84.38 $79.57 $82.17
Occupancy % 96.8% 96.7% 93.5% 94.1%
FOOD & BEVERAGE $10,244 $9,908 $27,663 $28,157
OTHER 2,353 2,106 6,316 5,935
PROMOTIONAL ALLOWANCES (25,800) (24,625) (70,086) (69,731)
-------------------------- --------------------------
NET REVENUES $76,841 $87,725 $225,564 $242,880
-------------------------- --------------------------
COSTS & EXPENSES
GAMING $38,956 $40,071 $113,346 $117,505
ROOMS 2,194 2,439 6,888 7,491
FOOD & BEVERAGE 3,560 2,991 9,290 8,608
GENERAL & ADMIN 15,620 16,370 47,649 46,419
-------------------------- --------------------------
TOTAL EXPENSES $60,330 $61,871 $177,173 $180,023
-------------------------- --------------------------
EBITDA (a) $16,511 $25,854 $48,391 $62,857
========================== ==========================
A reconciliation of EBITDA to income from operations for each of the periods is
as follows:
EBITDA $16,511 $25,854 $48,391 $62,857
Depreciation and amortization (5,423) (4,965) (15,144) (13,466)
Non-cash write-downs and charges related to
required regulatory obligations(CRDA) (363) (397) (1,324) (1,202)
Corporate charges (180) (180) (540) (540)
-------------------------- --------------------------
Income from operations $10,545 $20,312 $31,383 $47,649
========================== ==========================
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 ,
and debt renegotiation costs) is a measure of financial performance commonly
used in the casino hotel industry as an indicator of a company's historic
ability to service debt. 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 MARINA ASSOCIATES
Condensed Statements of Operations
(Unaudited)
(In thousands, except statistical information)
3 MONTHS 9 MONTHS
30-Sep-03 30-Sep-02 30-Sep-03 30-Sep-02
-------------------------- --------------------------
REVENUES
CASINO $68,395 $79,694 $200,571 $217,246
# of Slots 2,495 2,528 2,507 2,526
Win per Slot/Day $231 $271 $224 $242
Slot Win $53,076 $63,139 $153,063 $167,212
# of Tables 81 78 81 79
Win per Table/Day $2,037 $2,264 $2,127 $2,290
Table Win $15,176 $16,249 $47,041 $49,389
Table Drop $95,470 $108,853 $278,556 $287,230
Hold % 15.9% 14.9% 16.9% 17.2%
Poker, Keno, Race Win $143 $306 $467 $645
ROOMS $5,041 $5,133 $13,908 $14,023
# of Rooms Sold 63,908 66,384 180,195 180,988
Avg Room Rates $78.88 $77.32 $77.18 $77.48
Occupancy % 95.4% 99.1% 90.7% 91.1%
FOOD & BEVERAGE $9,459 $10,090 $24,727 $25,281
OTHER 4,142 3,856 8,590 8,083
PROMOTIONAL ALLOWANCES (18,711) (21,915) (52,737) (56,073)
-------------------------- --------------------------
NET REVENUES $68,326 $76,858 $195,059 $208,560
-------------------------- --------------------------
COSTS & EXPENSES
GAMING $32,953 $34,548 $95,077 $96,856
ROOMS 1,105 1,095 3,297 3,345
FOOD & BEVERAGE 3,334 3,327 8,053 8,093
GENERAL & ADMIN 16,550 17,266 50,088 47,700
-------------------------- --------------------------
TOTAL EXPENSES $53,942 $56,236 $156,515 $155,994
-------------------------- --------------------------
EBITDA (a) $14,384 $20,622 $38,544 $52,566
========================== ==========================
A reconciliation of EBITDA to income from operations for each of the periods is
as follows:
EBITDA $14,384 $20,622 $38,544 $52,566
Depreciation and amortization (6,017) (5,441) (16,660) (15,640)
Non-cash write-downs and charges related to
required regulatory obligations (287) (328) (1,640) (856)
Debt renegotiation costs - (6) 47 (1,133)
Services agreement - (1,236) - (2,832)
-------------------------- --------------------------
Income from operations $8,080 $13,611 $20,291 $32,105
========================== ==========================
(a) EBITDA (Earnings before interest, taxes, depreciation and amortization,
valuation allowances on casino reinvestment obligations, DJT services agreement,
and debt renegotiation costs) is a measure of financial performance commonly
used in the casino hotel industry as an indicator of a company's historic
ability to service debt. 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 9 MONTHS
30-Sep-03 30-Sep-02 30-Sep-03 30-Sep-02
-------------------------- --------------------------
REVENUES
CASINO $34,631 $33,670 $99,359 $98,243
# of Slots 1,732 1,733 1,726 1,584
Win per Slot/Day $189 $177 $182 $187
Slot Win $30,100 $28,212 $85,684 $80,936
# of Tables 45 45 45 47
Win per Table/Day $1,095 $1,329 $1,106 $1,347
Table Win $4,531 $5,458 $13,675 $17,307
Table Drop $29,683 $33,078 $85,437 $100,286
Hold % 15.3% 16.5% 16.0% 17.3%
ROOMS $926 $923 $2,486 $2,637
# of Rooms Sold 16,592 15,200 44,694 42,854
Avg Room Rates $56.00 $61.00 $56.00 $62.00
Occupancy % 60.1% 55.1% 54.6% 52.3%
FOOD & BEVERAGE $843 $713 $2,289 $2,320
OTHER 498 463 1,775 1,281
PROMOTIONAL ALLOWANCES (3,842) (3,482) (11,273) (10,151)
-------------------------- --------------------------
NET REVENUES $33,056 $32,287 $94,636 $94,330
-------------------------- --------------------------
COSTS & EXPENSES
GAMING $17,072 $16,356 $51,044 $49,291
ROOMS 534 453 1,525 1,233
FOOD & BEVERAGE 1,208 1,017 3,400 3,342
GENERAL & ADMIN 6,496 5,404 17,650 16,139
-------------------------- --------------------------
TOTAL EXPENSES $25,310 $23,230 $73,619 $70,005
-------------------------- --------------------------
EBITDA (a) $7,746 $9,057 $21,017 $24,325
========================== ==========================
A reconciliation of EBITDA to income from operations for each of the periods is
as follows:
EBITDA $7,746 $9,057 $21,017 $24,325
Depreciation and amortization (1,720) (1,589) (5,426) (4,393)
Debt renegotiation costs - - - (284)
Management and services agreement (1,454) (1,175) (4,640) (3,525)
-------------------------- --------------------------
Income from operations $4,572 $6,293 $10,951 $16,123
========================== ==========================
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 ,
and debt renegotiation costs) is a measure of financial performance commonly
used in the casino hotel industry as an indicator of a company's historic
ability to service debt. 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 HOTELS & CASINO RESORTS, INC.
Supplemental Information
(Unaudited)
(In thousands)
3 MONTHS 9 MONTHS
30-Sep-03 30-Sep-02 30-Sep-03 30-Sep-02
CRDA WRITE-DOWN
TAJ $577 $602 $2,898 $2,042
PLAZA 363 397 1,324 1,202
MARINA 287 328 1,640 856
-------------------------- --------------------------
TOTAL CRDA WRITE-DOWN $1,227 $1,327 $5,862 $4,100
========================== ==========================
DEPRECIATION & AMORTIZATION
TAJ $11,349 $9,764 $32,701 $28,066
PLAZA 5,423 4,965 15,144 13,466
THCR HOLDINGS 6 6 21 18
MARINA 6,017 5,441 16,660 15,640
INDIANA 1,720 1,589 5,426 4,393
-------------------------- --------------------------
TOTAL DEPRECIATION/AMORT $24,515 $21,765 $69,952 $61,583
========================== ==========================
INTEREST EXPENSE
TAJ $24,606 $24,495 $73,702 $71,907
PLAZA 13,922 13,888 42,219 38,834
TRUMP ATLANTIC CITY - - - 4,093
THCR HOLDINGS - 4,599 4,533 13,848
TRUMP CASINO HOLDINGS 4,063 - 8,340 -
MARINA 11,078 11,494 35,847 34,190
INDIANA 2,181 610 4,876 1,841
THCR MGMT - 2,087 241 2,914
-------------------------- --------------------------
TOTAL INTEREST EXPENSE $55,850 $57,173 $169,758 $167,627
========================== ==========================
LOAN COST AMORT/BOND DISC INCL INT EXP
TAJ $614 $691 $1,898 $2,005
PLAZA 404 458 1,249 1,190
TRUMP ATLANTIC CITY - - - 343
THCR HOLDINGS - 192 192 576
TRUMP CASINO HOLDINGS 691 - 1,386 -
MARINA 708 2,245 3,529 5,732
INDIANA 140 142 371 384
THCR MGMT - 1,896 223 2,226
-------------------------- --------------------------
TOTAL LOAN COST AMORT/BOND DISC $2,557 $5,624 $8,848 $12,456
========================== ==========================
Note: Certain prior year reclassifications have been made to conform to current
year presentation.
TRUMP HOTELS & CASINO RESORTS, INC.
Supplemental Information
(Unaudited)
(In thousands)
Cash & Cash Equivalents 30-Sep-03 30-Sep-02
(in millions)
Trump Atlantic City Consolidated $109.0 $125.0
Trump Casino Holdings Consolidated 30.7 51.4
Trump Hotels & Casino Resorts Holdings, L.P. 2.2 0.7
--------------------------
Total Cash & Cash Equivalents $141.9 $177.1
==========================
Capital Expenditures Purchase Capital Lease/
(in thousands) of Property Financed Total Capital
& Equipment Additions Expenditures
For the Three Months Ended September 30, 2003
TAJ $4,577 - $ $4,577
PLAZA 1,185 2,576 3,761
MARINA 1,560 - 1,560
INDIANA 124 - 124
THCR HOLDINGS 13 - 13
--------------------------------------
TOTAL $7,459 $2,576 $10,035
======================================
For the Three Months Ended September 30, 2002
TAJ $4,976 $3,138 $8,114
PLAZA 2,047 6,245 8,292
MARINA 2,045 - 2,045
INDIANA 1,598 - 1,598
THCR HOLDINGS 17 - 17
--------------------------------------
TOTAL $10,683 $9,383 $20,066
======================================
For the Nine Months Ended September 30, 2003
TAJ $14,454 $10,609 $25,063
PLAZA 3,185 7,123 10,308
MARINA 3,968 5,831 9,799
INDIANA 1,808 4,710 6,518
THCR HOLDINGS 35 - 35
--------------------------------------
TOTAL $23,450 $28,273 $51,723
======================================
For the Nine Months Ended September 30, 2002
TAJ $10,021 $8,269 $18,290
PLAZA 4,384 8,341 12,725
MARINA 3,913 3,011 6,924
INDIANA 8,029 10 8,039
THCR HOLDINGS 61 - 61
--------------------------------------
TOTAL $26,408 $19,631 $46,039
======================================