EXHIBIT 99.7
Contact: John P. Saldarelli
Secretary and Treasurer
(914) 242-7700
FOR IMMEDIATE RELEASE
AMERICAN REAL ESTATE PARTNERS, L.P.
REPORTS THIRD QUARTER AND NINE MONTHS RESULTS
Mount Kisco, New York, November 14, 2003 - American Real Estate Partners, L.P.
(NYSE:ACP) today reported that for the nine months ended September 30, 2003,
diluted earnings per weighted average limited partnership unit outstanding
decreased from $.87 in 2002 to $.37 in 2003. For the third quarter diluted
earnings per weighted average limited partnership unit outstanding were $.30 in
2003 and $.30 in 2002.
In accordance with newly adopted accounting standards, effective July 1, 2003,
Limited Partnership Preferred Units are treated as a liability rather than as
equity and therefore the preferred pay-in-kind distribution for the three months
ended September 30, 2003 ($1.2 million), has been recorded as interest expense
for the three months and nine months ended September 30, 2003. However because
these units are considered to be equivalent units for the computation of diluted
earnings per weighted average limited partnership unit, this interest expense is
added back to earnings for the three and nine months ended September 30, 2003.
Earnings decreased from $49,703,000 in the nine months ended September 30, 2002
to $20,697,000 in the nine months ended September 30, 2003 primarily due to a
write-down of mortgages and notes receivable, decreased earnings from land,
house and condominium operations and decreased interest income partially offset
by a decrease in write-down of equity securities and an increase in income from
discontinued operations.
Earnings decreased from $17,225,000 in the third quarter ended September 30,
2002 to $15,163,000 in the third quarter of 2003 primarily due to decreased
interest income and increased interest expense partially offset by an increase
in income from discontinued operations.
American Real Estate Partners, L.P. is a master limited partnership.
FOR IMMEDIATE RELEASE
AMERICAN REAL ESTATE PARTNERS, L.P.
REPORTS THIRD QUARTER AND NINE MONTHS RESULTS
CONSOLIDATED RESULTS OF EARNINGS
In thousands of dollars except per unit data
Nine Months Ended September 30 2003 2002
- ------------------------------------- ---- ----
(unaudited)
Revenues $ 196,070 $ 238,596
=========== ===========
Operating income $ 33,677 $ 54,253
Provision for loss on real estate (300) (926)
Write-down of equity securities
available for sale (961) (8,476)
Write-down of mortgages
and notes receivable (18,798) --
Gain on sales and disposition
of real estate 1,367 4,530
Gain on sale of marketable equity securities 2,168 --
----------- -----------
Income from continuing operations 17,153 49,381
Income from discontinued operations 3,544 322
----------- -----------
Net earnings $ 20,697 $ 49,703
=========== ===========
Net earnings per L.P. unit:
Basic:
Income from continuing operations $ .31 $ .97
Income from discontinued operations .08 .01
----------- -----------
Basic earnings per L.P. unit $ .39 $ .98
=========== ===========
Weighted average units
outstanding 46,098,284 46,098,284
=========== ===========
Diluted:
Income from continuing operations $ .31 $ .86
Income from discontinued operations .06 .01
----------- -----------
Diluted earnings per L.P. unit $ .37 $ .87
=========== ===========
Weighted average units and
equivalent units outstanding 54,816,525 56,259,876
=========== ===========
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FOR IMMEDIATE RELEASE
AMERICAN REAL ESTATE PARTNERS, L.P.
REPORTS THIRD QUARTER AND NINE MONTHS RESULTS
CONSOLIDATED RESULTS OF EARNINGS
In thousands of dollars except per unit data
Third Quarter Ended September 30, 2003 2002
- --------------------------------- ---- ----
(unaudited)
Revenues $ 67,979 $ 75,946
=========== ===========
Operating income $ 11,077 $ 14,152
Provision for loss on real estate (100) --
Gain on sales and disposition
of real estate 501 2,891
Gain on sales of marketable equity securities 2,168 --
----------- -----------
Income from continuing operations 13,646 17,043
Income from discontinued operations 1,517 182
----------- -----------
Net earnings $ 15,163 $ 17,225
=========== ===========
Net earnings per L.P. unit:
Basic:
Income from continuing operations $ .29 $ .34
Income from discontinued operations .03 --
----------- -----------
Basic earnings per L.P. unit $ .32 $ .34
============ ===========
Weighted average units
outstanding 46,098,284 46,098,284
=========== ===========
Diluted:
Income from continuing operations $ .27 $ .30
Income from discontinued operations .03 --
----------- -----------
Diluted earnings per L.P. unit $ .30 $ .30
=========== ===========
Weighted average units and
equivalent units outstanding 55,644,613 56,607,742
=========== ===========
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