Exhibit 99.1
CONTACT: JOHN P. SALDARELLI
SECRETARY AND TREASURER
(914) 242-7700
FOR IMMEDIATE RELEASE
AMERICAN REAL ESTATE PARTNERS, L.P. REPORTS SECOND QUARTER AND SIX MONTH
RESULTS
MOUNT KISCO, NEW YORK, AUGUST 9, 2004 - American Real Estate Partners, L.P.
(NYSE:ACP) today reported the following second quarter and six month financial
results:
In the second quarter of 2004 earnings were $81,786,000 compared to a
loss of $2,787,000 in the second quarter of 2003. Of this difference,
approximately $47 million was from an increase in income from discontinued
operations as a result of gains on sale of real estate, approximately $19
million was from a write-down of other investments in 2003, approximately $8
million was the result of a gain on the sale of certain marketable debt
securities and approximately $7 million was the result of increased income from
hotel and casino operations.
For the second quarter, diluted earnings (loss) per weighted average
limited partnership unit outstanding were $1.54 in 2004 and ($.13) in 2003.
Earnings in the six months ended June 30, 2004 were $144,806,000
compared to $11,605,000 in the six months ended June 30, 2003. Of this
increase, approximately $54 million was from an increase in income from
discontinued operations as a result of gains on sale of real estate,
approximately $19 million was from a write-down of other investments in 2003,
approximately $37 million was the result of a gain on the sale of certain
marketable debt securities, approximately $15 million was the result of
increased income from hotel and casino operations and approximately $8 million
was from increased interest income.
For the six months ended June 30, 2004, diluted earnings per weighted
average limited partnership unit outstanding were $2.66 compared to $.07 in
2003.
The financial statements have been restated for the three and six months ended
June 30, 2003 to include the earnings of our subsidiaries: National Energy
Group, Inc. and American Casino & Entertainment Properties LLC.
American Real Estate Partners, L.P. is a master limited partnership.
FOR IMMEDIATE RELEASE
AMERICAN REAL ESTATE PARTNERS, L.P.
REPORTS SECOND QUARTER AND SIX MONTH RESULTS
CONSOLIDATED RESULTS OF EARNINGS
IN THOUSANDS OF DOLLARS EXCEPT PER UNIT DATA
SECOND QUARTER ENDED JUNE 30, 2004 2003
- ---------------------------------------- ------------ ------------
(RESTATED) (1)
(UNAUDITED)
Revenues $ 117,901 $ 90,645
============ ============
Operating income $ 25,834 $ 15,541
Write-down of other investments -- (18,798)
Loss on sales and disposition of
real estate (226) (272)
Gain on sales of marketable debt
securities 8,310 --
Income tax expense (3,088) (3,167)
------------ ------------
Income from continuing operations 30,830 (6,696)
Income from discontinued operations 50,956 3,909
------------ ------------
Net earnings $ 81,786 $ (2,787)
============ ============
Net earnings per L.P. unit:
Basic:
Income (loss) from continuing
operations $ .63 $ (.21)
Income from discontinued operations 1.08 .08
------------ ------------
Basic earnings (loss) per L.P. unit $ 1.71 $ (.13)
============ ============
Weighted average units outstanding 46,098,284 46,098,284
============ ============
Diluted:
Income (loss) from continuing
operations $ .58 $ (.21)
Income from discontinued operations .96 .08
------------ ------------
Diluted earnings (loss) per L.P.
unit $ 1.54 $ (.13)
============ ============
Weighted average units and
equivalent units outstanding 51,938,033 46,098,284
============ ============
(1) THE FINANCIAL STATEMENTS HAVE BEEN RESTATED TO REFLECT THE EARNINGS OF OUR
SUBSIDIARIES: I) NATIONAL ENERGY GROUP, INC., AND II) AMERICAN CASINO AND
ENTERTAINMENT PROPERTIES LLC.
FOR IMMEDIATE RELEASE
AMERICAN REAL ESTATE PARTNERS, L.P.
REPORTS SECOND QUARTER AND SIX MONTH RESULTS
CONSOLIDATED RESULTS OF EARNINGS
IN THOUSANDS OF DOLLARS EXCEPT PER UNIT DATA
SIX MONTHS ENDED JUNE 30, 2004 2003
- ----------------------------------------- ------------ ------------
(RESTATED) (1)
(UNAUDITED)
Revenues $ 222,023 $ 184,245
============ ============
Operating income $ 50,732 $ 31,872
Provision for loss on real estate -- (200)
Write down of other investments -- (18,798)
Write-down of equity securities
available for sale -- (961)
Gain on sales and disposition of
real estate 5,821 866
Gain on sales of marketable debt
securities 37,167 --
Income tax expense (9,257) (7,059)
------------ ------------
Income from continuing operations 84,463 5,720
Income from discontinued operations 60,343 5,885
------------ ------------
Net earnings $ 144,806 $ 11,605
============ ============
Net earnings per L.P. unit:
Basic:
Income (loss) from continuing
operations $ 1.68 $ (.06)
Income from discontinued operations 1.28 .13
------------ ------------
Basic earnings per L.P. unit $ 2.96 $ .07
============ ============
Weighted average units outstanding 46,098,284 46,098,284
============ ============
Diluted:
Income (loss) from continuing
operations $ 1.53 $ (.06)
Income from discontinued operations 1.13 .13
------------ ------------
Diluted earnings per L.P. unit $ 2.66 $ .07
============ ============
Weighted average units and
equivalent units outstanding 52,218,668 46,098,284
============ ============
(1) THE FINANCIAL STATEMENTS HAVE BEEN RESTATED TO REFLECT THE EARNINGS OF OUR
SUBSIDIARIES: I) NATIONAL ENERGY GROUP, INC., AND II) AMERICAN CASINO AND
ENTERTAINMENT PROPERTIES LLC.