SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
----------------------------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): April 30, 2003
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TRUMP HOTELS & CASINO RESORTS, INC.
-----------------------------------
(Exact Name of Registrant as Specified in Charter)
Delaware 1-13794 13-3818402
-------- ------- ----------
(State or other jurisdiction of (Commission File (I.R.S. Employer
incorporation) Number) Identification Number)
1000 Boardwalk
Atlantic City, New Jersey 08401
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(Address of Principal Executive Offices) (Zip Code)
Item 7. Financial Statements and Exhibits.
(c) Exhibits:
Exhibit No. Description
99.1 News Release, dated April 30, 2003, of Trump Hotels & Casino
Resorts, Inc.
Item 9. Regulation FD Disclosure.
Filed as an exhibit hereto is a News Release, dated April 30, 2003, issued
by Trump Hotels & Casino Resorts, Inc.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, each
of the registrants has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
TRUMP HOTELS & CASINO RESORTS, INC.
Date: April 30, 2003 By: /s/ John P. Burke
-------------------------------------
Name: John P. Burke
Title: Executive Vice President and
Corporate Treasurer
EXHIBIT INDEX
Exhibit No. Description
----------- -----------
99.1 News Release, dated April 30, 2003, of Trump Hotels & Casino
Resorts, Inc.
NEWS RELEASE
FOR: Trump Hotels & Casino Resorts, Inc. (NYSE:DJT)
CONTACT: John P. Burke, Corporate Treasurer
(212) 891-1500
FOR RELEASE: Wednesday April 30, 2003 - 8:15AM
TRUMP HOTELS & CASINO RESORTS
REPORTS 2003 FIRST QUARTER RESULTS
NEW YORK, NY - Trump Hotels & Casino Resorts, Inc. ("THCR" or the
"Company") (NYSE:DJT) today reported its first quarter operating results. THCR
reported consolidated net revenues (defined as gross revenues less promotional
allowances) for the quarter ended March 31, 2003 of $278.8 million, compared to
$295.8 million for the quarter ended March 31, 2002. Consolidated income from
operations for the quarter ended March 31, 2003 was $27.3 million, compared to
$48.2 million for the quarter ended March 31, 2002. Consolidated net loss for
the quarter ended March 31, 2003 was $24.0 million, or $1.09 per share net of
minority interest of $5.1 million (including a $1.2 million charge for state
income taxes), compared to a net loss of $4.6 million, or $0.21 per share net of
minority interest of $2.6 million, for the quarter ended March 31, 2002. EBITDA
(defined as income from operations before depreciation, amortization, non-cash
CRDA write-downs, non-recurring debt renegotiation costs and corporate expenses)
for the quarter ended March 31, 2003 was $56.8 million, compared to EBITDA of
$74.1 million reported for the quarter ended March 31, 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 is included
in the attached schedules.
Donald J. Trump, Chairman, President and Chief Executive Officer,
commented, "This winter's weather has been one of the worst in recent memory.
Snow storms, many on weekends, including the blizzard on the Presidents' Day
holiday, made travel to Atlantic City very difficult and is the major factor in
our revenue decline. The war in Iraq and anemic economic conditions
have also contributed to the decline. In addition to these issues, higher
insurance costs, utilities and real estate taxes also contributed to the
decrease in income from operations and EBITDA. With the winter behind us and the
war virtually over and possible signs of a strengthening economy, I am confident
that we will rebound through the remainder of the year."
Trump Taj Mahal Associates reported net revenues of $118.5 million for the
quarter ended March 31, 2003, compared to $124.9 million for the quarter ended
March 31, 2002. Income from operations for the quarter ended March 31, 2003 was
$16.0 million, compared to $24.3 million for the quarter ended March 31, 2002.
EBITDA was $27.2 million for the quarter ended March 31, 2003, compared to $33.8
million for the quarter ended March 31, 2002. Mark A. Brown, the Company's Chief
Operating Officer, commented, "The Taj Mahal had the formidable task of matching
last year's first quarter which was the Taj Mahal's best first quarter ever.
With our ongoing hotel room and casino floor improvements, the property looks
great. Our marketing programs and entertainment schedule for the remainder of
the year should help us make up for the slow start."
Trump Plaza Associates reported net revenues of $70.0 million for the
quarter ended March 31, 2003, compared to $75.9 million for the quarter ended
March 31, 2002. Income from operations for the quarter ended March 31, 2003 was
$7.3 million, compared to $12.6 million for the quarter ended March 31, 2002.
EBITDA was $12.9 million for the quarter ended March 31, 2003, compared to $17.5
million for the quarter ended March 31, 2002. Mr. Brown said, "Trump Plaza
obviously had the same weather obstacles as our other properties. It also had a
2.2-point decrease in table gaming hold percentage, (15.7% for the quarter ended
March 31, 2003, compared to the unusually high 17.9% for the quarter ended March
31, 2002) which represents over 62% of the EBITDA decline. With our marketing
plans for the remainder of the year, I anticipate regaining some of the momentum
from last year during the remaining portion of 2003."
For the quarter ended March 31, 2003, Trump Marina reported net revenues of
$58.5 million, compared to $63.2 million for the quarter ended March 31, 2002.
Income from operations for the quarter ended March 31, 2003 was $2.6 million,
compared to $8.5 million for the quarter ended March 31, 2002. EBITDA was $8.2
million for the quarter ended March 31, 2003,
compared to $14.7 million for the quarter ended March 31, 2002. Mr. Brown
commented, "In addition to the adverse weather, Trump Marina had a 1.8-point
decline in table games hold percentage, (16.8% for the quarter ended March 31,
2003, compared to the unusually high 18.6% for the quarter ended March 31,
2002)."
For the quarter ended March 31, 2003, Trump Indiana reported net revenues
of $30.8 million, compared to $31.9 million for the quarter ended March 31,
2002. Income from operations for the quarter ended March 31, 2003 was $4.1
million, compared to $5.5 million for the quarter ended March 31, 2002. EBITDA
was $7.6 million for the quarter ended March 31, 2003, compared to $8.1 million
for the quarter ended March 31, 2002. Mark Brown commented, "Even the
Chicago/Northern Indiana market had weather related issues with extreme cold and
above-average snow fall amounts this first quarter, but again, with the garage
and dockside gaming available for the remainder of the year, we anticipate
recouping some of the lost revenue."
THCR Management Services during the quarter ended March 31, 2003, earned
$1.0 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 (included in other revenues) and incurred $0.1 million in associated
general and administrative costs. Mark Brown said, "The property is still
absorbing its expansion, and we believe it will be a major factor in the Palm
Springs' market."
For the quarter ended March 31, 2003, Trump Atlantic City Associates
reported combined net revenues of Trump Plaza and Trump Taj Mahal of $188.5
million, compared to net revenues of $200.7 million for the quarter ended March
31, 2002. Income from operations for the quarter ended March 31, 2003 was $23.2
million, compared to $35.3 million for the quarter ended March 31, 2002. EBITDA
was $40.1 million for the quarter ended March 31, 2003, compared to $51.3
million for the quarter ended March 31, 2002.
On March 25, 2003, Trump Casino Holdings, LLC ("TCH") closed the private
placement of $490 million aggregate principal amount of two new issues of
mortgage notes, consisting of $425 million first priority mortgage due March 15,
2010 and $65 million second priority
mortgage notes due September 15, 2010. The subsidiaries of TCH include Trump's
Castle Associates, L.P. (now known as Trump Marina Associates, L.P.), the owner
of the Trump Marina Hotel Casino Resort in Atlantic City, New Jersey; Trump
Indiana, Inc., the owner of the Trump Indiana Riverboat Casino in Gary, Indiana;
and THCR Management Services, LLC, the manager of Trump 29 Casino located in the
Palm Springs, California area.
The net proceeds of the offering were used primarily to redeem and retire
the following debt of the Company:
- Trump's Castle Funding, Inc. 11-3/4% Mortgage Notes due 2003;
- Trump's Castle Funding, Inc. 13-7/8% Increasing Rate Subordinated
Pay-in-Kind Notes due 2005;
- Trump Hotels & Casino Resorts Holdings, L.P. 15-1/2% Senior Secured
Notes due 2005; and
- Bank debt of Trump Marina, Trump Indiana, and THCR Management
Services, LLC.
For the quarter ended March 31, 2003, TCH reported combined net revenues of
Trump Marina and Trump Indiana and for Trump 29 of $90.3 million, compared to
net revenues of $95.1 million for the quarter ended March 31, 2002. Income from
operations for the quarter ended March 31, 2003 was $7.3 million, compared to
$14.0 million for the quarter ended March 31, 2002. EBITDA was $16.7 million for
the quarter ended March 31, 2003, compared to $22.8 million for the quarter
ended March 31, 2002.
Mr. Trump said, "I am very pleased that we completed the financing in March
2003 to repay our Trump Marina debt that was to mature in 2003. We were able to
accomplish the financing in a decidedly difficult capital market environment. My
$30 million investment in this recent financing is evidence of my continuing
commitment to the Company. After the financing, the Company has a more
simplified structure. The debt at the Trump Hotels & Casino Resorts Holdings,
L.P. level is eliminated. Under Holdings, we now have two subsidiaries, Trump
Casino Holdings, which owns the Trump Marina Hotel Casino, Trump Indiana Casino
Hotel and the management contract for Trump 29 Casino, and Trump Atlantic City
Associates, which owns the Trump Taj Mahal Casino Resort and Trump Plaza Hotel
and Casino."
THCR is a public company which is approximately 47.0% beneficially owned by
Donald J. Trump. In connection with the March 2003 financing, Mr. Trump received
1,500 shares of Series A Preferred Stock which, upon stockholder approval, may
be exchanged by Mr. Trump for an aggregate of 7,894,737 shares of the Company's
Stock. Upon obtaining stockholder approval, Mr. Trump's beneficial ownership of
the Company's Common Stock would increase to approximately 56.2%. The Company is
separate and distinct from all of Mr. Trump's real estate and other holdings and
is the exclusive vehicle through which Donald J. Trump engages in gaming
activities.
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)
For the three months ended
31-Mar-03 31-Mar-02
--------------------------
REVENUES
CASINO $293,708 $311,438
ROOMS 17,915 18,835
FOOD & BEVERAGE 28,693 30,334
OTHER 8,537 8,716
PROMOTIONAL ALLOWANCES (a) (70,079) (73,533)
------------------------
NET REVENUES 278,774 295,790
------------------------
COSTS & EXPENSES
GAMING (a) 140,716 143,163
ROOMS 7,436 7,662
FOOD & BEVERAGE 10,232 10,640
GENERAL & ADMIN 63,632 60,214
------------------------
TOTAL EXPENSES 222,016 221,679
------------------------
EBITDA (b) 56,758 74,111
Less:
CRDA 1,429 1,364
DEPRECIATION & AMORTIZATION 22,686 19,418
CORPORATE EXPENSES & DJT SERVICES AGREEMENT 2,719 3,016
DEBT RENEGOTIATION COSTS 2,628 2,115
------------------------
INCOME FROM OPERATIONS 27,296 48,198
------------------------
INTEREST INCOME (633) (482)
INTEREST EXPENSE 58,053 55,215
GAIN ON DEBT RETIREMENT, NET (c) (2,892) -
OTHER NON-OPERATING (INCOME)EXPENSE, NET 20 93
------------------------
TOTAL NON-OPERATING EXPENSE, NET 54,548 54,826
------------------------
LOSS BEFORE LOSS IN JOINT VENTURE,
INCOME TAXES & MINORITY INTEREST ($27,252) ($6,628)
LOSS IN JOINT VENTURE (615) (602)
PROVISION FOR INCOME TAXES (d) (1,159) -
------------------------
LOSS BEFORE MINORITY INTEREST (29,026) (7,230)
MINORITY INTEREST (e) 5,061 2,644
------------------------
NET LOSS ($23,965) ($4,586)
========================
WEIGHTED AVERAGE # SHARES-BASIC 22,010,027 22,010,027
========================
WEIGHTED AVERAGE # SHARES-DILUTED 22,010,027 22,010,027
========================
BASIC AND DILUTED LOSS PER SHARE ($1.09) ($0.21)
========================
Note: Certain prior year reclassifications have been made to conform to current
year presentation.
(a) During the quarter ended September 30, 2002, the Company reclassified
certain additional bus coin expenses from gaming expenses to promotional
allowances to be consistent with prevailing industry presentation. Such amount
was $5.4 million for the quarter ended March 31, 2002.
(b) 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.
(c) 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.
(d) Represents New Jersey state income taxes due under the Business Tax Reform
Act passed in July 2002.
(e) 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)
For the three months ended
31-Mar-03 31-Mar-02
--------------------------
REVENUES
CASINO $198,663 $211,426
ROOMS 13,073 13,715
FOOD & BEVERAGE 21,038 22,412
OTHER 5,579 6,836
PROMOTIONAL ALLOWANCES (a) (49,852) (53,667)
------------------------
NET REVENUES 188,501 200,722
------------------------
COSTS & EXPENSES
GAMING (a) 93,889 96,132
ROOMS 6,006 6,181
FOOD & BEVERAGE 7,215 7,482
GENERAL & ADMIN 41,329 39,602
------------------------
TOTAL EXPENSES 148,439 149,397
------------------------
EBITDA (b) 40,062 51,325
Less:
CRDA 1,171 1,118
DEPRECIATION & AMORTIZATION 15,447 13,125
CORPORATE EXPENSES 201 194
DEBT RENEGOTIATION COSTS - 1,570
------------------------
INCOME FROM OPERATIONS 23,243 35,318
------------------------
INTEREST INCOME (223) (248)
INTEREST EXPENSE 38,642 38,219
OTHER NON-OPERATING EXPENSE 6 -
------------------------
TOTAL NON-OPERATING EXPENSE, NET 38,425 37,971
------------------------
INCOME(LOSS) BEFORE INCOME TAXES (15,182) (2,653)
PROVISION FOR INCOME TAXES (c) (859) -
------------------------
NET LOSS ($16,041) ($2,653)
========================
Note: Certain prior year reclassifications have been made to conform to current
year presentation.
(a) During the quarter ended September 30, 2002, the Company reclassified
certain additional bus coin expenses from gaming expenses to promotional
allowances to be consistent with prevailing industry presentation. Such amount
was $4.8 million for the quarter ended March 31, 2002.
(b) 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.
(c) Represents New Jersey state income taxes due under the Business Tax Reform
Act passed in July 2002.
TRUMP CASINO HOLDINGS, LLC
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands)
For the three months ended
31-Mar-03 31-Mar-02
--------------------------
REVENUES
CASINO $95,045 $100,012
ROOMS 4,842 5,120
FOOD & BEVERAGE 7,655 7,922
OTHER 2,958 1,880
PROMOTIONAL ALLOWANCES (a) (20,227) (19,866)
------------------------
NET REVENUES 90,273 95,068
------------------------
COSTS & EXPENSES
GAMING (a) 46,827 47,031
ROOMS 1,430 1,481
FOOD & BEVERAGE 3,017 3,158
GENERAL & ADMIN 22,303 20,612
------------------------
TOTAL EXPENSES 73,577 72,282
------------------------
EBITDA (b) 16,696 22,786
Less:
CRDA 258 246
DEPRECIATION & AMORTIZATION 7,233 6,288
CORPORATE EXPENSES AND DJT SERVICES AGREEMENT 1,513 1,822
DEBT RENEGOTIATION COSTS 378 471
------------------------
INCOME FROM OPERATIONS $7,314 $13,959
------------------------
INTEREST INCOME (401) (228)
INTEREST EXPENSE 21,160 17,123
GAIN ON DEBT RETIREMENT, NET (c) (7,931) -
OTHER NON-OPERATING EXPENSE 14 93
------------------------
TOTAL NON-OPERATING EXPENSE, NET 12,842 16,988
------------------------
INCOME(LOSS) BEFORE LOSS IN JOINT VENTURE
& INCOME TAXES (5,528) (3,029)
LOSS IN JOINT VENTURE (615) (602)
PROVISION FOR INCOME TAXES (d) (300) -
------------------------
NET LOSS ($6,443) ($3,631)
========================
Note: Certain prior year reclassifications have been made to conform to current
year presentation.
(a) During the quarter ended September 30, 2002, the Company reclassified
certain additional bus coin expenses from gaming expenses to promotional
allowances to be consistent with prevailing industry presentation. Such amount
was $.6 million for the quarter ended March 31, 2002.
(b) 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.
(c) 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 ransactions occurred on March 25, 2003 in connection with
the Company's issuance of Priority Mortgage Notes and the related use of
proceeds.
(d) Represents New Jersey state income taxes due under the Business Tax Reform
Act passed in July 2002.
TRUMP TAJ MAHAL ASSOCIATES
Condensed Statements of Operations
(Unaudited)
(In thousands, except statistical information)
For the three months ended
31-Mar-03 31-Mar-02
--------------------------
REVENUES
CASINO $123,232 $129,925
# of Slots 4,842 4,857
Win per Slot/Day $180 $195
Slot Win $78,226 $85,046
# of Tables 126 139
Win per Table/Day $3,517 $3,146
Table Win $39,887 $39,356
Table Drop $223,710 $225,712
Hold % 17.8% 17.4%
Poker, Keno, Race Win $5,119 $5,523
ROOMS $7,653 $7,917
# of Rooms Sold 103,833 106,158
Avg Room Rates $73.70 $74.58
Occupancy % 92.3% 94.4%
FOOD & BEVERAGE $12,829 $13,420
OTHER 3,595 5,004
PROMOTIONAL ALLOWANCES (a) (28,774) (31,408)
------------------------
NET REVENUES $118,535 $124,858
------------------------
COSTS & EXPENSES
GAMING (a) $57,158 $58,113
ROOMS 3,740 3,729
FOOD & BEVERAGE 4,687 4,736
GENERAL & ADMIN 25,763 24,494
------------------------
TOTAL EXPENSES $91,348 $91,072
------------------------
EBITDA (b) $27,187 $33,786
========================
A reconciliation of EBITDA to income from operations for each of the periods is
as follows:
EBITDA $27,187 $33,786
Depreciation and amortization (10,359) (8,806)
Non-cash write-downs and charges related to
required regulatory obligations (CRDA) (850) (717)
------------------------
Income from operations $15,978 $24,263
========================
Note: Certain prior year reclassifications have been made to conform to current
year presentation.
(a) During the quarter ended September 30, 2002, the Company reclassified
certain additional bus coin expenses from gaming expenses to promotional
allowances to be consistent with prevailing industry presentation. Such amount
was $2.4 million for the quarter ended March 31, 2002.
(b) 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)
For the three months ended
31-Mar-03 31-Mar-02
--------------------------
REVENUES
CASINO $75,431 $81,501
# of Slots 2,962 2,844
Win per Slot/Day $198 $218
Slot Win $52,819 $55,840
# of Tables 90 88
Win per Table/Day $2,792 $3,240
Table Win $22,612 $25,661
Table Drop $143,924 $143,066
Hold % 15.7% 17.9%
ROOMS $5,420 $5,798
# of Rooms Sold 71,499 74,509
Room Rates $75.95 $77.82
Occupancy % 87.9% 91.6%
FOOD & BEVERAGE $8,209 $8,992
OTHER 1,984 1,832
PROMOTIONAL ALLOWANCES (a) (21,078) (22,259)
------------------------
NET REVENUES $69,966 $75,864
------------------------
COSTS & EXPENSES
GAMING (a) $36,731 $38,019
ROOMS 2,266 2,452
FOOD & BEVERAGE 2,528 2,746
GENERAL & ADMIN 15,566 15,108
------------------------
TOTAL EXPENSES $57,091 $58,325
------------------------
EBITDA (b) $12,875 $17,539
========================
A reconciliation of EBITDA to income from operations for each of the periods is
as follows:
EBITDA $12,875 $17,539
Depreciation and amortization (5,088) (4,319)
Non-cash write-downs and charges related to
required regulatory obligations(CRDA) (321) (401)
Corporate charges (180) (180)
------------------------
Income from operations $7,286 $12,639
========================
Note: Certain prior year reclassifications have been made to conform to current
year presentation.
(a) During the quarter ended September 30, 2002, the Company reclassified
certain additional bus coin expenses from gaming expenses to promotional
allowances to be consistent with prevailing industry presentation. Such amount
was $2.4 million for the quarter ended March 31, 2002.
(b) 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)
For the three months ended
31-Mar-03 31-Mar-02
--------------------------
REVENUES
CASINO $62,220 $67,290
# of Slots 2,510 2,523
Win per Slot/Day $211 $226
Slot Win $47,690 $51,233
# of Tables 81 80
Win per Table/Day $1,973 $2,212
Table Win $14,386 $15,925
Table Drop $85,666 $85,416
Hold % 16.8% 18.6%
Poker, Keno, Race Win $144 $132
ROOMS $4,112 $4,199
# of Rooms Sold 55,863 54,752
Avg Room Rates $73.61 $76.69
Occupancy % 85.3% 83.6%
FOOD & BEVERAGE $6,960 $7,075
OTHER 1,578 1,510
PROMOTIONAL ALLOWANCES (a) (16,347) (16,862)
------------------------
NET REVENUES $58,523 $63,212
------------------------
COSTS & EXPENSES
GAMING (a) $30,485 $30,377
ROOMS 955 1,070
FOOD & BEVERAGE 1,952 2,008
GENERAL & ADMIN 16,901 15,036
------------------------
TOTAL EXPENSES $50,293 $48,491
------------------------
EBITDA (b) $8,230 $14,721
========================
A reconciliation of EBITDA to income from operations for each of the periods is
as follows:
EBITDA $8,230 $14,721
Depreciation and amortization (5,395) (4,901)
Non-cash write-downs and charges related to
required regulatory obligations (258) (246)
Debt renegotiation costs 47 (471)
Services agreement - (639)
------------------------
Income from operations $2,624 $8,464
========================
Note: Certain prior year reclassifications have been made to conform to current
year presentation.
(a) During the quarter ended September 30, 2002, the Company reclassified
certain additional bus coin expenses from gaming expenses to promotional
allowances to be consistent with prevailing industry presentation. Such amount
was $.6 million for the quarter ended March 31, 2002.
(b) 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)
For the three months ended
31-Mar-03 31-Mar-02
--------------------------
REVENUES
CASINO $32,825 $32,722
# of Slots 1,728 1,459
Win per Slot/Day $181 $201
Slot Win $28,182 $26,413
# of Tables 46 50
Win per Table/Day $1,121 $1,402
Table Win $4,643 $6,309
Table Drop $27,857 $34,662
Hold % 16.7% 18.2%
ROOMS $730 $921
# of Rooms Sold 13,320 14,927
Avg Room Rates $55 $62
Occupancy % 49.3% 55.3%
FOOD & BEVERAGE $695 $847
OTHER 416 370
PROMOTIONAL ALLOWANCES (3,880) (3,004)
------------------------
NET REVENUES $30,786 $31,856
------------------------
COSTS & EXPENSES
GAMING $16,342 $16,654
ROOMS 475 411
FOOD & BEVERAGE 1,065 1,150
GENERAL & ADMIN 5,293 5,576
------------------------
TOTAL EXPENSES $23,175 $23,791
------------------------
EBITDA (a) $7,611 $8,065
========================
A reconciliation of EBITDA to income from operations for each of the periods is
as follows:
EBITDA $7,611 $8,065
Depreciation and amortization (1,838) (1,387)
Management and services agreement (1,650) (1,175)
------------------------
Income from operations $4,123 $5,503
========================
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)
For the three months ended
CRDA WRITE-DOWN 31-Mar-03 31-Mar-02
-------------------------
TAJ $850 $717
PLAZA 321 401
MARINA 258 246
------------------------
TOTAL CRDA WRITE-DOWN $1,429 $1,364
========================
DEPRECIATION & AMORTIZATION
TAJ $10,359 $8,806
PLAZA 5,088 4,319
THCR HOLDINGS 6 5
MARINA 5,395 4,901
INDIANA 1,838 1,387
------------------------
TOTAL DEPRECIATION/AMORT $22,686 $19,418
========================
INTEREST EXPENSE
TAJ $24,553 $23,317
PLAZA 14,089 11,831
TRUMP ATLANTIC CITY - 3,071
THCR HOLDINGS 4,477 4,647
TRUMP CASINO HOLDINGS 299 -
MARINA 13,857 11,307
INDIANA 537 624
THCR MGMT 241 418
------------------------
TOTAL INTEREST EXPENSE $58,053 $55,215
========================
LOAN COST AMORT/BOND DISC INCL INT EXP
TAJ $651 $636
PLAZA 428 318
TRUMP ATLANTIC CITY - 259
THCR HOLDINGS 192 192
TRUMP CASINO HOLDINGS 38 -
MARINA 2,091 1,711
INDIANA 90 117
THCR MGMT 223 168
------------------------
TOTAL LOAN COST AMORT/BOND DISC $3,713 $3,401
========================
Note: Certain prior year reclassifications have been made to conform to current
year presentation.
Cash & Cash Equivalents March 31, 2003 March 31, 2002
-----------------------------
(in millions)
Trump Atlantic City Consolidated $106.9 $119.1
Trump Casino Holdings Consolidated 31.0 50.4
Trump Hotels & Casino Resorts 2.8 0.8
-----------------------------
Total Cash & Cash Equivalents $140.7 $170.3
=============================
Capital Expenditures Purchase Capital
(in thousands) of Property Lease Total Capital
& Equipment Additions Expenditures
For the Three Months Ended March 31, 2003
TAJ $5,525 $ - $ $5,525
PLAZA 887 1,760 2,647
MARINA 1,156 - 1,156
INDIANA 1,705 - 1,705
THCR HOLDINGS 5 - 5
-----------------------------------
TOTAL $9,278 $1,760 $11,038
===================================
For the Three Months Ended March 31, 2002
TAJ $2,153 $1,455 $3,608
PLAZA 862 - 862
MARINA 803 - 803
INDIANA 1,304 - 1,304
THCR HOLDINGS 40 - 40
-----------------------------------
TOTAL $5,162 $1,455 $6,617
===================================