Trump Hotels & Casino Resorts Reports 2004 Third Quarter and Nine Months Results

Consolidated income from operations for the quarter ended September 30, 2004 was $36.2 million, compared to $45.4 million for the quarter ended September 30, 2003. Consolidated net loss for the quarter ended September 30, 2004 was $25.1 million, or $0.84 per share, compared to a net loss of $12.4 million, or $0.43 per share, for the quarter ended September 30, 2003. EBITDA (defined as income from operations before depreciation, amortization, non-cash New Jersey Casino Reinvestment Development Authority ("CRDA") write-downs, non-recurring debt renegotiation costs and corporate expenses) for the quarter ended September 30, 2004 was $70.1 million, compared to EBITDA of $73.4 million reported for the quarter ended September 30, 2003. Readers are advised that the term "EBITDA" is not a measure of financial performance under generally accepted accounting principles. The Company uses EBITDA because it believes that it is used by certain investors in measuring an entity's operating performance. A reconciliation of EBITDA to income from operations 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, 2004 of $878.8 million, compared to $894.7 million for the nine months ended September 30, 2003. Consolidated income from operations for the nine months ended September 30, 2004 was $103.8 million, compared to $120.0 million for the nine months ended September 30, 2003. EBITDA for the nine months ended September 30, 2004 was $194.7 million, compared to EBITDA of $205.6 million for the nine months ended September 30, 2003. Consolidated net loss for the nine months ended September 30, 2004 was $91.5 million, or $3.06 per share, compared to a net loss of $46.4 million, or $1.90 per share, net of minority interest of $5.1 million, for the nine months ended September 30, 2003.

Donald J. Trump, Chairman and Chief Executive Officer of the Company, commented, "We believe that our recently announced plan will be a turning point for the Company. Although the third quarter results are soft, we are focused on our Company's future and positioning ourselves to take advantage of evolving gaming technologies with the power of the Trump brand."

Scott C. Butera, the Company's recently named President and Chief Operating Officer, added, "Atlantic City has been a growing yet competitive environment for all operators. We believe our recapitalization plan will give us the financial resources to increase our presence in this market by refurbishing and expanding our current properties, in addition to diversifying into new markets."

Mark A. Brown, the President and Chief Executive Officer of the Company's casino group, commented, "Consolidated gross casino revenues, as well as all other revenue items before promotional allowances, increased $5.7 million in the 2004 third quarter, compared to 2003. However, these increases were offset by higher promotional allowances and operating expenses, leading to a decrease in consolidated operating results. The recapitalization, with its lower projected capital costs, will allow us to invest in our properties, which we believe will lead to improved operating performance." Mr. Brown added, "The Company is developing plans for all three of its Atlantic City properties to improve their operating performance when we emerge from the process."

Trump Taj Mahal Associates ("Taj Associates") reported net revenues of $126.6 million for the quarter ended September 30, 2004, compared to $130.0 million for the quarter ended September 30, 2003. Income from operations for the quarter ended September 30, 2004 was $17.8 million, compared to $22.0 million for the quarter ended September 30, 2003. EBITDA was $30.3 million for the quarter ended September 30, 2004, compared to $33.9 million for the quarter ended September 30, 2003. Taj Associates reported net revenues of $359.7 million for the nine months ended September 30, 2004, compared to $376.4 million for the nine months ended September 30, 2003. Income from operations for the nine months ended September 30, 2004 was $47.9 million, compared to $59.4 million for the nine months ended September 30, 2003. EBITDA was $86.1 million for the nine months ended September 30, 2004, compared to $95.0 million for the nine months ended September 30, 2003.

Trump Plaza Associates reported ("Plaza Associates") net revenues of $77.0 million for the quarter ended September 30, 2004, compared to $76.8 million for the quarter ended September 30, 2003. Income from operations for the quarter ended September 30, 2004 was $4.5 million, compared to $10.5 million for the quarter ended September 30, 2003. EBITDA was $13.0 million for the quarter ended September 30, 2004, compared to $16.5 million for the quarter ended September 30, 2003. Plaza Associates reported net revenues of $216.0 million for the nine months ended September 30, 2004, compared to $225.6 million for the nine months ended September 30, 2003. Income from operations for the nine months ended September 30, 2004 was $17.5 million, compared to $31.4 million for the nine months ended September 30, 2003. EBITDA was $38.0 million for the nine months ended September 30, 2004, compared to $48.4 million for the nine months ended September 30, 2003.

Trump Marina Associates ("Marina Associates") reported net revenues of $70.0 million for the quarter ended September 30, 2004, compared to $68.3 million for the quarter ended September 30, 2003. Income from operations for the quarter ended September 30, 2004 was $11.0 million, compared to $8.1 million for the quarter ended September 30, 2003. EBITDA was $16.6 million for the quarter ended September 30, 2004, compared to $14.4 million for the quarter ended September 30, 2003. Marina Associates reported net revenues of $190.5 million for the nine months ended September 30, 2004, compared to $195.1 million for the nine months ended September 30, 2003. Income from operations for the nine months ended September 30, 2004 was $22.0 million, compared to $20.3 million for the nine months ended September 30, 2003. EBITDA was $39.2 million for the nine months ended September 30, 2004, compared to $38.5 million for the nine months ended September 30, 2003.

Trump Indiana, Inc. ("Trump Indiana") reported net revenues of $34.0 million for the quarter ended September 30, 2004, compared to $33.1 million for the quarter ended September 30, 2003. Income from operations for the quarter ended September 30, 2004 was $4.7 million, compared to $4.6 million for the quarter ended September 30, 2003. EBITDA was $8.5 million for the quarter ended September 30, 2004, compared to $7.7 million for the quarter ended September 30, 2003. Trump Indiana reported net revenues of $106.4 million for the nine months ended September 30, 2004, compared to $94.6 million for the nine months ended September 30, 2003. Income from operations for the nine months ended September 30, 2004 was $14.9 million, compared to $11.0 million for the nine months ended September 30, 2003. EBITDA was $25.5 million for the nine months ended September 30, 2004, compared to $21.0 million for the nine months ended September 30, 2003.

THCR Management Services, LLC earned $1.7 million in management fees during the quarter ended September 30, 2004, compared to $0.8 million for the quarter ended September 30, 2003, and incurred $0.1 million in associated general and administrative costs for the quarter ended September 30, 2004. For the nine months ended September 30, 2004, management fees totaled $6.2 million, compared to $3.0 million for the nine months ended September 30, 2003, and incurred $0.3 million in associated general and administrative costs for the nine months ended September 30, 2004 and September 30, 2003.

Trump Atlantic City Associates ("TACA") reported combined net revenues of Trump Plaza and Trump Taj Mahal of $203.6 million for the quarter ended September 30, 2004, compared to net revenues of $206.8 million for the quarter ended September 30, 2003. Income from operations for the quarter ended September 30, 2004 was $20.3 million, compared to $32.5 million for the quarter ended September 30, 2003. EBITDA was $43.4 million for the quarter ended September 30, 2004, compared to $50.4 million for the quarter ended September 30, 2003. TACA reported combined net revenues of Trump Plaza and Trump Taj Mahal of $575.7 million for the nine months ended September 30, 2004, compared to net revenues of $602.0 million for the nine months ended September 30, 2003. Income from operations for the nine months ended September 30, 2004 was $63.4 million, compared to $90.3 million for the nine months ended September 30, 2003. EBITDA was $124.2 million for the nine months ended September 30, 2004, compared to $143.4 million for the nine months ended September 30, 2003.

Trump Casino Holdings, LLC ("TCH") reported combined net revenues of Trump Marina and Trump Indiana and management fees from Trump 29 of $105.7 million for the quarter ended September 30, 2004, compared to net revenues of $102.2 million for the quarter ended September 30, 2003. Income from operations for the quarter ended September 30, 2004 was $17.7million, compared to $14.5 million for the quarter ended September 30, 2003. EBITDA was $26.7 million for the quarter ended September 30, 2004, compared to $22.9 million for the quarter ended September 30, 2003. TCH reported combined net revenues of Trump Marina and Trump Indiana and management fees from Trump 29 of $303.1million for the nine months ended September 30, 2004, compared to net revenues of $292.7 million for the nine months ended September 30, 2003. Income from operations for the nine months ended September 30, 2004 was $45.7 million, compared to $35.8 million for the nine months ended September 30, 2003. EBITDA was $70.5 million for the nine months ended September 30, 2004, compared to $62.2 million for the nine months ended September 30, 2003.

Reader Comments:

Be the first to leave a comment for this article