Park Place Entertainment Corporation (NYSE: PPE) today reported net income of $48 million, or $0.16 per diluted share, for the quarter ended June 30, 2001 compared to last year`s $31 million, or $0.10 per diluted share ($0.18 for the quarter ended June 30, 2000, excluding the write-down of the Las Vegas Hilton and the gain on sale of the Flamingo Kansas City Riverboat Casino). Cash earnings per diluted share (net income before pre-opening expenses, asset dispositions, impairments and goodwill amortization) for the second quarter were $0.21 versus $0.22 last year.
Earnings before interest, taxes, depreciation, amortization, pre-opening expense, and asset dispositions and impairments (“EBITDA”) were $310 million in the second quarter of 2001, compared to last year`s $335 million.
“The second quarter results indicate that our properties in the major gaming markets continue to drive solid results,” said Thomas E. Gallagher, president and chief executive officer. “Our casinos at the “Four Corners” in Las Vegas, Atlantic City, Mississippi Gulf Coast and Indiana, experienced strong occupancy levels, table drop, slot handle and revenues versus the second quarter of 2000.”
At the Company`s flagship Caesars properties, Caesars Palace, Caesars Atlantic City and Caesars Indiana, EBITDA results declined $1 million from $87 million to $86 million this quarter primarily due to Caesars Atlantic City`s lower hold percentage in the quarter. Assuming a normal hold percentage at Caesars Atlantic City, the three properties would have produced a quarter over quarter EBITDA increase.
Highlights from the quarter include:
* Generated $101 million in excess cash flow (excluding option exercise proceeds)
* Completed the $65 million Claridge acquisition ($32 million funded in the quarter)
Invested $61 million in new unit projects
* Paid down an additional $8 million in debt
* Repurchased 3 million shares at an average price of $11.89 by utilizing proceeds from 4 million stock options exercised
* Las Vegas “Four Corners” RevPAR up 5%
* Mississippi Gulf Coast properties EBITDA up 7% over last year
* Paris/Bally`s Las Vegas posted second consecutive increase in EBITDA over last year
“Our results continue to provide evidence that the major markets in the gaming industry are extremely resilient,” said Scott LaPorta, executive vice president and chief financial officer. “Our analysis reveals that if we normalize table hold for the quarter we would have surpassed last year`s results.”