Park Place Entertainment Corporation (NYSE: PPE) today reported net income of $45 million, or $0.15 per diluted share, for the quarter ended March 31, 2001 compared to consensus estimates of $0.11 per share and last year’s $52 million, or $0.17 per share. Cash earnings per share (net income before goodwill amortization) for the first quarter were $0.19 versus $0.21 last year.
Earnings before interest, taxes, depreciation and amortization (“EBITDA”) were $315 million in the first quarter of 2001, compared to last year’s $327 mi llion.
The Caesars portfolio of properties continued its strong performance as combined EBITDA for the Caesars portfolio increased 5% to $102 million versus $97 million in the quarter ended March 31, 2000 and combined EBITDA margins increased by 1% to 28% in the first quarter of 2001 versus 27% last year. The results were primarily due to the successful integration programs that continue to drive incremental property utilization.
“We are very pleased with our first quarter results” said Tom Gallagher, President and CEO. “We continue to produce a significant amount of excess cash flow which we utilize to pay down debt, invest in ROI driven projects and repurchase shares. This cash flow allocation allows us to grow our Company and continue to take market share in the three major gaming markets while shrinking the right side of the balance sheet.”
Highlights from the quarter include:
* Generating $133 million of excess cash flow
* Paying down $78 million in debt
* Investing $43 million in new unit projects
* Repurchasing 1.1 million shares at an average price of $10.45
* Caesars Indiana posting a 36% increase in EBITDA
* Paris/Bally’s Las Vegas posting an increase in EBITDA over last year
* Las Vegas Hilton generating $16 million in EBITDA
* Mississippi Gulf Coast market firming up with flat year over year results
* Atlantic City properties achieving premium same-store revenue increases.
“We exceeded our budgeted expectations and our internal analysis confirms that we would have significantly exceeded last year’s results if we exclude the one-time issues relating to this year’s unfavorable calendar and poor weather in the east,” said Scott LaPorta, Executive Vice President and CFO.