Park Place Entertainment Corporation (NYSE: PPE) today reported that its results for the fourth quarter before non-recurring charges will be approximately $0.00/share versus the consensus estimate of $0.13/share due primarily to the following factors:
* The aggregate table game hold percentage at the company`s Las Vegas properties was below 1999 levels. Additionally, the level of play at Paris/Bally`s in the fourth quarter was below the comparable quarter of 1999, the property`s first full quarter of operations.
* Winter weather negatively impacted visitation and play at the properties in Atlantic City, Tunica, and Indiana during the month of December.
* The continued competitive environment in the Mississippi marketplace has led to lower profitability in the fourth quarter of 2000 versus the comparable quarter of 1999.
The Company stated that it will also record a one time charge for compensation and benefit costs totaling approximately $15 million in cash associated with the fulfillment of the employment contract of the Company`s former Chief Executive Officer, Arthur Goldberg, who passed away in late October 2000. The Company plans to announce its full fourth quarter results and conduct a conference call on Tuesday, January 23, 2001.
Park Place also reported that its proposed sale of the Las Vegas Hilton to Ed Roski, Jr. is in dispute. Under the agreement, Mr. Roski is required to either close the transaction by January 9, 2001 or deposit an additional $5 million on January 3, 2001 thereby extending his right to close the transaction until February 7, 2001. Mr. Roski has failed to make the extension payment and has asserted alleged breaches by Park Place under the agreement. The Company has rejected those allegations and will endeavor to complete the sale or pursue its remedies under the agreement. If, as the Company now believes is likely, Mr. Roski fails to complete the purchase, then Park Place expects that it will cease efforts to sell the property and continue to operate it in the ordinary course.
Park Place Entertainment is the world`s largest gaming company and owns, manages or has an interest in 28 gaming properties operating under the Bally`s, Caesars, Paris, Flamingo, Grand and Hilton brand names with a total of approximately 2 million square feet of gaming space, over 28,000 hotel rooms and approximately 57,000 employees worldwide.
Additional information on Park Place Entertainment can be accessed through the Company`s 24-hour investor relations service. Individuals may call toll-free 877-PPE-NYSE (877-773-6973) or visit www.parkplace.com to obtain the latest Company news and stock price information, or to request information by email, fax or postal mail delivery.