Trump Hotels Third Quarter

NEW YORK, NY - Trump Hotels & Casino Resorts, Inc. (“THCR” or the “Company”) (NYSE:DJT) today reported a continuation of record earnings and EBITDA—its best third quarter and nine months in its history following its previously announced record fourth quarter 2001 and first and second quarter 2002.

THCR`s EBITDA (defined as earnings before interest, taxes, depreciation, amortization, CRDA, debt renegotiation expenses, corporate expenses, and non-operating income/expense) for the quarter ended September 30, 2002 increased to $102.1 million, $9.9 million higher than the $92.2 million reported for the quarter ended September 30, 2001, or a 10.7% increase. Consolidated net revenues (defined as gross revenues less promotional allowances) for the quarter ended September 30, 2002 increased to $342.6 million from $327.4 million reported for the quarter ended September 30, 2001. For the nine months ended September 30, 2002, EBITDA increased to $257.6 million, $50.2 million higher than the $207.4 million reported for the nine months ended September 30, 2001, or a 24.2% increase. Consolidated net revenues for the nine months ended September 30, 2002 increased to $946.0 million from $896.1 million reported for the nine months ended September 30, 2001. The net income for the 2002 third quarter was $9.6 million, or $0.44 per share (including a $3.7 million charge for state income taxes for the nine-month period due to a change in the State of New Jersey tax law during the third quarter 2002), compared to a $9.5 million, or $0.43 per share, in the third quarter of 2001. Consolidated net income for the nine-month period ended September 30, 2002 was $5.3 million, or $0.24 per share, compared to a $15.1 million loss, or ($0.69 per share), for the nine-month period ended September 30, 2001.

Donald J. Trump, Chairman, President and Chief Executive Officer, said, “I am pleased to be able to report that all of our properties have improved both their net revenues and EBITDA for the quarter and nine month periods. Our trailing twelve months EBITDA of $320 million exceeds any twelve-month period in our history. By providing the most popular games, great service, fine dining and entertainment, the Company has been able to reach its record levels. The company-wide improvements in operating margins also show that we have maintained our focus on cost controls.”

Trump Taj Mahal Associates reported net revenues of $145.0 million and an increase in EBITDA to $46.1 million for the quarter ended September 30, 2002, compared to net revenues of $141.5 million and EBITDA of $44.6 million for the quarter ended September 30, 2001. For the nine-month period ended September 30, 2002, net revenues increased to $398.4 million and EBITDA increased to $116.4 million, compared to $381.6 million and $101.8 million respectively, for the nine months ended September 30, 2001. The current year EBITDA of $116.4 million for the nine-month period ended September 30th is the best ever produced by the Taj Mahal for this time period. EBITDA margins improved to 31.8% and 29.2% for the quarter and nine months ended September 30, 2002, respectively, from 31.5% and 26.7% for the quarter and nine months ended September 30, 2001, respectively. Mark A. Brown, President and Chief Operating Officer, commented, “I`m proud that the Taj Mahal continues to be considered by many to be the best hotel-casino in Atlantic City. Mr. Trump demands that we maintain a level of quality that is second to none. Both the management and staff are dedicated to maintaining a level of service that creates the customer loyalty that allows us to be successful. We continue to improve the property. On the casino floor, we have added new slot machines and have installed new technology with the benefit of enhancing customer service and lowering operating costs. By offering such a wide spectrum of entertainment and dining choices and an unsurpassed gaming experience, the Taj Mahal continues to be the `must see attraction` in Atlantic City. Controlling costs has been paramount to improving our profitability at all our properties and has helped to offset the higher insurance costs and real estate taxes which caused the increase in our general and administrative expenses for the quarter.”
Trump Plaza Associates reported an increase in net revenues to $87.7 million and an increase in EBITDA to $25.9 million for the quarter ended September 30, 2002, compared to net revenues of $83.2 million and EBITDA of $22.5 million for the quarter ended September 30, 2001. For the nine-month period ended September 30, 2002, Trump Plaza reported an increase in net revenues to $242.9 million and an increase in EBITDA to $62.9 million, compared to net revenues of $232.3 million and EBITDA of $47.1 million for the nine-month period ended September 30, 2001. EBITDA margins improved to 29.5% and 25.9% for the quarter and nine months ended September 30, 2002, respectively, from 27.1% and 20.3% for the quarter and nine months ended September 30, 2001, respectively. Mr. Brown remarked, “As I have stated in the past, 2002 would be Trump Plaza`s year. In just nine months, Plaza`s EBITDA has exceeded its full year 2001 results. In fact, Plaza has exceeded its prior year EBITDA for each of the last seven consecutive quarters. Trump Plaza`s dynamic marketing and superior service has allowed this `center of the boardwalk` to make such progress. By carefully managing the profitability of the casino floor, and replacing nearly 60% of the slot product, the property has increased its revenues by over $10 million for nine months while reducing costs and expenses by $5 million.”


Trump Marina reported an increase in net revenues to $76.9 million and an increase in EBITDA to $20.6 million for the quarter ended September 30, 2002, compared to net revenue of $72.2 million and EBITDA of $18.7 million for the quarter ended September 30, 2001. For the nine-month period ended September 30, 2002, Trump Marina reported an increase in net revenues to $208.6 million and an increase in EBITDA to $52.6 million, compared to net revenues of $190.7 million and EBITDA of $38.7 million for the nine-month period ended September 30, 2001. EBITDA margins improved to 26.8% and 25.2% for the quarter and nine months ended September 30, 2002, respectively from 25.9% and 20.3% for the quarter and nine months ended September 30, 2001, respectively. “Like the Plaza, in just nine months the Marina`s EBITDA has exceeded its full year 2001 results. The emergence of the Marina district in Atlantic City is benefiting Trump Marina. New visitors to this section of the city are finding what our loyal Marina customers have known for a long time. The Marina is a great venue with the younger and `wild side` persona in an elegant but relaxed atmosphere. Paul Ryan, our new Chief Operating Officer for the Marina, knows this property as well as anyone, having been involved with it since its opening,” commented Mr. Brown.
Trump Indiana reported net revenues of $32.3 million and an increase in EBITDA to $9.1 million for the third quarter ended September 30, 2002, compared to net revenues of $30.5 million and EBITDA of $6.4 million for the quarter ended September 30, 2001. For the nine-month period ended September 30, 2002, Trump Indiana reported an increase in net revenues to $94.3 million and an increase in EBITDA to $24.3 million, compared to net revenues of $91.5 million and EBITDA of $19.8 million for the nine-month period ended September 30, 2001. EBITDA margins improved to 28.1% and 25.8% for the quarter and nine months ended September 30, 2002, respectively, from 21.1% and 21.7% for the quarter and nine months ended September 30, 2001, respectively. Mr. Brown remarked, “The addition of 286 slots in our expanded gaming area, the May opening of the 2,000 car garage next to the Trump Indiana vessel and the recent inception of dockside gaming, have helped Trump Indiana to its record breaking third quarter. Dockside allows our patrons access at anytime to the gaming vessel and the new garage makes that access so much more convenient. Also, Trump Indiana is the test site for ticket-in, ticket-out cashless slot machines in the state of Indiana. Customers who do not want to carry tokens for the slots prefer cashless systems which save time with redemptions and allows for more playing time on the machines. Preliminary results have shown an increase in coin-in and win per unit per day for the test units. As with all our properties, strong cost controls have resulted in increased operating margins.”
Under its five-year management agreement with the Twenty-Nine Palms Band of Luiseno Mission Indians of California, THCR Management Services manages the day-to-day operations of the Tribe`s recently renovated and expanded casino renamed Trump 29 Casino in the Palm Springs, California area. The new casino opened on April 2, 2002 and additional expansion of dining, entertainment and gaming space was completed in September of this year. During the quarter and the nine months ended September 30, 2002, THCR Management earned $0.7 and $1.8 million, respectively, in management fees (included in other revenues) and incurred $0.2 million and $0.3 million, respectively, associated general and administrative costs and $0.2 million and $0.6 million, respectively, in pre-opening costs (included in corporate expenses) pursuant to the management agreement. Interest expense for the quarter includes a $1.7 million write off of the deferred financing costs incurred with the original $11 million loan used to assist the Tribe in the construction of the new casino. This loan was paid off with a $2.2 million financing and the proceeds from the assignment of the note receivable from the Tribe.

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Trump Atlantic City Associates` combined net revenues of Trump Plaza and Trump Taj Mahal for the quarter ended September 30, 2002 increased to $232.8 million, compared to $224.7 million for the quarter ended September 30, 2001. EBITDA for the quarter ended September 30, 2002 increased to $72.0 million, compared to EBITDA of $67.1 million for the same period in 2001. For the nine-month period ended September 30, 2002, Trump Atlantic City Associates reported an increase in net revenues to $641.3 million and an increase in EBITDA to $179.2 million, compared to net revenues of $613.9 million and EBITDA of $148.9 million for the nine-month period ended September 30, 2001.

THCR, through its wholly-owned subsidiaries, owns and operates Trump Plaza Hotel and Casino, Trump Taj Mahal Casino Resort and Trump Marina Hotel Casino in Atlantic City, New Jersey, as well as Trump Indiana, a hotel and riverboat casino at Buffington Harbor, Indiana on Lake Michigan. Also, THCR, through a wholly-owned subsidiary, manages Trump 29 Casino located in the Palm Springs, California area. It is the exclusive vehicle through which Donald J. Trump will engage in new gaming activities in both emerging and established gaming jurisdictions in both the United States and abroad.

THCR is a public company which is approximately 46.6% beneficially owned by Donald J. Trump. The Company is separate and distinct from all of Mr. Trump`s real estate and other holdings.


www.trump.com for full details
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