Trump Hotels & Casino Resorts Fourth Quarter

Trump Hotels & Casino Resorts, Inc. (THCR)(NYSE:DJT) today reported earnings and EBITDA for the fourth quarter and year ended December 31, 1999. All references to net revenues and EBITDA exclude the All Star Café lease termination income and Trump World`s Fair closing costs.

Consolidated net revenues for the fourth quarter were $331.0 million, compared to $345.8 million reported for the same period in 1998. The decrease in fourth quarter revenues is attributable mainly to the closing of the Trump World`s Fair. THCR`s EBITDA (earnings before interest, taxes, depreciation, amortization and CRDA, state and municipal obligations) for the quarter was $27.8 million versus $56.2 million reported in the prior year`s fourth quarter. The fourth quarter EBITDA reduction results from lower hold percentages at the Plaza (3.5% in 1999 vs. 16.6% in 1998) which impacted revenues some $5 million and $12.5 million of various charges at the Taj, which consisted principally of casino bad debt provisions, employee severance charges and litigation settlement reserves.


Net loss for the quarter was $34.5 million or $1.56 per share compared to a net loss of $16.4 million or $0.74 per share in 1998. Net loss for the quarter includes a $4.4 million reduction in estimated World`s Fair closing costs recorded in the previous quarter.


Nicholas L. Ribis, President and CEO, stated, “Although I am disappointed with the EBITDA at the Taj Mahal, with the higher than normal charges behind us, the property is positioned with its new management team, now fully in place, for a vibrant rebound in the year 2000. I am particularly pleased with the Plaza, given that irrespective of almost $5 million reduction in gaming revenue, due to the fourth quarter hold and the closing of the World`s Fair, the Plaza still posted full year positive EBITDA growth. With the World`s Fair closed, the Plaza will continue to focus on its higher margin business, thereby providing positive EBITDA growth for the coming year.” Ribis continued, “The Trump Marina continues its winning ways as it continues its marketing and entertainment campaign, that is geared toward a younger generation of patrons without excluding the property`s established customer base. The competitive Indiana marketplace and relaxed boarding regulations in neighboring Illinois have challenged our riverboat,” stated Ribis. “New management has responded with focused marketing and renewed diligence on cost control.”


For the year ended December 31, 1999, consolidated net revenues were $1,394.3 million, compared to $1,404.1 million reported for the full year of 1998. EBITDA for the year was #|$240.8 million versus $263.9 million reported for the prior year.

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Net loss for the year was $133.8 million or $6.03 per share compared to a net loss of $39.7 million or $1.79 per share in 1998. Excluding the All-Star Café lease termination income, Trump World`s closing costs and the cumulative effect of an accounting principle change, the net loss was $62.5 million or $2.82 per share in 1999.


Trump Taj Mahal reported net revenues for the fourth quarter of $145.1 million and EBITDA of $8.2 million, compared to net revenues for the 1998 fourth quarter of $139.7 million and EBITDA of $29.0 million. For the year ended December 31, 1999, Trump Taj Mahal reported net revenues of $564.1 million and EBITDA of $97.6 million, compared to net revenues for 1998 of $566.4 million and EBITDA of $129.1 million. EBITDA was negatively impacted for the fourth quarter and full year 1999 by approximately $12.5 million and $14.4 million respectively, as a result of various charges which consisted principally of casino bad debt provisions, employee severance charges and litigation settlement reserves. Additionally, the Taj Mahal`s hold percentage was 16.1% for the 1998 year, compared to 16.5% in 1998 which further reduced the Taj Mahal`s EBITDA by approximately $4.3 million.


Trump Plaza reported net revenues of $80.4 million for the fourth quarter of 1999, compared with $99.5 million for the same period in 1998 and EBITDA of $7.8 million for the fourth quarter of 1999 versus $13.6 million reported for the 1998 fourth quarter. For the year ended December 31, 1999, Trump Plaza reported net revenues of $392.5 million compared to $412.7 million for all of 1998. EBITDA for the year ended December 31, 1999, was $73.0 million compared to $72.6 million for 1998. The fourth quarter drop in revenues is attributable to the closing of the Trump World`s Fair Casino and was further impacted some $5.0 million due to a lower hold percentage (13.5% in 1999 vs. 16.6% in 1998) for the quarter.


For the fourth quarter of 1999, Trump Marina posted net revenues of $70.1 million, compared to $68.9 million for the fourth quarter of 1998. EBITDA increased to $10.3 million for the 1999 quarter, compared to &9.5 million for the fourth quarter of 1998. For the full year, Trump Marina reported net revenues of $293.8 million, compared to $284.4 million for the year ended December 31, 1998. EBITDA increased $52.6 million for the year ended December 31, 1999, compared to $45.6 million for the year ended December 31, 1998.


Trump Indiana reported fourth quarter net revenues of $35.4 million and EBITDA of $1.4 million, versus $37.7 million and $4.1 million, respectively, for the fourth quarter of 1998. For the full year ended December 31, 1999, Trump Indiana posted net revenues of $144.0 million and EBITDA of $17.5 million, compared to net revenues of $140.6 million and EBITDA of $16.5 million for 1998.


Trump Atlantic City Associates (Trump Plaza and Trump Taj Mahal) reported combined net revenues for the 1999 fourth quarter of $225.4 million versus $239.2 million for the 1998 fourth quarter. EBITDA was $16.1 million, compared to EBITDA of $42.6 million and net loss for the 1999 fourth quarter was $31.7 million versus a net loss of $9.9 million for the same period in 1998. For the full year ended December 31, 1999, Trump Atlantic City Associates reported combined net revenues of $956.6 million as compared with $979.1 million for the full year ended December 31, 1998. EBITDA was $170.7 million for 1999, compared to EBITDA of $201.7 million for 1998. Net loss for the year ended December 31, 1999 was $149.3 million, compared to $11.1 million at year-end 1998.


This press release contains forward-looking statements that are subject to change. Actual results may differ materially from those described in any forward-looking statement. Additional information concerning potential factors that could affect the Company`s future results is included in the Company`s Annual Report on Form 10-K for the year ended December 31, 1998. This statement is provided as permitted by the Private Securities Litigation Reform Act of 1995.


Trump Hotels & Casino Resorts, Inc. owns and operates Trump Plaza Hotel & Casino, Trump Taj Mahal Casino Resort and Trump Marina Hotel Casino in Atlantic city, New Jersey, as well as Trump Indiana, the riverboat casino at Buffington Harbor, Indiana on Lake Michigan. It is the exclusive vehicle through which Trump will engage in new gaming activities in both emerging and established gaming jurisdictions in both the United States and abroad.


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