Trump Hotels & Casino Resorts Second Quarter Results

Trump Hotels & Casino Resorts, Inc. (THCR) (NYSE:DJT) announced today that for the second quarter ended June 30, 2000, consolidated net revenues were $339.7 million, compared to $361.5 million reported for the same period in 1999. Consolidated revenues and EBITDA for the six months period ended June 30, 2000 were $656.2 million and $115.4 million, respectively, compared to $677.2 million and $123.2 million, respectively, for the six months period ended June 30, 1999. THCR’s EBITDA (earnings before interest, taxes, depreciation, amortization and corporate expenses) for the quarter was $61.4 million versus $73.0 million reported in the prior year’s second quarter. The net loss for the second quarter was $2.9 million or $0.13 per share, compared to a net loss of $6.5 million, or $0.29 per share in the 1999 quarter. Included in the current net loss is an $8.3 million extraordinary gain, net of minority interest, resulting from the repurchase of debt. Consolidated net loss which includes the $8.3 million net extraordinary gain, was $21.3 million ($.97 per share) for the six months period ended June 30, 2000 compared to a $31.8 million loss ($1.43 per share) for the six months period ended June 30, 1999.

On June 12, 2000 Mr. Trump assumed the title of Acting President and Chief Executive Officer of THCR. Mark Brown assumed duties for all operations of THCR as its Chief Operating Officer and also President and Chief Executive Officer for all Trump properties.


Trump Taj Mahal Associates reported net revenues of $146.8 million and EBITDA of $33.1 million for the three months period ended June 30, 2000. Net revenues for three months ended June 30,1999 were $144.7 million and EBITDA was $33.0 million. For the six months period ended June 30, 2000 net revenues and EBITDA at the Taj were $281.5 million and $61.8 million respectively compared to $268.2 million and $55.2 million for the same period in 1999. Donald J. Trump commented, “Our customer service orientation dedicated to providing our patrons with a superior gaming and hotel environment with continued world class entertainment and the Casbah night club continues to make the Trump Taj Mahal the “must see” location in Atlantic City. I am particularly impressed with the current year growth trends established by the new management team. In the history of the property, ten of the top twenty slot win days occurred during the current year. This past January generated the third best EBITDA of any January at the property while February, March and April generated the second best EBITDA for each respective month. Mark Brown’s gaming experience and management style has energized the employees at all the casinos.” Mr. Brown said, “June 2000 results were remarkable. Both the $55.2 million in net revenues and $14.8 million in EBITDA were record levels for any June by the property. The quarterly results are all the more impressive given the $5 million loss to a few premium players in May.”


Trump Plaza Associates reported net revenues of $87.9 million and EBITDA of $10.1 million for the quarter ended June 30, 2000 versus net revenues of $104.3 million and EBITDA of $20.1 million for the same period in 1999. For the six months period ended June 30,2000 Trump Plaza reported net revenues of $171.4 million and EBITDA of $22.1 million compared to net revenues of $195.1 and EBITDA of $34.1 million for the six months period ended June 30, 1999. Mr. Brown said, “the Trump Plaza’s first six months were dismal, failed marketing plans and underutilized operating strengths resulted in a totally unacceptable situation and required an immediate management change. I’m encouraged by the performance of Larry Mullin and his team recently installed at Trump Plaza. With fresh marketing ideas, new slot machines on the floor, a renewed Trump Style customer service and undoubtedly the best location on the Boardwalk, I foresee a return to the operating levels of prior years.”


Trump Marina reported net revenues of $73.9 million and EBITDA of $13.2 million for the quarter ended June 30, 2000. Net revenues for the quarter ended June 30,1999 were $75.7 million and EBITDA was $13.8 million. For the six months period ended June 30, 2000 Trump Marina reported net revenues of $137.9 million and EBITDA of $22.7 million compared to net revenues of $140.2 million and EBITDA of $22.7 million for the six months period ended June 30, 1999. “The Trump Marina continues to provide a fresh casual and decidedly fun atmosphere for its customers. Its recently expanded casino floor provides an opportunity for growth in market share and with attention to cost controls should bring increases to the operating results,” Trump said.

ADVERTISEMENT


Trump Indiana reported net revenues of $31.2 million and EBITDA of $5.0 million for the 2000-second quarter ended June 30, 2000. Net revenues for the quarter ended June 30, 1999 were $36.7 million and EBITDA was $6.1 million. For the six months period ended June 30, 2000 Trump Indiana reported net revenues of $65.5 million and EBITDA of $8.8 million compared to net revenues of $73.6 million and EBITDA of $11.1 million for the six months period ended June 30, 1999. Mr. Trump noted that the company is focused on profitable business and not just increased revenues. “Intelligent marketing and cost controls will help to improve margins. Legislative relief to provide dockside gaming would also benefit the boat’s performance.”


Trump Atlantic City Associates reported combined net revenues of Trump Plaza and Trump Taj Mahal for the quarter ended June 30, 2000 of $234.6 million versus $249.0 million for the quarter ended June 30,1999. EBITDA was $43.2 million compared to EBITDA of $53.1 million for the same period 1999. For the six months period ended June 30, 2000 Trump Atlantic City Associates reported net revenues of $452.8 million and EBITDA of $83.9 million compared to net revenues of $463.3 million and EBITDA of $89.4 million for the six months period ended June 30,1999.


Trump Hotels & Casino Resorts, Inc. owns and operates Trump Plaza Hotel & Casino, Trump Taj Mahal Resort and Trump Marina Hotel Casino in Atlantic City, NJ, 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.


The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements so long as those statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those projected in such statements.


All statements, trend analysis and other information contained in this release relative to THCR’s performance, trends in THCR’s operations or financial results, plans, expectations, estimates and beliefs, as well as other statements including words such as “anticipate,” “believe,” “plan,” “estimate,” “expect,” “intend” and other similar expressions, constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995. In connection with certain forward-looking statements contained in this release and those that may be made in the future by or on behalf of THCR, THCR notes that there are various factors that could cause actual results to differ materially from those set forth in any such forward-looking statements. The forward-looking statements contained in this release were prepared by management and are qualified by, and subject to, significant business, economic, competitive, regulatory and other uncertainties and contingencies, all of which are difficult or impossible to predict and many of which are beyond the control of THCR. Accordingly, there can be no assurance that the forward-looking statements contained in this release will be realized or that actual results will not be significantly higher or lower. Readers of this release should consider these facts in evaluating the information contained herein. In addition, the business and operations of THCR are subject to substantial risks which increase the uncertainty inherent in the forward-looking statements contained in this release. The inclusion of the forward-looking statements contained in this release should not be regarded as a representation by THCR or any other person that the forward-looking statements contained in the release will be achieved. In light of the foregoing, readers of this release are cautioned not to place undue reliance on the forward-looking statements contained herein.


——-