Trump Hotels & Casino Resorts, Inc. (THCR) (NYSE:DJT) today reported earnings and EBITDA for the fourth quarter and year ended December 31, 2000. All references to net revenues and EBITDA for 1999 exclude All Star Café lease termination income and Trump World`s Fair closing costs.
THCR`s EBITDA (earnings before interest, taxes, depreciation, amortization, CRDA and corporate expenses) for the year ended December 31, 2000 increased to $250.1 million versus $240.4 million reported for the prior year and consolidated net revenues were $1,351.4 million, compared to $1,394.0 million reported for 1999.
THCR`s net loss for the year was $37.3 million or $1.69 per share which includes a $9.5 million ($.43 per share) extraordinary gain, net of minority interest, resulting from the repurchase of debt and $.5 million ($.02 per share) for Trump World`s Fair closing costs compared to a net loss of $133.8 million or $6.03 per share in 1999, which includes All Star Café lease termination income ($.49 per share), Trump World`s Fair closing costs ($3.54 per share) and the charge for the cumulative effect of an accounting principle change ($.16 per share). THCR`s 2000 net loss before the extraordinary gain and Trump World`s Fair closing costs was $46.2 million ($2.10 per share) compared to a net loss of $62.5 million ($2.82 per share) for 1999 before the aforementioned items.
THCR`s net loss for the 2000 fourth quarter was $24.9 million or $1.13 per share compared to a net loss of $34.5 million or $1.56 per share in 1999. Net loss for the 1999 fourth quarter included a $2.8 million reduction, net of minority interest, in estimated Trump World`s Fair closing costs charged in the previous quarter.
Trump Taj Mahal Associates reported net revenues for the 2000 fourth quarter of $136.8 million and EBITDA of $27.0 million, compared to net revenues for the 1999 fourth quarter of $145.1 million and EBITDA of $8.2 million. For the year ended December 31, 2000, Trump Taj Mahal reported net revenues of $588.3 million and EBITDA of $137.0 million, compared to net revenues for 1999 of $563.8 million and EBITDA of $97.3 million.
Donald J. Trump, Chairman and Chief Executive Officer said, “The Taj Mahal`s results are outstanding. The new management team has focused on maximizing the profitability of the property. New marketing programs along with a renewed commitment to provide the best in customer service on the gaming floor and throughout the facility caused the current year`s rise in operating cash flow. The success of these efforts is evidenced by the fact that the year 2000 produced the top 20 slot volume days since the property opened as well as the property`s best operating performance ever.”
Trump Plaza Associates reported net revenues of $76.7 million for the fourth quarter of 2000, compared with $80.4 million for the same period in 1999 and EBITDA of $2.8 million for the 2000 fourth quarter versus $7.9 million reported for the 1999 fourth quarter. For the year ended December 31, 2000, Trump Plaza reported net revenues of $345.5 million compared to $392.5 million for all of 1999. EBITDA for the year ended December 31, 2000, was $43.0 million compared to $73.0 million for 1999.
“While I`m proud of the Taj`s turnaround I`m equally disappointed by the Plaza`s 2000 performance.” Trump said. “We continue to correct the issues at Trump Plaza”, stated Mark A. Brown, President of Trump Hotels. “The good news here is with new management in place, proven marketing programs implemented and new slot product being installed on the gaming floor, Plaza 2001 results will be back on track. As experienced by the entire city, the December storms exacerbated the poor results at Trump Plaza as did the table hold percentages for both the fourth quarter (2000 13.0% vs. 1999 13.5%) and full year (2000 14.4% vs. 1999 15.4%).”
For the 2000 fourth quarter, Trump Marina reported net revenues of $64.7 million, compared to $70.1 million for the 1999 fourth quarter. EBITDA decreased to $8.4 million for the 2000 quarter, compared to $10.3 million for the 1999 fourth quarter. For the full year 2000, Trump Marina reported net revenues of $292.6 million, compared to $293.8 million for the year ended December 31, 1999. EBITDA increased to $53.1 million for the year ended December 31, 2000, compared to $52.6 million for the year ended December 31, 1999. Brown continued, “The Marina has a winning formula. By putting together two $50 million plus EBITDA years in a row it has demonstrated its appeal to its expanding customer base. The slight decrease in the fourth quarter was due to the effects of poor weather and lower table hold percentage (16.0% vs. 18.1%).” “We feel that the opening of the roadway from the Expressway to the Marina District in 2001 will increase patrons attracted to the property in the coming year,” Trump added.
Trump Indiana reported 2000 fourth quarter net revenues of $28.1 million and EBITDA of $3.1 million, versus $35.4 million and $1.4 million, respectively, for the 1999 fourth quarter. For the full year ended December 31, 2000, Trump Indiana posted net revenues of $124.9 million and EBITDA of $17.0 million, compared to net revenues of $144.0 million and EBITDA of $17.5 million for 1999.
Brown commented, “I am extremely pleased with the progress made by our new management at Buffington Harbor. Their improved fourth quarter operating results reflect their sound marketing programs and knowledge of the local gaming market.” Trump continued, “The current session of the Indiana Legislature is considering allowing dockside gaming. However, certain proposals include significant increases in the tax rates on gaming revenue. Dockside gaming should not be shackled with onerous taxes which could eliminate the projected benefits of not having to cruise.” Trump added, “We anticipate the opening of the 2,000 space parking garage which will greatly improve our customers access to our gaming vessel by the end of this year.”
Fourth quarter 2000 corporate expenses were $1.9 million compared to $7.9 million in fourth quarter 1999. 2000 full year corporate expenses were reduced to $9.9 million compared to $21.0 million in 1999. Both periods reflect the streamlining of the corporate office and a reduction in litigation expenses. The fourth quarter CRDA charge increase reflects the write-off of certain prior year CRDA deposits, which were donated for social projects throughout New Jersey.
The California development with the 29 Palms Band of Mission Indians is progressing and is scheduled for a late 2001 opening.
Trump Atlantic City Associates reported combined 2000 fourth quarter net revenues for Trump Plaza and Trump Taj Mahal, of $213.5 million versus $225.4 million for the 1999 fourth quarter. 2000 fourth quarter EBITDA was $29.8 million compared to 1999 fourth quarter EBITDA of $16.1 million. For the year ended December 31, 2000, Trump Atlantic City Associates reported net revenues of $933.8 million and EBITDA of $180.0 million compared to net revenues of $956.2 million and EBITDA of $170.3 million for the year ended December 31,1999.
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.