Trump Hotels & Casino Resorts Third Quarter 2001 Results

Trump Hotels & Casino Resorts, Inc. (THCR) (NYSE:DJT) announced today that for the third quarter ended September 30, 2001, consolidated net revenues and EBITDA (earnings before interest, taxes, depreciation, amortization, CRDA writedown, and corporate expenses) were $366.9 million and $92.2 million, respectively, compared to $379.2 million and $94.0 million reported for the same period in 2000. Consolidated revenues and EBITDA for the nine-month period ended September 30, 2001 were $1,008.2 million and $207.4 million, respectively, compared to $1,024.9 million and $209.3 million, respectively, for the nine-month period ended September 30, 2000. Net income for the 2001 third quarter was $9.5 million, or $.43 per share, compared to net income of $9.0 million, or $.41 per share, in the 2000 third quarter. Included in the third quarter 2000 net income is a $1.2 million extraordinary gain, net of minority interest, resulting from the repurchase of debt. Consolidated net loss for the nine-month period ended September 30, 2001 was $15.1 million ($.69 per share), compared to a $12.4 million net loss ($.56 per share), which includes a $9.5 million extraordinary gain, net of minority interest, resulting from the repurchase of debt, for the nine-month period ended September 30, 2000. Donald J. Trump, Chairman of the Board, said, “The world changed on September 11. Considering the state of the economy before the terrorist attacks and the post-attack economic disruptions, all of our properties achieved a solid operating performance during the quarter.”

Trump Taj Mahal Associates reported net revenues of $159.1 million and EBITDA of $44.6 million for the three-month period ended September 30, 2001. Net revenues for the three months ended September 30, 2000 were $164.2 million and EBITDA was $48.3 million. For the nine-month period ended September 30, 2001, net revenues and EBITDA at the Taj Mahal were $428.7 million and $101.8 million, respectively, compared to $439.1 million and $110.1 million, respectively, for the same period in 2000.
Mark A. Brown, President and Chief Executive Officer, said, “By continuing the marketing programs that have proved successful and remaining ever diligent on cost controls, the Taj Mahal has maintained its number one ranking in gaming revenues in Atlantic City. Our market is essentially drive-in and not at all dependent on air travel. As a company, we are looking at ways to mitigate the effects of the softer economy and the heightened sensitivity of our patrons.”


Trump Plaza Associates reported net revenues of $94.1 million and EBITDA of $22.5 million for the quarter ended September 30, 2001, versus net revenues of $96.0 million and EBITDA of $18.6 million for the same period in 2000. For the nine-month period ended September 30, 2001, Trump Plaza reported net revenues of $265.0 million and EBITDA of $47.1 million, compared to net revenues of $265.3 million and EBITDA of $40.7 million for the nine-month period ended September 30, 2000. Mr. Brown commented, “I`m extremely pleased with the continued turnaround at Trump Plaza. Our current year nine-month results exceed 2000`s full year EBITDA. A favorable hold percentage and a continued effort to control costs have boosted the quarter`s margins to 23.9% from 19.4%, while the nine-month margin was lifted to 17.8% from 15.4%. Our efforts to improve service and slot selection are reflected in these results. Again, these uncertain times dictate continued diligence in reducing costs.”


Trump Marina reported net revenues of $81.1 million and EBITDA of $18.7 million for the quarter ended September 30, 2001. Net revenues for the quarter ended September 30, 2000 were $87.8 million and EBITDA was $21.9 million. For the nine-month period ended September 30, 2001, Trump Marina reported net revenues of $216.5 million and EBITDA of $38.7 million, compared to net revenues of $224.2 million and EBITDA of $44.7 million for the nine-month period ended September 30, 2000. Mr. Brown noted, “A decrease in high-end table game play along with a lower hold percentage from 17.9% to 16.7% impacted the Marina`s third quarter revenues. The Marina has benefited from the new connector roadway from the Atlantic City Expressway. The `Wild Side` image and the off the Boardwalk locale continue to provide the Marina with a marketing edge. As with its sister properties, costs are being controlled with service to the customer remaining a top priority.”


Trump Indiana reported net revenues of $32.6 million and EBITDA of $6.4 million for the third quarter ended September 30, 2001. Net revenues for the quarter ended September 30, 2000 were $31.3 million and EBITDA was $5.1 million. For the nine-month period ended September 30, 2001, Trump Indiana reported net revenues of $98.1 million and EBITDA of $19.8 million, compared to net revenues of $96.4 million and EBITDA of $13.9 million for the nine-month period ended September 30, 2000. Mr. Brown commented, “Trump Indiana`s current year nine month EBITDA exceeds the 2000 full year amount. In a very competitive market, the Company has increased casino revenues for both the quarter and nine months. Operating margins have increased from 16.4% to 19.7% for the quarter and from 14.4% to 20.2% for the nine-month period. A focus on cost-effective marketing programs and emphasis on Trump-style service have helped the property reach these levels.”

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Trump Atlantic City Associates reported combined net revenues of Trump Plaza and Trump Taj Mahal for the quarter ended September 30, 2001 of $253.2 million versus $260.2 million for the quarter ended September 30, 2000. EBITDA was $67.1 million, compared to EBITDA of $66.9 million for the same period of 2000. For the nine-month period ended September 30, 2001, Trump Atlantic City Associates reported net revenues of $693.6 million and EBITDA of $148.9 million, compared to net revenues of $704.4 million and EBITDA of $150.8 million for the nine-month period ended September 30, 2000.

Mr. Trump concluded, “Due to the economic consequences of the September 11 terrorist attacks, New York State has approved the largest gambling package in its history. This package, including three casinos in the Catskills, just ninety minutes from Manhattan, together with video slot machines at numerous racetracks, including Aqueduct in New York City and Yonkers, as well as proposed expansion of gaming in other nearby states, could lead to a tremendous erosion of revenue in Atlantic City. This is particularly unfortunate since with management`s efforts, we have been showing very positive results. The management team has increased slot win to record levels while simultaneously cutting costs. While we have been working very hard to maximize the results at our properties, these world and local events could likely lead to diminishing revenues in the Atlantic City market.”

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, 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.


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