Trump Hotels & Casino Resorts Fourth Quarter And Year-End Results EBITDA Rises $19.5 Million In 2001

Trump Hotels & Casino Resorts, Inc. (“THCR” or the “Company”) (NYSE: DJT) today reported earnings and EBITDA for the quarter and the year ended December 31, 2001.

THCR`s EBITDA (earnings before interest, taxes, depreciation, amortization, CRDA and corporate expenses) for the year ended December 31, 2001 increased to $270.3 million from $250.8 million for the year ended December 31, 2000. Consolidated net revenues (gross revenues less promotional allowances) for the year ended December 31, 2001 decreased to $1,203.4 million from $1,213.8 million reported for the year ended December 31, 2000.


THCR`s EBITDA for the quarter ended December 31, 2001 increased to $62.8 million from $41.5 million reported for the quarter ended December 31, 2000. Consolidated net revenues for the quarter ended December 31, 2001 increased to $285.9 million from $278.0 million reported for the quarter ended December 31, 2000.


THCR`s net loss for the year ended December 31, 2001 decreased to $25.3 million, or $1.15 per share, net of minority interest of $14.6 million, from a net loss for the year ended December 31, 2000 of $37.3 million, or $1.69 per share, net of minority interest of $26.7 million. Net loss for the year ended December 31, 2000 includes a $9.5 million ($0.43 per share) extraordinary gain, net of minority interest of $5.5 million, resulting from the repurchase of debt and $0.5 million ($0.02 per share) for Trump World`s Fair closing costs in 2000. THCR`s net loss for the year ended December 31, 2000, before the extraordinary gain and Trump World`s Fair closing costs, was $46.2 million ($2.10 per share).


THCR`s net loss for the quarter ended December 31, 2001 decreased to $10.2 million, or $0.46 per share, net of minority interest of $5.9 million, from a net loss of $24.9 million, or $1.13 per share, net of minority interest of $14.4 million, for the quarter ended December 31, 2000.

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Donald J. Trump, Chairman and Chief Executive Officer, said, “Considering the magnitude of the September 11 tragedy and the overall poor economy throughout 2001, the consolidated fourth quarter and year end results are outstanding. The Company has produced its highest full year and fourth quarter EBITDA. Our improved operating margins were a result of cost control efforts and improved slot performance at all of our properties in the fourth quarter of 2001. These efforts, combined with milder weather and a favorable holiday calendar, led to our improved results.”


Trump Taj Mahal Associates reported decreased net revenues of $122.3 million for the quarter ended December 31, 2001 and increased EBITDA of $30.3 million, compared to net revenues for the quarter ended December 31, 2000 of $123.6 million and EBITDA of $27.0 million. For the year ended December 31, 2001, Trump Taj Mahal reported decreased net revenues of $515.0 million and decreased EBITDA of $132.0 million, compared to net revenues for the year ended December 31, 2000 of $532.2 million and EBITDA of $137.0 million.

Mark A. Brown, President and Chief Operating Officer commented, “The Taj Mahal produced its best fourth quarter EBITDA since the Company has gone public. The power of the Trump name which is synonymous with quality and elegant upscale design, coupled with our staff`s dedication to customer service helped drive this last quarter`s success.”

Trump Plaza Associates reported increased net revenues of $71.5 million for the quarter ended December 31, 2001, compared to $69.6 million for the quarter ended December 31, 2000 and increased EBITDA of $12.9 million for the quarter ended December 31, 2001, versus $3.0 million reported for the quarter ended December 31, 2000. For the year ended December 31, 2001, Trump Plaza reported increased net revenues of $311.7 million, compared to $309.0 million for the year ended December 31, 2000. EBITDA for the year ended December 31, 2001 increased to $60.0 million from $43.8 million for the year ended December 31, 2000. “I`m proud of the Plaza`s turnaround,” Mr. Brown commented. “The Plaza`s improved marketing efforts and attention to providing superior customer service, newer slot product and a favorable table game hold percentage helped drive this improved performance.”


Trump Marina reported increased net revenues of $62.8 million for the fourth quarter ended December 31, 2001, compared to $59.5 million for the quarter ended December 31, 2000. EBITDA increased to $13.3 million for the quarter ended December 31, 2001 from $8.4 million for the quarter ended December 31, 2000. For the year ended December 31, 2001, Trump Marina reported decreased net revenues of $255.7 million, compared to $263.7 million for the year ended December 31, 2000. EBITDA decreased to $52.1 million for the year ended December 31, 2001 from $53.1 million for the year ended December 31, 2000. Mr. Brown said, “The Marina had a record-breaking fourth quarter in slot volume. The results attest to the strength of the property`s marketing programs and combined with the control of expenses, the Marina has experienced an improving EBITDA trend.”


Trump Indiana reported increased net revenues of $29.4 million and increased EBITDA of $6.4 million for the quarter ended December 31, 2001 versus net revenues of $25.3 million and EBITDA of $3.1 million for the quarter ended December 31, 2000. For the year ended December 31, 2001, Trump Indiana posted increased net revenues of $120.9 million and increased EBITDA of $26.2 million, compared to net revenues of $108.9 million and EBITDA of $17.0 million for the year ended December 31, 2000. Mr. Brown commented, “Trump Indiana`s management team, like its Atlantic City counterparts, has focused on updating and improving its slot product and marketing that product more effectively. The milder Midwest weather in the 2001 fourth quarter has aided the construction time line for the new garage with its expected opening in Spring 2002 which should improve our patrons` gaming experience.”


Corporate expenses for the quarter ended December 31, 2001 decreased to $2.0 million from $2.1 million for the quarter ended December 31, 2000. For the year ended December 31, 2001, corporate expenses were reduced to $7.0 million from $11.3 million for the year ended December 31, 2000. Both periods reflect the streamlining of the corporate office and a reduction in litigation expenses.


The California development with the 29 Palms Band of Mission Indians is progressing with its expected Spring 2002 opening.


For the quarter ended December 31, 2001, Trump Atlantic City Associates reported combined increased net revenues for Trump Plaza and Trump Taj Mahal of $193.8 million versus $193.3 million for the quarter ended December 31, 2000. For the quarter ended December 31, 2001, EBITDA increased to $43.1 million from EBITDA of $30.0 million for the quarter ended December 31, 2000. For the year ended December 31, 2001, Trump Atlantic City Associates reported decreased net revenues of $826.7 million and increased EBITDA of $192.0 million, compared to net revenues of $841.2 million and EBITDA of $180.8 million for the year ended December 31, 2000.


Mr. Trump reiterated his concern with respect to New York State`s approval of the largest legislative gaming package in its history passed in the wake of the September 11th terrorist attacks. “This package, which permits 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 given management`s efforts, as demonstrated in our fourth quarter`s positive results. The management team has increased slot win while simultaneously cutting costs. While we have been working very hard to maximize the results at our properties, these world and local events might well lead to diminishing revenues in the Atlantic City market. Under such circumstances, it will become even more imperative to distinguish our properties from the competition. In this new environment, the restructuring of the terms of the Company`s $1.7 billion in public debt becomes more critical to the future of the Company.”


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