Trump Hotels & Casino Resorts, Inc. Reports Record Second Quarter

Trump Hotels & Casino Resorts, Inc. (“THCR” or the “Company”) (NYSE:DJT) today reported record earnings and EBITDA—- the best second quarter in its history following its previously announced record fourth quarter 2001, and first quarter 2002.

THCR`s EBITDA (defined as earnings before interest, taxes, depreciation, amortization, CRDA, debt renegotiation expenses, corporate expenses, and non-operating (income) expense) for the quarter ended June 30, 2002 increased to $81.4 million, $17.0 million higher than the $64.4 million reported for the quarter ended June 30, 2001, or a 26.3% increase. Consolidated net revenues (defined as gross revenues less promotional allowances) for the quarter ended June 30, 2002 increased to $313.4 million from $301.4 million reported for the quarter ended June 30, 2001. For the six months ended June 30, 2002, EBITDA increased to $155.5 million, $40.3 million higher than the $115.2 million reported for the six months ended June 30, 2001, or a 35.0% increase. Consolidated net revenues for the six months ended June 30, 2002 increased to $614.6 million from $582.8 million reported for the six months ended June 30, 2001. The net income for the 2002 second quarter was $0.2 million, or $.01 per share, compared to a $7.8 million loss, or $.35 per share, in the second quarter of 2001. Consolidated net loss for the six-month period ended June 30, 2002 was $4.3 million ($.20 per share), compared to a $24.6 million loss ($1.12 per share) for the six-month period ended June 30, 2001.


Donald J. Trump, Chairman, President and Chief Executive Officer said, “We have now posted three consecutive record quarters. Our trailing twelve months` EBITDA exceeds $310 million. All of our properties have improved their operating margins. This bodes well for our ongoing refinancing efforts, which, if successful, should reduce our interest costs. Mark Brown and his team continue to focus on improving operating results by increasing net revenues while controlling costs.”

Trump Taj Mahal Associates reported net revenues of $130.8 million and an increase in EBITDA to $36.5 million for the quarter ended June 30, 2002, compared to net revenues of $130.4 million and EBITDA of $34.4 million for the quarter ended June 30, 2001. For the six-month period ended June 30, 2002, net revenues increased to $258.1 million and EBITDA increased to $70.3 million, compared to $247.1 million and $57.2 million respectively, for the six months ended June 30, 2001. Mark A. Brown, President and Chief Operating Officer commented, “The Taj Mahal`s operating results reflect the quality of our facility and management`s attention to the quality of our customers gaming experience. Having so many entertainment and dining options, the Taj remains the `must see` attraction in Atlantic City. By continually updating the slot product and by giving our slot players the same recognition as our table players, the property has been able to achieve slot volume and win records. With targeted marketing programs run with tight cost controls, the property has increased its EBITDA margin to 27.9% for the quarter ended June 2002, and to 27.2% for the six months ended 2002, from 26.4% for the quarter ended June 30, 2001, and 23.1% for the six months ended June 30, 2001.”


Trump Plaza Associates reported an increase in net revenues to $82.2 million and an increase in EBITDA to $19.5 million for the quarter ended June 30, 2002, compared to net revenues of $78.3 million and EBITDA of $12.6 million for the quarter ended June 30, 2001. For the six-month period ended June 30, 2002, Trump Plaza reported an increase in net revenues to $160.5 million and an increase in EBITDA to $37.0 million, compared to net revenues of $154.5 million and EBITDA of $24.6 million for the six-month period ended June 30, 2001. Mr. Brown noted, “Trump Plaza continues its growth. The gaming floor is under constant revision, bringing the latest more popular games to our patrons. With our continued emphasis on customer service and innovative marketing programs, our customer base continues to grow and our operating results reflect this success, which has resulted in improved margins. The EBITDA margin increased to 23.7% for the quarter ended June 30, 2002, from 16.0% for the quarter ended June 30, 2001. For the six months ended June 30, 2002, the margin increased to 23.1% from 15.9% for the six months ended June 30, 2001.”
Trump Marina reported an increase in net revenues to $69.1 million and an increase in EBITDA to $17.2 million for the quarter ended June 30, 2002, compared to net revenue of $61.8 million and EBITDA of $11.0 million for the quarter ended June 30, 2001. For the six-month period ended June 30, 2002, Trump Marina reported an increase in net revenues to $132.9 million and an increase in EBITDA to $31.9 million, compared to net revenues of $120.1 million and EBITDA of $20.1 million for the six-month period ended June 30, 2001. “There is more interest in the marina district than ever before”, commented Mr. Brown. “The improved access from the Atlantic City Expressway and the elimination of the prior year construction obstacles, coupled with the popularity of the `Wild Side` youth oriented entertainment, have helped us achieve these record results. Having the only marina in the marina district complementing our attractive entertainment and dining venues, combined with our well received marketing programs, has allowed the property to operate at its current record breaking rate.” Mr. Brown added, “A higher table hold percentage of 18.5% and 18.6% for the quarter and six months ended June 30, 2002, respectively, versus 15.2% and 15.8% for the quarter and six months ended June 30, 2001, contributed to our favorable results. And again, as with our other properties, Trump Marina`s EBITDA margins have improved to 24.9% and 24.0% for the quarter ended and six months ended June 30, 2002, respectively, compared to 17.7% and 16.7% for the quarter ended and six months ended June 30, 2001, respectively.”

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Trump Indiana reported net revenues of $30.2 million and an increase in EBITDA to $7.2 million for the second quarter ended June 30, 2002, compared to net revenues of $30.9 million and EBITDA of $6.5 million for the quarter ended June 30, 2001. For the six-month period ended June 30, 2002, Trump Indiana reported an increase in net revenues to $62.0 million and an increase in EBITDA to $15.3 million, compared to net revenues of $61.1 million and EBITDA of $13.4 million for the six-month period ended June 30, 2001. EBITDA margins improved to 23.9% and 24.6% for the quarter and six months ended June 30, 2002, respectively, from 21.2% and 21.9% for the quarter and six months ended June 30, 2001, respectively. Mr. Brown remarked, “As encouraging as the Trump Indiana results are to date, further improvements should be forthcoming. In May, we expanded the gaming area on the boat to the fourth floor, and in June, opened the 2,000 car garage. We have opted for dockside gaming, which should be implemented shortly. Dockside gaming eliminates the requirement to cruise and will provide our patrons with continual access to the vessel, as well as adding an additional hour to our gaming day. This should drive an increase in gaming revenue, which should offset higher tax rates enacted in connection with the legislation that enables dockside gaming.”

As previously reported, THCR Management Services, LLC, an indirect, wholly-owned subsidiary of the Company (“THCR Management”), received approval from the National Indian Gaming Commission of its five-year management agreement with the Twenty-Nine Palms Band of Luiseno Mission Indians of California during the quarter. Under the management agreement, THCR Management manages the day-to-day operations of the Tribe`s recently renovated and expanded casino renamed Trump 29 Casino, which opened on April 2, 2002. An additional expansion adding dining entertainment and more gaming space is scheduled for completion in September of this year. During the quarter and the six months ended June 30, 2002, THCR Management earned $1.1 million in management fees (included in other revenues) and incurred $0.1 million associated general administrative costs and $0.4 million in pre-opening costs (included in corporate expenses) pursuant to the management agreement.

Trump Atlantic City Associates` combined net revenues of Trump Plaza and Trump Taj Mahal for the quarter ended June 30, 2002 increased to $213.0 million, compared to $208.7 million for the quarter ended June 30, 2001. EBITDA for the quarter ended June 30, 2002 increased to $56.0 million, compared to EBITDA of $46.9 million for the same period in 2001. For the six-month period ended June 30, 2002, Trump Atlantic City Associates reported an increase in net revenues to $418.5 million and an increase in EBITDA to $107.3 million, compared to net revenues of $401.6 million and EBITDA of $81.8 million for the six-month period ended June 30, 2001.

THCR, through its wholly-owned subsidiaries, owns and operates Trump Plaza Hotel and Casino, Trump Taj Mahal Casino Resort and Trump Marina Hotel Casino in Atlantic City, New Jersey, as well as Trump Indiana, a hotel and riverboat casino at Buffington Harbor, Indiana on Lake Michigan. Also, THCR, through a wholly-owned subsidiary, manages Trump 29 Casino located in the Palm Springs, California area. It is the exclusive vehicle through which Donald J. Trump will engage in new gaming activities in both emerging and established gaming jurisdictions in both the United States and abroad.

THCR is a public company which is approximately 46.4% beneficially owned by Donald J. Trump. The Company is separate and distinct from all of Mr. Trump`s other holdings.


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