Park Place Entertainment Corporation (NYSE: PPE) today reported financial results for the quarter and nine months ended September 30, 2002.
For the third quarter of 2002, Park Place reported net income of $40 million, or $0.13 per diluted share, including one-time charges of $10 million. Those charges include $7.5 million related to the cancellation of an energy contract with Enron Corporation and $2.5 million for damage caused to Gulf Coast properties by Tropical Storm Isidore.
For the year-ago quarter, the company reported a net loss of $(101) million, or $(0.34) per diluted share, including goodwill amortization. Results for the third quarter of 2001 included one-time charges of $175 million for the write-down and sale of assets.
Adjusted earnings for the third quarter of 2002, excluding one-time charges and pre-opening expense, were $0.16 per diluted share. That compares to adjusted earnings of $0.10 per diluted share for the third quarter of last year, excluding one-time charges, pre-opening expense and goodwill amortization.
Net revenue for the third quarter of 2002 was $1.215 billion, up from $1.189 billion for the third quarter of 2001. Earnings before interest, taxes, depreciation, amortization, pre-opening expense and one-time charges (EBITDA) were $290 million for the third quarter of 2002, up from $259 million for the third quarter of 2001.
Operating results for the third quarter of 2001 reflected the dramatic decline in travel and tourism that followed the September 11, 2001 terrorist attacks on New York and Washington.
For the first nine months of 2002, Park Place reported adjusted net income of $144 million, or $0.47 per diluted share. That compares to adjusted net income of $147 million, or $0.49 per diluted share, for the nine months ended September 30, 2001. Adjusted net income excludes one-time charges, pre-opening expense and the cumulative effect of the accounting change related to goodwill.
Including the effect of the goodwill accounting change, one-time charges and pre-opening expense, the net loss for the first nine months of 2002 was $(803) million, or $(2.64) per diluted share. In the first nine months of 2001, the net loss including one-time charges, pre-opening expense and goodwill amortization was $(8) million, or $(0.03) per diluted share.
In accordance with Statement of Financial Accounting Standards No. 142, “Goodwill and Other Intangible Assets,” the company recorded a non-cash charge in the first quarter of this year of $979 million to write down the value of goodwill associated with previous acquisitions.
Net revenue for the first three quarters of 2002 was $3.571 billion, compared to $3.521 billion for the first three quarters of 2001. EBITDA for the first nine months of 2002 was $879 million, compared to $884 million for the period ending September 30, 2001.
“With the exception of our results at Caesars Palace, we had a solid quarter in all of our regions. Our strategy remains focused on our major properties in the major gaming markets,” said Park Place President and Chief Executive Officer Thomas E. Gallagher.
“While construction and hold volatility at Caesars Palace affected our quarterly results, we`re making strong progress in transforming that property into a premier destination worthy of the best brand in gaming. We`ll begin to see the results with the opening next March of `A New Day,` the Celine Dion spectacular at our new Colosseum.”
Full details at www.parkplace.com