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Resorts Doubles to $48.8 million from $24 million a Year Earlier, Revenue Falls 1% |
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| NEW YORK - --April 30, 2004 -- Trump Hotels & Casino Resorts, Inc.
("THCR" or the "Company") (NYSE:DJT) today reported its first quarter operating
results. THCR reported consolidated net revenues (defined as gross revenues
less promotional allowances) for the quarter ended March 31, 2004 of $276.2
million, compared to $278.8 million for the quarter ended March 31, 2003.
Consolidated income from operations for the quarter ended March 31, 2004
was $27.8 million, compared to $27.3 million for the quarter ended March
31, 2003. Consolidated net loss for the quarter ended March 31, 2004 was
$48.8 million, or $1.63 per share (included in net loss is a provision
for Indiana state income taxes of $19.1 million or $0.64 per share, reflecting
additional Indiana state taxes for the period beginning with the commencement
of gaming in 1996 through the first quarter of 2004 as a result of a recent
tax court ruling to an Indiana gaming company concerning the deductibility
of the Riverboat wagering tax in calculating state income taxes), compared
to a net loss of $24.0 million, or $1.09 per share, net of minority interest
of $5.1 million, for the quarter ended March 31, 2003. EBITDA (defined
as income from operations before depreciation, amortization, non-cash CRDA
write-downs, non-recurring debt renegotiation costs and corporate expenses)
for the quarter ended March 31, 2004 was $56.7 million, compared to EBITDA
of $56.8 million reported for the quarter ended March 31, 2003. Readers
are advised that the term "EBITDA" is not a measure of financial performance
under generally accepted accounting principles. The Company uses EBITDA
because it believes that it is used by certain investors in measuring an
entity's operating performance. A reconciliation of EBITDA to income from
operations is included in the attached schedules.
Donald J. Trump, Chairman, President and Chief Executive Officer, commented, "The Atlantic City market has become increasingly more competitive. However, the more favorable weather conditions this year helped offset the effects of this increased competition. The Trump brand is as strong as it's ever been. The success of 'The Apprentice' has generated significant exposure for our Company's largest asset, the Trump Taj Mahal. We continue to work on a recapitalization of the Company as contemplated by the proposed $400 million investment by DLJ Merchant Banking Partners III, L.P., which would help the Company reduce its expensive debt and thereby provide additional cash flow to invest back into the properties." Scott C. Butera, Executive Vice President, Director of Corporate & Strategic Development, commented further, "We are making progress in moving this recapitalization process forward. Various stakeholders have selected legal and financial advisors to review proposals and have been engaged with the Company in constructive discussions. We look forward to providing further details on this process as soon as it's appropriate to release such information." Trump Taj Mahal Associates reported net revenues of $112.7 million for the quarter ended March 31, 2004, compared to $118.5 million for the quarter ended March 31, 2003. Income from operations for the quarter ended March 31, 2004 was $12.1 million, compared to $16.0 million for the quarter ended March 31, 2003. EBITDA was $25.1 million for the quarter ended March 31, 2004, compared to $27.2 million for the quarter ended March 31, 2003. Mark A. Brown, the Company's Chief Operating Officer, commented, "We continue to upgrade our slot product at all our properties. The Taj, and in fact all of our gaming properties, had year-over-year increases in win per position per day for their respective slot products, as a result of reconfiguring the casino floor, removing older machines and adding new cashless equipment to improve our efficiency. A majority of the $2.1 million decrease in EBITDA year-over-year was caused by the decrease in table game hold percentage, notwithstanding the fact that the Taj Mahal's competitive landscape changed not only by the opening of the Borgata, but also by the opening of a 500-room hotel tower next door at the Showboat." Trump Plaza Associates reported net revenues of $65.6 million for the quarter ended March 31, 2004, compared to $70.0 million for the quarter ended March 31, 2003. Income from operations for the quarter ended March 31, 2004 was $4.5 million, compared to $7.3 million for the quarter ended March 31, 2003. EBITDA was $10.7 million for the quarter ended March 31, 2004, compared to $12.9 million for the quarter ended March 31, 2003. Mr. Brown said, "The Plaza had a similar decrease in table game hold percentage as the Taj and the Marina. The scheduled opening of the Rainforest Cafe will add a fresh new look to the Boardwalk entrance. Like our sister properties, the Plaza is migrating toward a 100% cashless slot product." Trump Marina reported net revenues of $58.2 million for the quarter ended March 31, 2004, compared to $58.5 million for the quarter ended March 31, 2003. Income from operations for the quarter ended March 31, 2004 was $4.0 million, compared to $2.6 million for the quarter ended March 31, 2003. EBITDA was $9.8 million for the quarter ended March 31, 2004, compared to $8.2 million for the quarter ended March 31, 2003. Mr. Brown commented, "Our marketing programs at the Marina and the opening of the return ramp from the Borgata have helped the property show a year-over-year increase in operating income and EBITDA despite the decrease in table game hold percentage." Trump Indiana reported net revenues of $37.4 million for the quarter ended March 31, 2004, compared to $30.8 million for the quarter ended March 31, 2003. Income from operations for the quarter ended March 31, 2004 was $5.5 million, compared to $4.1 million for the quarter ended March 31, 2003. EBITDA was $8.9 million for the quarter ended March 31, 2004, compared to $7.6 million for the quarter ended March 31, 2003. Mr. Brown commented, "Our targeted marketing programs and the introduction of poker have helped drive higher revenues, operating income and EBITDA." The ongoing dispute over the deductibility of Indiana gaming taxes for state income tax purposes has resulted in an initial judgment by the Indiana tax court in favor of the Indiana Department of Revenue on this matter against another Indiana gaming company. The Company has estimated its obligation will be $19.1 million to cover the assessment of taxes and interest for the period beginning with the commencement of gaming in 1996 through the first quarter 2004 and has recorded a cumulative charge during the quarter ended March 31, 2004. We, along with our industry peers in the Indiana gaming market, intend to continue to vigorously defend our position. It is possible that the Company's estimates related to this matter may change based upon the ultimate findings of the tax court related to the proposed assessments. THCR Management Services during the quarter ended March 31, 2004, earned $2.3 million, compared to $1.0 million for the quarter ended March 31, 2003, in management fees under its five-year management agreement with the Twenty-Nine Palms Band of Luiseno Mission Indians of California for Trump 29 Casino and incurred $0.1 million in associated general and administrative costs for each of the quarters ended March 31, 2004 and March 31, 2003. Mr. Brown said, "Our higher management fee is reflective of the higher operating results at Trump 29 resulting from our successful marketing programs which have increased our customer base." For the quarter ended March 31, 2004, Trump Atlantic City Associates ("TACA") reported combined net revenues of Trump Plaza and Trump Taj Mahal of $178.3 million, compared to net revenues of $188.5 million for the quarter ended March 31, 2003. Income from operations for the quarter ended March 31, 2004 was $16.6 million, compared to $23.2 million for the quarter ended March 31, 2003. EBITDA was $35.8 million for the quarter ended March 31, 2004, compared to $40.1 million for the quarter ended March 31, 2003. TACA anticipates making the next interest payment on its 11-1/4% First Mortgage Notes due 2006 before May 30, 2004, as permitted by the indentures governing such indebtedness. For the quarter ended March 31, 2004, Trump Casino Holdings, LLC ("TCH")
reported combined net revenues of Trump Marina and Trump Indiana and for
Trump 29 of $97.9 million, compared to net revenues of $90.3 million for
the quarter ended March 31, 2003. Income from operations for the quarter
ended March 31, 2004 was $12.9 million, compared to $7.3 million for the
quarter ended March 31, 2003. EBITDA was $20.9 million for the quarter
ended March 31, 2004, compared to $16.7 million for the quarter ended March
31, 2003.
THCR is a leading gaming company that owns and operates four properties and manages one property under the Trump brand name. THCR's owned assets include Trump Taj Mahal Casino Resort and Trump Plaza Hotel and Casino, located on the Boardwalk in Atlantic City, New Jersey, Trump Marina Hotel Casino, located in Atlantic City's Marina District, and the Trump Casino Hotel, a riverboat casino located in Gary, Indiana. In addition, the Company manages Trump 29 Casino, a Native American owned facility located near Palms Springs, California. Together, the properties comprise approximately 451,280 square feet of gaming space and 3,180 hotel rooms and suites. The Company is the sole vehicle through which Donald J. Trump conducts gaming activities and strives to provide customers with outstanding casino resort and entertainment experiences consistent with the Donald J. Trump standard of excellence. THCR is separate and distinct from Mr. Trump's real estate and other holdings. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements so long as those statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those projected in such statements. All statements, trend analysis and other information contained in this release relative to THCR's or its subsidiaries' performance, trends in THCR's or its subsidiaries' operations or financial results, plans, expectations, estimates and beliefs, as well as other statements including words such as "anticipate," "believe," "plan," "estimate," "expect," "intend," "will," "could" and other similar expressions, constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995. |
| Contact:
Trump Hotels & Casino Resorts, Inc. Scott C. Butera 212-891-1500 www.trump.com |