NEW YORK, October 16, 1997 Trump Hotels & Casino Resorts, Inc. (NYSE: DJT) today reported a 15 percent increase in third quarter 1997 consolidated net revenues to $375.2 million from $325.6 million for the same period last year, reflecting the inclusion of Trump Marina.
EBITDA (earnings before interest, taxes, depreciation, amortization, CRDA and non-operating income) for the three month period ending September 30, 1997 was down slightly to $80.1 million from $82.8 million for the same period in the prior year.
Net income for the 1997 third quarter was $3.0 million or $0.13 per share, consistent with analysts' estimates. This compared with net earnings of $19.5 million or $0.81 per share in the third quarter of 1996. Due to the acquisition of Trump Marina, interest expense increased during this year's third quarter to $52.6 million from $43.7 million for the same period last year. The Company said that last year's third quarter results included an unusual $12 million gain from the table loss of one premium player and a $5 million gain from a one-time utility company credit. This year's third quarter results were negatively impacted by unusually low table game win percentages in July and August 1997. Trump Hotels & Casino Resorts said that had July and August win rates been normalized, 1997 third quarter revenues would have increased by $9.6 million, EBITDA would have increased by $8.8 million and net income would have increased by $5.4 million or $0.24 per share.
Our operating results reflect the investments this company has made in the continued upgrade and expansion of its properties. Each of our Atlantic City properties can stand alone as a premier casino, however, together they command approximately thirty percent of the Atlantic City market. This market has already surpassed the Las Vegas strip in gaming revenues, and though stable and growing, is far from mature.
"Earlier this year we repositioned our Marina property to reflect a nautical theme to capitalize on its unique location at the head of the largest marina on the eastern seaboard. We are extremely pleased with its initial results. We have added new tower suites to the Plaza and improved slot signage through out the Trump indiana casino. We also moved the high-end Baccarat pit to a central location, and added a high-end slot lounge, 'Fifth Avenue,' to this facility.
"In our three Atlantic City properties combined, we currently have 10,368 slots and 359 gaming tables encompassing 362,000 square feet of designated casino space supported by over 3,400 hotel rooms. We expect to continue to benefit from cost saving measures and economies of scale.
"Trump Indiana represents a good opportunity in this emerging gaming market. Its proximity to Chicago is excellent and offers a new recreation destination for the entire Midwest.
We are currently constructing a 300- room hotel which is expected to open in the fourth quarter of 1998. And, we will soon open an entertainment facility on the fourth deck. We currently operate 1,416 slots and 67 gaming tables in 39,000 square feet."
Trump Atlantic City Associates
Trump Atlantic City Associates reported combined net revenues for Trump Taj Mahal and Trump Plaza in the 1997 third quarter of $265.2 million versus $288.2 million for the 1996 period. EBITDA was $65.0 million and net income was $13.5 million, compared to EBITDA of $77.8 million and net income of $25.7 million in the same period of 1996. The decline in EBITDA is in large part attributable to a combined 11.6 percent table game win in July and August 1997 at the Taj Mahal compared to a normal win of 16.5 percent.
Trump Taj Mahal Associates
Trump Taj Mahal Associates reported net revenues of $152.1 million and EBITDA of $40.0 million for third quarter 1997 compared to net revenues of $164.9 million and EBITDA of $52.8 million for the 1996 period. As noted above, the unusually low table game win percentage resulted in approximately a $7.7 million decline in EBITDA for the quarter. Additionally, the 1996 revenues included the results of one premium player who recorded table losses of approximately $12 million, or approximately $11 million of EBITDA for the quarter.
Due in large part to the opening of the Taj's new 5,000 space garage and the Boardwalk slot lounge, slot revenues increased over $5 million from third quarter 1996, despite competition from the opening of Bally's Wild West casino.
Trump Plaza Associates
Trump Plaza Associates reported net revenues of $113.1 million for third quarter 1997 compared to $123.3 million for the same period of 1996. EBITDA remained constant at $25.0 million reflecting reductions in expenses and the benefits of consolidated operations of the three Atlantic City properties.
Trump Marina, known as Trump's Castle until June 1997, reported net revenues of $79.6 million for the three months ended September 30, 1997 compared to $72.9 million in the 1996 comparable period. EBITDA for the 1997 quarter was $15.1 million compared to $7.9 million in the third quarter of 1996.
Trump Indiana Results
Trump Indiana at Buffington Harbor reported net revenues of $30.5 million for the third quarter of 1997 compared to $37.4 million for the three months ending September 30, 1996, its first full quarter of operations. EBITDA for the third quarter of 1997 was $4.2 million versus $8.5 million in the third quarter of 1996, reflecting both increased capacity and heightened competition in the market.
NINE MONTH RESULTS
For the nine months ended September 30, 1997, the company reported a 69 percent increase in consolidated net revenues to $1.1 billion from $641.8 million for the same period of 1996. EBITDA increased 52 percent to $208.3 million for the 1997 nine month period from $136.6 million for the same period of 1996. The net loss was $14.2 million or $0.62 per share for the nine month period of 1997 compared to a net loss of $34.7 million or $1.86 per share in the 1996 period.
Trump Atlantic City Associates
Trump Atlantic City Associates reported combined net revenues of $756.9 million , EBITDA of $162.2 million and net income of $3.3 million for the nine month period of 1997, compared to net revenues of $595.9 million, EBITDA of $141.7 million and a net loss of $23.4 million in the 1996 period.
Trump Taj Mahal
Net revenues for Trump Taj Mahal Associates for the nine months of 1997 were $437.5 million, compared to $431.1 million in 1996. EBITDA for the 1997 nine month period was $104.2 million compared to $101.8 million in 1996.
Trump Plaza Associates
Trump Plaza Associates reported nine month revenues of $319.4 million compared to $310.8 million in the 1996 nine month period. EBITDA was $ 58.0 in the 1997 period compared to $59.2 million in 1996.
Trump Marina, known as Trump's Castle until June 1997, reported net revenues of $223.1 million in the first nine months of 1997, compared to $207.9 million in the same period of 1996. EBITDA was $35.5 million in 1997, compared to $20.5 million in the 1996 period.
Trump Indiana at Buffington Harbor reported net revenues of $105.5 million and EBITDA of $20.6 million for the first nine months of 1997. Net revenues and EBITDA for the period from opening on June 8, 1996 through September 30, 1996 were $45.9 million and $4.4 million, respectively.
We look forward to a big holiday season in Atlantic City. Tony Bennett and Bette Midler will be headlining at the Taj in November and December and we will have continuous youth-oriented entertainment at the Marina. George Foreman will be in the ring for a championship boxing event. The new Trump Link Jackpot will be operational by then. This progressive link jackpot will pay off a $10,000 jackpot once a day at one of the three casinos.
"We are adding staff both in the slot and table games areas to make each of our casino operations more competitive. By early 1998 a new promotional program will be in effect.
"Merrill Lynch continues as our banker researching potential buyers for the Trump Plaza. Though this is a great property, its sale will allow us to explore new locations and further diversify our company.
"Being committed to expansion, we continue to evaluate new market opportunities across the country and internationally. We have proposals pending for casino/hotel developments in Detroit, Michigan and the Niagara Falls area of Ontario, Canada. Each of these emerging markets offers great potential. We anticipate that the respective governments will choose the successful licensees by year end. 1997 is wrapping up as a solid growth year with each of our four major properties contributing to our corporate vision."
Trump Hotels & Casino Resorts, Inc. owns and operates three properties in Atlantic City, New Jersey: Trump Plaza Hotel & Casino, Trump Taj Mahal Casino Resort and Trump Marina Hotel Casino. Additionally, the company owns and operates Trump Indiana, the riverboat casino at Buffington Harbor, Indiana on Lake Michigan, twenty miles from Chicago.
Trump's Castle Associates, d/b/a Trump Marina, was acquired on October 7, 1996 and therefore its results for the three and nine months ended September 30, 1996 are not included in Trump Hotels & Casino Resorts, Inc. Trump Taj Mahal Associates was acquired on April 17, 1996 and is included in Trump Hotels & Casino Resorts, Inc. operating results after that date. Trump Indiana at Buffington Harbor commenced operations on June 8, 1996.