Printer Friendly

CAESARS WORLD REPORTS FISCAL YEAR RECORDS IN REVENUE, NET INCOME, EARNINGS PER SHARE

 LOS ANGELES, Aug. 25 /PRNewswire/ -- Caesars World Inc. (NYSE: CAW) today announced net income for the fiscal year ended July 31, 1993, was $83,215,000, or $3.40 per share. During fiscal 1992, the company's income on a comparable basis -- before an extraordinary charge -- was $72,708,000, or $3.01 per share. After the extraordinary charge, which was related to a debt refinancing and was taken during the fiscal 1992 fourth quarter, the company's net income for fiscal 1992 was $66,005,000,or $2.73 per share.
 Caesars World's fiscal 1993 revenue amounted to $983,459,000, compared with $933,298,000 in fiscal 1992.
 Henry Gluck, chairman and chief executive officer, said, "We are especially pleased to report that the fiscal 1993 results established all-time company records in revenue, net income and earnings per share. When comparing earnings for the past two fiscal years, our 1993 net income increased 14 percent over the 1992 income before the extraordinary charge."
 For the fiscal 1993 fourth quarter, net income amounted to $25,686,000, or $1.04 per share, compared with $17,133,000, or 71 cents per share, before the extraordinary charge. After last year's extraordinary after-tax charge of $6,703,000, or 28 cents per share, net income in the fiscal 1992 quarter was $10,430,000, or 43 cents per share.
 Revenue for the fiscal 1993 fourth quarter was $262,015,000, compared with $245,629,000 in the fiscal 1992 quarter.
 Gluck pointed out that increased play in both table games and slot machines at the company's Nevada facilities was the major contributor to the improved revenue results during fiscal 1993. He also said interest expenses decreased significantly when compared with the prior-year reporting periods, primarily the result of the debt refinancing which was completed during the fiscal 1993 first quarter.
 The improved casino performance resulted in contributions to earnings from Nevada operations reaching the highest levels for any 12-month or fourth quarter period in Caesars World's history.
 Slot machine activity in Nevada continued to achieve record levels, registering the highest amount of play for any fiscal year or fourth quarter. Slots revenue for the year increased approximately 35 percent over fiscal 1992 and improved about 22 percent in the quarter-to-quarter comparison. These improvements were primarily attributable to Caesars Palace in Las Vegas where business has grown dramatically since the May 1992 opening of The Forum Shops at Caesars and the simultaneous introduction of new marketing programs. The improvement in the comparison between the fiscal 1993 and 1992 fourth quarters was especially noteworthy since The Forum Shops at Caesars drew large opening crowds throughout most of the 1992 period.
 Table-game play in Nevada showed increases when comparing the full fiscal years and fourth quarters. In fact, fiscal 1993 table-game activity was the highest for any Caesars World fiscal year, rising 14 percent over fiscal 1992. Table-game win percentages for fiscal 1993, however, were down from the previous fiscal year but the fourth quarter comparisons showed an improvement in win percentages.
 The improved results in Nevada operations were partially offset by higher marketing and casino expenses as well as increased provisions for doubtful accounts during both the full-year and fourth quarter reporting periods.
 In New Jersey, Caesars Atlantic City's fiscal 1993 revenue and contribution to earnings were down from the previous fiscal year because of lower table-game activity and win percentages. Slots revenue for the year was the best in the resort's history despite a substantial reduction in busing programs. Lower marketing expenses and a reduced provision for doubtful accounts during fiscal 1993 were partially offset by higher general and administrative expenses.
 When comparing the fourth quarters, Caesars Atlantic City's contribution to earnings in fiscal 1993 increased 30 percent, largely due to a reduction in casino marketing expenses. Additionally, an increase in table-game win percentages offset the decrease in table-game activity.
 Caesars World's decreases in interest expense in fiscal 1993 was 38 percent for the full year and 49 percent when comparing the respective fourth quarters. These decreases were due to ongoing debt repayments and lower overall interest rates resulting principally from the company's debt refinancing which was substantially completed Oct. 1, 1992.
 CAESARS WORLD INC.
 Summary of Earnings
 (In thousands, except net income per share)
 For the periods ended July 31,
 Three Months 12 Months
 1993 1992 1993 1992
 Revenue
 Nevada $151,173 $135,320 $574,507 $516,941
 New Jersey(a) 93,947 93,576 345,088 355,655
 Casino/hotel
 operations 245,120 228,896 919,595 872,596
 Pocono resorts 12,533 12,511 44,177 43,300
 Other(b) 4,362 4,222 19,687 17,402
 Total revenue $262,015 $245,629 $983,459 $933,298
 Contributions to
 operating income
 Nevada $27,899 $22,207 $106,489 $94,988
 New Jersey 19,513 15,025 60,681 69,154
 Casino/hotel
 operations 47,412 37,232 167,170 164,142
 Pocono resorts 2,950 3,813 9,100 9,867
 Other expenses(b) (4,377) (3,045) (17,159) (14,120)
 Operating income 45,985 38,000 159,111 159,889
 Interest income 490 142 1,748 989
 Interest expense (5,287) (10,419) (26,883) (43,518)
 Income before income
 taxes 41,188 27,723 133,976 117,360
 Income taxes 15,502 10,590 50,761 44,652
 Income before
 extraordinary loss 25,686 17,133 83,215 72,708
 Extraordinary loss, net
 of tax benefit(c) --- (6,703) --- (6,703)
 Net income $25,686 $10,430 $83,215 $66,005
 Net income (loss)
 per share
 Income before
 extraordinary loss $1.04 $.71 $3.40 $3.01
 Extraordinary loss --- (.28) --- (.28)
 Net income $1.04 $.43 $3.40 $2.73
 Average number of common
 and common equivalent
 shares outstanding 24,583 24,180 24,475 24,167
 (a) The 1992 revenue has been reclassified in order to conform to the presentation used in 1993.
 (b) Other revenue is primarily from merchandising operations. Other expenses include the contribution from merchandising operations and corporate expenses.
 (c) The extraordinary loss in 1992 resulted from the early extinguishment of debt and is net of applicable income tax benefit of $3.5 million.
 -0- 8/25/93
 /CONTACT: Jack Leone of Caesars World, (work) 310-552-2711, or (home) 310-377-4658/
 (CAW)


CO: Caesars World Inc. ST: California IN: CNO LEI SU: ERN

SH-JL -- LA015 -- 5714 08/25/93 09:04 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 25, 1993
Words:1067
Previous Article:CARTER HAWLEY HALE REPORTS SECOND QUARTER RESULTS, SPECIFIES PROGRESS AND PLANS IN TURNAROUND; ANNOUNCES ONE-TIME CHARGE AND RESULTING SAVINGS
Next Article:SANCTUARY WOODS ANNOUNCES 'SHELLY DUVALL'S IT'S A BIRD'S LIFE' FOR 3DO
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters