Caesars Entertainment Reports Financial Results for Fourth Quarter and Full Year 2003.Business Editors LAS VEGAS--(BUSINESS WIRE)--Jan. 29, 2004 Caesars Entertainment Caesars Entertainment, Inc. is a Las Vegas, Nevada based business that was the largest owner, operator and developer of hotels and casinos throughout the world. Now a wholly owned subsidiary of Harrah's Entertainment it was part of the Hilton Hotels chain and was spun off from , Inc. (NYSE NYSE See: New York Stock Exchange :CZR CZR Columnar Zone Radius CZR Communication Zone Rear (Combat Military Zones) ) today reported financial results for the quarter and full year ended December December: see month. 31, 2003. Fourth quarter 2003 results For the fourth quarter of 2003, Caesars Entertainment reported a net loss of $(84) million, or $(0.28) per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. That compares to a net loss of $(21) million or $(0.07) per fully diluted share for the fourth quarter of 2002. The 2003 fourth quarter loss included non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. totaling $127 million -- an $89 million write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of the book value of Flamingo flamingo, common name for a large pink or red wading bird, similar to the related heron, stork, and spoonbill but with a longer neck, webbed feet, and a unique down-bent bill. Flamingos are tropical birds, although large colonies have been observed high in the Andes. Laughlin Laughlin has several uses:
1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. at Caesars Tahoe Ta·hoe , Lake A lake on the California-Nevada border west of Carson City, Nevada. It is a popular resort area. pursuant to Statement of Financial Accounting Standards No. 142. Both write-downs are the result of reduced earnings forecasts at the properties due to increased competition from Native American casinos American Casino is a current American reality television series. The show originally aired on the Discovery Channel, but in June 2005, it was moved to The Travel Channel. in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). and Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). . Adjusted net income for the fourth quarter of 2003 was $13 million, or $0.04 per diluted share, excluding the charges and discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. related to the pending sale of the Las Vegas Hilton The Las Vegas Hilton is a hotel, casino, and convention center in Las Vegas, Nevada. It is a joint venture between Colony Capital, which owns 60 percent, and New York City-based REIT Whitehall Street Real Estate Funds, which owns the remaining 40 percent. . Adjusted net income for the fourth quarter of 2002 was $16 million, or $0.05 per diluted share. In that quarter, adjusted net income excluded discontinued operations and charges of $56 million - $43 million related to the settlement of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. involving Bally's Lakeshore Casino casino or cassino (both: kəsē`nō). 1 Card game played with a full deck by two to four players. Its origins are obscure though it probably traces back to the Italian game of Scopa. in New Orleans New Orleans (ôr`lēənz –lənz, ôrlēnz`), city (2006 pop. 187,525), coextensive with Orleans parish, SE La., between the Mississippi River and Lake Pontchartrain, 107 mi (172 km) by water from the river mouth; founded ; $9 million related to a contract settlement with the company's former president and chief executive officer; and $4 million related to the settlement of litigation involving a 2000 agreement to sell the Las Vegas Hilton. Net revenue for the fourth quarter of 2003 was $1.064 billion, compared to $1.052 billion for the fourth quarter of 2002. Fourth quarter EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become -- earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
(Throughout this press release, results from the Las Vegas Hilton are treated as "discontinued operations" for the current and comparative year-ago periods. That means Las Vegas Hilton results are excluded from such financial measures as net revenue, EBITDA, operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. (loss), interest expense and other items. The company announced in December that it has entered into an agreement to sell the property.) 2003 year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. results For the full year of 2003, Caesars Entertainment reported adjusted net income of $150 million -- or $0.49 per diluted share. That compares to adjusted net income of $161 million -- or $0.53 per diluted share -- for the year ended December 31, 2002. Adjusted net income for 2003 excludes discontinued operations, the $127 million in fourth quarter charges and $1 million in pre-opening expense. Adjusted net income for 2002 excludes discontinued operations, $66 million in charges, $44 million in investment gain, $1 million in pre-opening expense and the cumulative effect of the accounting change related to goodwill. Of the $66 million in 2002 charges, $56 million was incurred in the fourth quarter (as detailed above) and $10 million in the third quarter -- $2 million related to Tropical Storm tropical storm n. A cyclonic storm having winds ranging from approximately 48 to 121 kilometers (30 to 75 miles) per hour. tropical storm Isidore Isidore (also Isidor) is a male name of Greek origin ("Gift of Isis"). A number of people have gone under the name Isidore:
Including discontinued operations, the charges and pre-opening expense, net income for 2003 was $46 million, or $0.15 per diluted share. Including discontinued operations, the charges, investment gain, pre-opening expense and the cumulative effect of the goodwill accounting change, the company reported a net loss for 2002 of $(824) million -- or $(2.71) per diluted share. In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the adoption of Statement of Financial Accounting Standards No. 142, "Goodwill and Other Intangible Assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. ," the company recorded a non-cash charge in the first quarter of 2002 of $979 million to write down the value of goodwill associated with previous acquisitions. Net revenue for the full year 2003 was $4.455 billion, up from $4.437 billion reported for the full year 2002. EBITDA for 2003 was $1.034 billion, compared to $1.090 billion for 2002. New name, new opportunities "We begin 2004 with a new name and new opportunities to drive the company's growth, both in new markets and at our existing properties," said Caesars Entertainment President and Chief Executive Officer Wallace Wal·lace , Alfred Russel 1823-1913. British naturalist who developed a concept of evolution that paralleled the work of Charles Darwin. R. Barr. "The work we undertook in 2003 on development activities, new capital projects, cost saving programs, debt reduction, entertainment events, customer marketing, asset rationalization rationalization, in psychology: see defense mechanism. and on many other fronts has positioned us for a successful year ahead," Barr added. Fourth quarter financial highlights -- The Western Region reported EBITDA of $87 million, compared to $92 million for the fourth quarter of 2002. Western Region results were significantly affected by adverse table hold at Caesars Palace Caesars Palace is a luxury hotel and casino located on the Las Vegas Strip in Las Vegas, Nevada. Caesars Palace is owned and operated by Harrah's Entertainment. Caesars is located on the west side of the Strip, between the Bellagio and the Mirage. and Paris Las Vegas This article is about the Las Vegas hotel. For other uses, see Paris (disambiguation). Paris Las Vegas is a hotel and casino located on the famed Las Vegas Strip in Las Vegas, Nevada, USA , that is owned and operated by Harrah's Entertainment. . The overall regional table hold (excluding the Las Vegas Hilton) was 13.0 percent -- 2.2 points below the 2002 level. The lower than normal table hold percentage had a negative impact of approximately $18 million on regional EBITDA. -- In the Eastern Region, EBITDA was $69 million, down 15 percent from the $81 million reported for the fourth quarter of 2002. The decline was attributable to lower gaming volumes resulting from new competition as well as increased health care costs and new state taxes. -- The Mid-South Mid-South may refer to:
to $56 million for the fourth quarter of 2002. Caesars Indiana Caesars Indiana is a riverboat casino operated by Harrah's Entertainment[1]. Opened in 1999, it is located outside the community of Elizabeth, Indiana, across the Ohio River from Louisville, Kentucky. The complex is located at the Harrison County line. saw a 25 percent reduction in EBITDA largely due to higher effective gaming taxes in the fourth quarter. Those taxes had a $6 million negative impact on EBITDA in the region. Properties in Mississippi Mississippi, state, United States Mississippi (mĭs'əsĭp`ē), one of the Deep South states of the United States. It is bordered by Alabama (E), the Gulf of Mexico (S), Arkansas and Louisiana, with most of the border formed by generally experienced an increase in gaming volumes and gaming win. Full year 2003 highlights Corporate and financial -- The company announced that it would change its name to Caesars Entertainment, Inc., which was accomplished on January January: see month. 6, 2004. -- The company paid down an additional $293 million of indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. , reducing its total debt to $4.62 billion as of December 31, 2003. Since the beginning of 2002, the company has reduced debt balances by approximately $690 million. -- The company reached a definitive agreement to sell the Las Vegas Hilton Hil·ton , Conrad Nicholson 1887-1979. American hotel-chain organizer who acquired hotels in many American cities and in 1946 founded the Hilton Hotel Corporation. for $280 million to an affiliate of Colony Capital, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control of Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. . When the sale closes, the proceeds will be used to pay down debt, bringing pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma total debt reduction since the beginning of 2002 to nearly $1 billion. Operations -- The Work Smart program delivered significant cost reductions. Designed to create operating efficiencies within the company's largest properties, the program achieved cumulative expense reductions of $89 million by the end of 2003. As a result of Work Smart and the related focus on expenses, total unallocated expenses -- items such as G&A, security and surveillance and general marketing -- decreased from 2002 to 2003, despite increased expenses for health benefits, insurance and property taxes. -- The company launched the second phase of its highly successful Connection Card program, becoming the first in the industry to offer guests complimentary rewards based on spending in hotels, restaurants, theaters and shops as well as on table games and slots. The program expanded to include all of the company's casino resorts throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . -- The company led the industry in rolling out "ticket-in, ticket-out" slot technology. At the end of the fourth quarter, Caesars Entertainment had installed and activated activated a state of being more than usually active. In biological systems this is usually brought about by chemical or electrical means. Commonly said of pharmaceutical and chemical products. 20,000 "ticket-in, ticket-out" machines across the United States -- more than half of the company's total slot inventory. The company expects to raise the total to nearly 30,000 by the end of 2004. -- Online room reservations made through company web sites grew dramatically, rising more than 54 percent company-wide from 2002. In the fourth quarter of 2003, 28 percent of all rooms booked in the company's Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. properties by free and independent travelers were booked through Caesars Entertainment web sites, up from 22 percent in the fourth quarter of 2002. -- The company adopted an industry-leading policy on responsible gaming. Under the new program, the company will create a "one-stop one-stop adj. Relating to or providing a comprehensive selection of goods or services at a single location: one-stop shopping; a one-stop health-care center. ," computerized computerized adapted for analysis, storage and retrieval on a computer. computerized axial tomography see computed tomography. system to bar any of the company's domestic casino resorts from marketing, mailing, extending credit, cashing checks or awarding complimentary services through player loyalty programs to anyone who has registered with a state or individual Caesars casino self-exclusion program. Once a patron is registered, the company-wide ban will extend for life. New attractions -- The 4,100-seat Colosseum Colosseum or Coliseum (both: kŏləsē`əm), Ital. Colosseo, common name of the Flavian Amphitheater in Rome, near the southeast end of the Forum, between the Palatine and Esquiline hills. at Caesars Palace opened on March 25 to widespread acclaim with the first performance of "A New Day...." starring Celine CELINE Cellule Interrégionale de l'Environnement Dion. At year-end, the show had sold out its entire run of 147 performances, driving increased gaming volumes and non-gaming revenue at the resort. -- Sir Elton John Sir Elton Hercules[1] John CBE[2] (born Reginald Kenneth Dwight on 25 March, 1947) is a five-time Grammy and one-time Academy Award-winning English pop/rock singer, composer and pianist. announced that he will debut a new show, "The Red Piano," at The Colosseum at Caesars Palace on February February: see month. 13, 2004. The Colosseum will host the show for a minimum of 75 performances over three years. -- New dining and nightlife night·life n. Social activities or entertainment available or pursued in the evening. nightlife Noun venues debuted in Las Vegas and Atlantic City Atlantic City, city (1990 pop. 37,986), Atlantic co., SE N.J., an Atlantic resort and convention center; settled c.1790, inc. 1854. Situated on Absecon Island, a barrier island 10 mi (16. . They included Bradley Ogden Ogden, city, United States Ogden, city (1990 pop. 63,909), seat of Weber co., N Utah, at the confluence of the Ogden and Weber rivers; inc. 1851. Aerospace industries and Hill Air Force Base are the major employers. and Cypress Cypress, city, United States Cypress (sī`prəs), city (1990 pop. 42,655), Orange co., S Calif. near Long Beach; inc. 1956. Forest Lawn–Cypress, a branch of the famous cemetery in Glendale, Calif. Street Marketplace at Caesars Palace, the pan-Asian restaurant Ah Sin and ultra lounge This article or section may contain original research or unverified claims. Please help Wikipedia by adding references. See the for details. This article has been tagged since August 2007. An ultra lounge is a type of nightclub developed in the early 2000s. Risque ris·qué adj. Suggestive of or bordering on indelicacy or impropriety. [French, from past participle of risquer, to risk, from risque, risk; see risk.] Adj. at Paris Las Vegas, The Blue Martini at Bally's Atlantic City Bally's Atlantic City is a hotel and casino on the Boardwalk in Atlantic City, New Jersey that opened in 1979. History Bally's started life in 1976 when gambling became legalized in Atlantic City. and Ventuno Ristorante and Pink Ginger ginger, common name for members of the Zingiberaceae, a family of tropical and subtropical perennial herbs, chiefly of Indomalaysia. The aromatic oils of many are used in making condiments, perfumes, and medicines, especially stimulants and preparations to ease at the Flamingo Las Vegas The Flamingo Las Vegas is a hotel casino located on the famed Las Vegas Strip in Las Vegas, Nevada, and is owned and operated by Harrah's Entertainment. The property offers a 77,000 ft² (7,200 m²) casino along with 3,626 hotel rooms. . -- Celebrity chef In its strictest sense, a celebrity chef is a someone who has become well-known for his/her cooking. The first historical personality that fits this description is Martino da Como but in practical terms the term grew in popularity during the 1990s. and television host Bobby Flay Robert William Flay is a fourth generation Irish-American, celebrity chef and restaurateur. He is the owner and executive chef of six restaurants: Mesa Grill, Bolo Bar & Restaurant, and Bar Americain in New York City, Mesa Grill announced plans to bring The Mesa Grill Grill may refer to: In food:
Flay's first outside of New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , is scheduled to open in the third quarter of 2004. -- Jimmy Buffett's Margaritaville opened at the Flamingo Las Vegas in December. -- The Colosseum at Caesars Palace was named by Billboard magazine as the top-grossing concert venue in the United States among facilities with fewer than 5,000 seats. -- In Atlantic City, the company became the single largest promoter A person who devises a plan for a business venture; one who takes the preliminary steps necessary for the formation of a corporation. Promoters are the people, who, for themselves or on behalf of others, organize a corporation. of major events at the newly renovated Boardwalk Hall, drawing tens of thousands of incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. customers to the company's three Atlantic City casinos A list of casinos. Antigua and Barbuda
company-promoted events, Boardwalk Hall Boardwalk Hall, also known as the Historic Atlantic City Convention Hall is an arena which served as the primary convention center in Atlantic City, New Jersey, until the 1997 opening of the Atlantic City Convention Center. headed Billboard's list of top-grossing arenas in the 10,000 to 15,000-seat category. Development -- The Pauma-Yuima Band of Mission Indians Mission Indians, Native Americans of S and central California; so called because they were under the jurisdiction of some 21 Spanish missions that were established between 1769 and 1823. in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, chose the company to negotiate development and management agreements for a Caesars-branded casino on tribal lands in northern San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. County. -- The Saint Regis Saint Regis (or St. Regis) may refer to John Francis Regis, recognized as a saint by the Roman Catholic Church. Other uses of the name include: Places
Mohawk, river, c.140 mi (230 km) long, rising in central New York and flowing S then SE past Utica and Schenectady to enter the Hudson River at Cohoes. Tribe tribe [Lat., tribus: the tripartite division of Romans into Latins, Sabines, and Etruscans], a social group bound by common ancestry and ties of consanguinity and affinity; a common language and territory; and characterized by a political and economic signed new management and development agreements with the company for the planned Mohawk Mountain Casino Resort in New York's Catskill Mountains Catskill Mountains, dissected plateau of the Appalachian Mt. system, SE N.Y., W of the Hudson River. This glaciated region, wooded and rolling, with deep gorges and many waterfalls, is drained by the headstreams of the Delaware River and by Esopus, Schoharie, , 90 miles north of New York City. -- The company broke ground on a 949-room hotel tower at Caesars Palace, to be completed in 2005. The project, which will bring total room capacity to nearly 3,400, is the final component of the master plan to renovate Caesars Palace. -- The Simon Group broke ground on a 175,000-square-foot expansion of The Forum Shops at Caesars Palace, one of the highest-yielding shopping venues in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . The project is to be completed by the end of 2004. -- In Atlantic City, the company began construction of a new parking garage adjacent to Caesars Atlantic City Caesars Atlantic City is a hotel and casino, located in Atlantic City, New Jersey, USA. Like Caesars Palace in Las Vegas, it has an ancient Roman theme. Atlantic City's second casino, it opened in 1979 as the Caesars Boardwalk Regency Hotel Casino. The 124,720 sq. ft. . Construction is to be completed in the summer of 2005. -- The Gordon Gordon, river in W Tasmania, Australia, 125 mi (200 km) long. Flowing from mountains to the W coast, its main tributaries are the Franklin and Denison from the N, and Serpentine and Olga to the S. Group unveiled updated plans for The Pier pier, in engineering, term applied to a mass of reinforced concrete or masonry supporting a large structure, such as a bridge. When piers are built on ground of poor bearing value, it is often necessary to drive piles to obtain a firm base. at Caesars in Atlantic City, a new, high-end high-end adj. Informal 1. Appealing to sophisticated and discerning customers: a high-end department store; high-end video equipment. 2. retail, dining and entertainment complex to be developed on the site of the former Million Dollar Pier across the Boardwalk from Caesars Atlantic City. Opening is scheduled for 2005. -- The company developed a proposal to build a Caesars-branded casino at the Mall of America Mall of America (also MOA, MoA, or the Megamall) is a shopping mall located in the Twin Cities suburb of Bloomington, Minnesota. It is just southeast of the junction of Interstate 494 and Minnesota State Highway 77, and is across the interstate from the in Bloomington, Minnesota Bloomington is a city in Hennepin County, Minnesota, and a southern suburb of Minneapolis. As of 2005, it had a population of 84,347, making it the largest Twin Cities suburb, and the fifth largest city in the state[1]. and prepared an updated bid to build and operate a Caesars-branded casino in the greater Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. market. "We overcame some significant challenges in 2003," said Caesars Entertainment Executive Vice President and Chief Financial Officer Harry C. Hagerty Hagerty refers to:
"We endured a war and its related impact on travel, increased taxes in each of our three domestic regions, a significant new competitor in Atlantic City, higher-than-expected health care expenses across the country and an extended period of adverse table hold in Las Vegas. "Despite those obstacles," Hagerty added, "we made very good progress in our key initiatives of expense control, capital discipline and debt reduction. We will continue these endeavors in 2004." Western Region EBITDA for the Western Region's seven casino resorts was $87 million in the fourth quarter of 2003, compared to $92 million in the year-ago quarter. At Caesars Palace, net revenue in the quarter rose to $120 million from $116 million in the fourth quarter of 2002. EBITDA was $19 million, compared to $22 million for the year-ago quarter. The decline in EBITDA was due to an abnormally low table hold of 11.3 percent, down from 15.6 percent in the fourth quarter of 2002. The lower than normal table hold at Caesars Palace had a negative impact of approximately $16 million on the property's EBITDA. Despite the lower EBITDA, Caesars Palace turned in a strong performance in other key categories. Table volumes in the fourth quarter rose 14 percent on a year-over-year basis, while slot volumes increased 13 percent. RevPAR RevPAR A performance metric in the hotel industry which stands for "revenue per available room." RevPAR is typically calculated by multiplying a hotel's average daily room rate (ADR) by its occupancy rate. rose 15 percent, driven by higher occupancy and room rates. Caesars Palace recorded record cash room rates in eight of the 12 months of 2003 and for the full year posted the highest cash room rate in its history -- a full eight percent higher than the previous record set in 1996. At Paris/Bally's, fourth quarter EBITDA was $45 million, up from $44 million in the fourth quarter of 2002. The property suffered from lower gaming volumes, attributed in part to the continued closure of the Las Vegas monorail The Robert N. Broadbent Las Vegas Monorail is a mass transit system located in Las Vegas, Nevada, USA. It is owned and operated by the Las Vegas Monorail Company. For tax purposes, the Monorail is registered as a charity, which is allowed under Nevada law since the Monorail . In addition, the property recorded a table hold percentage of 13.3 percent, even lower than last year's abnormally low 14.0 percent. The lower than normal table hold percentage reduced Paris/Bally's EBITDA by approximately $5 million. RevPAR increased three percent in the fourth quarter of 2003 as higher room rates offset lower occupancy. In the quarter, the company made two decisions that should benefit the future operation of Paris/Bally's. The first was to reduce the level of high-end casino business that the property pursues. This should lead to lower volatility of earnings and a reduced level of promotional expense Noun 1. promotional expense - the cost of promoting a product business expense, trade expense - ordinary and necessary expenses incurred in a taxpayer's business or trade . Second, the property will be reducing its use of wholesale distribution channels for room sales, relying more on in-house In-house In the context of general equities, keeping an activity within the firm. For example, rather than go to the marketplace and sell a security for a client to anyone, an attempt is made to find a buyer to complete the transaction with the firm. Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the sites to replace that business at higher margins. The Flamingo Las Vegas reported fourth quarter EBITDA of $19 million, compared to $21 million for the fourth quarter of 2002. Stronger room revenues partially offset a decline in gaming win attributable to reduced gaming volumes caused by the construction of Margaritaville at the northwest corner of the property. RevPAR rose to $72 in the fourth quarter from $65 in the fourth quarter of 2002. Other Nevada Nevada (nəvăd`ə, –vä–), far western state of the United States. It is bordered by Utah (E), Arizona (SE), California (SW, W), and Oregon and Idaho (N). properties -- the Reno Reno (rē`nō), city (1990 pop. 133,850), seat of Washoe co., W Nev., on the Truckee River; inc. 1903. Tourism has been the major industry since gambling was legalized in Nevada in 1931. Hilton, Caesars Tahoe and Flamingo Laughlin -- recorded combined EBITDA of $4 million in the fourth quarter, down from $5 million in the fourth quarter of 2002. (Because financial results of the Las Vegas Hilton currently are classified as "discontinued operations," they are not included in either year's figures. The Las Vegas Hilton would have contributed $3 million to Western Region EBITDA in the fourth quarter of 2003 and $5 million in the year-ago quarter.) Eastern Region EBITDA from Caesars' three Atlantic City casino resorts and management fees from its Dover Downs Dover Downs Hotel & Casino is a hotel and casino that has a racing facility that holds harness horse racing and NASCAR events. The NEXTEL Cup track is now known as Dover International Speedway, and the Dover Downs name is used for horse racing events. slot operation was $69 million, down 15 percent from the $81 million reported for the fourth quarter of 2002. Reflecting continued competition from The Borgata Borgata Hotel Casino & Spa is a hotel, casino, and spa in Atlantic City, New Jersey owned by Marina District Development Corporation, LLC. The name means "little village" in Italian. The Borgata was built to bring high rollers back to Atlantic City. At a cost of $1. Hotel Casino and Spa, slot volumes in Atlantic City declined two percent, while table volumes were off nine percent from the year ago-quarter. The EBITDA decline also is attributable to higher health care expenses and increased state taxes. At Bally's Atlantic City, EBITDA for the fourth quarter was $29 million, down from $35 million in the fourth quarter of 2002. A nine percent decline in table volume was slightly offset by an improved hold percentage, resulting in a six percent overall decline in table win. Slot win was essentially even with last year. Both the 2003 and 2002 figures include results from The Claridge Casino Hotel, which merged with Bally's Atlantic City in December 2002. Fourth quarter EBITDA for Caesars Atlantic City was $28 million, compared to $33 million for the fourth quarter of 2002. A reduction in table hold coupled with a seven percent decline in table volume contributed to a 12 percent decline in table win. A three percent decrease in slot volume was more than offset by an improved hold percentage, resulting in a three percent increase in slot win. At the Atlantic City Hilton Atlantic City Hilton was first built by Steve Wynn in 1980 and named Golden Nugget Atlantic City. It was the first in Atlantic City to be built from the ground up as a luxury casino hotel, rather than being a renovation of an old non-gaming Atlantic City Hotel. , EBITDA for the fourth quarter was $11 million, even with the fourth quarter of 2002. Because of an increased table hold percentage, table win improved nine percent compared to the year-ago quarter, despite an 11 percent decline in volume. Slot win rose slightly on a small increase in slot volume. Mid-South Region Caesars Entertainment's seven casino resorts in Indiana Indiana, state, United States Indiana, midwestern state in the N central United States. It is bordered by Lake Michigan and the state of Michigan (N), Ohio (E), Kentucky, across the Ohio R. (S), and Illinois (W). , Mississippi and Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. reported fourth quarter EBITDA of $53 million,
compared to $56 million in the fourth quarter of 2002. The
year-over-year decline was due almost entirely to the effect of
increased taxes in the state of Indiana.
Caesars Indiana reported fourth quarter EBITDA of $15 million, down 25 percent from $20 million in the fourth quarter of 2002. However, despite the tax-driven decline in EBITDA, core operations at the property remained strong. Net revenue was up six percent from the year-ago quarter, driven by a seven percent increase in slot volume and a ten percent increase in RevPAR. The gaming tax increase reduced EBITDA at Caesars Indiana by $6 million in the fourth quarter of 2003. On the Gulf Coast, Grand Casino Biloxi Grand Biloxi Casino Hotel and Spa is the name of a gambling establishment in Biloxi, Mississippi. It was owned and operated by Harrah's Entertainment. This facility replaces the former Grand Casino Biloxi, which was destroyed by Hurricane Katrina. reported EBITDA of $11 million, up from $9 million in the fourth quarter of 2002. Gaming volumes rose nine percent, driven by an 11 percent increase in slot volume. The property reported a nine percent increase in RevPAR, the result of a year-over-year increase in room rates. Fourth quarter EBITDA at Grand Casino Gulfport Gulfport, city (1990 pop. 40,775), seat of Harrison co., SE Miss., a port on Mississippi Sound, the Gulf of Mexico, in a resort area; inc. 1898. A port of entry, it receives large shipments of bananas. was $8 million, even with the year ago quarter, despite a lower table hold percentage. In Northern Mississippi, Grand Casino Tunica Grand Casino is owned and operated by Harrah's Entertainment. The casino offers a 140,000 square foot casino and 3 hotels with a total of 1,356 rooms. There is also an RV park. The Bellissimo Spa & Salon offers massages, as well as manicures, facials, hair cuts, and other services. reported EBITDA of $9 million, even with the $9 million recorded in the fourth quarter of 2002. RevPAR declined 12 percent due to a decrease in rates and occupancy. EBITDA at the company's other two Tunica tunica /tu·ni·ca/ (too´ni-kah) pl. tu´nicae [L.] a tunic; in anatomy, a general term for a membrane or other structure covering or lining a body part or organ. properties totaled $11 million, up from $10 million in the fourth quarter of 2002. International The company's nine international properties reported combined EBITDA of $17 million, up from $12 million for the fourth quarter of 2002, reflecting improved performance at Conrad Punta del Este Punta del Este (p n`tä thĕl ās`tā), city (1996 pop. 8,252), E Uruguay, on the Atlantic Ocean. in
Uruguay Uruguay, country, South AmericaUruguay (y  `rəgwā, gwī, Span. r and Caesars Gauteng GautengNoun a province of N South Africa near Johannesburg Johannesburg (jōhăn`ĭsbörg', yōhä`nəsbörkh'), city (1991 pop. 1,574,631), Gauteng, NE South Africa, on the southern slopes of the Witwatersrand at an altitude of 5,750 ft (1,753 m). , South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. . Capital expenditures The company invested $129 million of capital during the fourth quarter of 2003. Maintenance capital expenditures were $83 million and investments in growth projects were $46 million. In the full year 2003, the company spent $399 million on capital investments -- $245 million on maintenance capital and $154 million on growth projects. The company currently expects to spend approximately $692 million on capital investments in 2004. This includes maintenance capital investments of $298 million and growth capital of $394 million. The 2004 growth capital budget includes $196 million for the new room tower and meeting space at Caesars Palace; $41 million for the garage adjacent to Caesars Atlantic City; $21 million for the Roman Plaza project at Caesars Palace; and $55 million related to development of the Mohawk Mountain Casino Resort in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of State. Other significant new capital investments are an additional $25 million for selected projects at Caesars Palace; $14 million at Paris/Bally's; $15 million at Caesars Atlantic City and $10 million related to the Caesars Pauma project in Southern California. Other items Depreciation and Amortization in the fourth quarter was $105 million, compared to $107 million in the fourth quarter of 2002. Corporate expense in the fourth quarter was $20 million, compared to $18 million in the fourth quarter of 2002, largely due to higher fees related to legal and development activity. Beginning with the first quarter of 2004, the company will reallocate Verb 1. reallocate - allocate, distribute, or apportion anew; "Congressional seats are reapportioned on the basis of census data" reapportion allocate, apportion - distribute according to a plan or set apart for a special purpose; "I am allocating a loaf of to its properties certain expenses, such as Information Technology, Internal Audit and Risk Management, which historically were considered corporate expenses. Following this reallocation Noun 1. reallocation - a share that has been allocated again allocation, allotment - a share set aside for a specific purpose 2. reallocation , the company anticipates that corporate expense will be approximately $9 million per quarter. Equity in earnings of unconsolidated affiliates primarily consists of earnings from the company's share of ownership in Conrad Punta del Este in Uruguay, Caesars Gauteng near Johannesburg, South Africa and Casino Windsor Casino Windsor, the largest in Canada, which will be renamed Caesars Windsor in 2008 is a major casino resort in Windsor, Ontario. Owned by the government of the province of Ontario, but operated by Harrah's Entertainment. in Windsor Windsor, British royal family Windsor (wĭn`zər), family name of the royal house of Great Britain. The name Wettin, family name of Albert of Saxe-Coburg-Gotha, consort of Queen Victoria, was changed to Windsor by George V in 1917. , Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of . For the fourth quarter, this item was $5 million, up from $3 million in the fourth quarter of 2002. Net interest expense in the quarter was $78 million, down from $83 million in the fourth quarter of 2002, due to lower debt balances, reduced borrowing costs and interest rate swaps Interest Rate Swap A deal between banks or companies where borrowers switch floating-rate loans for fixed rate loans in another country. These can be either the same or different currencies. executed in the third and fourth quarters of 2003. Capitalized interest Capitalized interest Interest that is not immediately expensed, but rather is considered as an asset and is then amortized through the income statement over time. In the context of project financing, interest that is paid by additional borrowing. was $1 million in the fourth quarter, compared to $2 million in the year-ago quarter. Quarterly interest income was $1 million, even with the fourth quarter of 2002. The effective tax rate in the fourth quarter was 22.9 percent, compared to 25.0 percent in the fourth quarter of 2002. There were no share repurchases Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. in the quarter. Balance sheet As of December 31, 2003, the company had a cash balance of $313 million. The company paid down $28 million of indebtedness in the quarter, resulting in a debt balance of $4.62 billion on December 31, 2003. The company had $1.1 billion available on its credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities , subject to covenant restrictions. The number of diluted shares outstanding was 303 million at the end of the fourth quarter. Normally, the diluted shares outstanding would have been 306 million for the quarter ended December 31, 2003. However, the additional shares were excluded from the EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. calculation as required by Statement of Financial Accounting Standards No. 128 because including the additional shares would have had an anti-dilutive effect on earnings. Other events On December 24, 2003 the company announced that it had entered into a definitive agreement to sell the Las Vegas Hilton to an affiliate of Colony Capital  This article may contain improper references to .Please help [ improve this article] by removing . , LLC, a Los Angeles based international private investment firm, for approximately $280 million. The transaction is expected to close by the end of the second quarter of 2004 and is subject to customary closing conditions outlined in the purchase agreement. Under the terms of the agreement, Colony will purchase all the assets of the Las Vegas Hilton Hotel and Casino and will assume certain related current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. . The aggregate consideration may be adjusted for changes in net working capital. Guidance The company is providing the following guidance based on the current competitive, economic, regulatory, tax and political environment and current expectations for Caesars Entertainment property performance. Changes in any of these factors as well as other factors that may or may not be currently known to management will affect this guidance. Guidance will be revised when management becomes aware that financial results have been affected and reasonably believes that the company will no longer achieve the guidance range outlined below. The guidance for adjusted earnings per share is a non-GAAP financial measure. This measure excludes items considered non-recurring from an operating perspective. In the past, examples of non-recurring items that have not been included in adjusted earnings per share are pre-opening expenses, asset impairments and write-downs, investment gains and losses, discontinued operations, contract and litigation settlements and other non-recurring items. Adjusted diluted Earnings Per Share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of
First Quarter 2004 Full Year 2004
$0.11 - $0.13 $0.52- $0.56
Non-GAAP financial measures Adjusted net income, adjusted earnings per share and EBITDA are non-GAAP financial measurements. EBITDA is earnings before interest, taxes, depreciation and amortization (including depreciation from unconsolidated subsidiaries), pre-opening expense, asset impairments, write-downs, contract and litigation settlements, investment gains and losses, discontinued operations and other non-recurring items. Adjusted net income, adjusted earnings per share and EBITDA are presented as supplemental disclosures because this is how the company reviews and analyzes its performance and the performance of its properties. These measures are used widely within the gaming industry as indicators of performance and of the value of gaming companies. This information should not be considered as an alternative to any measure of performance as promulgated prom·ul·gate tr.v. prom·ul·gat·ed, prom·ul·gat·ing, prom·ul·gates 1. To make known (a decree, for example) by public declaration; announce officially. See Synonyms at announce. 2. under accounting principles generally accepted in the United States, such as operating income, net income or net cash provided by operating activities. Caesars Entertainment's calculation of adjusted net income, adjusted earnings per share and EBITDA may be different from the calculation used by other companies and therefore comparability may be limited. The company has included schedules in the tables that accompany this release that: 1) Reconcile EBITDA to operating income (loss) and net income (loss) and 2) Reconcile net income (loss) to adjusted net income. Investor conference call Caesars Entertainment has scheduled an investor conference call for today at 8:00 a.m. PST PST Paroxysmal supraventricular tachycardia, see there (10:00 a.m. CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. and 11:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy ). The call can be accessed by calling 1-877-226-4294 or by visiting the Caesars Entertainment web site at www.caesars.com and selecting the Investor tab. International callers should dial 1-706-643-0366. A replay of the conference call is available through February 5, 2004 by calling 1-800-642-1687 or by visiting the Caesars Entertainment web site. The international replay number is 1-706-645-9291. The replay reservation number for both domestic and international callers is 4748679. Annual shareholders meeting The Board of Directors has established May 26, 2004 as the date of the annual shareholders meeting, to be held at 8 a.m. PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT at Caesars Palace in Las Vegas, Nevada. The record date for the meeting is April 6, 2004. Pursuant to the company's bylaws The rules and regulations enacted by an association or a corporation to provide a framework for its operation and management. Bylaws may specify the qualifications, rights, and liabilities of membership, and the powers, duties, and grounds for the dissolution of an , any shareholder proposal must be submitted to the company's secretary between February 20 and March 12, 2004. About Caesars Entertainment Caesars Entertainment, Inc. (NYSE:CZR) is one of the world's leading gaming companies. With $4.5 billion in annual net revenue, 29 properties on four continents, 29,000 hotel rooms, two million square feet of casino space and 54,000 employees, the Caesars portfolio is among the strongest in the industry. Caesars casino resorts operate under the Caesars, Bally's, Flamingo, Grand Casinos Grand Casinos NYSE: GND was a casino operator that started out managing several casinos in Minnesota in 1990. The company ceased to exist when it was purchased by Hilton Hotels which then merged it with its other gaming properties to form Park Place Entertainment in , Hilton and Paris brand names. The company has its corporate headquarters in Las Vegas. Additional information on Caesars Entertainment can be accessed through the company's web site at www.caesars.com . NOTE: This press release contains "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the federal securities law, which are intended to qualify for the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. from liability provided there under. All statements which are not historical statements of fact are "forward-looking statements" for purposes of these provisions and are subject to numerous risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements include all financial projections, including projections of revenue, market share, earnings, EBITDA, free cash flow, statements of management's plans, objectives or expectations of future economic performance, statements regarding new developments or opportunities, asset dispositions, statements of belief, and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. statements regarding various programs and initiatives including capital programs, cost savings, debt reduction, customer marketing and anticipated construction, development, or acquisitions. Additional information concerning potential risk factors that could affect the company's future performance are described from time to time in the company's reports filed with the Securities and Exchange Commission, including the company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2002 and Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. for the quarters ended March 31, 2003, June June: see month. 30, 2003 and September September: see month. 30, 2003. The reports may be viewed free of charge at the following website: www.sec.gov. The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. (Financial tables follow)
CAESARS ENTERTAINMENT, INC.
Summary Statements of Operations
(Amounts in millions, except per share amounts)
(unaudited)
Three Months Ended Year Ended
December 31, December 31,
--------------- ---------------
2003 2002 2003 2002
------- ------- ------- -------
Net revenue $1,064 $1,052 $4,455 $4,437
------- ------- ------- -------
Operating costs and expenses 844 815 3,375 3,307
Depreciation and amortization 105 107 440 449
Pre-opening expense - - 1 1
Impairment losses and other 127 56 127 66
Corporate expense 20 18 71 69
------- ------- ------- -------
Total costs and expenses 1,096 996 4,014 3,892
------- ------- ------- -------
Equity in earnings of unconsolidated
affiliates 5 3 19 23
------- ------- ------- -------
Operating income (loss) (27) 59 460 568
Net interest expense 78 83 328 344
Investment gain - - - (44)
------- ------- ------- -------
Income (loss) from continuing
operations before taxes,
minority interest, and cumulative
effect of accounting change (105) (24) 132 268
Income tax provision (benefit) (24) (6) 75 104
Minority interest, net 1 2 3 7
------- ------- ------- -------
Income (loss) from continuing
operations before cumulative
effect of accounting change (82) (20) 54 157
Discontinued operations
Loss from discontinued operations, net
of taxes (2) (1) (8) (2)
------- ------- ------- -------
Income (loss) before cumulative effect
of accounting change (84) (21) 46 155
Cumulative effect of accounting change
- goodwill - - - (979)
------- ------- ------- -------
Net income (loss) $(84) $(21) $46 $(824)
======= ======= ======= =======
Basic income (loss) per share
Income (loss) from continuing
operations before cumulative
effect of accounting change $(0.27) $(0.07) $0.18 $0.52
Discontinued operations, net of
taxes - Las Vegas Hilton (0.01) - (0.03) (0.01)
Cumulative effect of accounting
change - goodwill - - - (3.25)
------- ------- ------- -------
Net income (loss) $(0.28) $(0.07) $0.15 $(2.74)
======= ======= ======= =======
Diluted income (loss) per share
Income (loss) from continuing
operations before cumulative
effect of accounting change $(0.27) $(0.07) $0.18 $0.52
Discontinued operations, net of
taxes - Las Vegas Hilton (0.01) - (0.03) (0.01)
Cumulative effect of accounting
change - goodwill - - - (3.22)
------- ------- ------- -------
Net income (loss) $(0.28) $(0.07) $0.15 $(2.71)
======= ======= ======= =======
Weighted average shares outstanding
Basic 303 301 302 301
Diluted 303 301 304 304
CAESARS ENTERTAINMENT, INC.
Property Operating Information
(Amounts in millions)
(unaudited)
Three Months Ended
December 31, 2003
-------------------------------------------------------
Depreci-
Impair- ation
Deprecia- ment from
Operating tion and Losses Unconsol-
Net Income Amor- and idated
Revenue (Loss) tization Other Affiliates EBITDA
------- ---------- ---------- ------- ---------- ------
WESTERN REGION
Paris/Bally's $169 $28 $17 $- $- $45
Caesars Palace 120 6 13 - - 19
Flamingo Las
Vegas 72 14 5 - - 19
Reno Hilton 29 (2) 3 - - 1
Caesars Tahoe 20 (40) 2 38 - -
Flamingo
Laughlin 24 (88) 2 89 - 3
------- ---------- ---------- ------- ---------- ------
434 (82) 42 127 - 87
------- ---------- ---------- ------- ---------- ------
EASTERN REGION
Bally's
Atlantic City 151 12 17 - - 29
Caesars
Atlantic City 116 17 11 - - 28
Atlantic City
Hilton 68 6 5 - - 11
Dover Downs 1 1 - - - 1
------- ---------- ---------- ------- ---------- ------
336 36 33 - - 69
------- ---------- ---------- ------- ---------- ------
MID-SOUTH
REGION
Grand Biloxi 55 6 5 - - 11
Grand Tunica 48 3 6 - - 9
Caesars
Indiana 73 13 2 - - 15
Grand Gulfport 42 5 3 - - 8
Sheraton
Tunica 20 5 2 - - 7
Belle of
Orleans 13 - - - - -
Bally's Tunica 16 3 1 - - 4
Regional
Overhead - (1) - - - (1)
------- ---------- ---------- ------- ---------- ------
267 34 19 - - 53
------- ---------- ---------- ------- ---------- ------
INTERNATIONAL
and Other 27 7 9 - 1 17
CORPORATE - (22) 2 - - (20)
------- ---------- ---------- ------- ---------- ------
TOTAL $1,064 $(27) $105 $127 $1 $206
======= ========== ========== ======= ========== ======
Three Months Ended
December 31, 2002
------------------------------------------------------
Depreci-
Depreci- Impair- ation from
Operating ation ment Unconsoli-
Net Income and Amor- Losses dated
Revenue (Loss) tization and Other Affiliates EBITDA
------- --------- --------- --------- ---------- ------
WESTERN REGION
Paris/Bally's $165 $26 $18 $- $- $44
Caesars Palace 116 10 12 - - 22
Flamingo
Las Vegas 72 15 6 - - 21
Reno Hilton 29 (2) 3 - - 1
Caesars Tahoe 20 (1) 2 - - 1
Flamingo Laughlin 26 1 2 - - 3
------- ---------- ---------- ------- ---------- ------
428 49 43 - - 92
------- ---------- ---------- ------- ---------- ------
EASTERN REGION
Bally's Atlantic
City 156 21 14 - - 35
Caesars Atlantic
City 119 22 11 - - 33
Atlantic City
Hilton 67 5 6 - - 11
Dover Downs 2 2 - - - 2
------- ---------- ---------- ------- ---------- ------
344 50 31 - - 81
------- ---------- ---------- ------- ---------- ------
MID-SOUTH REGION
Grand Biloxi 52 5 4 - - 9
Grand Tunica 48 3 6 - - 9
Caesars Indiana 69 13 7 - - 20
Grand Gulfport 41 5 3 - - 8
Sheraton Tunica 19 4 2 - - 6
Belle of Orleans 14 - 1 - - 1
Bally's Tunica 16 3 1 - - 4
Regional Overhead - (2) 1 - - (1)
------- ---------- ---------- ------- ---------- ------
259 31 25 - - 56
------- ---------- ---------- ------- ---------- ------
INTERNATIONAL
and Other 21 4 7 - 1 12
CORPORATE - (75) 1 56 - (18)
------- ---------- ---------- ------- ---------- ------
TOTAL $1,052 $59 $107 $56 $1 $223
======= ========== ========== ======= ========== ======
NOTE: All Property Operting Information excludes the results of
Las Vegas Hilton which is classified as discontinued operations for
all periods presented.
CAESARS ENTERTAINMENT, INC.
Property Operating Information
(Amounts in millions)
(unaudited)
Year Ended
December 31, 2003
-------------------------------------------------------
Net Operat- Deprecia- Pre- Impair- Deprecia- EBITDA
Revenue ing tion and opening ment tion from
Income Amor- Expense Losses Unconsol-
(Loss) tization and idated
Other Affiliates
------- ------- -------- ------- ------ ---------- -----
WESTERN REGION
Paris/Bally's $657 $94 $70 $- $- $- $164
Caesars Palace 499 49 51 1 - - 101
Flamingo Las
Vegas 300 64 23 - - - 87
Reno Hilton 124 (1) 10 - - - 9
Caesars Tahoe 90 (40) 10 - 38 - 8
Flamingo
Laughlin 105 (83) 8 - 89 - 14
------- ------- -------- ------- ------ ---------- ----
1,775 83 172 1 127 - 383
------- ------- -------- ------- ------ ---------- ----
EASTERN REGION
Bally's
Atlantic City 668 115 65 - - - 180
Caesars
Atlantic City 506 118 47 - - - 165
Atlantic City
Hilton 296 43 21 - - - 64
Dover Downs 5 5 - - - - 5
------- ------- -------- ------- ------ ---------- ----
1,475 281 133 - - - 414
------- ------- -------- ------- ------ ---------- ----
MID-SOUTH
REGION
Grand Biloxi 225 31 17 - - - 48
Grand Tunica 207 21 24 - - - 45
Caesars Indiana 295 42 26 - - - 68
Grand Gulfport 181 31 12 - - - 43
Sheraton Tunica 77 19 9 - - - 28
Belle of
Orleans 57 - 1 - - - 1
Bally's Tunica 64 13 3 - - - 16
Regional
Overhead - (3) - - - - (3)
------- ------- -------- ------- ------ ---------- ----
1,106 154 92 - - - 246
------- ------- -------- ------- ------ ---------- ----
INTERNATIONAL
and Other 99 21 35 - - 6 62
CORPORATE - (79) 8 - - - (71)
------- ------- -------- ------- ------ ---------- ----
TOTAL $4,455 $460 $440 $1 $127 $6 $1,034
======= ======= ======== ======= ====== ========== ====
Year Ended
December 31, 2002
---------------------------------------------------------
Net Operat- Deprecia- Pre- Impair- Deprecia- EBITDA
Revenue ing tion and opening ment tion from
Income Amor- Expense Losses Unconsol-
(Loss) tization and idated
Other Affiliates
------- ------- -------- ------- ------ ---------- -----
WESTERN
REGION
Paris/Bally's $664 $116 $73 $- $- $- $189
Caesars
Palace 456 34 47 - - - 81
Flamingo Las
Vegas 290 66 25 - - - 91
Reno Hilton 132 1 12 - - - 13
Caesars Tahoe 94 3 10 - - - 13
Flamingo
Laughlin 108 11 8 - - - 19
------- ---------- -------- ------- ------- ------ ------
1,744 231 175 - - - 406
------- ---------- -------- ------- ------- ------ ------
EASTERN
REGION
Bally's
Atlantic
City 682 131 62 - - - 193
Caesars
Atlantic
City 517 122 47 - - - 169
Atlantic City
Hilton 292 41 24 - - - 65
Dover Downs 8 8 - - - - 8
------- ---------- -------- ------- ------- ------ ------
1,499 302 133 - - - 435
------- ---------- -------- ------- ------- ------ ------
MID-SOUTH
REGION
Grand Biloxi 230 32 16 - - - 48
Grand Tunica 213 16 26 - - - 42
Caesars
Indiana 277 48 29 1 - - 78
Grand
Gulfport 185 35 12 - - - 47
Sheraton
Tunica 75 15 10 - - - 25
Belle of
Orleans 60 - 3 - - - 3
Bally's
Tunica 65 14 3 - - - 17
Regional
Overhead - (5) 1 - - - (4)
------- ---------- -------- ------- ------- ------ ------
1,105 155 100 1 - - 256
------- ---------- -------- ------- ------- ------ ------
INTERNATIONAL
and Other 89 21 35 - - 6 62
CORPORATE - (141) 6 - 66 - (69)
------- ---------- -------- ------- ------- ------ ------
TOTAL $4,437 $568 $449 $1 $66 $6 $1,090
======= ========== ======== ======= ======= ====== ======
NOTE: All Property Operting Information excludes the results of
Las Vegas Hilton which is classified as discontinued operations for
all periods presented.
CAESARS ENTERTAINMENT, INC.
Property Operating Information
(unaudited)
Three Months Ended
December 31, 2003
----------------------------------------------
Table Occupancy APR (1) ADR (2) RevPAR
Hold % % (3)
---------- --------- -------- -------- -------
WESTERN REGION
Paris/Bally's 13.3% 90.2% $113 $112 $101
Caesars Palace 11.3% 92.4% $147 $146 $135
Flamingo Las Vegas 16.5% 87.8% $83 $82 $72
Reno Hilton 19.3% 74.0% $68 $67 $49
Caesars Tahoe 21.2% 76.3% $117 $116 $89
Flamingo Laughlin 17.3% 73.7% $31 $29 $21
---------- --------- -------- -------- -------
13.0% 85.5% $98 $97 $83
---------- --------- -------- -------- -------
EASTERN REGION
Bally's Atlantic City 15.5% 93.0% $102 $83 $77
Caesars Atlantic City 15.0% 91.3% $117 $91 $83
Atlantic City Hilton 15.4% 92.8% $97 $85 $79
---------- --------- -------- -------- -------
15.3% 92.4% $105 $86 $79
---------- --------- -------- -------- -------
MID-SOUTH REGION
Grand Biloxi 15.3% 93.7% $68 $60 $56
Grand Tunica 16.4% 69.8% $48 $52 $36
Caesars Indiana 16.2% 84.3% $83 $83 $70
Grand Gulfport 13.9% 80.2% $51 $52 $41
Sheraton Tunica 17.7% 96.4% $57 $60 $58
Belle of Orleans 17.3% n/a n/a n/a n/a
Bally's Tunica 20.4% 86.1% $48 $41 $36
---------- --------- -------- -------- -------
15.9% 81.2% $59 $58 $47
---------- --------- -------- -------- -------
Three Months Ended
December 31, 2002
----------------------------------------------
Table Occupancy APR (1) ADR (2) RevPAR
Hold % % (3)
----------- --------- -------- -------- ------
WESTERN REGION
Paris/Bally's 14.0% 94.2% $100 $104 $98
Caesars Palace 15.6% 86.9% $138 $135 $118
Flamingo Las Vegas 15.7% 87.4% $74 $74 $65
Reno Hilton 22.1% 69.0% $65 $62 $43
Caesars Tahoe 13.2% 77.8% $118 $118 $92
Flamingo Laughlin 19.4% 78.2% $30 $27 $21
----------- --------- -------- -------- ------
15.2% 86.1% $90 $90 $77
----------- --------- -------- -------- ------
EASTERN REGION
Bally's Atlantic City 15.1% 94.1% $99 $79 $74
Caesars Atlantic City 15.8% 94.4% $124 $91 $86
Atlantic City Hilton 12.7% 95.7% $99 $86 $82
----------- --------- -------- -------- ------
14.8% 94.5% $105 $84 $80
----------- --------- -------- -------- ------
MID-SOUTH REGION
Grand Biloxi 16.0% 92.7% $62 $55 $51
Grand Tunica 16.5% 78.0% $50 $53 $41
Caesars Indiana 16.4% 83.9% $78 $75 $63
Grand Gulfport 18.1% 82.7% $51 $51 $42
Sheraton Tunica 17.7% 93.2% $54 $83 $77
Belle of Orleans 17.3% n/a n/a n/a n/a
Bally's Tunica 19.0% 83.5% $48 $39 $32
----------- --------- -------- -------- ------
16.7% 84.2% $56 $56 $47
----------- --------- -------- -------- ------
NOTE: All Property Operting Information excludes the results of
Las Vegas Hilton which is classified as discontinued operations for
all periods presented.
(1) APR is Average Paying Rate and is calculated by dividing cash
room revenue by cash rooms occupied.
(2) ADR is Average Daily Rate and is calculated by dividing total
room revenue by total rooms occupied.
(3) RevPAR is defined as Revenue Per Available Room and is
calculated by dividing total room revenue by rooms available.
CAESARS ENTERTAINMENT, INC.
Property Operating
Information
(unaudited)
Year Ended
December 31, 2003
----------------------------------------------
Table Occupancy APR (1) ADR (2) RevPAR
Hold % % (3)
---------- --------- -------- -------- -------
WESTERN REGION
Paris/Bally's 13.6% 93.3% $109 $110 $103
Caesars Palace 14.3% 93.9% $147 $146 $137
Flamingo Las Vegas 16.7% 93.4% $80 $79 $74
Reno Hilton 17.9% 80.2% $70 $69 $55
Caesars Tahoe 17.0% 84.5% $119 $124 $104
Flamingo Laughlin 17.4% 82.9% $32 $30 $25
---------- --------- -------- -------- -------
14.6% 90.3% $95 $95 $86
---------- --------- -------- -------- -------
EASTERN REGION
Bally's Atlantic City 15.6% 96.2% $100 $85 $81
Caesars Atlantic City 16.9% 96.6% $117 $90 $87
Atlantic City Hilton 16.1% 94.9% $105 $88 $84
---------- --------- -------- -------- -------
16.2% 96.0% $106 $87 $84
---------- --------- -------- -------- -------
MID-SOUTH REGION
Grand Biloxi 14.7% 96.2% $71 $63 $61
Grand Tunica 17.6% 80.6% $49 $52 $42
Caesars Indiana 16.6% 88.2% $87 $82 $72
Grand Gulfport 14.8% 87.9% $62 $60 $53
Sheraton Tunica 15.5% 97.7% $58 $61 $59
Belle of Orleans 17.2% n/a n/a n/a n/a
Bally's Tunica 19.3% 90.5% $47 $40 $36
---------- --------- -------- -------- -------
16.1% 88.0% $63 $60 $53
---------- --------- -------- -------- -------
Year Ended
December 31, 2002
----------------------------------------------
Table Occupancy APR (1) ADR (2) RevPAR
Hold % % (3)
---------- ---------- -------- -------- ------
WESTERN REGION
Paris/Bally's 15.4% 94.5% $100 $104 $99
Caesars Palace 15.3% 92.3% $135 $136 $126
Flamingo Las Vegas 15.4% 92.8% $71 $71 $66
Reno Hilton 20.2% 75.9% $72 $70 $53
Caesars Tahoe 16.7% 86.6% $115 $122 $106
Flamingo Laughlin 18.3% 83.3% $34 $31 $26
---------- ---------- -------- -------- ------
15.7% 89.9% $89 $90 $81
---------- ---------- -------- -------- ------
EASTERN REGION
Bally's Atlantic City 15.2% 96.2% $101 $84 $81
Caesars Atlantic City 16.5% 97.4% $121 $92 $89
Atlantic City Hilton 13.9% 97.1% $107 $90 $88
---------- ---------- -------- -------- ------
15.4% 96.8% $107 $88 $85
---------- ---------- -------- -------- ------
MID-SOUTH REGION
Grand Biloxi 14.9% 95.9% $73 $61 $59
Grand Tunica 16.6% 83.7% $51 $53 $44
Caesars Indiana 17.4% 85.5% $72 $72 $61
Grand Gulfport 16.4% 89.0% $61 $60 $53
Sheraton Tunica 17.2% 94.4% $55 $82 $77
Belle of Orleans 17.9% n/a n/a n/a n/a
Bally's Tunica 19.3% 90.8% $47 $39 $36
---------- ---------- -------- -------- ------
16.5% 88.8% $61 $59 $52
---------- ---------- -------- -------- ------
NOTE: All Property Operting Information excludes the results of
Las Vegas Hilton which is classified as discontinued operations for
all periods presented.
(1) APR is Average Paying Rate and is calculated by dividing cash
room revenue by cash rooms occupied.
(2) ADR is Average Daily Rate and is calculated by dividing total
room revenue by total rooms occupied.
(3) RevPAR is defined as Revenue Per Available Room and is
calculated by dividing total room revenue by rooms available.
CAESARS ENTERTAINMENT, INC.
Reconciliation of EBITDA to Net Income (Loss)
(Amounts in millions, except per share amounts)
(unaudited)
Three Months Ended Year Ended
December 31, December 31,
------------------ ------------------
2003 2002 2003 2002
--------- -------- -------- ---------
EBITDA(1) $206 $223 $1,034 $1,090
Depreciation and
amortization (105) (107) (440) (449)
Depreciation from
unconsolidated subs (1) (1) (6) (6)
Pre-opening expense - - (1) (1)
Impairment losses and
other (127) (56) (127) (66)
--------- -------- -------- ---------
Operating income (loss) (27) 59 460 568
Net interest expense (78) (83) (328) (344)
Investment gain - - - 44
Income tax benefit
(provision) 24 6 (75) (104)
Minority interest, net (1) (2) (3) (7)
Discontinued operations, net
of taxes - Las Vegas Hilton (2) (1) (8) (2)
Cumulative effect of
accounting change -
goodwill - - - (979)
--------- -------- -------- ---------
Net income (loss) $(84) $(21) $46 $(824)
========= ======== ======== =========
Net income (loss) per share
Basic $(0.28) $(0.07) $0.15 $(2.74)
Diluted $(0.28) $(0.07) $0.15 $(2.71)
Weighted average shares
outstanding
Basic 303 301 302 301
Diluted 303 301 304 304
(1) EBITDA is earnings before interest, taxes, depreciation and
amortization, pre-opening, impairment losses and other, investment
gain, and discontinued operations.
CAESARS ENTERTAINMENT, INC.
Reconciliation of Net Income (Loss) to Adjusted Net Income
(Amounts in millions, except
per share amounts)
(unaudited)
Three Months Ended Year Ended
December 31, December 31,
------------------ ------------------
2003 2002 2003 2002
--------- -------- -------- ---------
Net income (loss) $(84) $(21) $46 $(824)
Adjustments:
Pre-opening expense - - 1 1
Impairment losses and other 127 56 127 66
Investment gain - - - (44)
Income taxes on adjustments (32) (20) (32) (19)
Discontinued operations, net of
taxes - Las Vegas Hilton 2 1 8 2
Cumulative effect of
accounting change - goodwill - - - 979
--------- -------- -------- ---------
Adjusted net income $13 $16 $150 $161
========= ======== ======== =========
Adjusted net income per share
Basic $0.04 $0.05 $0.50 $0.53
Diluted $0.04 $0.05 $0.49 $0.53
Weighted average shares
outstanding
Basic 303 301 302 301
Diluted 306 302 304 304
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion