Caesars Entertainment Reports Financial Results for Second Quarter of 2004.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. -- 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 half-year ended June June: see month. 30, 2004. Second quarter 2004 results For the second quarter of 2004, Caesars Entertainment reported net income of $148 million, or $0.47 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 net income of $41 million, or $0.14 per fully diluted share, for the second quarter of 2003. Net income for the second quarter of 2004 included a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. gain of $87 million, net of taxes, associated with the 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. (subject to adjustment for changes to working capital). Adjusted net income for the second quarter of 2004 was $60 million, or $0.19 per diluted share. That compares to adjusted net income of $43 million, or $0.14 per diluted share, in the second quarter of 2003. Adjusted net income for the second quarter of 2004 excludes the $87 million gain from the sale of the Las Vegas Hilton and $3 million of the hotel's operating results (both included in discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. ); a $3 million investment gain associated with the sale of the company's interest in an office building in Las Vegas; $3 million in pre-opening expense for the "We Will Rock You" musical at 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. and the Roman Plaza For the hotel in New York City, see . Plaza (IPA /'plaθa/ or /'plasa/ 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 $2 million related to executive contract terminations Defense procurement: the cessation or cancellation, in whole or in part, of work under a prime contract or a subcontract thereunder for the convenience of, or at the option of, the government, or due to failure of the contractor to perform in accordance with the terms of the contract (default). . Adjusted net income for the second quarter of 2003 excludes $2 million of discontinued operations related to operating results for the Las Vegas Hilton. Net revenue for the second quarter of 2004 was $1.161 billion, compared to $1.136 billion for the second quarter of 2003. Second 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. , interest expense and other items.) First half 2004 results For the first half of 2004, Caesars Entertainment reported net income of $219 million - or $0.70 per diluted share. That compares to net income of $82 million - or $0.27 per diluted share - for the six month period that ended on June 30, 2003. Adjusted net income for the first half of 2004 was $130 million, or $0.42 per diluted share, compared to adjusted net income of $84 million, or $0.28 per diluted share, for the first half of 2003. Adjusted net income for the first half of 2004 excludes the $87 million gain from the sale of the Las Vegas Hilton and $11 million of the hotel's operating results; the $3 million investment gain associated with the sale of the company's interest in the Las Vegas office building; the $3 million in pre-opening expense; the $2 million related to contract terminations; and $7 million related to prior-year corporate income tax expense 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). . Adjusted net income for the first half of 2003 excludes $1 million in operating results from the Las Vegas Hilton and $1 million in pre-opening expense associated with the premier of "A New Day...." starring Celine CELINE Cellule Interrégionale de l'Environnement Dion at Caesars Palace. Net revenue for the first half of 2004 was $2.357 billion, up from $2.222 billion for the first half of 2003. EBITDA for the first half of 2004 was $604 million, up from $542 million for the first half of 2003. Strong EBITDA growth, significant margin improvement "We had a strong second quarter, reporting record net income before gains, six percent growth in EBITDA and significant margin improvement," said Caesars 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. "Continuing strength in the Las Vegas market drove an overall increase of 35 percent in our income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the ." Second quarter financial highlights --The Western Region reported EBITDA of $124 million, an increase of 39 percent from $89 million in EBITDA in the second quarter of 2003. The company's four Las Vegas Strip The Las Vegas Strip (also known as The Strip) is a 4 mi (6.7 km) section of Las Vegas Boulevard South, most of which has been designated an All-American Road. resorts reported a 39 percent increase in EBITDA, driven by strong room rates, higher occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy and increased slot win. --In the Eastern Region, EBITDA was $102 million, down 16 percent from the $122 million reported for the second quarter of 2003. Despite a strong April, the market experienced weakness in May and June. --The Mid-South Mid-South may refer to:
--The company completed the sale of the Las Vegas Hilton for $286 million to an affiliate Affiliate Relationship between two companies when one company owns substantial interest, but less than a majority of the voting stock of another company, or when two companies are both subsidiaries of a third company. See: Subsidiaries, parent company. of Colony Capital  This article may contain improper references to .Please help [ improve this article] by removing . , 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. . The sale resulted in an after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. gain of $87 million, which is included in discontinued operations. Last week, the company used the $267 million in net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the sale to pay down additional 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 more than $1 billion. --The company closed a new $2-billion, five-year, senior credit facility. The proceeds from the facility were used to replace commitments under the company's existing credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities and refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. borrowings outstanding under those credit facilities. --The company sold $375 million in Floating Rate Contingent Convertible Senior Notes due 2024 and used the proceeds to repay a portion of the amounts outstanding under its existing credit facilities. The convertible notes bear interest at a per annum Per annum Yearly. rate of three-month LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). , adjusted quarterly. --The Roman Plaza, the new gateway to Caesars Palace, opened in early July July: see month. at the corner of Las Vegas Boulevard boulevard Broad landscaped avenue that typically permits several lanes of vehicular traffic as well as pedestrian walkways. The earliest boulevards originally followed the city walls (the word originally meant “bulwark”) and were built in the ancient Middle and 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. Road. The elegant piazza piazza Open square or marketplace, surrounded by buildings, in an Italian town or city. It was equivalent to the plaza of Spanish-speaking countries. The term became more widely used in the 16th–18th century, denoting any large open space with buildings around it. features a new restaurant, retail space and an amphitheater amphitheater (ăm`fəthē'ətər, ăm`pə–), open structure used for the exhibition of gladiatorial contests, struggles of wild beasts, sham sea battles, and similar spectacles. for concerts and sporting events. --Construction proceeded on schedule and on budget for the new 949-room hotel tower at Caesars Palace, scheduled for completion in the summer of 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. --Construction began on 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, a $145 million luxury retail, dining and entertainment complex, that is scheduled to open on the 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. Boardwalk in the summer of 2005. Developed and financed by an affiliate of 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, The Pier at Caesars will feature Gucci The House of Gucci, better known as simply Gucci, is an Italian iconic fashion and leather goods label. It was founded by Guccio Gucci (b.1881 – d.1953) in Florence in 1906. , Hugo HUGO - A bytecode-interpreted transaction handler from Geac. Boss, Louis Vuitton The Louis Vuitton Company (more commonly known simply as Louis Vuitton) is a luxury French fashion and leather goods brand and company, headquartered in Paris, France. It is a division of the French holding company, LVMH Louis Vuitton Moët Hennessy S.A. , Armani A/X, Bebe Bebe, Bèbè, or BeBe may refer to:
Noun 1. Burberry - a lightweight belted raincoat typically made of tan gabardine with a distinctive tartan lining; named for the original manufacturer and other elite retailers and restaurants and will be connected directly 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. by a sky bridge. --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. , the new restaurant opened last year at Caesars Palace by the famed Bay Area 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. , was named Best New Restaurant in the nation by the James Beard Foundation The James Beard Foundation is a New York-based national professional non-profit organization named in honor of James Beard that serves to promote the culinary arts by honoring chefs, wine professionals, journalists, and cookbook authors at annual award ceremonies and providing 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 . It is the first restaurant in Las Vegas to ever win this award and in 2003 the only restaurant outside of New York to be nominated nom·i·nate tr.v. nom·i·nat·ed, nom·i·nat·ing, nom·i·nates 1. To propose by name as a candidate, especially for election. 2. To designate or appoint to an office, responsibility, or honor. . --The Simon Group announced a late October October: see month. opening for the 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. . --In an effort to increase the participation of minority and women-owned vendors, the company launched www.caesarsdiversity.com, a new web site intended to make it easier for minority and women-owned firms to do business with one of the world's leading gaming companies. --The company opened the Caesars Entertainment LifeStrides Pharmacy pharmacy, art of compounding and dispensing drugs and medication. The term is also applied to an establishment used for such purposes. Until modern times medication was prepared and dispensed by the physician himself. In the 18th cent. Center, the company's first on-site on-site adj. Done or located at the site, as of a particular activity: on-site monitoring of a production run; an on-site film shoot. pharmacy, at Bally's Las Vegas
Employees or other beneficiaries who are eligible to receive benefits from a company's employee benefit plan. at no out-of-pocket out-of-pock·et adj. 1. Calling for the spending of cash: out-of-pocket expenses. 2. Lacking funds: hungry, cold, and out-of-pocket travelers. Adj. cost. --The New Jersey Casino Control Commission The Casino Control Commission is a New Jersey state governmental agency that was founded in 1977 as the state's gaming control board, responsible for administering the Casino Control Act and its regulations to assure public trust and confidence in the credibility and integrity of , acting on the recommendation of the state Division of Gaming Enforcement, unanimously renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. the 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. licenses for Caesars Entertainment's three Atlantic City resorts - 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. , 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 Caesars Atlantic City. Western Region EBITDA for the Western Region's seven casino resorts was $124 million in the second quarter of 2004, up 39 percent from $89 million in the year-ago quarter. The increase was driven by strong room rates, higher occupancy and increased slot win on the Las Vegas Strip. Revenue Per Available Room (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. ) for Strip resorts rose 12 percent and slot win on the Strip increased 22 percent in the quarter. At Caesars Palace, net revenue in the quarter rose to $139 million from $132 million in the second quarter of 2003. EBITDA was $30 million, even with results for the second quarter of 2003. Overall gaming volumes at Caesars Palace rose eight percent, while gaming win declined six percent because of lower baccarat baccarat (bä`kərä', băk`–, Fr. bäkärä`), French card game formerly widely played in European casinos but now supplanted in popularity by chemin de fer. volume and hold. RevPAR rose six percent, due to improved occupancy and a four percent increase in the average cash room rate. In early July, Caesars Palace opened its new Roman Plaza, which provides a direct entrance to the property from the pedestrian A pedestrian is a person travelling on foot, whether walking or running. In modern times, the term mostly refers to someone walking on a road or footpath, but this was not the case historically. History Walking is the primary means of human locomotion. bridges that span Flamingo Road and Las Vegas Boulevard. The 175,000 square-foot expansion of The Forum Shops at Caesars is scheduled to open in late October, and the resort's new 949-room, luxury hotel tower is on schedule for completion in the summer of 2005. At Paris Las Vegas, second quarter net revenue rose 15 percent, to $105 million, from the year-ago quarter. Second quarter EBITDA was $35 million, up 75 percent from $20 million reported in the second quarter of 2003. The increase was due largely to higher gaming win and room revenues. RevPAR increased 12 percent, driven by higher cash room rates. At Bally's, net revenue in the second quarter rose 12 percent, to $74 million, from the second quarter of 2003. EBITDA was $19 million, up 73 percent from the second quarter of 2003. Gaming win rose 10 percent due to higher slot win. RevPAR rose 13 percent, driven by higher occupancy and room rates. 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. , net revenue for the second quarter was $97 million, up 26 percent from the year-ago quarter. EBITDA rose 43 percent, to $33 million, from the second quarter of 2003. The results were driven by a 23 percent increase in slot win, a 17 percent increase in RevPAR and the inclusion of results from the new Margaritaville cafe, which held its grand opening in January January: see month. of this year. 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 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. , Caesars Tahoe Ta·hoe , Lake A lake on the California-Nevada border west of Carson City, Nevada. It is a popular resort area. and Flamingo Laughlin Laughlin has several uses:
Eastern Region Second quarter 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 $102 million, down 16 percent from the $122 million reported for the second quarter of 2003, reflecting 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. At Caesars Atlantic City, second quarter net revenue declined nine percent, to $122 million. EBITDA was $38 million, compared to $48 million in the second quarter of 2003. The decline was due largely to a 25 percent reduction in table win, attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to decreases in volume and hold. At Bally's Atlantic City, net revenue was $163 million, compared to $177 million for the second quarter of 2003. EBITDA for the second quarter was $47 million, down from $54 million in the year-ago quarter. The declines were due to lower gaming volumes. Table game win declined 15 percent, primarily as a result of an 11 percent drop in volume. Slot win declined five percent because of a six percent drop in volume. RevPAR rose six percent, due to an 18 percent increase in the average cash room rate. At the Atlantic City Hilton, second quarter net revenue was $71 million, down from $79 million in the second quarter of 2003. Second quarter EBITDA was $15 million, down from $19 million in the second quarter of 2003. Table and slot win declined 10 percent and eight percent, respectively, primarily because of lower gaming volumes. Mid-South Region Caesars Entertainment's seven casino resorts in Indiana, 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 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 second quarter EBITDA of $63 million,
even with results for the second quarter of 2003.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. reported second quarter net revenue of $78 million, up from $75 million in the second quarter of 2003. EBITDA was $19 million, even with results for the second quarter of 2003. The property reported a four percent increase in gaming win and a 29 percent rise in RevPAR, driven by higher occupancy. On the Gulf Coast, net revenue at 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. was $60 million, up from $55 million in the year-ago quarter. EBITDA was $16 million, up 45 percent from the $11 million recorded in the second quarter of 2003. Gaming win rose eight percent, resulting from increases in both table and slot win. Second quarter net revenue 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 $49 million, up from $47 million in the second quarter of 2003. EBITDA was $12 million, even with the prior year's second quarter. Gaming win rose three percent, while higher room rates and improved occupancy drove a 17 percent increase in RevPAR. 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 net revenue of $48 million, compared to $54 million in the second quarter of last year. EBITDA was $6 million, down 50 percent from $12 million in the second quarter of 2003. Gaming win declined 15 percent as a result of lower table game hold and lower slot volume. Net revenue 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 $35 million, up from $33 million in the second quarter of last year. EBITDA was $10 million, even with the year-ago quarter. International The company's nine international properties reported combined net revenue of $25 million, up from $23 million in the second quarter of 2003. EBITDA was $14 million, up 40 percent from the $10 million recorded in the second quarter of last year. The results reflected improved performance at Nova Scotia Nova Scotia (nō`və skō`shə) [Lat.,=new Scotland], province (2001 pop. 908,007), 21,425 sq mi (55,491 sq km), E Canada. Geography , 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. and Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. . Capital expenditures The company invested $141 million of capital during the second quarter of 2004. Maintenance capital expenditures were $56 million and investments in growth projects were $85 million. In the first half of 2004, the company has invested $219 million of capital - $100 million for maintenance and $119 million for growth projects. The company currently expects to spend $671 million on capital investments in 2004. This includes maintenance capital investments of $276 million and growth capital of $395 million. The 2004 budget for growth capital includes $197 million for the luxury room tower and meeting space addition at Caesars Palace; $41 million for the garage at Caesars Atlantic City, $22 million for the Roman Plaza project at Caesars Palace; and $59 million related to development of the Mohawk Mohawk, river, United States 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. Mountain Casino Resort in New York State. The remaining budget for growth projects includes $18 million for selected projects at Caesars Palace; $9 million related to "We Will Rock You" at Paris Las Vegas; $12 million at Caesars Atlantic City, principally for a facade facade (fəsäd`), exterior face or wall of a building. The term implies ordered placement of its openings and other features and thus seems inapplicable to a wall without design. renovation and construction of the bridge connecting the second floor of the casino to the Pier at Caesars; and $10 million related to the development of a Caesars-branded casino with the Pauma-Yuima Band of Luiseno Lui·se·ño n. pl. Luiseño or Lui·se·ños 1. a. A Native American people inhabiting the coastal area of California south of Los Angeles, associated during Spanish times with the missions of San Luis Rey and San 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 northern San Diego County, California San Diego County is a county located on the Pacific Ocean in the far southwest of the U.S. state of California, United States along its border with Mexico. According to the 2000 Census, its population was 2,813,833, making it the third largest county by population in the state and . Other items Depreciation and amortization in the second quarter was $112 million, compared to $114 million in the second quarter of 2003. Pre-opening expense in the quarter was $3 million, related to the scheduled premiere of "We Will Rock You" at Paris Las Vegas and the opening of the Roman Plaza at Caesars Palace. In the quarter, the company paid $2 million related to executive contract terminations. Corporate expense in the second quarter was $11 million, compared to $9 million in the second quarter of 2003. The increase is primarily related to development activity. Equity in earnings of unconsolidated affiliates primarily consists of earnings from the company's ownership interests in 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 , 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 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 second quarter, this item was $3 million, up from $2 million in the second quarter of 2003. Net interest expense in the quarter was $75 million, compared to $86 million in the second quarter 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 $2 million in the second quarter, compared to $1 million in the year-ago quarter. The investment gain recorded in the quarter of $3 million was related to the disposition of the company's interest in a Las Vegas office building. The effective tax rate in the second quarter was 41.2 percent, compared to 41.9 percent in the second quarter of 2003. Balance sheet As of June 30, 2004, the company had a cash balance of $663 million and a debt balance of $4.5 billion. The company had $1.3 billion available on its credit facility, subject to covenant covenant (kŭv`ənənt), agreement entered into voluntarily by two or more parties to do or refrain from doing certain acts. In the Bible and in theology the covenant is the agreement or engagement of God with man as revealed in the restrictions. Its leverage ratio, as defined by its credit facility was 4.1 times EBITDA. The number of diluted shares outstanding was 313 million at the end of the second quarter. Other events Subsequent to quarter end, the company utilized a portion of its cash on hand to retire a $325 million, seven percent senior note issue due July 15. As a result of this action, the company's debt balance on July 15 was $4.2 billion and its debt leverage ratio was 3.8 times EBITDA. On July 14, 2004, the company, Harrah's Entertainment Harrah's Entertainment, Inc. (NYSE: HET) is a gaming corporation that owns and operates casinos, hotels, and six golf courses under several brands. The company, based in Las Vegas, Nevada, is the largest gaming company in the world, with yearly revenues around $7.11 billion. , Inc. and Harrah's Operating Company operating company A business that engages in transactions with outsiders. , Inc., a wholly-owned subsidiary of Harrah's, entered into an Agreement and Plan of Merger, providing for the merger of Caesars with and into Harrah's Operating Company, Inc., which would be the surviving corporation. Following the approval and adoption of the Agreement and Plan of Merger by the stockholders of Caesars and Harrah's and upon the receipt of all necessary gaming and other approvals, and the satisfaction or waiver The voluntary surrender of a known right; conduct supporting an inference that a particular right has been relinquished. The term waiver is used in many legal contexts. of all other conditions precedent A court decision that is cited as an example or analogy to resolve similar questions of law in later cases. The Anglo-American common-law tradition is built on the doctrine of Stare Decisis ("stand by decided , each outstanding share of common stock of Caesars will be exchanged for either $17.75 in cash or 0.3247 shares of Harrah's common stock, at the election of each Caesars stockholder, subject to pro-ration as provided for in the Agreement and Plan of Merger. Guidance The company is providing the following guidance based on the current competitive, economic, regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. , 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 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. settlements and other non-recurring items. Adjusted Diluted Earnings Per Share Third Quarter 2004 Full Year 2004 $0.19 - $0.21 $0.69 - $0.71 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 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. , 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 To go along with; to go with or to attend as a companion or associate. A motor vehicle statute may require beginning drivers or drivers under a certain age to be accompanied by a licensed adult driver whenever operating an automobile. this release that: 1) Reconcile EBITDA to operating income and net income and 2) Reconcile net income to adjusted net income. Investor conference call Caesars Entertainment has scheduled an investor conference call for today at 8:00 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 (10:00 a.m. CDT CDT abbr. Central Daylight Time CDT Central Daylight Time CDT n abbr (US) (= Central Daylight Time) → hora de verano del centro; (BRIT and 11:00 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT ). 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 July 29 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 8364385. 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, 28 properties on four continents, 26,000 hotel rooms, two million square feet of casino space and 52,000 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 . Additional Information about the Acquisition and Where to Find It In connection with Harrah's proposed acquisition of Caesars (the "Acquisition"), Caesars and Harrah's intend to file relevant materials with the Securities and Exchange Commission ("SEC"), including a registration statement on Form S-4 that will contain a prospectus and a joint proxy statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. . INVESTORS AND SECURITY HOLDERS OF CAESARS ARE URGED TO READ THESE MATERIALS WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT HARRAH'S, CAESARS AND THE ACQUISITION. The proxy statement, prospectus and other relevant materials (when they become available), and any other documents filed by Harrah's or Caesars with the SEC, may be obtained free of charge at the SEC's web site at www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. . In addition, investors and security holders may obtain free copies of the documents filed with the SEC by directing a written request to: Caesars Entertainment, Inc., 3930 Howard Howard, English noble family. Landowners in Norfolk from the 13th cent., the Howards obtained the duchy of Norfolk through the marriage of Sir Robert Howard to Margaret Mowbray, daughter of Thomas Mowbray, 1st duke of Norfolk. Hughes Parkway, Las Vegas, Nevada 89109, Attention: Investor Relations Investor relations The process by which the corporation communicates with its investors. or Harrah's, One Harrah's Court, Las Vegas, Nevada 89119, Attention: Investor Relations. Investors and security holders are urged to read the proxy statement, prospectus and the other relevant materials when they become available before making any voting or investment decision with respect to the Acquisition. Caesars and its executive officers and directors may be deemed to be participants in the solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of proxies from the stockholders of Caesars in connection with the Acquisition. Information about the executive officers and directors of Caesars and their ownership of Caesars common stock is set forth in the proxy statement for Caesars' 2004 Annual Meeting of Stockholders, which was filed with the SEC on April 16, 2004. Investors and security holders may obtain additional information regarding the direct and indirect interests of Caesars and its executive officers and directors in the Acquisition by reading the proxy statement and prospectus regarding the Acquisition when it becomes available. This communication shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. . 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. This document includes "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. " intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. You can identify these statements by the fact that they do not relate strictly to historical or current facts. These statements contain words such as "may," "will," "project," "might," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," "continue" or "pursue," or the negative or other variations thereof or comparable terminology. In particular, they include statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc , among other things, future actions, strategies, future performance, future financial results of Caesars and Harrah's and Harrah's anticipated acquisition of Caesars. These forward-looking statements are based on current expectations and projections about future events. Readers are cautioned that forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that cannot be predicted or quantified and, consequently, the actual performance or results of Caesars and Harrah's may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors as well as other factors described from time to time in our reports filed with the SEC (including the sections entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: "Risk Factors" and "Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations" contained therein): financial community and rating agency perceptions of Harrah's and Caesars', the effects of economic, credit and capital market conditions on the economy in general, and on gaming and hotel companies in particular; construction factors, including delays, zoning issues, environmental restrictions, soil and water conditions, weather and other hazards
Hazards is an independent, union-friendly magazine based in Sheffield, England, which has won major international awards. , site access matters and building permit issues; the effects of environmental and structural building conditions relating to our properties; the ability to timely and cost-effectively integrate into Harrah's operations the companies that it acquires, including with respect to its acquisition of Caesars; access to available and feasible (algorithm) feasible - A description of an algorithm that takes polynomial time (that is, for a problem set of size N, the resources required to solve the problem can be expressed as some polynomial involving N). financing, including financing for Harrah's acquisition of Caesars, on a timely basis; changes in laws (including increased tax rates), regulations or accounting standards, third-party relations and approvals, and decisions of courts, regulators and governmental bodies; litigation outcomes and judicial actions, including gaming legislative action, referenda and taxation; the ability of our customer-tracking, customer loyalty and yield-management programs to continue to increase customer loyalty and same store sales Same Store Sales A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more. Notes: This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of ; our ability to recoup recoup To sell an asset at a price sufficient to recover the original outlay or to offset a previous loss. costs of capital investments through higher revenues; acts of war Tom Clancy's Op-Center: Acts of War is a technothriller by Jeff Rovin Plot introduction The mobile Regional Operations Center (ROC) in Turkey investigates a dam blown up by Kurdish terrorists. or terrorist incidents The following is a timeline of acts and failed attempts that can be considered non-state terrorism. Massacres more generally are listed chronologically at List of massacres; assassinations are listed by location at List of assassinated people. ; abnormal abnormal /ab·nor·mal/ (ab-nor´mal) not normal; contrary to the usual structure, position, condition, behavior, or rule. abnormal, adj gaming holds; and the effects of competition, including locations of competitors and operating and market competition. Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. Caesars disclaims any obligation to update the forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date stated, or if no date is stated, as of the date of this press release.
CAESARS ENTERTAINMENT, INC.
Summary Statements of Operations
(Amounts in millions, except per share amounts)
(unaudited)
Three Months Six Months
Ended Ended
June 30, June 30,
--------------- ---------------
2004 2003 2004 2003
------- ------- ------- -------
Net revenue $1,161 $1,136 $2,357 $2,222
------- ------- ------- -------
Operating costs and expenses 862 855 1,745 1,677
Depreciation and amortization 112 114 221 225
Pre-opening expense 3 - 3 1
Contract termination fee 2 - 2 -
Corporate expense 11 9 22 17
------- ------- ------- -------
Total costs and expenses 990 978 1,993 1,920
------- ------- ------- -------
Equity in earnings of unconsolidated
affiliates 3 2 11 11
------- ------- ------- -------
Operating income 174 160 375 313
Net interest expense 75 86 153 168
Investment gain (3) - (3) -
------- ------- ------- -------
Income from continuing operations
before taxes and
minority interest 102 74 225 145
Income tax provision 42 31 100 61
Minority interest, net 2 - 4 1
------- ------- ------- -------
Income from continuing operations 58 43 121 83
Discontinued operations
Income (loss) from discontinued
operations (including gain on
disposal of $87 million), net
of taxes 90 (2) 98 (1)
------- ------- ------- -------
Net income $148 $41 $219 $82
======= ======= ======= =======
Basic earnings per share
Income from continuing operations $0.19 $0.14 $0.39 $0.28
Discontinued operations, net of
taxes - Las Vegas Hilton 0.29 - 0.32 (0.01)
------- ------- ------- -------
Net income $0.48 $0.14 $0.71 $0.27
======= ======= ======= =======
Diluted earnings per share
Income from continuing operations $0.19 $0.14 $0.39 $0.27
Discontinued operations, net of
taxes - Las Vegas Hilton 0.28 - 0.31 -
------- ------- ------- -------
Net income $0.47 $0.14 $0.70 $0.27
======= ======= ======= =======
Weighted average shares outstanding
Basic 308 301 307 301
Diluted 313 302 312 302
CAESARS ENTERTAINMENT, INC.
Property Operating Information
(Amounts in millions)
(unaudited)
Three Months Ended
June 30, 2004
--------------------------------------
Net Operating Deprecia- Pre-
Revenue Income tion and opening
(Loss) Amor- Expense
tization
--------------------------------------
WESTERN REGION
Caesars Palace $139 $17 $12 $1
Paris Las Vegas 105 25 8 2
Bally's Las Vegas 74 9 10 -
Flamingo Las Vegas 97 27 6 -
Reno Hilton 31 - 2 -
Caesars Tahoe 19 (3) 3 -
Flamingo Laughlin 28 4 1 -
--------------------------------------
493 79 42 3
--------------------------------------
EASTERN REGION
Bally's Atlantic City 163 31 16 -
Caesars Atlantic City 122 27 11 -
Atlantic City Hilton 71 10 5 -
Dover Downs 2 2 - -
--------------------------------------
358 70 32 -
--------------------------------------
MID-SOUTH REGION
Grand Biloxi 60 11 5 -
Grand Tunica 48 - 6 -
Caesars Indiana 78 12 7 -
Grand Gulfport 49 8 4 -
Sheraton Tunica 20 5 2 -
Bally's New Orleans 15 1 - -
Bally's Tunica 15 1 2 -
Regional Overhead - (1) - -
--------------------------------------
285 37 26 -
--------------------------------------
INTERNATIONAL and Other 25 3 10 -
CORPORATE - (15) 2 -
--------------------------------------
TOTAL $1,161 $174 $112 $3
======================================
Three Months Ended
June 30, 2004
--------------------------------
Contract Deprecia- EBITDA
Termi- tion from
nation Unconsol-
Fee idated
Affiliates
--------------------------------
WESTERN REGION
Caesars Palace $- $- $30
Paris Las Vegas - - 35
Bally's Las Vegas - - 19
Flamingo Las Vegas - - 33
Reno Hilton - - 2
Caesars Tahoe - - -
Flamingo Laughlin - - 5
--------------------------------
- - 124
--------------------------------
EASTERN REGION
Bally's Atlantic City - - 47
Caesars Atlantic City - - 38
Atlantic City Hilton - - 15
Dover Downs - - 2
--------------------------------
- - 102
--------------------------------
MID-SOUTH REGION
Grand Biloxi - - 16
Grand Tunica - - 6
Caesars Indiana - - 19
Grand Gulfport - - 12
Sheraton Tunica - - 7
Bally's New Orleans - - 1
Bally's Tunica - - 3
Regional Overhead - - (1)
--------------------------------
- - 63
--------------------------------
INTERNATIONAL and Other - 1 14
CORPORATE 2 - (11)
--------------------------------
TOTAL $2 $1 $292
================================
Three Months Ended
June 30, 2003
----------------------------------------------
Net Operating Deprecia- Deprecia- EBITDA
Revenue Income tion and tion
(Loss) Amor- from
tization Unconsol-
idated
Affiliates
----------------------------------------------
WESTERN REGION
Caesars Palace $132 $16 $14 $- $30
Paris Las Vegas 91 11 9 - 20
Bally's Las Vegas 66 2 9 - 11
Flamingo Las Vegas 77 17 6 - 23
Reno Hilton 31 - 2 - 2
Caesars Tahoe 19 (3) 3 - -
Flamingo Laughlin 27 1 2 - 3
----------------------------------------------
443 44 45 - 89
----------------------------------------------
EASTERN REGION
Bally's Atlantic City 177 38 16 - 54
Caesars Atlantic City 134 36 12 - 48
Atlantic City Hilton 79 14 5 - 19
Dover Downs 1 1 - - 1
----------------------------------------------
391 89 33 - 122
----------------------------------------------
MID-SOUTH REGION
Grand Biloxi 55 7 4 - 11
Grand Tunica 54 6 6 - 12
Caesars Indiana 75 10 9 - 19
Grand Gulfport 47 9 3 - 12
Sheraton Tunica 18 4 3 - 7
Bally's New Orleans 15 - - - -
Bally's Tunica 15 3 - - 3
Regional Overhead - (1) - - (1)
----------------------------------------------
279 38 25 - 63
----------------------------------------------
INTERNATIONAL and Other 23 - 9 1 10
CORPORATE - (11) 2 - (9)
----------------------------------------------
TOTAL $1,136 $160 $114 $1 $275
==============================================
NOTE: All Property Operating 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)
Six Months Ended
June 30, 2004
--------------------------------------
Net Operating Deprecia- Pre-
Revenue Income tion and opening
(Loss) Amor- Expense
tization
--------------------------------------
WESTERN REGION
Caesars Palace $311 $51 $25 $1
Paris Las Vegas 221 60 16 2
Bally's Las Vegas 149 21 19 -
Flamingo Las Vegas 188 51 12 -
Reno Hilton 64 - 5 -
Caesars Tahoe 39 (5) 5 -
Flamingo Laughlin 56 8 2 -
-------- -----------------------------
1,028 186 84 3
-------- -----------------------------
EASTERN REGION
Bally's Atlantic City 318 55 30 -
Caesars Atlantic City 241 53 22 -
Atlantic City Hilton 139 16 10 -
Dover Downs 3 3 - -
-------- -----------------------------
701 127 62 -
-------- -----------------------------
MID-SOUTH REGION
Grand Biloxi 122 21 10 -
Grand Tunica 101 4 12 -
Caesars Indiana 157 24 14 -
Grand Gulfport 96 15 8 -
Sheraton Tunica 40 10 5 -
Bally's New Orleans 30 1 - -
Bally's Tunica 32 5 3 -
Regional Overhead - (2) - -
-------- -----------------------------
578 78 52 -
-------- -----------------------------
INTERNATIONAL and Other 50 12 19 -
CORPORATE - (28) 4 -
-------- -----------------------------
TOTAL $2,357 $375 $221 $3
======== =============================
Six Months Ended
June 30, 2004
---------------------------
Contract Deprecia- EBITDA
Termi- tion
nation from
Fee Unconsol-
idated
Affiliates
---------------------------
WESTERN REGION
Caesars Palace $- $- $77
Paris Las Vegas - - 78
Bally's Las Vegas - - 40
Flamingo Las Vegas - - 63
Reno Hilton - - 5
Caesars Tahoe - - -
Flamingo Laughlin - - 10
---------------------------
- - 273
---------------------------
EASTERN REGION
Bally's Atlantic City - - 85
Caesars Atlantic City - - 75
Atlantic City Hilton - - 26
Dover Downs - - 3
---------------------------
- - 189
---------------------------
MID-SOUTH REGION
Grand Biloxi - - 31
Grand Tunica - - 16
Caesars Indiana - - 38
Grand Gulfport - - 23
Sheraton Tunica - - 15
Bally's New Orleans - - 1
Bally's Tunica - - 8
Regional Overhead - - (2)
---------------------------
- - 130
---------------------------
INTERNATIONAL and Other - 3 34
CORPORATE 2 - (22)
---------------------------
TOTAL $2 $3 $604
===========================
Six Months Ended
June 30, 2003
-------------------------------------------------------
Net Operating Deprecia- Pre- Deprecia- EBITDA
Revenue Income tion and opening tion
(Loss) Amor- Expense from
tization Unconsol-
idated
Affiliates
-------------------------------------------------------
WESTERN REGION
Caesars Palace $254 $30 $26 $1 $- $57
Paris Las
Vegas 186 30 16 - - 46
Bally's Las
Vegas 137 10 19 - - 29
Flamingo Las
Vegas 153 35 12 - - 47
Reno Hilton 61 (1) 5 - - 4
Caesars Tahoe 42 (2) 5 - - 3
Flamingo
Laughlin 55 4 4 - - 8
-------- ----------------------------------------------
888 106 87 1 - 194
-------- ----------------------------------------------
EASTERN REGION
Bally's
Atlantic City 334 59 32 - - 91
Caesars
Atlantic City 252 61 24 - - 85
Atlantic City
Hilton 148 21 11 - - 32
Dover Downs 2 2 - - - 2
-------- ----------------------------------------------
736 143 67 - - 210
-------- ----------------------------------------------
MID-SOUTH
REGION
Grand Biloxi 110 14 8 - - 22
Grand Tunica 106 10 13 - - 23
Caesars
Indiana 146 20 16 - - 36
Grand Gulfport 91 17 6 - - 23
Sheraton
Tunica 38 9 5 - - 14
Bally's New
Orleans 30 1 - - - 1
Bally's Tunica 32 7 1 - - 8
Regional
Overhead - (2) - - - (2)
-------- ----------------------------------------------
553 76 49 - - 125
-------- ----------------------------------------------
INTERNATIONAL
and Other 45 9 18 - 3 30
CORPORATE - (21) 4 - - (17)
-------- ----------------------------------------------
TOTAL $2,222 $313 $225 $1 $3 $542
======== ==============================================
NOTE: All Property Operating 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
June 30, 2004
---------------------------------------
Table Occupancy APR ADR RevPAR
Hold % % (1) (2) (3)
---------- --------- ----- ----- ------
WESTERN REGION
Caesars Palace 12.9% 98.4% $157 $154 $152
Paris Las Vegas 16.0% 94.2% $140 $135 $128
Bally's Las Vegas 15.9% 95.9% $100 $99 $95
Flamingo Las Vegas 17.0% 98.1% $91 $90 $88
Reno Hilton 13.5% 82.2% $71 $71 $58
Caesars Tahoe 13.8% 85.5% $111 $111 $95
Flamingo Laughlin 17.9% 84.5% $38 $35 $30
---------- --------- ----- ----- ------
14.4% 93.1% $104 $102 $95
---------- --------- ----- ----- ------
EASTERN REGION
Bally's Atlantic City 15.1% 96.6% $114 $89 $86
Caesars Atlantic City 15.1% 98.0% $123 $91 $89
Atlantic City Hilton 15.5% 96.4% $100 $89 $86
---------- --------- ----- ----- ------
15.2% 97.0% $113 $90 $87
---------- --------- ----- ----- ------
MID-SOUTH REGION
Grand Biloxi 14.8% 96.0% $82 $68 $65
Grand Tunica 12.3% 76.9% $59 $58 $45
Caesars Indiana 16.8% 95.4% $101 $102 $97
Grand Gulfport 19.6% 92.4% $89 $75 $70
Sheraton Tunica 20.3% 96.6% $69 $65 $63
Bally's New Orleans 15.8% n/a n/a n/a n/a
Bally's Tunica 19.1% 92.3% $50 $42 $39
---------- --------- ----- ----- ------
16.0% 88.7% $77 $70 $62
---------- --------- ----- ----- ------
Three Months Ended
June 30, 2003
----------------------------------
Table Occupancy APR ADR RevPAR
Hold % (1) (2) (3)
%
----- --------- ----- ----- ------
WESTERN REGION
Caesars Palace 14.7% 95.0% $151 $151 $143
Paris Las Vegas 12.1% 95.4% $120 $120 $114
Bally's Las Vegas 14.7% 93.7% $88 $89 $84
Flamingo Las Vegas 16.8% 96.5% $78 $78 $75
Reno Hilton 21.8% 80.5% $65 $64 $52
Caesars Tahoe 14.7% 86.2% $108 $107 $92
Flamingo Laughlin 17.5% 83.3% $36 $33 $27
----- --------- ----- ----- ------
14.6% 91.7% $93 $93 $86
----- --------- ----- ----- ------
EASTERN REGION
Bally's Atlantic City 15.8% 97.1% $96 $84 $81
Caesars Atlantic City 17.5% 98.8% $127 $93 $92
Atlantic City Hilton 15.5% 97.8% $111 $90 $88
----- --------- ----- ----- ------
16.4% 97.8% $108 $88 $86
----- --------- ----- ----- ------
MID-SOUTH REGION
Grand Biloxi 14.2% 97.3% $78 $68 $66
Grand Tunica 19.7% 84.3% $50 $51 $43
Caesars Indiana 17.0% 87.8% $102 $85 $75
Grand Gulfport 15.3% 91.0% $67 $66 $60
Sheraton Tunica 15.3% 98.1% $57 $61 $60
Bally's New Orleans 17.0% n/a n/a n/a n/a
Bally's Tunica 18.7% 90.8% $44 $38 $34
----- --------- ----- ----- ------
16.6% 90.1% $67 $63 $56
----- --------- ----- ----- ------
NOTE: All Property Operating 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)
Six Months Ended
June 30, 2004
----------------------------------
Table Occupancy APR ADR RevPAR
Hold % (1) (2) (3)
%
----- --------- ----- ----- ------
WESTERN REGION
Caesars Palace 15.8% 97.8% $161 $157 $154
Paris Las Vegas 17.3% 94.3% $146 $141 $133
Bally's Las Vegas 14.8% 94.9% $108 $106 $101
Flamingo Las Vegas 17.3% 95.6% $93 $91 $87
Reno Hilton 15.9% 81.9% $71 $70 $57
Caesars Tahoe 14.4% 85.2% $112 $116 $99
Flamingo Laughlin 18.8% 86.1% $34 $32 $27
----- --------- ----- ----- ------
16.1% 92.4% $107 $105 $97
----- --------- ----- ----- ------
EASTERN REGION
Bally's Atlantic City 15.6% 95.7% $107 $83 $80
Caesars Atlantic City 16.3% 97.0% $112 $89 $86
Atlantic City Hilton 16.2% 93.1% $90 $84 $78
----- --------- ----- ----- ------
16.0% 95.5% $105 $85 $81
----- --------- ----- ----- ------
MID-SOUTH REGION
Grand Biloxi 15.3% 96.4% $77 $65 $63
Grand Tunica 14.1% 75.1% $57 $57 $42
Caesars Indiana 17.3% 94.4% $94 $95 $89
Grand Gulfport 18.8% 90.8% $73 $65 $59
Sheraton Tunica 19.1% 97.7% $69 $64 $63
Bally's New Orleans 16.6% n/a n/a n/a n/a
Bally's Tunica 19.6% 93.2% $48 $41 $38
----- --------- ----- ----- ------
16.4% 87.8% $70 $65 $57
----- --------- ----- ----- ------
Six Months Ended
June 30, 2003
--------------------------------------
Table Occupancy % APR ADR RevPAR
Hold % (1) (2) (3)
------- ----------- ----- ----- ------
WESTERN REGION
Caesars Palace 15.5% 93.2% $153 $150 $140
Paris Las Vegas 11.6% 95.2% $127 $127 $121
Bally's Las Vegas 14.7% 92.9% $95 $96 $89
Flamingo Las Vegas 17.0% 94.6% $81 $80 $76
Reno Hilton 18.2% 79.3% $67 $66 $53
Caesars Tahoe 15.8% 85.5% $113 $118 $101
Flamingo Laughlin 17.4% 85.8% $33 $30 $26
------- ----------- ----- ----- ------
14.9% 91.0% $97 $96 $88
------- ----------- ----- ----- ------
EASTERN REGION
Bally's Atlantic City 15.8% 96.7% $86 $78 $76
Caesars Atlantic City 17.6% 98.3% $112 $89 $88
Atlantic City Hilton 16.3% 94.1% $97 $85 $80
------- ----------- ----- ----- ------
16.6% 96.6% $96 $83 $80
------- ----------- ----- ----- ------
MID-SOUTH REGION
Grand Biloxi 14.0% 97.5% $69 $62 $61
Grand Tunica 18.5% 82.1% $50 $52 $42
Caesars Indiana 17.0% 88.7% $86 $79 $70
Grand Gulfport 14.5% 90.2% $59 $59 $53
Sheraton Tunica 15.0% 97.8% $56 $60 $59
Bally's New Orleans 17.4% n/a n/a n/a n/a
Bally's Tunica 18.7% 90.4% $46 $38 $34
------- ----------- ----- ----- ------
16.1% 89.4% $61 $59 $53
------- ----------- ----- ----- ------
NOTE: All Property Operating 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
(Amounts in millions, except per share amounts)
(unaudited)
Three Months Six Months
Ended Ended
June 30, June 30,
------------- -------------
2004 2003 2004 2003
------ ------ ------ ------
EBITDA(1) $292 $275 $604 $542
Depreciation and amortization (112) (114) (221) (225)
Depreciation from unconsolidated
subs (1) (1) (3) (3)
Pre-opening expense (3) - (3) (1)
Contract termination fee (2) - (2) -
------ ------ ------ ------
Operating income 174 160 375 313
Net interest expense (75) (86) (153) (168)
Investment gain 3 - 3 -
Income tax provision (42) (31) (100) (61)
Minority interest, net (2) - (4) (1)
Discontinued operations, net of
taxes - Las Vegas Hilton 90 (2) 98 (1)
------ ------ ------ ------
Net income $148 $41 $219 $82
====== ====== ====== ======
Earnings per share
Basic $0.48 $0.14 $0.71 $0.27
Diluted $0.47 $0.14 $0.70 $0.27
Weighted average shares outstanding
Basic 308 301 307 301
Diluted 313 302 312 302
(1) EBITDA is earnings before interest, taxes, depreciation and
amortization, pre-opening, contract termination fee, investment
gain and discontinued operations.
CAESARS ENTERTAINMENT, INC.
Reconciliation of Net Income to Adjusted Net Income
(Amounts in millions, except per share amounts)
(unaudited)
Three Months Six Months
Ended Ended
June 30, June 30,
------------- -------------
2004 2003 2004 2003
------ ------ ------ ------
Net income $148 $41 $219 $82
Adjustments:
Pre-opening expense 3 - 3 1
Contract termination fee 2 - 2 -
Investment gain (3) - (3) -
Indiana taxes, net - - 7 -
Discontinued operations, net of
taxes - Las Vegas Hilton (90) 2 (98) 1
------ ------ ------ ------
Adjusted net income $60 $43 $130 $84
====== ====== ====== ======
Adjusted earnings per share
Basic $0.19 $0.14 $0.42 $0.28
Diluted $0.19 $0.14 $0.42 $0.28
Weighted average shares outstanding
Basic 308 301 307 301
Diluted 313 302 312 302
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