Caesars Entertainment Reports Financial Results for Third 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 NYSESee: New York Stock Exchange : CZR CZR Columnar Zone Radius CZR Communication Zone Rear (Combat Military Zones) ) today reported financial results for the quarter and nine months ended September September: see month. 30, 2004. Third quarter 2004 results For the third quarter of 2004, Caesars Entertainment reported net income of $58 million, or $0.18 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, up 21 percent from net income of $48 million, or $0.16 per fully diluted share, recorded in the third quarter of 2003. Adjusted net income for the third quarter of 2004 was $68 million, or $0.22 per diluted share. That represents an increase of 51 percent from adjusted net income of $45 million, or $0.15 per diluted share, reported in the third quarter of 2003. Adjusted net income for the third quarter of 2004 excludes: $9 million in operating results from 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. and Bally's 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. (which the company has announced that it will sell); $9 million in asset impairments related to the 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 Caesars Tahoe Ta·hoe , Lake A lake on the California-Nevada border west of Carson City, Nevada. It is a popular resort area. , as required by Statement of Financial Accounting Standards No. 144; $6 million in expense related to the pending merger of Caesars Entertainment with 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. (NYSE: HET); $5 million in income tax expense related to the settlement of a dispute involving Lakes Entertainment, Inc.; and $4 million in pre-opening expense related to the production of the musical "We Will Rock You" 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. . Adjusted net income for the third quarter of 2003 excludes $3 million of 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 operating results for 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. , the Atlantic City Hilton and Bally's Tunica. Net revenue for the third quarter of 2004 was $1.119 billion, compared to $1.073 billion for the third quarter of 2003. Third 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.
(On September 27, 2004, Caesars Entertainment signed a definitive agreement to sell the Atlantic City Hilton and Bally's Tunica to an affiliate 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. . On June June: see month. 17, 2004, Caesars Entertainment closed the sale of the Las Vegas Hilton to an affiliate of Colony Capital. Throughout this press release, results from the Las Vegas Hilton, the Atlantic City Hilton and Bally's Tunica are treated as "discontinued operations." That means results for those properties 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. Had the company included financial results from the Atlantic City Hilton and Bally's Tunica, adjusted earnings per diluted share in the third quarter would have been $0.24 instead of $0.22.) Results for the first nine months of 2004 For the first nine months of 2004, Caesars Entertainment reported net income of $277 million - or $0.88 per diluted share. That compares to net income of $130 million - or $0.43 per diluted share - for the nine-month period that ended on September 30, 2003. Adjusted net income for the first nine months of 2004 was $192 million, or $0.61 per diluted share, compared to adjusted net income of $119 million, or $0.39 per diluted share, for the first nine months of 2003. Adjusted net income for the first nine months of 2004 excludes: --An $87 million gain (included in discontinued operations) from the sale of the Las Vegas Hilton. --$26 million in operating results, classified as discontinued operations, from the Las Vegas Hilton, the Atlantic City Hilton and Bally's Tunica. --$9 million in asset impairments related to Caesars Tahoe. --$7 million in pre-opening expense primarily related the production of the musical "We Will Rock You" at Paris Las Vegas. --$7 million in income tax expense related to a 2004 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). Tax Court decision involving the deductibility of gaming taxes. --$6 million in expense related to the pending merger of Caesars and Harrah's. --$5 million in income tax expense related to the settlement of the Lakes Entertainment dispute. --$3 million of investment gain associated with the sale of the company's interest in a Las Vegas office building. --$2 million in expense 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 first nine months of 2003 excludes $12 million in operating results from the Las Vegas Hilton, the Atlantic City Hilton and Bally's Tunica and $1 million in pre-opening expense associated with the premiere of "A New Day...." starring Celine CELINE Cellule Interrégionale de l'Environnement Dion 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. . Net revenue for the first nine months of 2004 was $3.305 billion, up from $3.115 billion for the first nine months of 2003. EBITDA for the first nine months of 2004 was $863 million, up from $764 million for the first nine months of 2003. EBITDA improvements, margin growth drive strong third quarter "We recorded an exceptionally strong third quarter, with significant EBITDA improvement in the West and the Mid-South Mid-South may refer to:
British naturalist who developed a concept of evolution that paralleled the work of Charles Darwin. R. Barr. "We particularly were pleased with the four percent EBITDA improvement in 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. , where we had forecast a modest decline. That growth is a strong indicator that our Atlantic City properties have successfully absorbed Absorbed 1. In a general business sense, when a cost is treated as an expense instead of being passed on to the customer in the form of higher prices. 2. In underwriting, when an issue has been completely sold to the public. 3. the additional supply created by 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. ," Barr added. Third quarter financial highlights --The Western Region reported EBITDA of $115 million, a 25 percent increase from the $92 million in EBITDA reported in the third 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 31 percent increase in EBITDA, primarily driven by strong room rates. --In the Eastern Region, EBITDA was $110 million, up three percent from the $107 million reported for the third quarter of 2003. The results represent a significant improvement over the EBITDA decline that the company had forecast. --The Mid-South Region recorded EBITDA of $62 million, an increase of 11 percent from the $56 million in EBITDA reported for the third quarter of 2003, despite weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. gaming volumes at the company's
two Mississippi Gulf Coast The Mississippi Gulf Coast refers to the three Mississippi counties which lie on the Gulf of Mexico: Hancock County, Mississippi, Harrison County, Mississippi, and Jackson County, Mississippi. properties affected by Hurricane Ivan This article is about the Atlantic hurricane of 2004. For other storms of the same name, see Tropical Storm Ivan (disambiguation). Hurricane Ivan was the strongest hurricane of the 2004 Atlantic hurricane season. . --Company-wide EBITDA margins rose to 26 percent from 24 percent in the third quarter of 2003. --The company's Board of Directors accepted an offer from Harrah's Entertainment to acquire Caesars for approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1.8 billion in cash and 66.3 million shares of Harrah's common stock. The acquisition is contingent on Adj. 1. contingent on - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent upon, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent approval by shareholders of both companies as well as federal and state regulatory agencies state regulatory agency A state body responsible for establishing professional standards, and for certifying professionals or organizations through appropriate documentation . --The company finalized See finalization. plans for its first venture into Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). with a $600-million 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. resort in London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. , to be built near the reconstructed re·con·struct tr.v. re·con·struct·ed, re·con·struct·ing, re·con·structs 1. To construct again; rebuild. 2. Wembley Wembley: see Brent. National Stadium and adjacent to the soon-to-be renovated Wembley Arena. Caesars and its British partner, Quintain quin·tain n. A post or an object mounted on a post, used as a target in tilting exercises. [Middle English quintaine, from Old French, probably from Latin Estates and Development LLC, announced the joint venture on October October: see month. 12. --The company announced a definitive agreement to sell the Atlantic City Hilton and Bally's Tunica - for approximately 8.5 times trailing twelve-month EBITDA - to an affiliate of Colony Capital, LLC of Los Angeles. The sale is expected to result in 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. proceeds of approximately $480 million. --The Big Sandy There are seven communities in the United States named Big Sandy
2. In general, Indians have no political rights in the United States; they cannot vote at the general elections for officers, nor hold office. signed formal agreements with the company that will govern the development, construction and management of the Tribe's planned new casino, to be built on Tribal land near Fresno, California “Fresno” redirects here. For other uses, see Fresno (disambiguation). Fresno is the sixth-largest city in California and the county seat of Fresno County, with an official Census Bureau estimated population of 481,035 as of July 1, 2006. . --Caesars Palace debuted Mesa Grill Grill may refer to: In food:
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. to be opened by 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 personality 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 . --The Roman Plaza For the hotel in New York City, see . Plaza (IPA /'plaθa/ or /'plasa/ , the new gateway to Caesars Palace, opened 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 expansive 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. --Cascata, the company's signature desert golf course, was named to Golf Magazine's roster of the "Top 100 Courses You Can Play." The award-winning Adj. 1. award-winning - having received awards; "this award-winning bridge spans a distance of five miles" course is open to guests at any of Caesars' Las Vegas casino resorts. --The company initiated several new technology initiatives, including its adoption of Avero's "Slingshot (networking, business, tool, product, protocol) Slingshot - CSK Software's real time financial server for the Internet. Slingshot allows the delivery of real time market data across the Internet and private intranets quickly, cheaply and securely. " business-intelligence software to manage food and beverage F&B is a common abbreviation in the United States and Commonwealth countries, including Hong Kong. F&B is typically the widely accepted abbreviation for "Food and Beverage," which is the sector/industry that specializes in the conceptualization, the making of, and delivery of foods. operations across multiple resorts and Manugistics Manugistics is a software application for resource planning and supply chain management, used by corporations in North America, the UK, and Ireland. Manugistics is also the name of the company that develops and markets this and other applications. and The Rainmaker Rainmaker An employee of a brokerage firm who brings a large amount of wealthy individuals or corporations to the brokerage firm's client base. Notes: Rainmakers are usually compensated very well for their efforts (or connections). Group's NetWORKS(TM) Hospitality Revenue Optimizer Hardware or software that improves performance. See defragment and disk management. to increase yield on hotel rooms. Both products convert information about customer choices into usable USable is a special idea contest to transfer US American ideas into practice in Germany. USable is initiated by the German Körber-Stiftung (foundation Körber). It is doted with 150,000 Euro and awarded every two years. business intelligence intended to drive margin improvements. --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 current master plan to renovate Caesars Palace. Western Region EBITDA for the Western Region's seven casino resorts was $115 million in the third quarter of 2004, up 25 percent from $92 million in the year-ago quarter. The company's resorts on the Las Vegas Strip posted a 31 percent increase in EBITDA. The increase primarily was driven by strong room rates. 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 eight percent. Cash room rates rose nine percent. At Caesars Palace, net revenue in the quarter rose to $140 million from $125 million in the third quarter of 2003. EBITDA was $28 million, an increase of 27 percent from the $22 million reported for the third quarter of 2003. The EBITDA increase principally was due to a seven percent increase in RevPAR. Gaming win declined two 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 non-baccarat table game hold. In early July July: see month. , 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 tomorrow. The resort's new 949-room, luxury hotel tower is on schedule for completion next summer. At Paris Las Vegas, third quarter net revenue was $98 million, even with the year-ago quarter. Third quarter EBITDA was $27 million, up four percent from $26 million reported in the third quarter of 2003. The increase was due largely to room revenues. RevPAR increased seven percent, driven by higher cash room rates. Gaming win declined 15 percent. At Bally's, net revenue in the third quarter rose six percent, to $71 million, from the third quarter of 2003. EBITDA was $21 million, up 50 percent from the third quarter of 2003. Gaming win rose eight percent due to a 25 percent increase in slot win. RevPAR rose five percent, driven by higher room rates and 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 . 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 third quarter was $93 million, up 24 percent from the year-ago quarter. EBITDA rose 61 percent, to $29 million, from the third quarter of 2003. The results were driven by an 11 percent increase in gaming win, a 10 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 and Flamingo Laughlin Laughlin has several uses:
Eastern Region Third quarter EBITDA from Caesars Entertainment's Atlantic City casino resorts (excluding results from the Atlantic City Hilton) 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 $110 million, up three percent from the $107 million reported for the third quarter of 2003. The results reflect a significant improvement over the modest EBITDA decline that the company had forecast. At 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. , third quarter net revenue was $138 million, even with the year-ago quarter. EBITDA was $47 million, compared to $49 million in the third quarter of 2003. Gaming win declined less than one percent, while RevPAR rose seven percent. Work continues on schedule for Caesars' new 3,200-space, $75-million parking garage and 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. The Pier, which will create 325,000 square feet of new retail, restaurant and nightclub space, is scheduled to open next year. The project is being financed and developed 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 of Greenwich, Connecticut Greenwich is a town in Fairfield County, Connecticut, United States. As of the 2000 census, the town had a total population of 61,101. It is home to many hedge funds and other financial service companies that have left Manhattan. Of the $1. . 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. , net revenue for the third quarter was $182 million, compared to $183 million for the third quarter of 2003. EBITDA for the third quarter rose 11 percent, to $62 million, from the $56 million reported in the third quarter of 2003. While gaming win declined two percent as a result of lower gaming volumes, RevPAR rose four percent, driven by a ten percent increase in cash room rates. Mid-South Region Caesars Entertainment's 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. (excluding Bally's Tunica) reported third quarter
EBITDA of $62 million, an 11 percent increase over the $56 million
reported for the third quarter of 2003. The improvement came despite the
effects of Hurricane Ivan, which impacted the Gulf Coast of Mississippi
in mid-September n. 1. the middle part of September.Noun 1. mid-September - the middle part of September period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue and forced the company to close its Gulf Coast casinos Coast Casinos Inc. is a wholly owned subsidiary of Boyd Gaming Corporation. Coast Casinos is the number 2 locals casino brand in the Las Vegas market behind Station Casinos. History Principally owned and founded by Michael Gaughan. Barbary Coast opens in 1979. for three days. 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 third quarter net revenue of $81 million, up seven percent from $76 million in the third quarter of 2003. EBITDA rose 24 percent, to $21 million, from $17 million in the third quarter of 2003. Results were driven by a nine percent increase in slot win and a 20 percent rise in RevPAR. The increased slot win resulted from improvements in both volume and hold, while the rise in RevPAR was due to increases in occupancy and room rate. The average cash room rate rose 10 percent. On the Gulf Coast, third quarter 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, even with the year-ago quarter. EBITDA was $15 million, up 15 percent from the $13 million recorded in the third quarter of 2003. Declines in gaming volumes resulted in gaming win increasing only one percent. Third 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 $48 million, even with the third quarter of 2003. EBITDA was $9 million, down from $10 million in the third quarter of 2003, largely because of increases in health care costs. Gaming win declined two percent on lower volumes, as higher room rates drove a 14 percent increase in RevPAR. The average cash room rate rose 37 percent from the year-ago quarter. 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 $52 million, compared to $53 million in the third quarter of last year. EBITDA was $10 million, down from $11 million in the third quarter of 2003. Gaming win declined three percent as a result of lower volumes and hold. Net revenue at Sheraton Tunica was $19 million, even with the third quarter of 2003. EBITDA was $7 million, up from $5 million in the year-ago quarter. International The company's ten international properties reported combined net revenue of $35 million, up from $27 million in the third quarter of 2003. EBITDA was $18 million, up 20 percent from the $15 million recorded in the third quarter of last year. Capital expenditures The company invested $183 million of capital during the third quarter of 2004. Maintenance capital expenditures were $47 million and investments in growth projects were $136 million. In the first nine months of 2004, the company invested $402 million of capital - $147 million for maintenance and $255 million for growth projects. The company currently expects to spend $642 million on capital investments in 2004. This includes maintenance capital investments of $274 million and growth capital of $368 million. The 2004 budget for growth capital includes $202 million for the luxury room tower and meeting space addition at Caesars Palace; $42 million for the garage at Caesars Atlantic City; $36 million for the purchase of land behind Bally's Las Vegas
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 and 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). . The remaining budget for growth projects includes $17 million for selected projects at Caesars Palace; $9 million related to "We Will Rock You" at Paris Las Vegas; $8 million at Caesars Atlantic City, principally for new dining and entertainment venues, renovation of the 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. and construction of the bridge connecting the second floor of the casino to The Pier at Caesars; and $2 million related to a new hotel revenue management system. Other items Depreciation and amortization in the third quarter was $106 million, compared to $103 million in the third quarter of 2003. Pre-opening expense in the quarter was $4 million, related to the production of "We Will Rock You" at Paris Las Vegas. The line item "Impairment Impairment 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. loss, merger costs and other expenses" in the quarter included expenses related to the $9 million write down of the company's Caesars Tahoe assets and $6 million in merger related costs. Corporate expense in the third quarter was $12 million, compared to $8 million in the third quarter of 2003. The increase is primarily related to legal and 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 (through August 31, 2004), 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. and 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. Casino Limited, the company that manages 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, 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 third quarter, this item was unchanged from prior year at $3 million. Net interest expense in the quarter was $69 million, down from $78 million in the third quarter of 2003, due to lower borrowing rates and lower debt balances. 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 $3 million in the third quarter, compared to $1 million in the year-ago quarter. The effective tax rate in the third quarter was 48.0 percent, compared to 41.8 percent in the third quarter of 2003. The effective tax rate in the third quarter was impacted by a $5 million charge arising from Caesars' settlement of a dispute involving a 1998 tax allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as and indemnity Recompense for loss, damage, or injuries; restitution or reimbursement. An indemnity contract arises when one individual takes on the obligation to pay for any loss or damage that has been or might be incurred by another individual. agreement entered into by a Caesars subsidiary and Lakes Entertainment, Inc. Balance sheet As of September 30, 2004, the company had a cash balance of $318 million and a debt balance of $4.2 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 3.7 times EBITDA. The number of diluted shares outstanding was 316 million at the end of the third quarter. Other events In the quarter, the company utilized a portion of its cash on hand to retire a $325 million, seven percent senior note issue due July 15. On July 14, 2004, the company, Harrah's Entertainment, 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. During the quarter, Caesars successfully reorganized re·or·gan·ize v. re·or·gan·ized, re·or·gan·iz·ing, re·or·gan·iz·es v.tr. To organize again or anew. v.intr. To undergo or effect changes in organization. the ownership structure of its Conrad resort in Punta del Este, Uruguay. The reorganization The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent. increased Caesars' ownership interest in the property from 46 percent to approximately 86 percent. Since September 1, operating results of this property have been consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: into the company's financial statements. In California, 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. has withdrawn from negotiations with Caesars Entertainment to develop and manage a Caesars-branded casino 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. On October 1, members of Local 54 of the Hotel Employees and Restaurant Employees International Union began a strike against seven Atlantic City casino resorts, including the three operated by Caesars Entertainment. 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 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 items. Guidance for the fourth quarter of 2004 reflects the classification of results from the Atlantic City Hilton and Bally's Tunica as "Discontinued operations." Adjusted Diluted Earnings Per Share Fourth Quarter 2004 Full Year 2004 $0.04 - $0.06 $0.65- $0.67 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 October 28 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 1069433. 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. In July 2004, the Board of Directors of Caesars Entertainment approved an offer from Harrah's Entertainment to acquire the company for approximately $1.8 billion and 66.3 million shares of Harrah's common stock. The offer must be approved by shareholders of both companies and federal and state regulators before the transaction can close. 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 have filed and will continue 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. 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 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 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 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; 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 revenue; 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. (Financial tables follow)
CAESARS ENTERTAINMENT, INC.
Summary Statements of Operations
(Amounts in millions, except per share amounts)
(unaudited)
Three Months Nine Months
Ended Ended
September 30, September 30,
---------------- ----------------
2004 2003 2004 2003
-------- ------- -------- -------
Net revenue $1,119 $1,073 $3,305 $3,115
-------- ------- -------- -------
Operating costs and expenses 818 808 2,426 2,345
Depreciation and amortization 106 103 314 316
Pre-opening expense 4 - 7 1
Impairment loss, merger costs and
other expenses 15 - 17 -
Corporate expense 12 8 34 25
-------- ------- -------- -------
Total costs and expenses 955 919 2,798 2,687
-------- ------- -------- -------
Equity in earnings of unconsolidated
affiliates 3 3 14 14
-------- ------- -------- -------
Operating income 167 157 521 442
Net interest expense 69 78 212 235
Investment gain - - (3) -
-------- ------- -------- -------
Income from continuing operations
before taxes and
minority interest 98 79 312 207
Income tax provision 47 33 142 87
Minority interest, net 2 1 6 2
-------- ------- -------- -------
Income from continuing operations 49 45 164 118
Discontinued operations
Income from discontinued operations
(including $87 million gain on sale
of the Las Vegas Hilton in the nine
month 2004 period), net of taxes 9 3 113 12
-------- ------- -------- -------
Net income $58 $48 $277 $130
======== ======= ======== =======
Basic earnings per share
Income from continuing operations $0.16 $0.15 $0.53 $0.39
Discontinued operations, net of
taxes (1) 0.03 0.01 0.37 0.04
-------- ------- -------- -------
Net income $0.19 $0.16 $0.90 $0.43
======== ======= ======== =======
Diluted earnings per share
Income from continuing operations $0.15 $0.15 $0.52 $0.39
Discontinued operations, net of
taxes (1) 0.03 0.01 0.36 0.04
-------- ------- -------- -------
Net income $0.18 $0.16 $0.88 $0.43
======== ======= ======== =======
Weighted average shares outstanding
Basic 310 302 308 301
Diluted 316 304 314 303
-------------------------------------
(1) Discontinued operations include the results of the Las Vegas
Hilton year to date through June 17, 2004 and prior periods, and the
results of Atlantic City Hilton and Bally's Tunica for all periods
presented.
CAESARS ENTERTAINMENT, INC.
Property Operating Information
(Amounts in millions)
(unaudited)
Three Months Ended
September 30, 2004
----------------------------------------
Net Operating Deprecia- Pre-
Revenue Income tion and opening
(Loss) Amor- Expense
tization
------------------- ---------- ---------
WESTERN REGION
Caesars Las Vegas $140 $15 $13 $-
Paris Las Vegas 98 15 8 4
Bally's Las Vegas 71 11 10 -
Flamingo Las Vegas 93 22 7 -
Reno Hilton 39 3 2 -
Caesars Tahoe 22 (10) 2 -
Flamingo Laughlin 27 4 - -
-------- ---------- ---------- ---------
490 60 42 4
-------- ---------- ---------- ---------
EASTERN REGION
Bally's Atlantic City 182 47 15 -
Caesars Atlantic City 138 36 11 -
Dover Downs 1 1 - -
-------- ---------- ---------- ---------
321 84 26 -
-------- ---------- ---------- ---------
MID-SOUTH REGION
Grand Biloxi 60 10 5 -
Grand Tunica 52 4 6 -
Caesars Indiana 81 13 8 -
Grand Gulfport 48 5 4 -
Sheraton Tunica 19 4 3 -
Bally's New Orleans 13 - - -
Regional Overhead - - - -
-------- ---------- ---------- ---------
273 36 26 -
-------- ---------- ---------- ---------
INTERNATIONAL and Other 35 6 11 -
CORPORATE - (19) 1 -
-------- ---------- ---------- ---------
TOTAL $1,119 $167 $106 $4
======== ========== ========== =========
Three Months Ended
September 30, 2004
----------------------------------------
Impairment Deprecia- EBITDA
Loss, tion
Merger from
Costs and Unconsol-
Other idated
Expenses Affiliates
----------- ---------- -------
WESTERN REGION
Caesars Las Vegas $- $- $28
Paris Las Vegas - - 27
Bally's Las Vegas - - 21
Flamingo Las Vegas - - 29
Reno Hilton - - 5
Caesars Tahoe 9 - 1
Flamingo Laughlin - - 4
----------- ---------- -------
9 - 115
----------- ---------- -------
EASTERN REGION
Bally's Atlantic City - - 62
Caesars Atlantic City - - 47
Dover Downs - - 1
----------- ---------- -------
- - 110
----------- ---------- -------
MID-SOUTH REGION
Grand Biloxi - - 15
Grand Tunica - - 10
Caesars Indiana - - 21
Grand Gulfport - - 9
Sheraton Tunica - - 7
Bally's New Orleans - - -
Regional Overhead - - -
----------- ---------- -------
- - 62
----------- ---------- -------
INTERNATIONAL and Other - 1 18
CORPORATE 6 - (12)
----------- ---------- -------
TOTAL $15 $1 $293
=========== ========== =======
Three Months Ended
September 30, 2003
------------------------------------------------
Net Operating Deprecia- Deprecia- EBITDA
Revenue Income tion and tion
(Loss) Amor- from
tization Unconsol-
idated
Affiliates
----------------------------- ---------- -------
WESTERN REGION
Caesars Las Vegas $125 $10 $12 $- $22
Paris Las Vegas 98 18 8 - 26
Bally's Las Vegas 67 4 10 - 14
Flamingo Las Vegas 75 13 5 - 18
Reno Hilton 34 1 3 - 4
Caesars Tahoe 28 2 3 - 5
Flamingo Laughlin 26 1 2 - 3
-------- -------------------- ---------- -------
453 49 43 - 92
-------- -------------------- ---------- -------
EASTERN REGION
Bally's Atlantic
City 183 40 16 - 56
Caesars Atlantic
City 138 37 12 - 49
Dover Downs 2 2 - - 2
-------- -------------------- ---------- -------
323 79 28 - 107
-------- -------------------- ---------- -------
MID-SOUTH REGION
Grand Biloxi 60 9 4 - 13
Grand Tunica 53 6 5 - 11
Caesars Indiana 76 9 8 - 17
Grand Gulfport 48 7 3 - 10
Sheraton Tunica 19 4 1 - 5
Bally's New Orleans 14 (1) 1 - -
Regional Overhead - - - - -
-------- -------------------- ---------- -------
270 34 22 - 56
-------- -------------------- ---------- -------
INTERNATIONAL and
Other 27 5 8 2 15
CORPORATE - (10) 2 - (8)
-------- -------------------- ---------- -------
TOTAL $1,073 $157 $103 $2 $262
======== ==================== ========== =======
NOTE: All Property Operating Information excludes the results of Las
Vegas Hilton, Atlantic City Hilton and Bally's Tunica which are
classified as discontinued operations for all periods presented.
CAESARS ENTERTAINMENT, INC.
Property Operating Information
(Amounts in millions)
(unaudited)
Nine Months Ended
September 30, 2004
-----------------------------------------
Net Operating Deprecia- Pre-
Revenue Income tion and opening
(Loss) Amor- Expense
tization
--------- ---------- ---------- ---------
WESTERN REGION
Caesars Las Vegas $451 $66 $38 $1
Paris Las Vegas 319 75 24 6
Bally's Las Vegas 220 32 29 -
Flamingo Las Vegas 281 73 19 -
Reno Hilton 103 3 7 -
Caesars Tahoe 61 (15) 7 -
Flamingo Laughlin 83 12 2 -
--------- ---------- ---------- ---------
1,518 246 126 7
--------- ---------- ---------- ---------
EASTERN REGION
Bally's Atlantic City 500 102 45 -
Caesars Atlantic City 379 89 33 -
Dover Downs 4 4 - -
--------- ---------- ---------- ---------
883 195 78 -
--------- ---------- ---------- ---------
MID-SOUTH REGION
Grand Biloxi 182 31 15 -
Grand Tunica 153 8 18 -
Caesars Indiana 238 37 22 -
Grand Gulfport 144 20 12 -
Sheraton Tunica 59 14 8 -
Bally's New Orleans 43 1 - -
Regional Overhead - (2) - -
--------- ---------- ---------- ---------
819 109 75 -
--------- ---------- ---------- ---------
INTERNATIONAL and Other 85 18 30 -
CORPORATE - (47) 5 -
--------- ---------- ---------- ---------
TOTAL $3,305 $521 $314 $7
========= ========== ========== =========
Nine Months Ended
September 30, 2004
-----------------------------------------
Impairment Deprecia- EBITDA
Loss, tion
Merger from
Costs and Unconsol-
Other idated
Expenses Affiliates
----------- ---------- -------
WESTERN REGION
Caesars Las Vegas $- $- $105
Paris Las Vegas - - 105
Bally's Las Vegas - - 61
Flamingo Las Vegas - - 92
Reno Hilton - - 10
Caesars Tahoe 9 - 1
Flamingo Laughlin - - 14
----------- ---------- -------
9 - 388
----------- ---------- -------
EASTERN REGION
Bally's Atlantic City - - 147
Caesars Atlantic City - - 122
Dover Downs - - 4
----------- ---------- -------
- - 273
----------- ---------- -------
MID-SOUTH REGION
Grand Biloxi - - 46
Grand Tunica - - 26
Caesars Indiana - - 59
Grand Gulfport - - 32
Sheraton Tunica - - 22
Bally's New Orleans - - 1
Regional Overhead - - (2)
----------- ---------- -------
- - 184
----------- ---------- -------
INTERNATIONAL and Other - 4 52
CORPORATE 8 - (34)
----------- ---------- -------
TOTAL $17 $4 $863
=========== ========== =======
Nine Months Ended
September 30, 2003
-----------------------------------------
Net Operating Deprecia- Pre-
Revenue Income tion and opening
(Loss) Amor- Expense
tization
--------- ---------- ---------- ---------
WESTERN REGION
Caesars Las Vegas $379 $40 $38 $1
Paris Las Vegas 284 48 24 -
Bally's Las Vegas 204 14 29 -
Flamingo Las Vegas 228 48 17 -
Reno Hilton 95 - 8 -
Caesars Tahoe 70 - 8 -
Flamingo Laughlin 81 5 6 -
--------- ---------- ---------- ---------
1,341 155 130 1
--------- ---------- ---------- ---------
EASTERN REGION
Bally's Atlantic City 517 99 48 -
Caesars Atlantic City 390 98 36 -
Dover Downs 4 4 - -
--------- ---------- ---------- ---------
911 201 84 -
--------- ---------- ---------- ---------
MID-SOUTH REGION
Grand Biloxi 170 23 12 -
Grand Tunica 159 16 18 -
Caesars Indiana 222 29 24 -
Grand Gulfport 139 24 9 -
Sheraton Tunica 57 13 6 -
Bally's New Orleans 44 - 1 -
Regional Overhead - (2) - -
--------- ---------- ---------- ---------
791 103 70 -
--------- ---------- ---------- ---------
INTERNATIONAL and Other 72 14 26 -
CORPORATE - (31) 6 -
--------- ---------- ---------- ---------
TOTAL $3,115 $442 $316 $1
========= ========== ========== =========
Nine Months Ended
September 30, 2003
-----------------------------------------
Deprecia- EBITDA
tion
from
Unconsol-
idated
Affiliates
---------- -------
WESTERN REGION
Caesars Las Vegas $- $79
Paris Las Vegas - 72
Bally's Las Vegas - 43
Flamingo Las Vegas - 65
Reno Hilton - 8
Caesars Tahoe - 8
Flamingo Laughlin - 11
---------- -------
- 286
---------- -------
EASTERN REGION
Bally's Atlantic City - 147
Caesars Atlantic City - 134
Dover Downs - 4
---------- -------
- 285
---------- -------
MID-SOUTH REGION
Grand Biloxi - 35
Grand Tunica - 34
Caesars Indiana - 53
Grand Gulfport - 33
Sheraton Tunica - 19
Bally's New Orleans - 1
Regional Overhead - (2)
---------- -------
- 173
---------- -------
INTERNATIONAL and Other 5 45
CORPORATE - (25)
---------- -------
TOTAL $5 $764
========== =======
NOTE: All Property Operating Information excludes the results of Las
Vegas Hilton, Atlantic City Hilton and Bally's Tunica which are
classified as discontinued operations for all periods presented.
CAESARS ENTERTAINMENT, INC.
Property Operating Information
(unaudited)
Three Months Ended
September 30, 2004
----------------------------------
Table Occupancy APR ADR RevPAR
Hold % (1) (2) (3)
%
----- --------- ----- ----- ------
WESTERN REGION
Caesars Palace 15.5% 95.3% $151 $151 $143
Paris Las Vegas 10.3% 95.3% $128 $126 $120
Bally's Las Vegas 14.6% 96.0% $93 $92 $89
Flamingo Las Vegas 18.5% 97.2% $83 $82 $79
Reno Hilton 19.3% 89.3% $81 $81 $72
Caesars Tahoe 6.9% 93.7% $127 $136 $128
Flamingo Laughlin 19.2% 87.6% $35 $33 $29
----- --------- ----- ----- ------
14.2% 94.1% $98 $98 $92
----- --------- ----- ----- ------
EASTERN REGION
Bally's Atlantic City 16.0% 97.8% $138 $103 $101
Caesars Atlantic City 15.8% 99.0% $140 $97 $96
----- --------- ----- ----- ------
15.9% 98.3% $139 $101 $99
----- --------- ----- ----- ------
MID-SOUTH REGION
Grand Biloxi 18.4% 95.3% $79 $66 $63
Grand Tunica 15.2% 84.2% $55 $55 $46
Caesars Indiana 16.8% 96.5% $101 $101 $97
Grand Gulfport 17.4% 90.5% $108 $81 $74
Sheraton Tunica 17.9% 98.1% $69 $67 $65
Bally's New Orleans 17.5% n/a n/a n/a n/a
----- --------- ----- ----- ------
17.1% 90.5% $81 $71 $64
----- --------- ----- ----- ------
Three Months Ended
September 30, 2003
----------------------------------
Table Occupancy APR ADR RevPAR
Hold % (1) (2) (3)
%
----- --------- ----- ----- ------
WESTERN REGION
Caesars Palace 15.2% 97.0% $136 $138 $134
Paris Las Vegas 15.4% 95.1% $117 $118 $112
Bally's Las Vegas 16.8% 94.8% $89 $89 $85
Flamingo Las Vegas 16.3% 96.7% $75 $75 $72
Reno Hilton 16.0% 88.0% $76 $74 $65
Caesars Tahoe 16.6% 90.2% $134 $140 $126
Flamingo Laughlin 17.7% 86.4% $31 $30 $26
----- --------- ----- ----- ------
15.7% 93.6% $91 $91 $85
----- --------- ----- ----- ------
EASTERN REGION
Bally's Atlantic City 15.2% 98.4% $125 $99 $97
Caesars Atlantic City 17.2% 98.8% $133 $91 $90
----- --------- ----- ----- ------
16.1% 98.6% $127 $96 $94
----- --------- ----- ----- ------
MID-SOUTH REGION
Grand Biloxi 15.6% 95.9% $78 $67 $65
Grand Tunica 16.9% 88.5% $47 $51 $45
Caesars Indiana 16.0% 91.0% $92 $88 $81
Grand Gulfport 16.3% 91.6% $79 $70 $65
Sheraton Tunica 14.3% 98.7% $61 $61 $61
Bally's New Orleans 16.7% n/a n/a n/a n/a
----- --------- ----- ----- ------
16.1% 91.8% $70 $65 $60
----- --------- ----- ----- ------
NOTE: All Property Operating Information excludes the results of
Las Vegas Hilton, Atlantic City Hilton and Bally's Tunica
which are 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)
Nine Months Ended
September 30, 2004
----------------------------------
Table Occupancy APR ADR RevPAR
Hold % (1) (2) (3)
%
----- --------- ----- ----- ------
WESTERN REGION
Caesars Palace 15.7% 96.9% $158 $155 $151
Paris Las Vegas 15.1% 94.6% $140 $136 $129
Bally's Las Vegas 14.8% 95.3% $103 $101 $97
Flamingo Las Vegas 17.7% 96.1% $89 $88 $84
Reno Hilton 17.0% 84.4% $75 $74 $62
Caesars Tahoe 11.2% 87.3% $118 $124 $108
Flamingo Laughlin 18.9% 86.6% $34 $32 $28
----- --------- ----- ----- ------
15.5% 93.0% $104 $103 $96
----- --------- ----- ----- ------
EASTERN REGION
Bally's Atlantic City 15.7% 96.4% $118 $90 $87
Caesars Atlantic City 16.1% 97.7% $122 $91 $89
----- --------- ----- ----- ------
15.9% 96.9% $120 $91 $88
----- --------- ----- ----- ------
MID-SOUTH REGION
Grand Biloxi 16.3% 95.9% $78 $66 $63
Grand Tunica 14.4% 78.1% $56 $56 $44
Caesars Indiana 17.1% 95.1% $96 $97 $92
Grand Gulfport 18.4% 90.7% $83 $70 $64
Sheraton Tunica 18.7% 97.9% $69 $65 $63
Bally's New Orleans 16.9% n/a n/a n/a n/a
----- --------- ----- ----- ------
16.6% 88.4% $75 $68 $60
----- --------- ----- ----- ------
Nine Months Ended
September 30, 2003
----------------------------------
Table Occupancy APR ADR RevPAR
Hold % (1) (2) (3)
%
----- --------- ----- ----- ------
WESTERN REGION
Caesars Palace 15.4% 94.4% $148 $146 $138
Paris Las Vegas 12.8% 95.1% $124 $124 $118
Bally's Las Vegas 15.4% 93.5% $93 $94 $88
Flamingo Las Vegas 16.8% 95.3% $79 $78 $75
Reno Hilton 17.5% 82.2% $70 $69 $57
Caesars Tahoe 16.1% 87.1% $120 $126 $110
Flamingo Laughlin 17.5% 86.0% $32 $30 $26
----- --------- ----- ----- ------
15.1% 91.9% $95 $95 $87
----- --------- ----- ----- ------
EASTERN REGION
Bally's Atlantic City 15.6% 97.3% $99 $85 $83
Caesars Atlantic City 17.5% 98.5% $117 $90 $88
----- --------- ----- ----- ------
16.5% 97.7% $105 $87 $85
----- --------- ----- ----- ------
MID-SOUTH REGION
Grand Biloxi 14.5% 97.0% $72 $64 $62
Grand Tunica 17.9% 84.3% $49 $51 $43
Caesars Indiana 16.7% 89.5% $88 $82 $73
Grand Gulfport 15.1% 90.7% $65 $63 $57
Sheraton Tunica 14.8% 98.1% $58 $61 $60
Bally's New Orleans 17.2% n/a n/a n/a n/a
----- --------- ----- ----- ------
16.1% 90.2% $65 $62 $56
----- --------- ----- ----- ------
NOTE: All Property Operating Information excludes the results of
Las Vegas Hilton, Atlantic City Hilton and Bally's Tunica
which are 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 Nine Months
Ended Ended
September 30, September 30,
---------------------------------
2004 2003 2004 2003
-------- ------- -------- ------
EBITDA(1) $293 $262 $863 $764
Depreciation and
amortization (106) (103) (314) (316)
Depreciation from
unconsolidated subs (1) (2) (4) (5)
Pre-opening expense (4) - (7) (1)
Impairment loss, merger
costs and other expenses (15) - (17) -
--------- ------ --------- ------
Operating income 167 157 521 442
Net interest expense (69) (78) (212) (235)
Investment gain - - 3 -
Income tax provision (47) (33) (142) (87)
Minority interest, net (2) (1) (6) (2)
Discontinued operations, net
of taxes (2) 9 3 113 12
--------- ------ --------- ------
Net income $58 $48 $277 $130
========= ====== ========= ======
Earnings per share
Basic $0.19 $0.16 $0.90 $0.43
Diluted $0.18 $0.16 $0.88 $0.43
Weighted average shares outstanding
Basic 310 302 308 301
Diluted 316 304 314 303
(1) EBITDA is earnings before interest, taxes, depreciation and
amortization, impairment loss, merger costs and other, pre-
opening, and discontinued operations.
(2) Discontinued operations include the results of the Las Vegas
Hilton, Atlantic City Hilton and Bally's Tunica.
CAESARS ENTERTAINMENT, INC.
Reconciliation of Net Income to Adjusted Net Income
(Amounts in millions, except per share amounts)
(unaudited)
Three Months Nine Months
Ended Ended
September 30, September 30,
---------------------------------
2004 2003 2004 2003
--------- ------ --------- ------
Net income $58 $48 $277 $130
Adjustments:
Pre-opening expense 4 - 7 1
Impairment loss, merger
costs and other expenses 15 - 17 -
Investment gain - - (3) -
Income taxes on adjustments (5) - (5) -
Indiana taxes - - 7 -
Lakes Entertainment tax
settlement 5 - 5 -
Discontinued operations, net
of taxes (9) (3) (113) (12)
--------- ------ --------- ------
Adjusted net income $68 $45 $192 $119
========= ====== ========= ======
Adjusted earnings per share
Basic $0.22 $0.15 $0.62 $0.40
Diluted $0.22 $0.15 $0.61 $0.39
Weighted average shares outstanding
Basic 310 302 308 301
Diluted 316 304 314 303
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