Printer Friendly

HILTON HOTELS REGISTERS IMPROVED EARNINGS FOR THE THIRD QUARTER AND FIRST NINE MONTHS OF 1992

 HILTON HOTELS REGISTERS IMPROVED EARNINGS
 FOR THE THIRD QUARTER AND FIRST NINE MONTHS OF 1992
 BEVERLY HILLS, Calif., Oct. 13 /PRNewswire/ -- Hilton Hotels Corp. (NYSE: HLT) recorded higher net income for both the third quarter and the first nine months of 1992, as compared with the prior year.
 Net income for the three months ended Sept. 30, 1992, totaled $22.8 million, equal to 48 cents per share, a 21 percent increase from $18.8 million, or 39 cents per share, a year ago.
 Operating income for the quarter rose 22 percent to $53.1 million, from $43.6 million last year. Operating income for the gaming division increased 34 percent to $39.9 million from $29.7 million in the 1991 quarter. Hotel division operating income declined 5 percent to $18.9 million from $19.8 million last year.
 Occupancies for the quarter improved in both the gaming and hotel segments. Nevada occupancy was 90 percent, up from 87 percent last year, while hotel occupancy was 70 percent, compared with 68 percent in the corresponding 1991 quarter.
 Barron Hilton, chairman and president, said: "The gaming division registered improvements at all four Nevada properties and also benefited from the addition of the recently purchased Reno Hilton. The Flamingo Hilton-Laughlin, aided by strong occupancies and significantly higher slot win, continues to be an excellent performer. The Las Vegas Hilton benefited from a higher casino win percentage and lower bad debt expense.
 "Many of our hotels showed improvement, primarily reflecting the public's enthusiastic response to attractive airfare discounts and travel promotions. While average room rates for our hotels were slightly lower, we benefited from higher occupancies in many markets during the quarter particularly at airport properties in Atlanta, New Orleans, Boston, San Francisco and Miami.
 "Results at the Hilton Hawaiian Village, however, were disappointing, largely reflecting decreased tourism from Japan related to economic conditions in that country. Operations were further impacted by Hurricane Iniki and the fact that Hawaii was not included in the airfare discount programs. Hotel division results were also affected by continued difficult conditions in New York City and start-up costs associated with the completely refurbished O'Hare Hilton which opened in July."
 Net income for the nine months ended Sept. 30, 1992, was $77.4 million, equal to $1.62 per share, an increase of 41 percent from $54.7 million, or $1.15 per share, a year earlier.
 Total operating income for the nine months was $163.5 million, up 27 percent from $129 million last year. Gaming Division operating income increased by 33 percent to $118.2 million from $88.6 million in the comparable 1991 period. Operating income for the Hotel Division was $61.8 million, slightly higher than last year's $61.2 million. Nevada occupancy for the period was 87 percent vs. 86 percent, and hotel occupancy rose to 67 percent from 65 percent.
 Hilton continued: "We're excited by the great potential of the Reno Hilton, which we acquired at the end of July. This 2,001-room property on 143 acres near the Reno airport includes a 100,000 square-foot casino and is the largest resort in the Reno area. We intend to immediately refurbish all guest rooms, restaurants and public spaces. Future plans call for a 1,000-room addition, a state-of-the-art Race and Sports Book and the development of a major, themed destination resort.
 "In addition to improvements at the Reno Hilton, we are investing $105 million in new construction and improvements at the Flamingo Hilton-Las Vegas including a new 908-room tower and an additional 12,000 square feet of casino space. Through a joint venture, we are proceeding with the design of a 3,000-passenger riverboat gaming vessel that will operate on the Mississippi River adjacent to the New Orleans Hilton Riverside.
 "In other property developments, the 816-room Minneapolis Hilton and Towers is scheduled to open on Nov. 1. This property will feature 40,000 square feet of meeting space and will be connected via a skyway to the Minneapolis Convention Center.
 "We are pleased with the corporation's progress to date this year. While the current economic environment continues to remain difficult, we are confident that the expansion of gaming and growth in international and leisure travel will benefit our corporation over the long term."
 HILTON HOTELS CORP.
 Consolidated Statement of Income
 (In millions, except per share amounts)
 (unaudited)
 Three months ended Nine months ended
 Sept. 30, Pct. Sept. 30, Pct.
 1992 1991 Change 1992 1991 Change
 Total revenue $323.0 275.1 17 $894.1 829.2 8
 Operating
 income
 Hotels $18.9 19.8 -5 $61.8 61.2 1
 Gaming 39.9 29.7 34 118.2 88.6 33
 Corporate
 expense (5.7) (5.9) -3 (16.5) (20.8) -21
 Total operating
 income 53.1 43.6 22 163.5 129.0 27
 Net interest
 expense (16.6) (15.3) 8 (43.9) (46.1) -5
 Provision for
 income taxes (13.7) (9.5) 44 (42.2) (28.2) 50
 Net income $22.8 18.8 21 $77.4 54.7 41
 Net income per
 share
 From
 operations $.48 .39 23 $1.62 1.15 41
 Average number
 of shares 47.9 47.8 --- 47.9 47.8 ---
 Percentage of
 occupancy
 Hotels owned or
 managed 70 68 3 67 65 3
 Gaming (Nevada) 90 87 3 87 86 1
 -0- 10/13/92
 /CONTACT: Maurice J. Scanlon, senior VP-finance, Hilton Hotels, 310-278-4321/
 (HLT) CO: Hilton Hotels Corp. ST: California IN: LEI CNO SU: ERN


BP-JB -- LA005 -- 9146 10/13/92 09:07 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 13, 1992
Words:925
Previous Article:MCI REPORTS 350,000 FREE LONG DISTANCE CALLS AT EMERGENCY PHONE BANKS IN SOUTH FLORIDA
Next Article:FISHER SELECTED FOR PILOT BY THE ORIGINAL COOKIE COMPANY AND HOT SAM COMPANIES
Topics:


Related Articles
CAESARS WORLD REPORTS FY 92 THIRD QUARTER RESULTS
CAESARS WORLD REPORTS FY 92 THIRD QUARTER RESULTS
NORTHROP HAS A THIRD QUARTER LOSS DUE TO PREVIOUSLY ANNOUNCED PROVISION
LA QUINTA MOTOR INNS, INC. REPORTS THIRD QUARTER RESULTS
HILTON REPORTS 17 PERCENT EARNINGS DECLINE FOR SECOND QUARTER
HILTON REPORTS 24 PERCENT INCREASE IN OPERATING INCOME FOR THIRD QUARTER
HILTON REPORTS 22 PERCENT NET INCOME INCREASE FOR FOURTH QUARTER; FY93 OPERATING INCOME UP 9 PERCENT
PROMUS REPORTS RECORD THIRD QUARTER
GUEST SUPPLY, INC. REPORTS IMPROVED FINANCIAL RESULTS FOR FISCAL 1996 THIRD QUARTER
ITT Reports Strong Third Quarter Earnings

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