Kerzner Announces Fourth Quarter Results.Business Editors & Travel/Gaming Writers PARADISE ISLAND For the DC Comics fictional island formerly known as Paradise Island, see Themyscira Paradise Island is an island in the Bahamas, north of the island of New Providence which is home to (Nassau). It is best known for the sprawling 'Vegas-by-the-sea resort' Atlantis. , The Bahamas--(BUSINESS WIRE)--Jan. 29, 2003 Kerzner International Limited (NYSE NYSE See: New York Stock Exchange :KZL): -- 2002 Recurring EPS of $2.11 vs. $1.48 in 2001 and $1.93 in 2000 -- Paradise Island Reports Record EBITDA of $142 Million and Gross Revenues of $507 Million Kerzner International Limited (NYSE:KZL) today reported recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. net income for the fourth quarter of 2002 of $4.7 million as compared to a net loss of $5.3 million for the same period last year. On this basis, net income per share for the quarter was $0.17, compared to a net loss per share of $0.20 and net income per share of $0.14, in 2001 and 2000, respectively. For the year, the Company reported recurring net income of $60.2 million, compared to $41.1 million in 2001. On this basis, recurring net income per share for the year was $2.11, compared to $1.48 in the previous year. The Company's 2002 recurring earnings per share exceeded results of $1.93 achieved in 2000. The Company reported 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 (1) for the quarter, excluding non-recurring items and Kerzner Interactive, of $25.9 million, an 85% increase over the September September: see month. 11-affected results in the same period last year, achieving comparable results for the same period in 2000, when the Company reported EBITDA of $25.6 million, adjusted to exclude Resorts Atlantic City Resorts Hotel and Casino Atlantic City is a hotel, casino, and spa in Atlantic City, New Jersey owned by Colony Capital, LLC and is managed through its gaming subsidiary Colony RIH Holdings, Inc.. , which was sold by the Company in early 2001. For the year, the Company reported EBITDA of $150.3 million as compared to $132.9 million in 2001 and $140.2 million in 2000, excluding Resorts Atlantic City. Butch Kerzner, President of the Company, commented, "Atlantis's strong results continued despite a general downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. in the travel market. During the year, Paradise Island achieved several significant new milestones, including record levels of EBITDA in each of the first, third and fourth quarters of the year. Further, Paradise Island exceeded the $500 million gross revenue level for the first time and reported record EBITDA of $142 million for the year. We believe that the business has proven to be resilient See resiliency. against the backdrop Backdrop may refer to:
The Company recorded net income in the quarter of $1.2 million, compared to a net loss of $11.6 million for the same period last year resulting in net income per share of $0.04 compared to a net loss per share of $0.43 for the same period last year. For the year, the Company recorded 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. net income per share of $1.41 as compared to $1.14 for the same period last year. Paradise Island The Company's Paradise Island operations achieved gross revenues of $117.8 million and EBITDA of $24.6 million in the fourth quarter, representing increases of 48% and 137%, respectively, over the same period last year. Gross revenues and EBITDA for the period were the highest ever achieved by the Paradise Island business for the fourth quarter, exceeding the previous record results of $105.7 million and $20.7 million, respectively, in the fourth quarter of 2000. The comparable period in 2001 was affected by the downturn in business following September 11. Atlantis's revenue per available room ("RevPar") for the quarter was approximately $156, a 32% increase over the same period last year, reflecting an average occupancy of 72% at a $216 average daily room rate ("ADR ADR - Astra Digital Radio "). These results compare to an average occupancy of 56% and ADR of $211 in 2001, and an average occupancy of 73% and ADR of $227 in 2000. For the year, Atlantis Atlantis (ətlăntĭs, ăt–), in Greek legend, large island in the western sea (the Atlantic Ocean). Plato, in his dialogues the Timaeus and the Critias, achieved RevPar of $198 as compared to $194 and $201 in 2001 and 2000, respectively. In the Atlantis 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. , table drop and slot win for the quarter increased by 5% and 33%, respectively, over the same period last year. This quarter's results benefited from a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. table hold, which brought the overall table hold percentage for the year to nearly 1% above normal. As compared to 2000, table drop decreased by 14% and slot win increased by 8%. Over the past two years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time Company has concentrated on more profitable player segments of the casino business and increased the mix of more stable and profitable slots business. Despite lower table drop, the gross operating profit margins Operating profit margin The ratio of operating profit to net sales. for 2002 improved by five percentage points over 2000 on a 2% decrease in gaming revenues over the same period. The Ocean Club, the Company's luxury resort hotel on Paradise Island, performed strongly, and we believe it continues to outperform Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. other luxury resorts in its category. RevPar in the quarter was approximately $451, an increase of 62% over the same period last year, with an average occupancy of 72% and an ADR of $627. For the year, the Ocean Club achieved RevPar of $473, which represents increases of 21% and 31% above 2001 and 2000, respectively. Repairs at Harborside har·bor·side n. The area adjacent to a harbor. at Atlantis ("Harborside"), the Company's 50%-owned timeshare A form of shared property ownership, commonly in vacation or recreation condominium property, in which rights vest in several owners to use property for a specified period each year. joint venture on Paradise Island, were completed in the quarter, and this resort reopened in December December: see month. 2002. Harborside was closed at the end of August 2002 in order to repair significant damage resulting from adverse weather primarily due to Hurricane Michelle Hurricane Michelle was the 13th named storm and one of the strongest hurricanes of the 2001 Atlantic hurricane season. One of only four November Category 4 hurricanes, Michelle made landfall on south-central Cuba with winds of 140 mph, the strongest Cuban landfall since Hurricane . The Company recorded a non-recurring equity loss of $6.9 million, which represents its share of remediation costs required to reopen re·o·pen tr. & intr.v. re·o·pened, re·o·pen·ing, re·o·pens 1. To open or be opened again: Officials reopened the airport after the snow was cleared. Schools reopen in September. the resort. This loss has not been reduced by any anticipated insurance recovery, but Harborside has filed a claim with its insurers, that is presently under negotiation. Connecticut Connecticut, state, United States Connecticut (kənĕt`ĭkət), southernmost of the New England states of the NE United States. It is bordered by Massachusetts (N), Rhode Island (E), Long Island Sound (S), and New York (W). Mohegan Sun The Mohegan Sun Resort and Casino located in the village of Uncasville in the town of Montville, Connecticut, U.S., is the world's second largest casino. It is located on 240 acres (0 km) along the banks of Thames River. reported slot revenues for the quarter of $183.8 million, an increase of 7% compared to the same period last year. The current quarter represents the first period of comparable casino results after the opening of the Casino of the Sky in September 2001, which added approximately 2,500 slot machines. The current quarter also includes results from the Mohegan Sun Hotel, which opened in July July: see month. 2002. Slot win per unit per day was $322 for the quarter, a 7% increase, compared to the same period last year. In the quarter, Mohegan Sun continued to increase its share of the Connecticut slots market from 48% in the same period last year to over 50%. For the year, Mohegan Sun reported $730.8 million in slot revenue, an 18% increase over last year, and also increased its share of the Connecticut slots market from 44% to 48%. For the year, Mohegan Sun captured nearly all of the 9% growth in the Connecticut slots market. Trading Cove Associates ("TCA TCA 1. trichloroacetic acid. 2. tricarboxylic acid cycle (Krebs cycle). TCA Tricyclic antidepressant, see there "), an entity 50%-owned by the Company, receives payments from the Mohegan Mohegan (mōhē`gən), Native North Americans whose language belongs to the Algonquian branch of the Algonquian-Wakashan linguistic stock (see Native American languages). Also called the Mohican, they were the eastern branch of the Mahican. Tribal Gaming Authority of 5% of gross operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. of the expanded Mohegan Sun operation. The Company recorded income from TCA of $6.6 million in the quarter, compared to $7.1 million in the same period last year. For the year, the Company recorded income from Mohegan Sun of $30.9 million, compared to $27.4 million and $23.6 million in 2001 and 2000, respectively. One&Only In the quarter, the Company announced that its luxury resort hotels would be operated and marketed under the One&Only brand as part of its previously announced re-branding efforts resulting from the Company's name change in June 2002. The One&Only brand was launched in conjunction with the reopening Reopening Treasury offerings of additional amounts of outstanding issues, rather than an entirely new issue. A reopened issue will always have the same maturity date, CUSIP number, and interest rate as the original issue. of the One&Only Le Touessrok (Mauritius) in December and was followed by the opening of the newly expanded One&Only Royal Mirage (Dubai) later in the month. The Company will continue the transition by renaming the following luxury resorts as: One&Only Le Saint Le Saint (Breton: Ar Sent) is a French commune located in the Morbihan département, in the Bretagne région. Demographics As of the census of 1999, the village has a population of 696. Geran (Mauritius), One&Only Kanuhura (Maldives) and One&Only Ocean Club in the first half of 2003. In the quarter, the Company earned fees of $4.5 million from its luxury resort operations as compared to $2.7 million in the same period last year. The current quarter included development fees of $1.5 million relating mainly to the redevelopment of the One&Only Le Touessrok. For the year, the Company earned fees from its luxury resort operations of $8.8 million, compared to $8.0 million for the same period last year. These results exclude results from operations of the Ocean Club, which are still included in the discussion of Paradise Island. Butch Kerzner commented, "Historically each of our unique hotels in the luxury resorts category operated somewhat independently, without a unified consumer brand. We believed there was a great opportunity to leverage our collection of outstanding properties by bringing them together under a single consumer brand. The new name, One&Only, is descriptive of who we are and reflects what our properties are all about. What we do well is to offer our customers unique experiences. Each of our resort hotels is different and has its own personality; there are no pre-determined formulas. When a customer visits us in the Maldives, Mauritius, Dubai, or The Bahamas, we provide an experience that has real local flavor, something different, a new experience. The customer wants this special, one of a kind experience particularly when traveling for leisure. This became the inspiration for our new One&Only name and we are very excited about the prospects of expanding this business and building this new consumer brand." The Company intends aggressively to expand this business segment. In this regard, it has previously announced new management contracts that are either signed or are at advanced stages of discussion in the Maldives, Mexico, Morocco Morocco, country, Africa Morocco (mərŏk`ō), officially Kingdom of Morocco, kingdom (2005 est. pop. 32,726,000), 171,834 sq mi (445,050 sq km), NW Africa. and the Caribbean. In Mexico, as previously announced in September 2002, the Company became a 50% equity owner and manager of the Palmilla Resort, a 115-key property situated on the southern tip of the Mexican Mexican named after or originating in Mexico. Mexican axolotl see ambystomamexicanum. Mexican beaded lizard (Heloderma horridum Baja Peninsula A peninsula is a piece of land that is bordered on three sides by water. A peninsula can also be a headland, cape, island promontory, bill, point, or spit.[1] Europe
San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. del Cabo. Palmilla lies on a 250-acre site surrounded sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. by natural desert terrain, mountains and the Sea of Cortez and is situated on the most spectacular site in the region along one of the few swimmable beaches in Cabo. The property also includes a signature Jack Nicklaus Noun 1. Jack Nicklaus - United States golfer considered by many to be the greatest golfer of all time (born in 1940) Jack William Nicklaus, Nicklaus designed 27-hole championship golf course. The Company today announced that Palmilla would be undertaking a $75 million expansion project, which will commence in April 2003 that will increase the room count to 174 rooms and significantly upgrade the amenities and public areas offered by the resort. The expansion is expected to be completed by the end of this year and will be financed by Palmilla through local project financing Project financing A form of asset-based financing in which a firm finances a discrete set of assets on a stand-alone basis. . Sol Kerzner Solomon (Sol) Kerzner (born 23 August 1935) is a South African hotel and gambling magnate. Kerzner was born in Troyeville, Johannesburg, the youngest of four children to Jewish Russian immigrants. , Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of the Company commented: "This is a very exciting development project. We have the opportunity to work on a dramatic site that has superb ocean views. The property has outstanding beaches and the topography topography (təpŏg`rəfē), description or representation of the features and configuration of land surfaces. Topographic maps use symbols and coloring, with particular attention given to the shape and elevations of terrain. of the site provides us with some great opportunities to develop a very innovative resort product. When the redevelopment is complete, we are going to have a resort that will be positioned right at the highest-end of the travel market and carry flagship status for One&Only in the US market." The new standard rooms at the property, which will have some unique design features, will be in excess of 700 square feet in size, all with spectacular views of the sea. The expansion will also include the addition of 12 suites and 2 luxurious beachfront beach·front n. A strip of land facing or running along a beach. adj. Situated along or having direct access to a beach: beachfront hotels; beachfront property. Noun 1. villas, a new poolside pool·side n. The area next to or around a swimming pool. restaurant, a swimming pool, a world class spa with 16 treatment rooms and exercise area, a children's activity area, a new activity pool, and over 5,000 square feet of new meeting space that will replace the existing meeting space at the facility. Upon completion of the expansion, the One&Only Palmilla will reopen as a 174-room deluxe de·luxe also de luxe adj. Particularly elegant and luxurious; sumptuous: deluxe accommodations; a de luxe automobile. adv. , luxury resort hotel comprised of 152 spacious rooms, 2 luxurious villas and 20 suites, and amenities to attract multiple markets from couples to families and high-end corporate incentive groups Palmilla will be positioned as the premier property in the Los Cabos Los Cabos is a municipality located at the southern tip of Mexico's Baja California Peninsula, in the state of Baja California Sur. It encompasses the towns of Cabo San Lucas and San José del Cabo, as well as the Resort Corridor that lies between the two. market and one of the leading resorts in its category in the world. Liquidity At the end of the quarter, the Company held $38.9 million in cash and cash equivalents, including $4.8 million in restricted cash. Total interest-bearing debt at the end of the quarter was $472.7 million, which is comprised primarily of $72.0 million drawn under the Company's Revolving Credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. Facility and $400.0 million of senior subordinated notes. For the year, the Company reduced total interest-bearing debt by $51.8 million. The Company completed the early redemption of its 8-5/8% Senior Subordinated Notes at the end of the year for $74.2 million. The Company financed the call of the notes through drawings on its Revolving Credit Facility and available cash on hand. The Company also completed the public offering of 2.3 million Ordinary Shares of the Company, owned by Kersaf Investments Limited ("Kersaf"), which included the exercise of the over-allotment option held by the underwriters on this transaction. The offering was priced at $19.50 a share. During the fourth quarter the Company favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. settled all of its outstanding disputes with Kersaf and accordingly received $32.1 million as a settlement payment. Of this amount, $21.3 million is classified as deferred revenue as of the end of the year and will be recognized as other revenues over the term of the original underlying agreements. The remaining amount of $9.4 million, net of direct legal expenses was recognized as an additional non-recurring gain on settlement of disputes in the quarter. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. as of December 31, 2002 was $733.3 million and the Company had 28.1 million Ordinary Shares outstanding. Kerzner Interactive The Company today announced plans to discontinue dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: Kerzner Interactive, its online gaming See gaming. operations. Kerzner Interactive targeted play only from jurisdictions that permitted online gaming. As these jurisdictions have become more restrictive in their acceptance of play, the market size has been reduced and competition has intensified in·ten·si·fy v. in·ten·si·fied, in·ten·si·fy·ing, in·ten·si·fies v.tr. 1. To make intense or more intense: . Without the potential for expansion into other markets, including the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , the outlook for new business has substantially decreased and achieving profitability is unlikely in the short-to-medium term. In June 2002, the Company had renegotiated a previous agreement with Station Casinos Station Casinos Inc. NYSE: STN is a Las Vegas, Nevada based gaming company. The company purchased several sites that were gaming-entitled meaning that major casinos can be built at that location without additional approvals. ("Station"), granting to Station a renewable option to purchase a 50% interest in Kerzner Interactive. The Company and Station have mutually agreed to terminate this transaction. The Company intends to wind down operations by the end of the first quarter of 2003. About the Company Kerzner International Limited is a leading developer and operator of premier casinos A list of casinos. Antigua and Barbuda
Area of relatively shallow, quiet water with access to the sea but separated from it by sandbars, barrier islands, or coral reefs. Coastal lagoons have low to moderate tides and constitute about 13% of the world's coastline. and a 34-acre marine environment that includes the world's largest open-air marine habitat. The Company also developed and receives certain revenues from Mohegan Sun in Uncasville, Connecticut. Following the completion of a $1 billion expansion, the Native American-themed Mohegan Sun has become one of the premier casino resort destinations in the United States. In its luxury resort hotel business, the Company operates luxury resorts under the One&Only brand. The Company manages nine resort hotels in The Bahamas, Mauritius, Dubai, the Maldives and Mexico and has entered into an agreement to develop and manage a tenth property in the Maldives. For more information concerning the Company and its operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. visit www.kerzner.com. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , which are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of 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. These forward-looking statements involve risks and uncertainties, which are described in the Company's public filings with the Securities Exchange Commission. Inquiries should be directed to John Allison John Allison can refer to the following people:
EBITDA(1) is defined as 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. before depreciation, amortization, pre-opening expenses, land sales from Ocean Club Estates, restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). costs and online gaming operations. Management considers EBITDA to be one measure of the cash flows from operations from the company before debt service that provides a relevant basis for comparison, and EBITDA is presented to assist investors in analyzing the performance of the Company. 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, nor should it be considered as an indicator of the overall financial performance of the Company. The Company's method of calculating EBITDA may be different from the calculation used by other companies and, therefore, comparability may be limited. (Condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. Consolidated Statements of Operations, Reconciliation of Recurring Net Income (Loss) to GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). Net Income (Loss), Summary Segment and Hotel Operations Data are attached.)
Kerzner International Limited
Condensed Consolidated Statements of Operations
(In Thousands of Dollars Except Per Share Data)
For the Twelve
For the Three Months Months
Ended December 31, Ended December 31,
---------------------- -------------------
2002 2001 2002 2001
---------- ---------- --------- ---------
(Unaudited) (Unaudited)
Revenues:
Casino and resort
revenues $117,937 $79,541 $507,997 $466,940
Less: promotional
allowances (5,064) (4,168) (22,210) (22,778)
---------- ---------- --------- ---------
Net casino and resort
revenues 112,873 75,373 485,787 444,162
Tour operations 10,687 7,902 41,063 36,348
Management and other fees 11,421 10,023 41,305 36,806
Real estate related - - - 9,771
Insurance recovery - 2,000 1,100 2,000
Other 1,128 1,094 4,443 3,954
---------- ---------- --------- ---------
136,109 96,392 573,698 533,041
---------- ---------- --------- ---------
Expenses:
Casino and resort
expenses 66,602 50,554 268,473 253,019
Tour operations 10,183 6,981 36,767 32,041
Selling, general and
administrative 27,412 17,412 92,916 80,206
Real estate related - - - 2,865
Corporate expenses 8,321 7,395 32,964 25,106
Depreciation and
amortization 15,266 13,437 56,306 51,490
Restructuring costs
(reversal) (1,000) 4,532 (1,000) 5,732
Pre-opening expenses - 1,768 - 6,904
---------- ---------- --------- ---------
126,784 102,079 486,426 457,363
---------- ---------- --------- ---------
Operating income (loss) 9,325 (5,687) 87,272 75,678
Other income and expenses:
Interest income 987 1,326 3,525 7,471
Interest expense, net of
capitalization (8,877) (11,316) (39,104) (52,702)
Equity in earnings
(losses) of associated
companies, net (6,096) 893 (5,209) 3,059
Gain on settlement of
territorial and other
disputes 9,390 - 14,459 -
Other, net 36 (310) (168) (760)
---------- ---------- --------- ---------
Income (loss) before income
taxes and extraordinary
item 4,765 (15,094) 60,775 32,746
Income tax provision
(benefit) (1,087) (3,476) 96 1,090
---------- ---------- --------- ---------
Income (loss) before
extraordinary item 5,852 (11,618) 60,679 31,656
Extraordinary loss on early
extinguishment of debt
net of income tax
effect (4,643) - (20,525) -
---------- ---------- --------- ---------
Net income (loss) $1,209 $(11,618) $40,154 $31,656
========== ========== ========= =========
Diluted net income (loss)
per share:
Income (loss) before
extraordinary item $0.20 $(0.43) $2.13 $1.14
Extraordinary loss on
early extinguishment of
debt $(0.16) $ - $(0.72) $ -
---------- ---------- --------- ---------
Earnings (loss) per share
- diluted $0.04 $(0.43) $1.41 $1.14
========== ========== ========= =========
Weighted average number of
shares outstanding -
diluted 28,536 26,925 28,544 27,826
Kerzner International Limited
Reconciliation of Recurring Net Income (Loss)
to GAAP Net Income (Loss)
(In Thousands of Dollars Except Per Share Data)
(Unaudited)
For the Three Months
Ending December 31,
--------------------------------
2002 2001
-------------- -----------------
$ EPS $ EPS
------- ------ --------- -------
Recurring net income (loss) $4,739 $0.17 $(5,318) $(0.20)
Early extinguishment of debt (4,643) (0.16) - -
Kerzner Interactive net loss (2,363) (0.08) - -
Share of loss from remediation
costs at Harborside (6,914) (0.24) - -
Gain on settlement of territorial
and other disputes 9,390 0.32 - -
Restructuring (costs) reversal 1,000 0.03 (4,532) (0.17)
Loss on Atlantic City land sales - - - -
Non-recurring interest expense - - - -
Pre-opening expenses - - (1,768) (0.06)
Gain on real estate sales - - - -
------- ------ --------- -------
Net income (loss) $1,209 $0.04 $(11,618) $(0.43)
======= ====== ========= =======
For the Twelve Months
Ending December 31,
-------------------------------
2002 2001
--------------- ---------------
$ EPS $ EPS
-------- ------ -------- ------
Recurring net income (loss) $60,194 $2.11 $41,143 $1.48
Early extinguishment of debt (20,525) (0.72) - -
Kerzner Interactive net loss (8,060) (0.28) - -
Share of loss from remediation
costs at Harborside (6,914) (0.24) - -
Gain on settlement of territorial
and other disputes 14,459 0.51 - -
Restructuring (costs) reversal 1,000 0.03 (5,732) (0.21)
Loss on Atlantic City land sales - - (402) (0.01)
Non-recurring interest expense - - (3,355) (0.12)
Pre-opening expenses - - (6,904) (0.25)
Gain on real estate sales - - 6,906 0.25
-------- ------ -------- ------
Net income (loss) $40,154 $1.41 $31,656 $1.14
======== ====== ======== ======
(1) Recurring net income (loss) is defined as net income before
extraordinary loss on the early extinguishment of debt, net
loss from online gaming operations, the Company's share of
losses relating to remediation costs at Harborside at
Atlantis, gain on settlement of territorial and other
disputes, restructuring (costs) reversal, loss on Atlantic
City land sales, non-recurring interest expense, pre-opening
expenses and gain on real estate sales from Ocean Club
Estates. Management presents recurring net income (loss) to
assist investors in analyzing the performance of the Company.
This information should not be considered as an alternative to
any measure of performance as promulgated under accounting
principles generally accepted in the United States, nor should
it be considered as an indicator of the overall financial
performance of the Company.
(2) For the year ended December 31, 2002, the Company recorded an
extraordinary loss, which arose from the early extinguishment
of debt.
(3) Kerzner Interactive represents the net loss of the Company's
online gaming subsidiary.
(4) The Company recorded a loss for its share of remediation costs
required to re-open Harborside. This loss has not been reduced
by any anticipated insurance recovery, but Harborside has
filed a claim with its insurers, which is presently under
negotiation.
(5) Gain on settlement of territorial and other disputes with
Kersaf.
(6) Restructuring costs represent a provision for severance costs
made in 2001 as a result of the termination of employees
following the September 11 terrorist attacks. In 2002, the
unused portion of this provision was reversed.
(7) The Company recorded the termination of interest rate swap
agreements in 2001 as non-recurring interest expense.
(8) Pre-opening expenses in 2001 related to Kerzner Interactive
and Ocean Club Golf Course.
(9) Gain on real estate sales in 2001 represents income earned
from the sale of lots at Ocean Club Estates.
Kerzner International Limited
Summary Segment Data
(In Millions)
(Unaudited)
For the Three For the Twelve
Months Ended Months Ended
December 31, December 31,
-------------- ---------------
2002 2001 2002 2001
------- ------ ------- -------
EBITDA:
Paradise Island $24.6 $10.4 $141.7 $118.0
Mohegan Sun 6.6 7.1 30.9 27.4
Luxury resorts 4.5 2.7 8.8 8.0
Corporate and other (9.8) (6.2) (31.1) (20.5)
------- ------ ------- -------
$25.9 $14.0 $150.3 $132.9
------- ------ ------- -------
Paradise Island:
Gross revenues: (1)
Casino 37.3 19.7 129.9 116.5
Rooms 37.3 28.7 184.8 176.6
Food and beverage 28.7 21.7 131.4 121.4
Other 14.5 9.4 61.2 52.5
------- ------ ------- -------
$117.8 $79.5 $507.3 $467.0
Promotional allowances (5.1) (4.2) (22.2) (22.8)
------- ------ ------- -------
Net revenues $112.7 $75.3 $485.1 $444.2
------- ------ ------- -------
EBITDA margin 21.8% 13.8% 29.2% 26.6%
Online gaming:
Net loss (2) $(2.4) $0.0 $(8.1) $0.0
(1) Excludes revenue from the Company's wholly owned tour operator
and includes the results of the Ocean Club.
(2) Net loss excludes pre-opening expenses of $1.0 million and
$4.6 million during the three and twelve month periods of
2001, respectively.
Kerzner International Limited
Hotel Operating Performance Data
(Unaudited)
For the Three
Months Ended For the Year Ended
December 31, December 31,
------------------- ------------------
2002 2001 2002 2001
--------- -------- -------- --------
Atlantis:
Occupancy 72% 56% 81% 77%
ADR $216 $211 $245 $252
RevPar $156 $118 $198 $194
Ocean Club:
Occupancy 72% 51% 68% 64%
ADR $627 $546 $695 $610
RevPar $451 $278 $473 $390
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