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RIO ANNOUNCES THIRD QUARTER RESULTS AND $10 MILLION CASINO EXPANSION

 LAS VEGAS, Oct. 13 /PRNewswire/ -- Rio Hotel & Casino Inc. (NASDAQ-NMS: RIOH) ("Rio") today announced that for the third quarter ended Sept. 30, 1993, net income from continuing operations was $2.7 million or $0.14 per share. This represents an increase of 50 percent compared to net income from continuing operations of $1.8 million or $0.12 per share for the third quarter ended Sept. 30, 1992. For the nine months ended Sept. 30, 1993, net income from continuing operations was $8.2 million or $.42 per share, compared to net income from continuing operations of $4.2 million or $.28 per share for the first nine months of 1992, an increase of 96 percent. Per share amounts are based upon 19.3 million and 15.0 million shares outstanding (fully diluted) for the nine months ended Sept. 30, 1993, and Sept. 30, 1992, respectively.
 Net income from continuing operations for the third quarter of 1993 was negatively impacted by approximately $142,000 or $0.01 per share due to the increase in corporate income tax rates contained in the 1993 Revenue Reconciliation Act.
 Earnings for the third quarter of 1993 increased by 29 percent to $27.6 million from $21.4 million during the third quarter of 1992. Revenues for the first nine months of 1993 increased by 27 percent to $78.4 million from $61.7 million during the first nine months of 1992.
 Earnings before depreciation, interest, and taxes (EBITDA) was $6.8 million or $0.35 per share for the third quarter of 1993, compared to $5.1 million or $0.34 per share for the third quarter of 1992, a 32 percent increase. EBTIDA for the first nine months of 1993 was $19.4 million or $1.00 per share compared to $13.9 million or $0.92 per share for the first nine months of 1992, a 40 percent increase.
 Net income for the third quarter of 1993 was $2.4 million or $0.13 per share, reflecting a one-time $0.3 million non-cash charge related to the early retirement of unamortized loan fees arising from the Rio's successful completion of its bank refinancing. Net income for the third quarter of 1992 was $1.8 million or $0.12 per share. Net income for the first nine months of 1993 was $7.2 million or $0.37 per share reflecting a one-time $0.8 million non-cash charge related to the required implementation of FASB Statement No. 109, "Accounting for Income Taxes," and a one-time $0.3 million non-cash charge related to the early retirement of unamortized loan fees arising from the completion of the Rio's bank refinancing. Net income for the first nine months of 1992 was $5.0 million or $0.33 per share which included an extraordinary credit of $0.8 million from net operating loss carry- forwards.
 The Rio currently is completing construction of a new 437-suite hotel tower. Originally anticipated for completion by December 1993, 306 suites were available for occupancy Labor Day weekend, and an additional 69 suites were available for occupancy by the end of September. The remaining 62 suites will be available for occupancy in October 1993. Upon completion of the new tower, the Rio's total room count will increase to 861 suites. The tower project, started in January 1993, also includes several public area additions. A new seafood restaurant, "Buzios," opened in May 1993; 3,000 additional square feet of meeting room space became available in June 1993; and an expansion of the "Beach Cafe" was completed in September 1993. The expansion is expected to cost $37.0 million and remains on-budget.
 Anthony A. Marnell II, chairman of the board, stated, "We are especially pleased with the third quarter results given the pre-opening costs of approximately $300,000 associated with the new tower. Occupancy was strong, 98 percent in September, and we look forward to having the balance of the suites in service by the end of October."
 While the new suite tower is nearing completion, construction on the Rio's $25.0 million casino and public area expansion continues. This project will include a 25,000-square-foot expansion of the casino which will accommodate approximately 500 slot machines and 12 table games; a unique, circular 430-seat, one-of-a-kind entertainment and restaurant complex; a new 130-seat themed restaurant; a 36,000-square-foot expansion of the Rio's beach pool area with a second swimming pool and additional recreation areas; and a 135,000-square-foot, two-level parking garage with parking spaces for approximately 434 vehicles. This expansion is taking place on the Rio's east side and scheduled to be completed in phases by April 1994. The resulting expanded casino will be approximately 79,000 square feet. The new casino area is now anticipated to be open in December 1993.
 The Rio also announced today that it intends to commence another $10 million casino and public area expansion of the Rio Suite and Casino. This casino expansion will add approximately 15,000 square feet of space and will accommodate up to 400 additional slot machines. This casino expansion is planned to commence in the Spring of 1994 and is planned to be completed by the Fall of 1994.
 Marnell, chairman of the board, also stated: "We will start this casino and public area expansion just as we complete the final phases of our present $25 million casino and public area expansion project. We thank our Team Rio employees for consistently providing a high level of quality service to our customers."
 In a separate release, the Rio announced the filing of a registration statement covering the offering of 2,000,000 shares of common stock by the company and 500,000 shares of common stock by a selling stockholder.
 The Rio, located on a 45-acre site in Las Vegas, is the country's only all-suite hotel casino presently consisting of 861 suites and a 54,000-square-foot casino. Approximately 25,000 square feet of additional casino area containing approximately 500 new slot machines and 12 additional table games is expected to open by the end of December 1993. The Rio was designed to permit multiple expansions in accordance with a conceptual master plan and received zoning approval for 2,400 rooms.
 RIO HOTEL & CASINO INC.
 Condensed Balance Sheets
 (In thousands)
 Sept. 30, Sept. 30
 1993 1992
 (Unaudited)
 Assets
 Current assets:
 Cash and equivalents $15,427 $42,623
 Cash restricted for construction 19,000 0
 Accounts receivable, net 1,945 1,549
 Other current assets 4,537 2,414
 Total current assets 40,909 46,586
 Property and equipment, net 136,837 101,928
 Other assets 1,838 1,004
 Total $179,584 $149,518
 Liabilities and Stockholders' Equity
 Current maturities of long-term debt $5,526 $2,306
 Accounts payable and accrued expenses 14,165 8,884
 Total current liabilities 19,691 11,190
 Long-term debt, less current maturities 59,474 50,906
 Deferred income taxes 5,025 550
 Total liabilities 84,190 62,646
 Stockholders' equity 95,394 86,872
 Total liabilities and equity $179,584 $149,518
 RIO HOTEL & CASINO INC.
 Results of Operations
 (In thousands, except per share amounts)
 Nine Months Nine Months
 Qtr Ended Qtr Ended Ended Ended Year Ended
 Sept. 30, Sept. 30, Sept. 30, Sept. 30, Dec. 31,
 1993 1992 1993 1992 1992
 (Unaudited)(Unaudited)(Unaudited)(Unaudited)
 Revenues $27,592 $21,415 $78,406 $61,709 $82,475
 Expenses (22,770) (17,769) (64,335) (52,163) (70,180)
 Operating profit 4,822 3,646 14,071 9,546 12,295
 Interest expense (469) (912) (1,286) (3,109) (3,801)
 Interest income 12 24 51 139 158
 Other income, net --- --- --- 100 100
 Income before
 minority interest,
 income tax,
 extraordinary items,
 and cumulative
 effect of a change
 in accounting
 principle $4,365 $2,758 $12,836 $6,676 $8,752
 Income tax
 provision (1,705) (950) (4,650) (2,263) (2,995)
 Minority interest --- (39) --- (242) (242)
 Income before
 extraordinary items
 and cumulative
 effect of a change
 in accounting
 principle $2,660 $1,769 $8,186 $4,171 $5,515
 Extraordinary items:
 Reduction of income
 taxes arising from
 carry-forward of
 prior year's losses --- --- --- 793 793
 Early retirement of
 unamortized bank
 loan costs (254) --- (254) --- ---
 Cumulative effect of
 a change in
 accounting principle: --- --- (777) --- ---
 Net income $2,406 $1,769 $7,155 $4,964 $6,308
 Income per common
 share(a):
 Continuing
 operations $0.14 $0.12 $0.42 $0.28 $0.36
 Extraordinary items (0.01) --- (0.01) 0.05 0.05
 Cumulative effect of
 a change in accounting
 principle --- --- (0.04) --- ---
 Total $0.13 $0.12 $0.37 $0.33 $0.41
 Weighted average
 number of common
 and common equi-
 valent shares
 outstanding 19,343 15,178 19,295 15,005 15,319
 Earnings before
 depreciation,
 interest, amorti-
 zation, and income
 taxes (EBDIT) $6,758 $5,126 $19,372 $13,870 $18,109
 EBDIT per share(a) $0.35 $0.34 $1.00 $0.92 $1.18
 (a) Based upon weighted shares outstanding for 1992, which assumes exchange of all outstanding common stock exchange rights.
 -0- 10/13/93
 /CONTACT: James A. Barrett Jr., president, 702-252-7733/
 (RIOH)


CO: Rio Hotel & Casino Inc. ST: Nevada IN: CNO LEI SU: ERN

LM-LS -- SD004 -- 1472 10/13/93 08:02 EDT
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