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CAESARS WORLD'S FY94 FIRST QUARTER RESULTS ESTABLISH REVENUE, EARNINGS PER SHARE RECORDS

 LOS ANGELES, Nov. 18 /PRNewswire/ -- Caesars World Inc. (NYSE: CAW) today announced net income for its fiscal 1994 first quarter was $27,848,000, or $1.14 per share, compared with $14,967,000, or 62 cents per share, in the fiscal 1993 first quarter. The fiscal 1994 earnings per share figure was the highest for any quarter in the company's history and represented an 84 percent increase over the fiscal 1993 first quarter.
 Revenue for the quarter ended Oct. 31, 1993, also established an all-time quarterly record, totaling $269,083,000, compared with $232,562,000 in the comparable period of fiscal 1993.
 Henry Gluck, Caesars World's chairman and chief executive officer, said the principal contributor to the earnings and revenue improvements was the company's table-game operations in Nevada.
 Gluck also noted that slots activity and win in Nevada established records for any first quarter in the company's history. "We are pleased that, for both table games and slots, the amounts wagered in our Nevada casino operations increased significantly over the fiscal 1993 first quarter," he said.
 The table game win percentage during the fiscal 1994 quarter in Nevada also rose significantly over the unusually low percentage in the prior-year quarter and was slightly higher than the company's long-term average for table games.
 The Nevada casino revenue improvement more than offset a rise in expenses and a higher provision for doubtful accounts.
 In the company's New Jersey operation, Caesars Atlantic City's increased contribution to income, when comparing the two fiscal quarters, was attributable to a decrease in marketing-related expenses, principally due to reduced busing programs.
 Caesars Atlantic City's revenue was down slightly from the prior- year quarter, primarily the result of lower slots activity. Table game revenue showed a modest increase as a higher win percentage more than offset a decline in table game activity.
 In mid-October, Caesars Atlantic City opened its new 17,000-square- foot Simulcast Casino, bringing the resort's total casino capacity to 77,000 square feet. The new facility features high-tech systems for horse race betting, a poker table section and additional casino table games. The resort's slots capacity was simultaneously expanded in the original casino area.
 Caesars World said its effective income tax rate for the quarter ended Oct. 31, 1993, was two percentage points higher than the fiscal 1993 first quarter. The higher taxes in the fiscal 1994 quarter included non-recurring tax charges of approximately $750,000, or 3 cents per share, resulting from the adoption of new income tax accounting rules and the retroactive impact (to Jan. 1, 1993) of the increased Federal income tax rate.
 The company's net interest expense decreased 51 percent, when comparing the fiscal 1994 and 1993 first quarters, due primarily to a debt refinancing which was substantially completed during the fiscal 1993 first quarter.
 CAESARS WORLD INC.
 Summary of Earnings -- Unaudited
 (In thousands, except net income per share)
 Three Months
 For the periods ended Oct. 31 1993 1992
 Revenue
 Nevada $155,224 $118,231
 New Jersey 94,036 95,063
 Casino/hotel operations 249,260 213,294
 Pocono Resorts 14,492 13,726
 Other(a) 5,331 5,542
 Total revenue $269,083 $232,562
 Contributions to operating income
 Nevada $27,484 $13,231
 New Jersey 22,642 19,829
 Casino/hotel operations 50,126 33,060
 Pocono Resorts 5,077 4,829
 Other expenses(a) (4,601) (4,181)
 Operating income 50,602 33,708
 Interest and dividend income 928 807
 Interest expense (5,110) (10,375)
 Income before income taxes 46,420 24,140
 Income taxes(b) 18,572 9,173
 Net income $27,848 $14,967
 Net income per share $1.14 $.62
 Average number of common and common
 equivalent shares outstanding 24,513 24,290
 (a) Other revenue is primarily from merchandising operations. Other expenses include the contribution from merchandising operations and corporate expenses.
 (b) The effective income tax rate during the quarter ended Oct. 31, 1993, was two percentage points higher than the same period in 1992. The higher tax rate reflects the impact on the quarterly results of an increase in the federal tax rate from 34 to 35 percent during the quarter as well as two non-recurring tax charges. In August 1993, the federal tax rate increased, retroactive to Jan. 1, 1993. The company also changed its method for income tax accounting by adopting FASB 109 effective Aug. 1, 1993. The impact of this cumulative change in accounting and the retroactive change in the corporate tax rate aggregated a net charge of approximately $750,000.
 -0- 11/18/93
 /CONTACT: Jack Leone of Caesars World, 310-552-2711, ext. 263/
 (CAW)


CO: Caesars World Inc. ST: California, Nevada IN: CNO LEI SU: ERN

JL-LM -- LA010 -- 5868 11/18/93 08:50 EST
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Publication:PR Newswire
Date:Nov 18, 1993
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