CAESARS WORLD REPORTS FY 92 THIRD QUARTER RESULTS
CAESARS WORLD REPORTS FY 92 THIRD QUARTER RESULTS LOS ANGELES, May 21 /PRNewswire/ -- Caesars World Inc.
(NYSE: CAW) today announced net income for its fiscal 1992 third quarter was $9,599,000, or 40 cents per share, confirming the company's announcement earlier this month that the quarterly earnings would range between 37 and 43 cents per share. In the comparable quarter of fiscal 1991, the company's net income was $13,160,000, or 56 cents per share.
Revenues for the quarter ended April 30, 1992, amounted to $197,942,000, compared with $220,108,000 in the fiscal 1991 third quarter. Net income for the first nine months of fiscal 1992 totaled $55,575,000, or $2.30 per share. For the first nine months of fiscal 1991, net income was $31,158,000, or $1.32 per share. The fiscal 1992 per share result establishes a record for any comparable nine-month period in the company's history. Revenue for the fiscal 1992 nine months was $684,541,000, compared with $663,680,000 for the same period of fiscal 1991. As previously announced, the principal factor in the earnings decline for the fiscal 1992 third quarter was substantially lower table game win percentages from high level play at both of the company's Nevada casino/hotel operations in Las Vegas and Lake Tahoe. Table game activity in Nevada operations also decreased approximately 9 percent when comparing the fiscal 1992 and 1991 third quarters. The lower table game casino results were partially offset by the company's slot revenue in Nevada, which was up 14 percent over the comparable fiscal 1991 quarter. Due to a reduction in credit issued to customers and improved collections, the provision for doubtful accounts in Nevada operations was substantially lower during the most recent quarter. The Nevada casino expenses were also lower in the third quarter of fiscal 1992, compared with the same period in 1991. When comparing the nine-month results from the company's Nevada activities, the primary factors in the fiscal 1992 contributions to earnings improvement were decreased costs and expenses resulting from operating efficiencies, reduced special event expenses and a lower provision for doubtful accounts. Revenue was down approximately 3 percent, due primarily to a 10 percent decline in table game activity, partially offset by a 7 percent improvement in slot revenue. Table game win percentages in Nevada during the fiscal 1992 nine months were just slightly higher than the prior year's nine months. In the company's New Jersey operations, record contributions to earnings resulted from Caesars Atlantic City achieving its highest casino win ever during both the fiscal 1992 third quarter and nine months. Caesars Atlantic City's slot play continued to rise faster than overall slot growth in New Jersey throughout the nine months. During the fiscal 1992 third quarter, Caesars Atlantic City's slot revenue rose 16 percent over the same prior-year quarter. This compared with a 13 percent increase in the overall Atlantic City slot market during the same period. The third-quarter and nine-month improvements were partially offset by higher casino expenses. Caesars World's other expenses, when comparing the fiscal 1992 and 1991 periods, showed decreases, primarily because of improved profitability from the company's merchandising operations. Due primarily to reduced company borrowings, interest expense declined when comparing the fiscal 1992 and 1991 third-quarter and nine- month reporting periods. CAESARS WORLD INC. Summary of Earnings (unaudited) (In thousands, except net income per share) Three Months Nine Months For the periods ended April 30, 1992 1991 1992 1991 Revenue Nevada $98,901 $128,813 $381,621 $392,771 New Jersey 85,766 78,546 258,951 227,611 Casino/hotel operations 184,667 207,359 640,572 620,382 Pocono resorts 9,157 9,297 30,789 30,551 Other (a) 4,118 3,452 13,180 12,747 Total revenue $197,942 $220,108 $684,541 $663,680 Contributions to operating income Nevada $8,269 $24,272 $72,781 $63,683 New Jersey 18,845 13,855 54,129 32,257 Casino/hotel operations 27,114 38,127 126,910 95,940 Pocono resorts 1,188 1,728 6,054 6,476 Other expenses (a) (3,218) (6,372) (11,075) (13,064) Operating income 25,084 33,483 121,889 89,352 Interest income 225 439 847 1,020 Interest expense (10,308) (12,696) (33,099) (38,364) Income before income taxes and minority interest 15,001 21,226 89,637 52,008 Income taxes 5,402 8,066 34,062 19,763 Minority interest --- --- --- 1,087 Net income $9,599 $13,160 $55,575 $31,158 Net income per share $.40 $.56 $2.30 $1.32 Average number of common and common equivalent shares outstanding 24,272 23,704 24,148 23,595 (a) Other revenue is primarily from merchandising operations. Other expenses include the contribution from merchandising operations and corporate expenses. -0- 5/21/92 /CONTACT: Jack Leone of Caesars World Inc., 310-552-2711, ext. 263/ (CAW) CO: Caesars World Inc. ST: California IN: CNO LEI SU: ERN
KJ-SE -- LA010 -- 2830 05/21/92 12:24 EDT
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|Date:||May 21, 1992|
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