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CAESARS WORLD REPORTS FY92 FIRST QUARTER RESULTS EARNINGS PER SHARE RISE TO RECORD LEVEL

          CAESARS WORLD REPORTS FY92 FIRST QUARTER RESULTS
               EARNINGS PER SHARE RISE TO RECORD LEVEL
    LOS ANGELES, Nov. 19 /PRNewswire/ -- Caesars World Inc. (NYSE: CAW) today announced net income for its fiscal 1992 first quarter was $22,902,000, or $.95 per share, compared with $14,017,000, or $.60 per share, in the fiscal 1991 first quarter. The fiscal 1992 earnings-per-share results established a record for any quarter in the company's history and represented a 58 percent increase over the comparable prior-year period.
    Revenue for the quarter ended Oct. 31, 1991, totaled $233,092,000, compared with $235,598,000 in the first quarter of the previous fiscal year.
    Henry Gluck, Caesars World's chairman and chief executive officer, said the primary factor in the earnings improvement came from New Jersey where both revenue and operating income surpassed Caesars Atlantic City's own previous highs for any quarter.
    When comparing the fiscal first quarters, the New Jersey resort achieved a 123 percent increase in its contribution to Caesars World's operating income.  The main contributors to this improvement were table-game win percentages higher than the 1991 quarter's low percentages, improved slot activity and lower expenses resulting from more cost-effective marketing programs.
    For the second consecutive quarter, slot revenue reached a record level at Caesars Atlantic City, rising 16 percent over the same prior-year quarter.  This compared with an eight percent increase in the overall Atlantic City slot market during the same period.
    In Nevada, contributions to operating income were down slightly when comparing the fiscal 1992 and 1991 first quarters.  The decline was attributable to lower operating income at Caesars Tahoe in northern Nevada which offset improved operating income results at Caesars Palace in Las Vegas. Table-game activity was down at both Nevada properties and the Caesars Tahoe results were also affected by significantly lower win percentages.  Improved collections and less credit activity resulting in a substantially lower provision for bad debt, lower marketing expenses, higher win percentages and an increase in slot activity were positive factors in Caesars Palace's performance.
    The company pointed out that it is common practice for customers to plan trips around special events and that November results indicate many Caesars Palace guests deferred visits during the fiscal 1992 first quarter in anticipation of the previously scheduled November heavyweight championship fight between Evander Holyfield and Mike Tyson.  These visitation deferrals, plus the world economic climate, apparently slowed down international and other high-level play in the company's Nevada operations and reduced the average level of activity per customer during the quarter.  Although the Holyfield- Tyson fight, scheduled for Nov. 8, was postponed following an injury to Tyson, a number of customers made their previously planned visits to Caesars Palace at that time.  Discussions are continuing to determine the new date for the Holyfield-Tyson fight at Caesars Palace.
    The company's increase in other expenses, when comparing the fiscal 1992 and 1991 quarters, was primarily the result of higher costs associated with stock appreciation rights.  Other expenses were partially offset by improved results from merchandising operations.
    Minority interest charges were eliminated when Caesars New Jersey became a wholly owned subsidiary of Caesars World in December 1990.
                         CAESARS WORLD INC.
                         Summary of Earnings
             (In thousands, except net income per share)
                             (Unaudited)
                                 For the periods ended Oct. 31,
                                                     Three Months
                                                    1991        1990
      Revenue
    Nevada                                      $121,180    $137,784
    New Jersey                                    93,371      79,039
    Casino/hotel
      operations                                 214,551     216,823
    Pocono resorts                                13,568      13,715
    Other(a)                                       4,973       5,060
    Total revenue                               $233,092    $235,598
      Contributions to
    operating income
    Nevada                                       $22,966     $23,377
    New Jersey                                    24,429      10,936
    Casino/hotel
      operations                                  47,395      34,313
    Pocono resorts                                 4,609       4,690
    Other expenses(a)                             (3,566)     (3,040)
    Operating income                              48,438      35,963
    Interest and dividend
      income                                         383         143
    Interest expense                            (11,643)    (12,519)
    Income before income
      taxes and minority
      interest                                    37,178      23,587
    Income taxes                                  14,276       8,798
    Minority interest                               ---          772
    Net income                                   $22,902     $14,017
    Net income per share                           $ .95       $ .60
    Average number of common
      and common equivalent
      shares outstanding                          24,062      23,409
    (a)  Other revenue is primarily from merchandising operations. Other expenses include the contribution from merchandising operations and corporate expenses.
    -0-                       11/19/91
    /CONTACT:  Jack Leone of Caesars World Inc., 213-552-2711, ext. 263/
    (CAW) CO:  Caesars World Inc. ST:  California IN:  CNO SU:  ERN SE-EH -- LA009 -- 4786 11/19/91 08:54 EST
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No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

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Date:Nov 19, 1991
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