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 BEVERLY HILLS, Calif., Oct. 12 /PRNewswire/ -- Hilton Hotels Corp. today reported operating income of $66.1 million for the third quarter ended Sept. 30, 1993, a 24 percent improvement from $53.1 million for the same period a year ago.
 The increase in operating income, however, was offset by increased tax expense, increased net interest expense, foreign currency losses and a loss from property transactions. This resulted in a net income decline for the quarter of 10 percent to $20.5 million, or $.43 per share, from $22.8 million, or $.48 per share, in 1992.
 Net income for the period was adversely impacted by a $4.4 million increase in the provision for income taxes due to enactment of the 1993 tax act, which, among other things, increased the federal income tax rate for corporations from 34 percent to 35 percent retroactive to Jan. 1, 1993.
 Hilton's Gaming Division reported operating income of $48.2 million for the third quarter 1993, compared with $39.9 million for the 1992 period, a 21 percent improvement. All Nevada properties showed improved results from the 1992 period with the Flamingo Hilton Las Vegas -- which recently completed a comprehensive casino expansion and renovation -- posting a particularly strong quarter. A full third quarter of income from the Reno Hilton (acquired Aug. 1, 1992) and increased table game win at the Las Vegas Hilton also contributed to the increase. Nevada occupancy was strong at 94 percent for the current quarter, vs. 90 percent a year ago.
 The company's Hotels Division was up 28 percent for the third quarter with operating income of $24.1 million vs. 1992's $18.9 million. Several key properties reversed their trend of declining results, with the New York Hilton showing a particularly dramatic improvement. Other major properties, however, continued to show the effect of overall industry sluggishness. Hilton's suburban properties continued to perform well in the quarter. Hotel occupancy was at 68 percent, down from 70 percent for the 1992 period.
 The loss from property transactions represents an after-tax write- off of $2.9 million resulting from the demolition of certain facilities at the Flamingo Hilton-Las Vegas to permit further expansion at that property.
 For the nine months ended Sept. 30, 1993, Hilton posted operating income of $180.9 million, an 11 percent increase from $163.5 million a year ago. Net income for the nine months declined 5 percent to $73.8 million, or $1.54 per share, from $77.4 million, or $1.62 per share, in 1992.
 Operating income from gaming improved 13 percent to $133.9 million for the nine months, from $118.2 million a year ago. In the hotels division, operating income increased 8 percent to $66.6 million from $61.8 million in 1992.
 During the quarter, Hilton continued its strong push into new United States and international gaming jurisdictions. The company submitted bids for casino projects in greater Athens, Greece (where it has a management agreement for an existing luxury resort), and in Michigan City, Ind. (the latter a joint proposal with Caesars World). Conrad, Hilton's international subsidiary, was short-listed for the greater Athens project. In addition, a partnership of Hilton, Caesars World and Circus Circus made the short list for a casino in Windsor, Ontario, Canada. Work also continued on schedule for Hilton's new riverboat casino projects in Kansas City, Mo., and New Orleans, the latter of which will open Feb. 10, 1994. In Las Vegas, Hilton premiered a multimillion dollar production of Andrew Lloyd Webber's musical spectacular "Starlight Express" at the Las Vegas Hilton.
 The company also continued strengthening its resort portfolio during the quarter, announcing the acquisition of the former Hyatt Regency Waikoloa resort (re-named the Hilton Waikoloa Village), a 1,241-room property on the Big Island of Hawaii. Hilton assumes ownership on or about Nov. 5, 1993. In addition, Hilton's Conrad subsidiary announced plans for three new luxury properties scheduled for opening in 1996-97: two in Indonesia (Jakarta and Surabaya) and one in Malaysia (Kuala Lumpur).
 "The solid performance of our Nevada hotel-casinos resulted in a satisfying quarter from an operating income standpoint, though our hotel results -- while improved in certain key groups and markets -- continued to be mixed," said Barron Hilton, chairman and chief executive officer. "Looking ahead, our expectations for the fourth quarter have taken into consideration the challenges posed by a still-recovering hotel industry and new competition coming on stream in Las Vegas over the next few months.
 "More importantly for the long term, however, we continue to strengthen our existing product and aggressively pursue new ventures in both hotels and gaming, as evidenced by our Waikoloa acquisition and efforts in Windsor and Greece."
 Consolidated Statement of Income
 (In millions, except per share amounts)
 Three Months Ended Nine Months Ended
 Sept 30, Percent Sept 30, Percent
 1993 1992 Change 1993 1992 Change
 Total revenue $346.7 323.0 7 $1,023.5 894.1 14
 Hotels $24.1 18.9 28 $66.6 61.8 8
 Gaming 48.2 39.9 21 133.9 118.2 13
 expense (6.2) (5.7) 9 (19.6) (16.5) 19
 Total operating
 income 66.1 53.1 24 180.9 163.5 11
 Net interest
 expense (20.4) (16.6) 23 (56.3) (43.9) 28
 Foreign currency
 losses (1.2) --- --- (1.2) --- ---
 transactions (4.5) --- --- (4.5) --- ---
 Provision for
 income taxes (19.5) (13.7) 42 (48.5) (42.2) 15
 Cumulative effect
 of accounting
 changes --- --- --- 3.4 --- ---
 Net income $20.5 22.8 -10 $73.8 77.4 -5
 Earnings per share:
 Before cumulative
 effect of accounting
 changes: $.43 .48 -10 $1.47 1.62 -9
 Cumulative effect
 of accounting
 changes: --- --- --- .07 --- ---
 Net income: .43 .48 -10 1.54 1.62 -5
 Average number
 of shares 48.0 47.9 48.0 47.9
 Percentage of
 Hotels owned or
 managed 68 70 -3 68 67 1
 Gaming (Nevada) 94 90 4 90 87 3
 -0- 10/12/93
 /CONTACT: Marc A. Grossman, corporate communications, 310-205-4545/

CO: Hilton Hotels Corp. ST: California IN: LEI CNO SU: ERN

NY-JL -- LA014 -- 0946 10/12/93 09:04 EDT
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Publication:PR Newswire
Date:Oct 12, 1993

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