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THE PROMUS COMPANIES INCORPORATED REPORTS FIRST QUARTER RESULTS

 THE PROMUS COMPANIES INCORPORATED REPORTS FIRST QUARTER RESULTS
 MEMPHIS, Tenn., April 23 /PRNewswire/ -- The Promus Companies Incorporated (NYSE: PRI) today reported 1992 first quarter net income of $5.5 million or 16 cents per share compared to a loss of $2.2 million or eight cents per share in 1991.
 Operating income for the quarter rose 34.1 percent to $46.1 million compared to $34.4 million during the same period last year. Operating income records for the quarter were set in both the company's casino and hotel businesses. Hotel operating income included a $2.9 million pre-tax charge to relocate the headquarters for Embassy Suites hotel division. Operating income before property transactions rose to a record $47.0 million, a 37.2 percent increase over the first quarter 1991.
 Revenues during the first quarter 1992 increased 13.8 percent over the prior year to a record $257.7 million.
 HARRAH'S SETS OPERATING INCOME RECORD
 Gaming operating income was a record $37.4 million, a 37.8 percent increase over the prior year's first quarter, which was impacted by the Gulf War and recession, exceeding the prior record set in 1990 by 4 percent. Each of the company's six gaming properties increased operating income on a combination of revenue increases and significant margin improvements. Gaming revenues increased 7.4 percent to $203.1 million.
 Operating income at the company's southern Nevada casino hotels increased 26.6 percent, setting a new first quarter record. The company's Las Vegas property, which completed a transition to the Harrah's brand name in early April, achieved record operating income with a 30.1 percent increase over the prior year, and operating income at Harrah's Laughlin increased 19.1 percent over the first quarter 1991.
 In northern Nevada, strong demand throughout the quarter and the continuing impact of cost management helped offset poor weather that hampered access to Lake Tahoe during Presidents' Day weekend, traditionally the busiest weekend of the quarter. Combined operating income for Harrah's Reno and Lake Tahoe and Bill's increased 74.4 percent during the quarter.
 Harrah's Atlantic City continued its recovery from the impact of a severe recession in the northeast, posting a 21.0 percent increase in operating income.
 "In our gaming business, we are particularly pleased that not only have all of our properties recovered from last year's depressed first quarter, but we have set new records overall," said Michael D. Rose, chairman and chief executive officer of Promus. "A nearly 38 percent increase in operating income on a 7.4 percent revenue increase demonstrates that we have made our gaming business more efficient and positioned ourselves well for the long anticipated economic recovery.
 "Growth prospects for our gaming business have never been brighter. We are studying opportunities to expand into new venues offering casino style gaming. In March, we announced our entry into the rapidly growing riverboat gaming market with Harrah's Casino Cruises Joliet. The mega-yacht style casino boat, with more than 500 slots and 30 table games, is scheduled to begin operations next spring on the Des Plaines River 30 miles from Chicago," Rose pointed out. "We expect this operation to not only be successful in its own right, but to create further value by expanding the Harrah's brand name in a market that should produce about one million visitors annually."
 HOTELS SET OPERATING RECORD, INCREASE REVENUE PER AVAILABLE ROOM
 Hotel operating income increased 38.4 percent to a record $9.7 million on a 51.0 percent increase in revenues to $52.9 million, also a record. Hampton Inn and Homewood Suites hotels each set operating income records during the quarter. Excluding a $2.9 million reserve for costs associated with the relocation of Embassy Suites headquarters to Memphis, Embassy Suites also set a record for the quarter. Increases in the company's hotel business are attributable to a combination of system size growth, an increased number of company-owned hotels and lower overhead costs.
 "Our hotel brands achieved an average revenue per available room increase of over 6.5 percent during the quarter, no easy feat in the current economic environment," Rose stated. "By focusing on offering high value to our guests, we outperformed our competitors throughout the recession in each market segment. We believe our strategy of offering value and guaranteed excellent service will lead to continued strong performance in an economic upswing."
 The company opened seven licensed hotels during the quarter, bringing the total size of the company's Hotel Group to 425 hotels. Another 11 licensed hotels began construction, bringing the total under construction or conversion to 25. After the close of the quarter, Embassy Suites hotels opened its first hotel outside of the United States, with the conversion of a 332-suite licensed hotel in Markham, Ontario, 15 miles north of Toronto.
 Corporate expense increased over last year, largely because of incentive related compensation costs incurred in 1992. Interest expense declined 12.0 percent as a result of lower interest rates and lower overall levels of debt.
 "When you consider the state of the economy in the first quarter, our ability to surpass numerous operating records that had been set in a pre-recession economy is a strong indication of the growing strength of our brands in the marketplace," Rose added. "Looking forward, our pipeline for hotel growth remains steady with franchise construction and conversion projects, and numerous opportunities exist to expand our Harrah's brand name."
 Promus is the parent company of these leading hospitality brands: Harrah's Casino Hotels, and Embassy Suites, Hampton Inn and Homewood Suites hotels.
 THE PROMUS COMPANIES INCORPORATED
 SUMMARY OF OPERATIONS (UNAUDITED)
 First Quarter Ended
 March 31, March 29,
 1992 1991
 (In thousands,
 except per share amounts)
 Revenues
 Gaming $203,134 $189,198
 Hotel 52,898 35,038
 Other 1,629 2,107
 $257,661 $226,343
 Operating income
 Gaming $ 37,417 $ 27,159
 Hotel 9,664 6,984
 Other (85) 119
 Operating income before
 property transactions 46,996 34,262
 Property transactions (909) 106
 Operating income 46,087 34,368
 Corporate expense (7,233) (4,695)
 Interest, net of interest
 capitalized (29,879) (33,944)
 Interest income 552 347
 Other income 1 216
 Income (loss) before income taxes 9,528 (3,708)
 Provision for income taxes (4,049) 1,557
 Net income (loss) $ 5,479 $ (2,151)
 Earnings (loss) per share $ 0.16 $ (0.08)
 Average common shares outstanding 33,635 26,208
 -0- 4/23/92
 /CONTACT: Ralph Berry, The Promus Companies Incorporated, 901-762-8629/
 (PRI) CO: The Promus Companies Incorporated ST: Tennessee IN: LEI SU: ERN


DF -- CH005 -- 1687 04/23/92 09:21 EDT
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Date:Apr 23, 1992
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