Harrah's Entertainment Reports 1999 Third Quarter and First Nine Months Results
LAS VEGAS, Oct. 20 /PRNewswire/ -- Harrah's Entertainment, Inc.
(NYSE: HET) today reported results for third quarter 1999, including record
revenues, EBITDA and net income.
Third Quarter Accomplishments
Diluted earnings per share before preopening costs, write-downs, reserves
and recoveries, a gain on the sale of an equity investment and
extraordinary losses, and after headquarters relocation expenses were
52 cents, exceeding analysts' estimates
Record revenues of $814.1 million
Same store gaming revenue growth of 13% over prior year
EBITDA up 42% to a record $215.9 million
Agreement reached to acquire Players International
Announced agreement to sell Showboat Las Vegas property
Interest in Sodak Gaming sold, generating $16 million one-time pre-tax
gain
Agreement reached with Ak-Chin Indian Community for management contract
renewal, the first renewal of a five-year management contract for a
Class-III Indian gaming facility by a major casino company
Harrah's Entertainment dominated the annual Casino Player "Best of"
readers surveys for excellence in Las Vegas and Atlantic City
Harrah's Entertainment became the first company to launch a nationwide
television advertising campaign that features the casino gaming
experience
Summary of Results
Diluted earnings per share including all items were 58 cents for third
quarter 1999 versus 44 cents for the prior year, up 32%.
Third quarter 1999 EBITDA (Earnings Before Interest, Taxes, Depreciation
and Amortization) before project opening costs, write-downs, reserves and
recoveries, venture restructuring costs and gains on sales of equity interests
in subsidiaries was $215.9 million, a 42% increase over the $152.2 million
reported for third quarter 1998. Harrah's Entertainment again demonstrated
the geographic diversity of its EBITDA, with the Western Region contributing
38% of consolidated third quarter EBITDA, the Eastern Region 32% and the
Central Region 33%.
The addition of the Rio Hotel & Casino in Las Vegas, acquired
January 1, 1999, and consolidation of East Chicago results, coupled with 13%
same store gaming revenue growth, resulted in a 39% increase in third quarter
revenues over prior year to $814.1 million. Income from operations increased
43% and net income rose 69% over the prior year period.
"From the trends in increased cross-market and tracked play, to increases
in EBITDA in every region, to the contributions from the Rio acquisition, each
aspect of Harrah's Entertainment's customer loyalty and growth strategy was
working during the third quarter," explained Harrah's Entertainment Chairman
and CEO Phil Satre. "The increased loyalty to our company among longtime and
new customers alike is yielding earnings growth.
"Our strategy will be enhanced and our customer relationship building
opportunities expanded even more with the on time and on budget planned
opening of Harrah's New Orleans on October 28 and the planned addition of the
Players properties in Missouri, Louisiana and Illinois by early 2000. In
addition, the continued rollout and enhancements to our industry leading
rewards programs are building customer loyalty.
Our customers greatly value these rewards, as demonstrated by accolades
such as those in Casino Player magazine and the increases in tracked play
across the company." |
