Park Place Entertainment Doubles Fourth Quarter Earnings
LAS VEGAS--(BUSINESS WIRE)--Feb. 1, 2000--Park Place
Entertainment Corp. (NYSE:PPE) today reported results for the fourth
quarter and full year 1999.
Capping an outstanding first year as an independent company, Park
Place's diluted earnings per share for the quarter were $0.11 vs. pro
forma results of $0.05 last year, excluding one-time, non-cash asset
write-downs in 1999 and 1998. Including these non-recurring charges in
both periods, diluted earnings per share in the fourth quarter of 1999
were $0.05 vs. $0.02 in 1998.
The company initiated reporting cash earnings (net income before
goodwill amortization associated with its acquisitions) as it believes
the cash earnings measure provides additional insight into Park
Place's earnings potential. Cash earnings per share increased
75 percent in the fourth quarter to $0.14 vs. $0.08, excluding the
non-recurring charges.
Earnings before interest, taxes, depreciation and amortization,
pre-opening expenses and non-cash items (EBITDA) increased 39 percent
to $193 million compared with the pro forma fourth quarter 1998
results of $139 million.
EBITDA increased in all three domestic regions primarily due to
the successful opening of the Paris Las Vegas Casino Resort in
September, the new rooms opened earlier in the year in Mississippi,
the continued success of various domestic and international marketing
efforts and the ongoing implementation of cost saving programs at the
property and corporate level.
Highlights from 1999 include:
-- Establishing Park Place as a stand-alone company.
-- Acquiring and integrating Grand Casinos, immediately making Park
Place the leading operator in Mississippi.
-- Opening the 600-room Terrace Hotel & Spa at Grand Tunica in
March and the 600-room Oasis Resort and Spa at Grand
Gulfport in June.
-- Raising $3 billion in bank financing (the largest ever in the
gaming industry) to close the Caesars acquisition.
-- Opening the fully operational Paris Las Vegas Casino Resort on
Sept. 1. Based on results since opening, Park Place believes
Paris may earn the highest return on investment of all the
gaming properties built in 1998 and 1999 in Las Vegas.
-- Closing the $3 billion Caesars World acquisition on Dec. 29,
enhancing Park Place's leadership position in the industry. The
acquisition enhances the company's diversification and portfolio
of leading assets, as well as giving it access to one of the most
internationally recognized names in the gaming business.
-- Increasing full year diluted earnings per share by 22 percent,
excluding non-recurring charges, and EBITDA by 14 percent through
same-store revenue growth, as well as new development.
"We are very proud of our accomplishments in our first year and
look forward to continuing the momentum in 2000," said Arthur
Goldberg, president and CEO. "We are working towards integrating
Caesars and implementing processes and procedures that improve the
product we deliver to our customers while simultaneously optimizing
operating efficiency." |
