Harrah's Entertainment, Inc. Reports Record 1999 Fourth Quarter And Full Year Results
Acquisitions, Technological Innovations, Same Store Growth Fuel Performance
Same Store Gaming Revenue Grows by 14% in 1999
LAS VEGAS, Feb. 9 /PRNewswire/ -- Harrah's Entertainment, Inc.
(NYSE: HET), the leading consumer marketing company in the gaming industry,
today reported record operating results for the year and fourth quarter ended
December 31, 1999, including new records for revenues, EBITDA and diluted
earnings per share. This performance is a result of across-the-network same
store sales growth, technological innovations, the industry-leading customer
loyalty program and strategic acquisitions.
-- Revenues for the year were $3.0 billion, up from $2.0 billion in 1998,
a 50 percent increase. Fourth quarter 1999 revenues totaled
747.6 million, a 42 percent increase over fourth quarter 1998.
-- Same store gaming revenue increase of 14 percent for the year drove
same store EBITDA growth of 21 percent.
-- Cross-market gaming revenues in 1999 accounted for 14 percent of the
company's gaming revenues and represented a 34 percent increase in
cross-market play over 1998.
-- EBITDA (Earnings before Interest, Taxes, Depreciation and
Amortization) before items not typically included in analyst
estimates, for 1999 totaled $718.3 million, up 54 percent from the
467.5 million reported in 1998. Fourth quarter 1999 EBITDA rose
38 percent over 1998, to $152.7 million.
-- Diluted earnings per share before gains on sales of equity interests
in subsidiaries and other assets; writedowns, reserves and recoveries;
project opening costs; venture restructuring costs; Missouri
Initiative costs; management contract termination fees and
extraordinary losses were $1.52 for the year and $0.30 for the fourth
quarter, compared to $1.23 and $0.24 for the comparable 1998 periods.
-- Completed refinancing of all long-term debt during the first half of
the year, extending maturities at attractive interest rates.
-- Including all items, diluted earnings per share for the year were
1.62 and for the quarter were $0.45, versus $1.00 and $0.14 for the
prior year periods, respectively.
"By all measures, 1999 was a breakthrough year for Harrah's
Entertainment," stated Chairman and CEO Phil Satre. "Financially, the company
delivered superior results -- record revenues, earnings and EBITDA. We
witnessed outstanding same store gaming revenue growth across our properties
nationwide, testimony to the success and impact of our Total Gold customer
relationship program which encourages players to consolidate their play at
Harrah's."
Mr. Satre continued, "We are now clearly differentiated from our
competitors, with a nationally recognized brand that stands for quality,
customer service and innovation. Our continued investment and emphasis on
marketing, technology and database management, new and exciting customer
reward and incentive programs, a commitment to service and a broadened
national appeal have elevated Harrah's to a new level. Our goal has been and
continues to be to create an organization completely focused on enhancing our
customers' experience and delivering an industry-leading return on investment.
We reached these goals last year." |
