Harrah's Entertainment Reports Second-Quarter Results
Record Revenues, EBITDA Achieved At Harrah's Brand Properties
Low Table-Games Hold Percentage At Rio Impacted Profits
LAS VEGAS, July 19 /PRNewswire/ -- Harrah's Entertainment, Inc.
(NYSE: HET), the leading consumer-marketing company in the gaming industry,
today reported second-quarter diluted earnings per share before extraordinary
items of 40 cents, compared with 37 cents per diluted share before
extraordinary items reported for the second quarter of 1999.
The company's second-quarter revenues were a record $879.2 million, up
17.0 percent from $751.1 million in the 1999 second quarter. Second-quarter
Property Earnings Before Interest, Taxes, Depreciation and Amortization
(EBITDA) was $231.8 million, compared with $197.3 million in the year-ago
quarter.
"On a nationwide basis, the company's Harrah's brand properties reported
strong performances, with many Harrah's casinos posting record results," said
Phil Satre, Harrah's Entertainment's Chairman and Chief Executive Officer.
"Same-store gaming revenues at our Harrah's brand casinos rose 12.3 percent
from the second quarter last year, aided by the April 4 launch of Total
Rewards, the gaming industry's only nationwide customer-loyalty program.
"The second quarter was also our first full quarter to include the
operating results of Players International, Inc., which we acquired on
March 22, 2000," Satre said.
"While second-quarter results this year were higher than in 1999,
per-share earnings were below analysts' consensus estimates due to a low
table-games hold percentage at the Rio, which reduced earnings by an estimated
9 cents a share," Satre said. "Due to the strength of operations at our owned
and managed Harrah's brand casinos, we believe that -- given a normal hold
percentage at the Rio for the rest of 2000 -- we can achieve analysts'
consensus earnings estimate for the full year."
Among the second quarter's highlights:
-- The company announced a $110 million, 450-room expansion that will
increase Harrah's Atlantic City's hotel's capacity by about 40 percent,
to more than 1,600 rooms. The expansion will allow Harrah's Atlantic
City to capitalize on increased traffic from the new access tunnel to
the Marina district. If regulatory approvals proceed as anticipated,
the expansion is expected to be completed in spring 2002 -- a year
before any Marina District competitors are expected to open their new
facility.
-- Harrah's Entertainment refinanced Players debt during the second
quarter, reducing cash interest costs approximately $4 million
annually.
-- Harrah's Entertainment dominated Casino Player's annual "Best of
Gaming" readers' poll, capturing awards in more than 150 categories.
-- For the second consecutive year, Harrah's Entertainment was named among
the Top Five of America's "100 Best Places to Work in Information
Technology," and was the only company from any industry to achieve a
Top Five ranking two years in a row, according to the IT newspaper
Computerworld.
"The recognition we received from Casino Player readers is especially
significant, because these are sophisticated gaming enthusiasts who clearly
appreciate the great service they have come to expect at our properties,"
Satre said.
"We firmly believe our commitment to great service, coupled with the Total
Rewards player-loyalty program that encourages casino customers to consolidate
their play at our properties, will continue to drive same-store revenue gains
and help us capture a larger share of our targeted customers'
gaming-entertainment spending." |
