Trump Entertainment Resorts, Inc. (NASDAQ: TRMP) (the �Company�)
today reported its results for the three months ended June 30, 2008
and other related news. In making the announcement, Mark Juliano,
Chief Executive Officer of the Company, said, �The weakened economy
� driven by tight credit markets, declines in consumer confidence
and rising oil prices � has had a significant impact on the gaming
industry across America. �As a result, our net revenues and those
of many of our competitors have been negatively impacted. However,
despite these economic pressures, the fundamentals of our business
are sound. Today, we are offering a more competitive product than
before, and we are continuing to trim costs where appropriate while
effectively yielding our hotel inventory to attract and retain the
most profitable customers possible. �We are excited about
significantly increasing our hotel capacity with the upcoming debut
of the 782-room Chairman Tower at Trump Taj Mahal, and are
encouraged by our successful efforts to increase hotel occupancy
and revenue per available room. Additionally, we continue to work
with Coastal Development LLC regarding the previously announced
transaction for the sale of Trump Marina, which we expect to
complete in the next six to nine months.� CONSOLIDATED RESULTS The
results of Trump Marina have been classified as discontinued
operations throughout this discussion. The following table outlines
the financial results: � Three Months � Six Months Ended Ended June
30, June 30, 2008 � 2007 2008 � 2007 (In millions, except share and
per share data) (Unaudited) (Unaudited) � Net revenues $ 177.9 $
186.8 $ 355.2 $ 366.8 Income from operations 9.0 9.6 17.3 24.8
EBITDA (1) 22.9 21.9 44.8 48.7 (Loss) from continuing operations
(16.5 ) (16.3 ) (34.6 ) (27.7 ) (Loss) income from discontinued
operations (13.3 ) 2.8 (13.9 ) 6.1 Net loss (29.8 ) (13.5 ) (48.5 )
(21.6 ) � Basic and diluted share data: Continuing operations $
(0.52 ) $ (0.52 ) $ (1.09 ) $ (0.89 ) Discontinued operations �
(0.42 ) � 0.09 � � (0.44 ) � 0.20 � Basic and diluted net loss per
share $ (0.94 ) $ (0.43 ) $ (1.53 ) $ (0.69 )
________________________________________ � (1) � EBITDA presented
in the table is income from operations excluding depreciation and
amortization. EBITDA is not a generally accepted accounting
principles ("GAAP") measurement, but is commonly used in the gaming
industry as a measure of performance and as a basis for valuation
of gaming companies. Refer to the selected financial information
accompanying this press release for a reconciliation of income from
operations to EBITDA. Net revenues were impacted by the general
weakening of the economy and the rising price of gasoline, which
management believes has exacerbated the effect of competition from
regional gaming facilities in Pennsylvania and New York. Primarily
as a result of these items, net revenues for the quarter ended June
30, 2008 decreased $8.9 million, or 4.8%, principally due to a
decrease in gaming revenue of $11.9 million, or 6.3% from second
quarter 2007 levels. Income from operations for the quarter ended
June 30, 2008 decreased $0.6 million to $9.0 million and EBITDA
increased $1.0 million to $22.9 million from second quarter 2007
levels. Mr. Juliano continued, �We have been able to lower our
gaming cost of sales through streamlined marketing programs, and
are now seeing the results of substantially reduced corporate
costs. Additionally, we are now measuring our progress through our
continuing operations � Trump Taj Mahal and Trump Plaza � as we
believe these will provide the most effective indicators of our
future progress. �Our continuing operations again outpaced the
market in slot revenue during the quarter, and have far exceeded
the results of our competitors for the year to date period. Results
in June, in particular, contributed the largest negative impact on
our year-over-year comparison, primarily driven by an unfavorable
calendar comparison, as well as lower table hold and
less-than-expected slot volume at the Taj Mahal. We are currently
taking steps to increase market share and drive additional volume.
�Overall, we are sticking to our plan to drive volume and revenue
through this difficult economic period while saving costs wherever
possible. As the majority of the changes needed to make our
properties more competitive have been made, and with the funding
for the completion of the Taj Mahal tower in place, we are closely
monitoring capital improvements and other expenditures during this
period of economic uncertainty. We believe that this course of
action is the most promising strategy for stabilizing our business
in the near-term and producing more favorable financial results in
the long-term, particularly through an economic rebound.� At the
Taj Mahal, the 782-room Chairman Tower, remains on schedule and
budget. The $255 million project is expected to begin a phased
opening by Labor Day 2008, and be completed by the conclusion of
the year. The tower is now accepting reservations from customers
through all sales channels, including Internet and phone.
Additionally, Il Mulino Italian restaurant is scheduled to open
with two dining concepts on the casino level in September. The
announced $316 million sale of Trump Marina to Coastal Development,
LLC continues as scheduled, and the Company announced that all
appropriate deadlines have been met by both parties. In connection
with the pending sale of Trump Marina, the Company recorded in its
loss from discontinued operations an intangible asset impairment
charge of $18.6 million related to Trump Marina trademarks, a
goodwill impairment charge of $2.3 million and $4.9 million in fees
incurred to amend its credit agreement. The Company�s review of
strategic options relating to the proceeds from the sale of Trump
Marina and other development opportunities continues. Among the
options currently under review are investments in Atlantic City,
including a potential mixed use development on Steel Pier, gaming
opportunities outside of the Atlantic City market and reducing the
Company�s indebtedness. Additionally, the Company is currently in
negotiations with a third party developer to lease commercial space
at the Trump Ocean Club Panama, currently under development, and
operate an approximately 35,000 square foot casino on the property.
Slot revenue for the Company�s continuing operations during the
quarter, as reported to the New Jersey Casino Control Commission,
decreased by 4.0%, or $5.0 million, on a year-over-year basis,
compared to a 7.8% combined decrease for other Atlantic City gaming
operators. Table revenue for the Company�s continuing operations
during the quarter, as reported to the New Jersey Casino Control
Commission, decreased by 9.3%, or $6.1 million, on a year-over-year
basis, compared to a 0.3% combined increase for the Company�s
competitors. The Company attributes the decline in table revenue
for the quarter primarily to a decrease in table hold at Trump Taj
Mahal of 170 basis points. Revenue management initiatives continued
to produce financial results at the Company�s continuing operations
as, for the quarter, hotel occupancy improved to 91.2% from 89.4%,
revenue per available room (�RevPAR�) increased 2.5% to $87.56.
Cash room revenue was $7.4 million, consistent with the prior year
quarter. Cost savings initiatives resulted in payroll savings of
$1.5 million for the quarter at the corporate level compared to the
same period of 2007, while property payroll and related costs
decreased $1.0 million following aggressive property-level cost
savings programs in 2006 and 2007. Corporate & Other Expenses
Corporate expenses for the quarter decreased $4.1 million to $6.3
million principally due to a $1.2 million decrease in severance
costs, a $1.5 million reduction in payroll and related costs, a
$0.8 million decrease in professional fees primarily due to costs
incurred during 2007 associated with the Company�s strategic
review. Stock based compensation expense during the quarter
decreased $0.2 million to $0.8 million. Capital Structure The
Company reported that as of June 30, 2008 it had cash and cash
equivalents of $81.5 million. Its cash and cash equivalents do not
include $8.3 million in cash included in Trump Marina�s assets held
for sale and $2.8 million in restricted cash representing amounts
used to secure outstanding letters of credit. The Company�s total
debt increased by $52.5 million since December 31, 2007 to $1,696.3
million at June 30, 2008. Capital expenditures for the six months
ended June 30, 2008 were approximately $95 million, consisting of
$15 million maintenance capital, $10 million renovation capital and
$70 million for the Chairman Tower at Trump Taj Mahal. Capitalized
interest during the six months ended June 30, 2008 and 2007 was
$5.7 million and $1.5 million, respectively. Conference Call
Information The Company will conduct a conference call at 11:00
a.m. Eastern Time (ET) on August 7, 2008, during which management
will discuss the results and other matters addressed in the
earnings release, which will be available live on the investor
relations page of Company�s website, www.trumpcasinos.com. Members
of the financial community and interested investors who wish to
participate in the conference call may do so via telephone by
calling toll free (866) 578-5784 or, for callers outside the United
States, (617) 213-8056, not earlier than 15 minutes before the call
is scheduled to begin. The passcode for the call is 39242735. A
replay of the conference call will be available on the Company's
website, as well as via telephone from 1:00 p.m. ET on August 7,
2008 until midnight ET on August 14, 2008. The replay number is
toll free (888) 286-8010 or, for callers outside the United States
and Canada, (617) 801-6888. The replay passcode is 98911906. About
Trump Entertainment Resorts, Inc. Trump Entertainment Resorts, Inc.
owns and operates three casino resort properties: Trump Taj Mahal
Casino Resort and Trump Plaza Hotel and Casino, located on the
Boardwalk in Atlantic City, New Jersey, and Trump Marina Hotel
Casino, located in Atlantic City�s Marina District. The Company is
the sole vehicle through which Donald J. Trump, the Company�s
Chairman and largest stockholder, conducts gaming activities and is
separate and distinct from Mr. Trump�s real estate and other
holdings. PSLRA Safe Harbor for Forward-Looking Statements and
Additional Available Information The Private Securities Litigation
Reform Act of 1995 provides a �safe harbor� for forward-looking
statements so long as those statements are identified as
forward-looking and are accompanied by meaningful cautionary
statements identifying important factors that could cause actual
results to differ materially from those projected in such
statements. All statements and information concerning plans,
expectations, estimates and beliefs, as well as other statements
including words such as �anticipate,� �believe,� �plan,�
�estimate,� �expect,� �intend,� �will,� �could,� �optimistic,�
�can� and other similar expressions, constitute forward-looking
statements under the Private Securities Litigation Reform Act of
1995. In connection with certain forward-looking statements
contained in this release and those that may be made in the future
by or on behalf of Trump Entertainment Resorts, Inc., the Company
notes that there are various factors that could cause actual
results to differ materially from those set forth in any such
forward-looking statements. The forward-looking statements
contained in this release reflect the opinion of management as of
the date of this release and are qualified by, and subject to,
significant business, economic, competitive, regulatory and other
uncertainties and contingencies, all of which are difficult or
impossible to predict and many of which are beyond the control of
the Company. Accordingly, there can be no assurance that the
forward-looking statements contained in this release will be
realized. Readers are hereby advised that developments subsequent
to this release are likely to cause these statements to become
outdated with the passage of time or other factors beyond the
control of the Company. The Company does not intend, however, to
update the guidance provided herein prior to its next release or
unless otherwise required to do so. Readers of this release should
consider these facts in evaluating the information contained
herein. In light of the foregoing, readers of this release are
cautioned not to place undue reliance on the forward-looking
statements contained herein. Additional information concerning the
potential risk factors that could affect the Company�s future
performance are described from time to time in the Company�s
periodic reports filed with the SEC, including, but not limited to,
the Company�s Annual Reports on Form 10-K and Quarterly Reports on
Form 10-Q. These reports may be viewed free of charge on the SEC�s
website, www.sec.gov, or on the Company�s website,
www.trumpcasinos.com. TRUMP ENTERTAINMENT RESORTS, INC. CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS � (unaudited) (dollars in
thousands, except share and per share data) � � Three Months � Six
Months Ended Ended June 30, June 30, 2008 � 2007 2008 2007 �
Revenues: Gaming $ 178,291 $ 190,232 $ 362,913 $ 376,342 Rooms
17,077 16,725 32,315 30,712 Food and beverage 22,456 22,339 43,360
41,131 Other � 8,269 � � 6,580 � � 15,914 � � 12,046 � 226,093
235,876 454,502 460,231 Less promotional allowances � (48,202 ) �
(49,037 ) � (99,264 ) � (93,453 ) Net revenues 177,891 186,839
355,238 366,778 � Costs and expenses: Gaming 82,379 88,146 168,085
172,438 Rooms 3,749 3,452 6,885 6,131 Food and beverage 10,834
11,367 19,632 19,776 General and administrative 51,836 51,730
103,433 102,036 Corporate and development 5,505 9,660 11,076 16,474
Corporate-related party 641 607 1,305 1,215 Depreciation and
amortization � 13,909 � � 12,314 � � 27,516 � � 23,903 � � 168,853
� � 177,276 � � 337,932 � � 341,973 � Income from operations 9,038
9,563 17,306 24,805 � Non-operating income (expense): Interest
income 882 1,638 2,721 2,848 Interest expense � (31,494 ) � (32,417
) � (65,198 ) � (63,673 ) � (30,612 ) � (30,779 ) � (62,477 ) �
(60,825 ) Loss before income taxes, minority interests and
discontinued operations (21,574 ) (21,216 ) (45,171 ) (36,020 )
Provision for income taxes - - - (200 ) Minority interest � 5,071 �
� 4,988 � � 10,618 � � 8,516 � Loss from continuing operations �
(16,503 ) � (16,228 ) � (34,553 ) � (27,704 ) (Loss) income from
discontinued operations: Trump Marina (24,321 ) 3,626 (25,102 )
7,996 Income tax benefit 6,221 - 6,221 - Minority interest � 4,782
� � (852 ) � 4,965 � � (1,879 ) (Loss) income from discontinued
operations � (13,318 ) � 2,774 � � (13,916 ) � 6,117 � Net loss $
(29,821 ) $ (13,454 ) $ (48,469 ) $ (21,587 ) � Basic and diluted
net loss per share: Continuing operations $ (0.52 ) $ (0.52 ) $
(1.09 ) $ (0.89 ) Discontinued operations � (0.42 ) � 0.09 � �
(0.44 ) � 0.20 � Basic and diluted net loss per share $ (0.94 ) $
(0.43 ) $ (1.53 ) $ (0.69 ) � Weighted average shares outstanding:
Basic and diluted � 31,705,251 � � 31,102,062 � � 31,628,703 � �
31,076,674 � TRUMP ENTERTAINMENT RESORTS, INC. CONDENSED
CONSOLIDATED BALANCE SHEETS (dollars in thousands, except share and
per share data) � � June 30, December 31, 2008 2007 (unaudited)
Current assets: Cash and cash equivalents $ 81,546 $ 104,883
Accounts receivable, net 43,711 45,053 Accounts receivable, other
5,383 6,366 Property taxes receivable 4,192 - Inventories 12,149
11,235 Deferred income taxes 13,092 7,421 Prepaid expenses and
other current assets 17,607 13,644 Assets held for sale � 281,756 �
� 295,035 � Total current assets � 459,436 � � 483,637 � � Net
property and equipment 1,439,322 1,356,981 � Other assets:
Restricted cash 2,807 52,702 Goodwill 123,601 145,216 Trademarks
72,710 91,357 Intangible assets, net 3,912 4,415 Deferred financing
costs, net 16,314 17,725 Property taxes receivable 15,065 18,782
Other assets, net � 70,792 � � 60,396 � Total other assets �
305,201 � � 390,593 � Total assets $ 2,203,959 � $ 2,231,211 � �
Current liabilities: Accounts payable $ 65,878 $ 59,741 Accrued
payroll and related expenses 23,487 22,668 Income taxes payable
8,248 8,195 Partnership distribution payable 250 250 Accrued
interest payable 18,786 18,102 Self-insurance reserves 16,658
13,016 Other current liabilities 30,728 37,199 Current maturities
of long-term debt 4,788 5,481 Liabilities related to assets held
for sale � 5,357 � � 4,994 � Total current liabilities � 174,180 �
� 169,646 � � Long-term debt, net of current maturities 1,691,507
1,638,293 Deferred income taxes 73,154 100,159 Other long-term
liabilities 31,042 31,853 Minority interest 50,594 64,892 �
Stockholders' equity: Preferred stock, $1 par value; 1,000,000
shares authorized, no shares issued and outstanding - - Common
stock, $.001 par value; 75,000,000 shares authorized, 31,725,876
and 31,071,021 shares issued and outstanding at June 30, 2008 and
December 31, 2007, respectively 32 31 Class B Common stock, $0.001
par value; 1,000 shares authorized, 900 shares issued and
outstanding - - Additional paid-in capital 465,635 460,053
Accumulated deficit � (282,185 ) � (233,716 ) Total stockholders'
equity � 183,482 � � 226,368 � Total liabilities and stockholders'
equity $ 2,203,959 � $ 2,231,211 � TRUMP ENTERTAINMENT RESORTS,
INC. SELECTED FINANCIAL INFORMATION SUMMARY OPERATING DATA
(unaudited, in millions) � � Three Months � Six Months Ended Ended
June 30, June 30, 2008 � 2007 2008 � 2007 Gaming revenues Trump Taj
Mahal $ 112.0 $ 122.0 $ 229.9 $ 244.0 Trump Plaza � 66.3 � � 68.2 �
� 133.0 � � 132.4 � Total $ 178.3 � $ 190.2 � $ 362.9 � $ 376.4 � �
Net revenues Trump Taj Mahal $ 113.0 $ 119.2 $ 227.0 $ 237.6 Trump
Plaza � 64.9 � � 67.6 � � 128.2 � � 129.2 � Total $ 177.9 � $ 186.8
� $ 355.2 � $ 366.8 � � Income (loss) from operations Trump Taj
Mahal $ 13.5 $ 16.6 $ 25.9 $ 37.2 Trump Plaza 1.8 3.4 4.1 5.5
Corporate and other � (6.3 ) � (10.4 ) � (12.7 ) � (17.9 ) Total $
9.0 � $ 9.6 � $ 17.3 � $ 24.8 � � EBITDA Trump Taj Mahal $ 22.3 $
24.0 $ 43.3 $ 51.3 Trump Plaza 6.8 8.2 13.9 15.1 Corporate and
other � (6.2 ) � (10.3 ) � (12.4 ) � (17.7 ) Total $ 22.9 � $ 21.9
� $ 44.8 � $ 48.7 � � Discontinued operations - Trump Marina Gaming
revenues $ 53.8 $ 58.9 $ 107.3 $ 116.9 Net revenues 53.7 57.4 104.0
111.7 Depreciation and amortization 2.9 4.0 6.4 7.7 Goodwill and
other intangible asset impairment charges 20.9 - 20.9 - (Loss)
income from discontinued operations before income taxes and
minority interest (1) (24.3 ) 3.6 (25.1 ) 8.0 (1) � Loss from
discontinued operations before income taxes and minority interest
during the three and six months ended June 30, 2008 includes $5.2
million of costs incurred in connection with the Trump Marina
transaction, principally fees associated with the Second Amendment
to our Credit Agreement. TRUMP ENTERTAINMENT RESORTS, INC. SELECTED
FINANCIAL INFORMATION RECONCILIATION OF INCOME (LOSS) FROM
OPERATIONS TO EBITDA (unaudited, in millions) � � Three Months
Ended June 30, 2008 Income (Loss) From Operations � Depreciation
and Amortization � EBITDA Trump Taj Mahal $ 13.5 $ 8.8 $ 22.3 Trump
Plaza 1.8 5.0 6.8 Corporate and other � (6.3 ) � 0.1 � (6.2 ) Total
$ 9.0 � $ 13.9 $ 22.9 � � � Three Months Ended June 30, 2007 Income
(Loss) From Operations Depreciation and Amortization EBITDA Trump
Taj Mahal $ 16.6 $ 7.4 $ 24.0 Trump Plaza 3.4 4.8 8.2 Corporate and
other � (10.4 ) � 0.1 � (10.3 ) Total $ 9.6 � $ 12.3 $ 21.9 � � �
Six Months Ended June 30, 2008 Income (Loss) From Operations
Depreciation and Amortization EBITDA Trump Taj Mahal $ 25.9 $ 17.4
$ 43.3 Trump Plaza 4.1 9.8 13.9 Corporate and other � (12.7 ) � 0.3
� (12.4 ) Total $ 17.3 � $ 27.5 $ 44.8 � � � Six Months Ended June
30, 2007 Income (Loss) From Operations Depreciation and
Amortization EBITDA Trump Taj Mahal $ 37.2 $ 14.1 $ 51.3 Trump
Plaza 5.5 9.6 15.1 Corporate and other � (17.9 ) � 0.2 � (17.7 )
Total $ 24.8 � $ 23.9 $ 48.7 �
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