- Revenues rise 13.8 percent over 2006's second-quarter total
- Property EBITDA up 6.1 percent, same-store sales up 5.7 percent on a
year-over-year basis
- Adjusted EPS from continuing operations up 1.0 percent
- Company stockholders approve $90-per-share all-cash acquisition proposal
- Company announces plans for $704 million casino resort in Biloxi, Miss.
LAS VEGAS, Aug. 7 /PRNewswire-FirstCall/ -- Harrah's Entertainment,
Inc. (NYSE: HET) today reported the following financial results for the
second quarter of 2007:
COMPANY WIDE RESULTS
(in millions, except per share)
2007 2006 Percent 2007 2006 Percent
Second Second Increase First Six First Six Increase
Quarter Quarter (Decrease) Months Months (Decrease)
Total
revenues $2,701.7 $2,373.9 13.8% $5,357.4 $4,730.8 13.2%
Property
EBITDA (A) 713.9 672.7 6.1% 1,412.4 1,362.9 3.6%
Adjusted EPS
from
Continuing
Operations (a) 0.96 0.95 1.0% 1.84 1.97 -6.6%
(A) Property EBITDA and Adjusted EPS from Continuing Operations are not
Generally Accepted Accounting Principles (GAAP) measurements but are
commonly used in the gaming industry as measures of performance and as
bases for valuation of gaming companies. In addition, analysts'
per-share earnings estimates for gaming companies are comparable to
Adjusted EPS from Continuing Operations. Reconciliations of Adjusted
EPS from Continuing Operations to GAAP EPS and Property EBITDA to
income from operations are attached to this release.
(Logo: http://www.newscom.com/cgi-bin/prnh/20070718/HARRAHSLOGO)
On a GAAP basis, second-quarter income from operations was $478
million, compared to $432 million in the year-ago quarter. Net income was
$238 million, up 84.5 percent from $129 million in the 2006 second quarter.
Diluted earnings per share from continuing operations were $1.03, an
increase of 49 percent from the 69 cents achieved in the year-ago quarter.
Second-quarter highlights
-- On April 5, Harrah's Entertainment stockholders approved an all-cash
offer by affiliates of TPG and Apollo Management, L.P., to acquire the
company for $90 per share. The transaction is expected to close in
late 2007 or early 2008, pending the receipt of regulatory approvals
and other customary closing conditions.
-- On May 15, Harrah's Entertainment and Jimmy Buffett unveiled plans to
develop the Margaritaville Casino and Resort in Biloxi, Mississippi, a
46-acre, $704 million Gulf Coast property featuring 100,000 square feet
of casino space, 250,000 square feet of retail space, 66,000 square
feet of meeting space, 420 new hotel rooms and 378 renovated rooms.
-- Also during the quarter, the company opened the Pool and Red Door Spa
at Harrah's Atlantic City in the first major phase of innovations and
renovations at the property. A 964-room hotel tower is slated to open
in 2008.
-- On May 30, London Clubs International, Harrah's U.K. subsidiary, opened
London's largest facility, the Casino at the Empire, at Leicester
Square in London's West End.
-- The 2007 World Series of Poker Presented by Milwaukee's Best Light ran
from June 1 through July 17 at the Rio All-Suites Hotel and Casino.
The 55-event tournament drew more than 54,000 entrants, up from 48,000
in 2006, and the total net prize pool exceeded $159 million.
-- During the first weeks of the third quarter, Harrah's announced an
approximately $1 billion expansion and renovation of Caesars Palace Las
Vegas designed to reinforce the property's standing as one of the Las
Vegas Strip's premier integrated-resort destinations. The plan includes
a new 650-room hotel tower, including 75 luxury suites, additional
meeting space, and a remodeled and expanded pool area.
Summaries of results by region follow:
LAS VEGAS REGION
(in millions)
2007 2006 Percent 2007 2006 Percent
Second Second Increase First Six First Six Increase
Quarter Quarter (Decrease) Months Months (Decrease)
Total
revenues $922.5 $803.3 14.8% $1,821.1 $1,629.0 11.8%
Income from
operations 238.8 209.7 13.9% 474.5 443.8 6.9%
Property
EBITDA 306.5 265.4 15.5% 604.1 553.5 9.1%
Las Vegas Region properties include Harrah's Las Vegas, Rio, Bally's Las
Vegas, Paris, Flamingo Las Vegas, Caesars Palace, Imperial Palace and
Bill's Gamblin' Hall & Saloon.
Continued strong visitor volume in the Las Vegas region drove double-digit
percentage increases across all key performance metrics during the second
quarter, building on already strong momentum established during the first
quarter of 2007.
ATLANTIC CITY REGION
(in millions)
2007 2006 Percent 2007 2006 Percent
Second Second Increase First Six First Six Increase
Quarter Quarter (Decrease) Months Months (Decrease)
Total
revenues $592.6 $521.0 13.7% $1,138.7 $1,011.2 12.6%
Income from
operations 77.2 124.2 -37.8% 149.3 220.0 -32.1%
Property
EBITDA 143.4 170.0 -15.6% 276.2 310.4 -11.0%
Atlantic City Region properties include Harrah's Atlantic City, Showboat
Atlantic City, Caesars Atlantic City, Bally's Atlantic City and Harrah's
Chester.
Competition from new slot operations in New York and Pennsylvania, the
implementation of new smoking regulations in New Jersey beginning April 15,
and increased costs associated with marketing and promotional programs
continued to hurt results in the Atlantic City region. However, strong
results at Harrah's Chester Casino and Racetrack, which opened its slot
operations in early first quarter 2007, helped buoy the region's overall
revenues.
LOUISIANA/MISSISSIPPI REGION
(in millions)
2007 2006 Percent 2007 2006 Percent
Second Second Increase First Six First Six Increase
Quarter Quarter (Decrease) Months Months (Decrease)
Total
revenues $389.0 $337.5 15.3% $779.5 $643.2 21.2%
Income from
operations 93.6 62.8 49.0% 169.2 128.0 32.2%
Property
EBITDA 88.8 83.9 5.8% 172.9 169.1 2.2%
Louisiana/Mississippi Region properties include Harrah's New Orleans,
Horseshoe Bossier City, Louisiana Downs, Horseshoe Tunica, Grand Casino
Tunica, Sheraton Tunica and Grand Casino Biloxi.
Results from Grand Casino Biloxi, which was closed in the year-ago
quarter, as well as strong performances at Harrah's New Orleans and
Horseshoe Bossier City, helped to boost the Louisiana/Mississippi region's
overall revenues and Property EBITDA and offset weak revenues in the Tunica
market. Second-quarter income from operations included insurance proceeds
of $37 million that are in excess of the net book value of impacted assets
and reimbursable costs and expenses.
IOWA/MISSOURI REGION
(in millions)
2007 2006 Percent 2007 2006 Percent
Second Second Increase First Six First Six Increase
Quarter Quarter (Decrease) Months Months (Decrease)
Total
revenues $205.3 $199.5 2.9% $407.0 $400.6 1.6%
Income from
operations 37.2 33.8 10.1% 70.3 65.4 7.5%
Property
EBITDA 56.9 54.7 4.0% 109.8 108.7 1.0%
Iowa/Missouri Region properties include Harrah's St. Louis, Harrah's
Council Bluffs, Horseshoe Council Bluffs and Harrah's North Kansas City.
Modest combined revenue gains for the region flowed through to income
from operations, and Property EBITDA grew 4.0 percent over the region's
total for the corresponding period in 2006.
ILLINOIS/INDIANA REGION
(in millions)
2007 2006 Percent 2007 2006 Percent
Second Second Increase First Six First Six Increase
Quarter Quarter (Decrease) Months Months (Decrease)
Total
revenues $321.8 $300.5 7.1% $646.2 $612.2 5.6%
Income from
operations 50.1 54.1 -7.4% 101.2 116.4 -13.1%
Property
EBITDA 66.3 67.7 -2.1% 134.4 143.4 -6.3%
Illinois/Indiana Region properties include Horseshoe Hammond, Harrah's
Joliet, Harrah's Metropolis and Caesars Indiana.
Combined revenue at the company's Illinois and Indiana properties
increased over the region's second-quarter total for the corresponding
period in 2006, but income from operations and Property EBITDA were down,
due in part to a supplemental 3 percent tax assessed by Illinois since July
2006. An Illinois state court declared the supplemental tax
unconstitutional in the second quarter of 2007, but Harrah's continues to
accrue and pay the tax pending a final resolution.
The company's new, two-level vessel at Horseshoe Hammond currently is
expected to open in the second half of 2008, pending all requisite regulatory
approvals.
OTHER NEVADA
(in millions)
2007 2006 Percent 2007 2006 Percent
Second Second Increase First Six First Six Increase
Quarter Quarter (Decrease) Months Months (Decrease)
Total
revenues $154.2 $158.5 -2.7% $307.9 $311.4 -1.1%
Income from
operations 22.3 25.7 -13.2% 42.7 49.1 -13.0%
Property
EBITDA 34.7 39.2 -11.5% 67.5 75.5 -10.6%
Other Nevada properties include Harrah's Reno, Harrah's Lake Tahoe,
Harvey's Lake Tahoe, Bill's Casino and Harrah's Laughlin.
Results in the company's Other Nevada region declined from the
corresponding period in 2006, owing to disappointing visitor volumes
brought about by a poor end to the spring ski season in Reno and Lake
Tahoe. The late June Angora Lakes fire at Lake Tahoe also negatively
impacted traffic and spending in the region.
MANAGED/INTERNATIONAL/OTHER
(in millions)
2007 2006 Percent 2007 2006 Percent
Second Second Increase First Six First Six Increase
Quarter Quarter (Decrease) Months Months (Decrease)
Total
revenues $116.3 $53.6 117.0% $257.0 $123.2 108.6%
Income from
operations (11.2) (26.5) 57.7% (10.4) (29.9) 65.2%
Property
EBITDA 17.3 (8.2) N/M 47.5 2.3 N/M
Managed, international and other results include income from our managed
properties, results of our international properties and certain marketing
and administrative expenses, including development costs, and income from
our non-consolidated subsidiaries.
The addition of the London Clubs International properties, which were
acquired by the company in the fourth quarter of 2006, coupled with lower
master-planning and development costs, drove improved revenue, income from
operations and Property EBITDA as compared to the prior year period.
Other items
Second quarter 2007 corporate expenses declined 41.8 percent compared
to the prior-year period, to $26.6 million from $45.7 million, due to
corporate cost reductions and the allocation of a portion of the company's
stock-based compensation expenses to individual property units.
Interest expense for the second quarter rose 8.9 percent, to $176.6
million, versus $162.2 million for the same period in 2006, due to higher
debt levels and higher interest rates. Partially offsetting the higher
interest in 2007 is income of $14.3 million in income representing an
increase in the market value of our interest rate swap agreements for
second quarter. The prior year's second quarter included charges of $61
million due to the early extinguishment of debt during that period.
Other income in the second quarter of 2007 includes gains on the sales
of corporate aircraft.
The effective tax rate for the second quarter, after minority interest,
was 37.3 percent, compared with 37.7 percent in the second quarter of 2006.
Discontinued operations for second quarter 2007 reflect insurance
proceeds of $42.0 million, after taxes, that are in excess of the net book
value of the impacted assets and accumulated costs and expenses that are
expected to be reimbursed under the company's insurance claims for Harrah's
Lake Charles and Grand Casino Gulfport, both of which were sold in 2006.
Pursuant to the terms of the sales agreements, Harrah's will retain all
insurance proceeds related to these properties.
Weighted average common and common equivalent shares outstanding for
the second quarter were 190.2 million shares, compared with 187.1 million
in the second quarter of 2006.
Harrah's Entertainment, Inc. is the world's largest provider of branded
casino entertainment. Since its beginning in Reno, Nevada, nearly 70 years
ago, Harrah's has grown through development of new properties, expansions
and acquisitions, and now owns or manages casinos on four continents. The
company's properties operate primarily under the Harrah's, Caesars and
Horseshoe brand names; Harrah's also owns the London Clubs International
family of casinos. Harrah's Entertainment is focused on building loyalty
and value with its customers through a unique combination of great service,
excellent products, unsurpassed distribution, operational excellence and
technology leadership.
For more information, please visit: http://www.harrahs.com
This release includes "forward-looking statements" intended to qualify
for the safe harbor from liability established by the Private Securities
Litigation Reform Act of 1995. You can identify these statements by the
fact that they do not relate strictly to historical or current facts. These
statements contain words such as "may," "will," "project," "might,"
"expect," "believe," "anticipate," "intend," "could," "would," "estimate,"
"continue" or "pursue," or the negative or other variations thereof or
comparable terminology. In particular, they include statements relating to,
among other things, future actions, new projects, strategies, future
performance, the outcomes of contingencies and future financial results of
Harrah's. These forward-looking statements are based on current
expectations and projections about future events.
Investors are cautioned that forward-looking statements are not
guarantees of future performance or results and involve risks and
uncertainties that cannot be predicted or quantified and, consequently, the
actual performance of Harrah's may differ materially from those expressed
or implied by such forward-looking statements. Such risks and uncertainties
include, but are not limited to, the following factors, as well as other
factors described from time to time in our reports filed with the
Securities and Exchange Commission (including the sections entitled "Risk
Factors" and "Management's Discussion and Analysis of Financial Condition
and Results of Operations" contained therein): the occurrence of any event,
change or other circumstances that could give rise to the termination of
the merger agreement with TPG and Apollo; the outcome of any legal
proceedings that have been, or will be, instituted against the Company
related to the merger agreement; the inability to complete the merger due
the failure to satisfy conditions to completion of the merger, including
the receipt of all regulatory approvals related to the merger; the failure
to obtain the necessary financing arrangements set forth in the debt and
equity commitment letters delivered pursuant to the merger agreement; risks
that the proposed transaction disrupts current plans and operations and the
potential difficulties in employee retention as a result of the merger; the
impact of the substantial indebtedness to be incurred to finance the
consummation of the merger; the effects of local and national economic,
credit and capital market conditions on the economy in general, and on the
gaming and hotel industries in particular; construction factors, including
delays, increased costs for labor and materials, availability of labor and
materials, zoning issues, environmental restrictions, soil and water
conditions, weather and other hazards, site access matters and building
permit issues; the effects of environmental and structural building
conditions relating to our properties; access to available and reasonable
financing on a timely basis; the ability to timely and cost-effectively
integrate acquisition into our operations, including London Clubs; changes
in laws, including increased tax rates, regulations or accounting
standards, third-party relations and approvals, and decisions of courts,
regulators and governmental bodies; litigation outcomes and judicial
actions, including gaming legislative action, referenda and taxation; the
ability of our customer-tracking, customer loyalty and yield-management
programs to continue to increase customer loyalty and same store sales or
hotel sales; our ability to recoup costs of capital investments through
higher revenues; acts of war or terrorist incidents or natural disasters;
abnormal gaming holds; and the effects of competition, including locations
of competitors and operating and market competition.
Any forward-looking statements are made pursuant to the Private
Securities Litigation Reform Act of 1995 and, as such, speak only as of the
date made. Harrah's disclaims any obligation to update the forward-looking
statements. You are cautioned not to place undue reliance on these
forward-looking statements which speak only as of the date stated, or if no
date is stated, as of the date of this press release.
HARRAH'S ENTERTAINMENT, INC.
CONSOLIDATED SUMMARY OF OPERATIONS
(UNAUDITED)
(In millions, except Second Quarter Ended Six Months Ended
per share amounts) June 30, June 30, June 30, June 30,
2007 2006 2007 2006
Revenues $2,701.7 $2,373.9 $5,357.4 $4,730.8
Property operating
expenses (1,987.8) (1,701.2) (3,945.0) (3,367.9)
Depreciation and
amortization (204.3) (161.9) (394.6) (317.9)
Operating profit 509.6 510.8 1,017.8 1,045.0
Corporate expense (26.6) (45.7) (60.1) (88.2)
Merger and integration
costs (3.5) (6.4) (7.6) (19.8)
Income on interests
in nonconsolidated
affiliates 3.8 1.0 3.6 3.1
Amortization of
intangible assets (17.9) (16.1) (35.7) (35.8)
Project opening costs
and other items 12.5 (11.9) 11.1 (19.5)
Income from operations 477.9 431.7 929.1 884.8
Interest expense, net
of interest
capitalized (176.6) (162.2) (362.4) (326.5)
Losses on early
extinguishments of debt - (61.1) - (61.1)
Other income, including
interest income 15.6 1.6 23.8 1.8
Income before income
taxes and minority
interests 316.9 210.0 590.5 499.0
Provision for income
taxes (116.3) (77.7) (216.6) (183.3)
Minority interests (5.1) (3.6) (11.2) (9.5)
Income from continuing
operations 195.5 128.7 362.7 306.2
Discontinued operations,
net of tax 42.0 (0.1) 60.1 4.8
Net income $237.5 $128.6 $422.8 $311.0
Earnings per share
- basic
Income from continuing
operations $1.05 $0.70 $1.95 $1.67
Discontinued
operations, net
of tax 0.23 - 0.33 0.02
Net income $1.28 $0.70 $2.28 $1.69
Earnings per share
- diluted
Income from continuing
operations $1.03 $0.69 $1.91 $1.64
Discontinued
operations,
net of tax 0.22 - 0.32 0.02
Net income $1.25 $0.69 $2.23 $1.66
Weighted average common
shares outstanding 186.0 184.0 185.7 183.6
Weighted average common
and common equivalent
shares outstanding 190.2 187.1 189.9 187.2
HARRAH'S ENTERTAINMENT, INC.
SUPPLEMENTAL OPERATING INFORMATION
(UNAUDITED)
Second Quarter Ended Six Months Ended
(In millions) June 30, June 30, June 30, June 30,
2007 2006 2007 2006
Revenues
Las Vegas Region $922.5 $803.3 $1,821.1 $1,629.0
Atlantic City Region 592.6 521.0 1,138.7 1,011.2
Louisiana/Mississippi
Region 389.0 337.5 779.5 643.2
Iowa/Missouri Region 205.3 199.5 407.0 400.6
Illinois/Indiana
Region 321.8 300.5 646.2 612.2
Other Nevada Region 154.2 158.5 307.9 311.4
Managed/International/
Other 116.3 53.6 257.0 123.2
Total Revenues $2,701.7 $2,373.9 $5,357.4 $4,730.8
Income from operations
Las Vegas Region $238.8 $209.7 $474.5 $443.8
Atlantic City Region 77.2 124.2 149.3 220.0
Louisiana/Mississippi
Region 93.6 62.8 169.2 128.0
Iowa/Missouri Region 37.2 33.8 70.3 65.4
Illinois/Indiana Region 50.1 54.1 101.2 116.4
Other Nevada Region 22.3 25.7 42.7 49.1
Managed/International/
Other (11.2) (26.5) (10.4) (29.9)
Corporate Expense (26.6) (45.7) (60.1) (88.2)
Merger and
integration costs (3.5) (6.4) (7.6) (19.8)
Total Income from
operations $477.9 $431.7 $929.1 $884.8
Property EBITDA (a)
Las Vegas Region $306.5 $265.4 $604.1 $553.5
Atlantic City Region 143.4 170.0 276.2 310.4
Louisiana/Mississippi
Region 88.8 83.9 172.9 169.1
Iowa/Missouri Region 56.9 54.7 109.8 108.7
Illinois/Indiana Region 66.3 67.7 134.4 143.4
Other Nevada Region 34.7 39.2 67.5 75.5
Managed/International/
Other 17.3 (8.2) 47.5 2.3
Total Property
EBITDA $713.9 $672.7 $1,412.4 $1,362.9
Project opening costs
and other items
Project opening costs $(8.3) $(4.7) $(17.2) $(9.1)
Insurance proceeds for
hurricane losses 37.0 - 55.7 -
Other write-downs,
reserves and recoveries (16.2) (7.2) (27.4) (10.4)
Total Project opening
costs and other items $12.5 $(11.9) $11.1 $(19.5)
(a) Property EBITDA (earnings before interest, taxes, depreciation and
amortization) consists of Income from operations before depreciation
and amortization, write-downs, reserves and recoveries, project
opening costs, corporate expense, merger and integration costs,
income/(losses) on interests in non-consolidated affiliates and
amortization of intangible assets. Property EBITDA is a supplemental
financial measure used by management, as well as industry analysts,
to evaluate our operations. However, Property EBITDA should not be
construed as an alternative to Income from operations (as an
indicator of our operating performance) or to Cash flows from
operating activities (as a measure of liquidity) as determined in
accordance with generally accepted accounting principles. All
companies do not calculate EBITDA in the same manner. As a result,
Property EBITDA as presented by our Company may not be comparable to
similarly titled measures presented by other companies.
HARRAH'S ENTERTAINMENT, INC.
SUPPLEMENTAL INFORMATION
CALCULATION OF ADJUSTED EARNINGS PER SHARE (b)
(UNAUDITED)
(In millions, except
per share amount) Second Quarter Ended Six Months Ended
June 30, June 30, June 30, June 30,
2007 2006 2007 2006
Income before income
taxes and minority
interests $316.9 $210.0 $590.5 $499.0
Add/(deduct):
Project opening costs
and other items (12.5) 11.9 (11.1) 19.5
Merger and integration
costs 3.5 6.4 7.6 19.8
Gain on sale of
corporate aircraft (11.9) - (19.1) -
Losses on early
extinguishments of debt - 61.1 - 61.1
Adjusted income before
income taxes and
minority interests 296.0 289.4 567.9 599.4
Provision for income
taxes (108.5) (107.6) (208.2) (220.9)
Minority interests (5.1) (3.6) (11.2) (9.5)
Adjusted income from
continuing operations 182.4 178.2 348.5 369.0
Discontinued operations,
net of tax 42.0 (0.1) 60.1 4.8
Add/(deduct):
Insurance proceeds for
hurricane losses,
net of tax (42.0) - (60.2) -
Project opening costs
and other items of
discontinued
operations, net of tax (0.1) 0.1 0.1 (0.1)
Adjusted net income $182.3 $178.2 $348.5 $373.7
Adjusted diluted
earnings per share
From continuing
operations $0.96 $0.95 $1.84 $1.97
Net income $0.96 $0.95 $1.84 $2.00
Weighted average common
and common equivalent
shares outstanding 190.2 187.1 189.9 187.2
(b) Adjusted Earnings Per Share (Adjusted EPS) is a supplemental
financial measure used by management, as well as industry analysts,
to evaluate operations. However, Adjusted EPS should not be construed
as an alternative to Earnings Per Share as determined in accordance
with generally accepted accounting principles. Adjusted EPS as
presented by our Company may not be comparable to similarly titled
measures presented by other companies, as such measures may not be
calculated consistently.
HARRAH'S ENTERTAINMENT, INC.
SUPPLEMENTAL INFORMATION
RECONCILIATION OF PROPERTY EBITDA TO INCOME FROM OPERATIONS
(UNAUDITED)
(In millions)
Second Quarter Ended June 30, 2007
Las Atlantic Louisiana/ Iowa/
Vegas City Mississippi Missouri
Region Region Region Region
Revenues $922.5 $592.6 $389.0 $205.3
Property operating expenses (616.0) (449.2) (300.2) (148.4)
Property EBITDA 306.5 143.4 88.8 56.9
Depreciation and amortization (62.3) (53.8) (25.0) (18.5)
Operating profit 244.2 89.6 63.8 38.4
Amortization of intangible
assets (3.5) (6.4) (2.0) (0.8)
Income on interests in
nonconsolidated affiliates - - - -
Project opening costs and
other Items (1.9) (6.0) 31.8 (0.4)
Corporate expense - - - -
Merger and integration costs - - - -
Income from operations* $238.8 $77.2 $93.6 $37.2
Second Quarter Ended June 30, 2006
Revenues $803.3 $521.0 $337.5 $199.5
Property operating expenses (537.9) (351.0) (253.6) (144.8)
Property EBITDA 265.4 170.0 83.9 54.7
Depreciation and amortization (50.3) (36.1) (18.2) (19.2)
Operating profit 215.1 133.9 65.7 35.5
Amortization of intangible
assets (4.4) (5.0) (2.9) (1.0)
Income on interests in
nonconsolidated affiliates - - - -
Project opening costs and
other Items (1.0) (4.7) - (0.7)
Corporate expense - - - -
Merger and integration costs - - - -
Income from operations* $209.7 $124.2 $62.8 $33.8
Second Quarter Ended June 30, 2007
Illinois/ Other Managed/
Indiana Nevada International/
Region Region Other Total
Revenues $321.8 $154.2 $116.3 $2,701.7
Property operating expenses (255.5) (119.5) (99.0) (1,987.8)
Property EBITDA 66.3 34.7 17.3 713.9
Depreciation and amortization (13.9) (11.9) (18.9) (204.3)
Operating profit 52.4 22.8 (1.6) 509.6
Amortization of intangible
assets (2.0) (0.2) (3.0) (17.9)
Income on interests in
nonconsolidated affiliates - - 3.8 3.8
Project opening costs and
other Items (0.3) (0.3) (10.4) 12.5
Corporate expense - - (26.6) (26.6)
Merger and integration costs - - (3.5) (3.5)
Income from operations* $50.1 $22.3 $(41.3) $477.9
Second Quarter Ended June 30, 2006
Revenues $300.5 $158.5 $53.6 $2,373.9
Property operating expenses
(232.8) (119.3) (61.8) (1,701.2)
Property EBITDA 67.7 39.2 (8.2) 672.7
Depreciation and amortization (12.6) (12.9) (12.6) (161.9)
Operating profit 55.1 26.3 (20.8) 510.8
Amortization of intangible
assets 0.9 (0.2) (3.5) (16.1)
Income on interests in
nonconsolidated affiliates - - 1.0 1.0
Project opening costs and
other Items (1.9) (0.4) (3.2) (11.9)
Corporate expense - - (45.7) (45.7)
Merger and integration costs - - (6.4) (6.4)
Income from operations* $54.1 $25.7 $(78.6) $431.7
* Total Income from operations as reported on this schedule corresponds
with the amounts reported for the respective periods on our
CONSOLIDATED SUMMARY OF OPERATIONS. See our CONSOLIDATED SUMMARY OF
OPERATIONS for the additional income and expenses recorded in the
determination of Net income and Earnings per share for the periods
presented.
HARRAH'S ENTERTAINMENT, INC.
SUPPLEMENTAL INFORMATION
RECONCILIATION OF PROPERTY EBITDA TO INCOME FROM OPERATIONS
(UNAUDITED)
(In millions)
Six Months Ended June 30, 2007
Las Atlantic Louisiana/ Iowa/
Vegas City Mississippi Missouri
Region Region Region Region
Revenues $1,821.1 $1,138.7 $779.5 $407.0
Property operating
expenses (1,217.0) (862.5) (606.6) (297.2)
Property EBITDA 604.1 276.2 172.9 109.8
Depreciation and
amortization (116.8) (103.3) (49.5) (37.2)
Operating profit 487.3 172.9 123.4 72.6
Amortization of
intangible assets (6.9) (12.8) (4.0) (1.6)
Income on interests in
nonconsolidated affiliates - - - -
Project opening costs and
other items (5.9) (10.8) 49.8 (0.7)
Corporate expense - - - -
Merger and integration costs - - - -
Income from operations* $474.5 $149.3 $169.2 $70.3
Six Months Ended June 30, 2006
Revenues $1,629.0 $1,011.2 $643.2 $400.6
Property operating
expenses (1,075.5) (700.8) (474.1) (291.9)
Property EBITDA 553.5 310.4 169.1 108.7
Depreciation and
amortization (100.1) (71.1) (35.8) (37.7)
Operating profit 453.4 239.3 133.3 71.0
Amortization of
intangible assets (7.6) (11.9) (4.9) (2.0)
Income on interests in
nonconsolidated affiliates - - - -
Project opening costs and
other items (2.0) (7.4) (0.4) (3.6)
Corporate expense - - - -
Merger and integration costs - - - -
Income from operations* $443.8 $220.0 $128.0 $65.4
Six Months Ended June 30, 2007
Illinois/ Other Managed/
Indiana Nevada International/
Region Region Other Total
Revenues $646.2 $307.9 $257.0 $5,357.4
Property operating expenses (511.8) (240.4) (209.5) (3,945.0)
Property EBITDA 134.4 67.5 47.5 1,412.4
Depreciation and amortization (28.0) (24.0) (35.8) (394.6)
Operating profit 106.4 43.5 11.7 1,017.8
Amortization of intangible
assets (4.0) (0.4) (6.0) (35.7)
Income on interests in
nonconsolidated affiliates - - 3.6 3.6
Project opening costs and
other items (1.2) (0.4) (19.7) 11.1
Corporate expense - - (60.1) (60.1)
Merger and integration costs - - (7.6) (7.6)
Income from operations* $101.2 $42.7 $(78.1) $929.1
Six Months Ended June 30, 2006
Revenues $612.2 $311.4 $123.2 $4,730.8
Property operating expenses (468.8) (235.9) (120.9) (3,367.9)
Property EBITDA 143.4 75.5 2.3 1,362.9
Depreciation and amortization (24.0) (25.4) (23.8) (317.9)
Operating profit 119.4 50.1 (21.5) 1,045.0
Amortization of intangible
assets (2.0) (0.4) (7.0) (35.8)
Income on interests in
nonconsolidated affiliates - - 3.1 3.1
Project opening costs and
other items (1.0) (0.6) (4.5) (19.5)
Corporate expense - - (88.2) (88.2)
Merger and integration costs - - (19.8) (19.8)
Income from operations* $116.4 $49.1 $(137.9) $884.8
* Total Income from operations as reported on this schedule corresponds
with the amounts reported for the respective periods on our CONSOLIDATED
SUMMARY OF OPERATIONS. See our CONSOLIDATED SUMMARY OF OPERATIONS for
the additional income and expenses recorded in the determination of Net
income and Earnings per share for the periods presented.
SOURCE Harrah's Entertainment, Inc.
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Related links:
http://www.harrahs.com
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/20070718/HARRAHSLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Alberto Lopez of Harrah's Entertainment,
Inc., +1-702-407-6344
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