LAS VEGAS, Aug. 30 /PRNewswire-FirstCall/ -- Harrah's Entertainment, Inc.
(NYSE: HET) today provides the following update on damage from Hurricane
Katrina:
(Logo: http://www.newscom.com/cgi-bin/prnh/20021220/LAF055LOGO )
The company is still unable to estimate the full extent of damage at
Harrah's New Orleans, Grand Casino Biloxi and Grand Casino Gulfport, although
it is apparent that the Biloxi and Gulfport properties have suffered extensive
damage. Harrah's has business interruption and property damage insurance
covering each of the three properties, as well its other assets in the
Mississippi Gulf Coast area. The company is working closely with its
insurance carriers and claims adjusters to ascertain the full amounts due to
Harrah's. Harrah's currently estimates its uninsured operating loss from the
closure of the casinos will be approximately 0.5 percent of its annual
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA).
Harrah's Entertainment currently expects that Harrah's New Orleans will
remain closed for a minimum of four weeks while the company assesses the
property's status and makes remediation and repairs in order to resume
operations. The company is currently unable to provide an estimate on
re-opening dates for Grand Casino Biloxi or Grand Casino Gulfport.
Harrah's six other properties in Louisiana and Mississippi -- Harrah's
Lake Charles, Horseshoe Bossier City, Harrah's Louisiana Downs, Grand Casino
Tunica, Horseshoe Tunica and Sheraton Casino & Hotel Tunica -- are actively
supporting relief efforts, and remain in full operation.
More than 6,000 employees work at the affected properties. Harrah's
intends to continue paying employees at the affected properties their
regularly scheduled base pay for up to 90 days.
In addition, Harrah's has established the Harrah's Employee Recovery Fund
to assist employees affected by the hurricane. The Harrah's Foundation, a
non-profit charitable corporation funded by Harrah's Entertainment, has
provided the relief fund with $1 million in initial financing.
Harrah's Entertainment, Inc., is the world's largest provider of branded
casino entertainment. Since its beginning in Reno, Nevada 67 years ago,
Harrah's has grown through development of new properties, expansions and
acquisitions. On June 13, 2005, Harrah's Entertainment acquired Caesars
Entertainment, Inc., and now owns or manages through various subsidiaries more
than 40 casinos in three countries, primarily under the Harrah's, Caesars and
Horseshoe brand names. With nearly 4 million square feet of casino space,
more than 40,000 hotel rooms and nearly 100,000 employees, the Harrah's
portfolio is the most diverse in the gaming industry. 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.
More information about Harrah's is available at its Web site --
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, strategies, future performance 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); financial community and rating agency perceptions of Harrah's; the
effects of economic, credit and capital market conditions on the economy in
general, and on gaming and hotel companies in particular; construction
factors, including delays, 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; the ability to timely and cost-effectively
integrate into Harrah's operations the companies that it acquires, including
with respect to its acquisition of Caesars; access to available and feasible
financing on a timely basis; 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; our ability to recoup costs of capital investments through higher
revenues; acts of war or terrorist incidents; 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.
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