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Table of Contents
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
 
FORM 10-Q
 
(Mark One)
x
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended June 30, 2002
 
OR
 
¨
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from                            to                             .
 
Commission file number 1-13794
 
 
TRUMP HOTELS & CASINO RESORTS, INC.
(Exact name of registrant as specified in its charter)
 
DELAWARE
  
13-3818402
(State or other jurisdiction of
incorporation or organization)
  
(I.R.S. Employer
Identification No.)
 
1000 Boardwalk
Atlantic City, New Jersey 08401
(609) 449-6515
(Address, Including Zip Code and Telephone Number, Including
Area Code, of Registrant’s Principal Executive Offices)
 
Not Applicable
(Former name, former address and former fiscal year, if changed since last report).
Commission file number 33-90786
 
TRUMP HOTELS & CASINO RESORTS HOLDINGS, L.P.
(Exact name of registrant as specified in its charter)
 
DELAWARE
  
13-3818407
(State or other jurisdiction of
incorporation or organization)
  
(I.R.S. Employer
Identification No.)
 
1000 Boardwalk
Atlantic City, New Jersey 08401
(609) 449-6515
(Address, Including Zip Code and Telephone Number, Including
Area Code, of Registrant’s Principal Executive Offices)
 
Not Applicable
(Former name, former address and former fiscal year, if changed since last report).
Commission file number 33-90786
 
TRUMP HOTELS & CASINO RESORTS FUNDING, INC.
(Exact name of registrant as specified in its charter)
 
DELAWARE
  
13-3818405
(State or other jurisdiction of
incorporation or organization)
  
(I.R.S. Employer
Identification No.)
 
1000 Boardwalk
Atlantic City, New Jersey 08401
(609) 449-6515
(Address, Including Zip Code and Telephone Number, Including
Area Code, of Registrant’s Principal Executive Offices)
 
Not Applicable
(Former name, former address and former fiscal year, if changed since last report).
 
Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days. Yes  x No  ¨
 
The number of outstanding shares of Common Stock, par value $.01 per share, of Trump Hotels & Casino Resorts, Inc. as of August 14, 2002 was 22,010,027.
 
The number of outstanding shares of Class B Common Stock, par value $.01 per share, of Trump Hotels & Casino Resorts, Inc. as of August 14, 2002 was 1,000.
 
The number of outstanding shares of Common Stock, par value $.01 per share, of Trump Hotels & Casino Resorts Funding, Inc. as of August 14, 2002 was 100. Trump Hotels & Casino Resorts Funding, Inc. meets the conditions set forth in General Instruction (H)(1)(a) and (b) of Form 10-Q and is therefore filing this form with reduced disclosure information.
 

Table of Contents
 
TRUMP HOTELS & CASINO RESORTS, INC.,
TRUMP HOTELS & CASINO RESORTS HOLDINGS, L.P.
AND
TRUMP HOTELS & CASINO RESORTS FUNDING, INC.
 
 
     
    
Page No.
PART I—FINANCIAL INFORMATION
 
     
ITEM 1—Financial Statements
 
     
 
   
1
 
 
   
2
 
 
   
3
 
 
   
4
 
 
   
5
 
 
   
6
 
 
   
7
 
 
   
8
 
 
   
9
 
 
   
13
 
 
   
23
 
PART II—OTHER INFORMATION
 
     
 
   
24
 
 
   
24
 
 
   
24
 
 
   
24
 
 
   
25
 
 
   
26
 
SIGNATURES
 
         
 
   
27
 
 
   
27
 
 
   
27
 

Table of Contents
PART I—FINANCIAL INFORMATION
 
ITEM 1—FINANCIAL STATEMENTS
 
TRUMP HOTELS & CASINO RESORTS, INC.
 
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(dollars in thousands, except share data)
 
    
December 31,
2001
     
June 30,
2002
  
ASSETS
                  
CURRENT ASSETS:
                  
Cash and cash equivalents
   
$
119,173
 
   
$
119,967
 
Receivables, net
   
 
47,328
 
   
 
45,190
 
Inventories
   
 
11,658
 
   
 
11,529
 
Prepaid expenses and other current assets
   
 
9,120
 
   
 
16,550
 
    
  
Total Current Assets
   
 
187,279
 
   
 
193,236
 
INVESTMENT IN BUFFINGTON HARBOR, L.L.C.
   
 
33,889
 
   
 
32,712
 
INVESTMENT IN TRUMP’S CASTLE PIK NOTES
   
 
105,940
 
   
 
114,692
 
PROPERTY AND EQUIPMENT, NET
   
 
1,797,487
 
   
 
1,784,849
 
DEFERRED BOND AND LOAN ISSUANCE COSTS, NET
   
 
21,129
 
   
 
18,060
 
OTHER ASSETS (Note 3)
   
 
73,727
 
   
 
74,762
 
    
  
Total Assets
   
$
2,219,451
 
   
$
2,218,311
 
    
  
LIABILITIES AND STOCKHOLDERS’ EQUITY
                  
CURRENT LIABILITIES:
                  
Current maturities of long-term debt
   
$
20,218
 
   
$
19,775
 
Accounts payable and accrued expenses
   
 
144,042
 
   
 
150,172
 
Due to affiliates, net
   
 
17
 
   
 
244
 
Accrued interest payable
   
 
38,580
 
   
 
30,012
 
    
  
Total Current Liabilities
   
 
202,857
 
   
 
200,203
 
LONG-TERM DEBT, net of current maturities
   
 
1,881,636
 
   
 
1,895,217
 
OTHER LONG-TERM LIABILITIES
   
 
33,191
 
   
 
28,145
 
    
  
Total Liabilities
   
 
2,117,684
 
   
 
2,123,565
 
    
  
MINORITY INTEREST
   
 
12,304
 
   
 
9,800
 
STOCKHOLDERS’ EQUITY:
                  
Common Stock, $.01 par value, 75,000,000 shares authorized,
24,206,756 issued; 22,010,027 outstanding
   
 
242
 
   
 
242
 
Class B Common Stock, $.01 par value, 1,000 shares authorized,
issued and outstanding
   
 
—  
 
   
 
—  
 
Additional Paid in Capital
   
 
455,645
 
   
 
455,645
 
Accumulated Deficit
   
 
(345,850
)
   
 
(350,192
)
Accumulated Other Comprehensive Loss
   
 
(374
)
   
 
(549
)
Less treasury stock at cost, 2,196,729 shares
   
 
(20,200
)
   
 
(20,200
)
    
  
Total Stockholders’ Equity
   
 
89,463
 
   
 
84,946
 
    
  
Total Liabilities and Stockholders’ Equity
   
$
2,219,451
 
   
$
2,218,311
 
    
  
 
The accompanying notes are an integral part of these condensed consolidated balance sheets

1

Table of Contents
 
TRUMP HOTELS & CASINO RESORTS, INC.
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2001 AND 2002
(unaudited)
(dollars in thousands, except share data)
 
    
Three Months Ended
June 30,
     
Six Months Ended
June 30,
  
    
2001
     
2002
     
2001
     
2002
  
REVENUES:
                                    
Gaming
   
$
309,168
 
   
$
318,948
 
   
$
602,146
 
   
$
630,386
 
Rooms
   
 
20,871
 
   
 
20,931
 
   
 
38,937
 
   
 
39,766
 
Food and Beverage
   
 
32,404
 
   
 
32,198
 
   
 
63,388
 
   
 
62,532
 
Other
   
 
9,399
 
   
 
10,843
 
   
 
16,991
 
   
 
19,559
 
    
  
  
  
Gross Revenues
   
 
371,842
 
   
 
382,920
 
   
 
721,462
 
   
 
752,243
 
Less—Promotional allowances (Note 4)
   
 
70,489
 
   
 
69,523
 
   
 
138,615
 
   
 
137,671
 
    
  
  
  
Net Revenues
   
 
301,353
 
   
 
313,397
 
   
 
582,847
 
   
 
614,572
 
    
  
  
  
COSTS AND EXPENSES:
                                    
Gaming (Note 4)
   
 
155,198
 
   
 
150,495
 
   
 
307,451
 
   
 
299,043
 
Rooms
   
 
8,017
 
   
 
8,426
 
   
 
15,359
 
   
 
16,088
 
Food and Beverage
   
 
11,289
 
   
 
12,044
 
   
 
21,165
 
   
 
22,684
 
General and Administrative
   
 
66,020
 
   
 
65,514
 
   
 
131,797
 
   
 
130,107
 
Depreciation and Amortization
   
 
18,645
 
   
 
20,399
 
   
 
37,520
 
   
 
39,817
 
Debt Renegotiation Costs (Note 5)
   
 
—
 
   
 
949
 
   
 
—
 
   
 
3,064
 
    
  
  
  
    
 
259,169
 
   
 
257,827
 
   
 
513,292
 
   
 
510,803
 
    
  
  
  
Income from operations
   
 
42,184
 
   
 
55,570
 
   
 
69,555
 
   
 
103,769
 
    
  
  
  
NON-OPERATING INCOME AND (EXPENSES):
                                    
Interest income
   
 
1,017
 
   
 
612
 
   
 
2,099
 
   
 
1,093
 
Interest expense
   
 
(54,934
)
   
 
(55,239
)
   
 
(109,287
)
   
 
(110,454
)
Other non-operating income (expense)
   
 
296
 
   
 
39
 
   
 
426
 
   
 
(54
)
    
  
  
  
    
 
(53,621
)
   
 
(54,588
)
   
 
(106,762
)
   
 
(109,415
)
    
  
  
  
Income (Loss) before equity in loss of Buffington Harbor, L.L.C., and minority interest
   
 
(11,437
)
   
 
982
 
   
 
(37,207
)
   
 
(5,646
)
Equity in loss of Buffington Harbor, L.L.C.
   
 
(800
)
   
 
(598
)
   
 
(1,598
)
   
 
(1,200
)
Minority Interest
   
 
4,475
 
   
 
(140
)
   
 
14,191
 
   
 
2,504
 
    
  
  
  
NET INCOME ( LOSS)
   
$
(7,762
)
   
$
244
 
   
$
(24,614
)