SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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, 2004
| ¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File No.: 333-104916
TRUMP CASINO HOLDINGS, L.L.C.
(Exact Name of Registrant as Specified in its Charter)
| Delaware | 45-0475879 | |
| (State or Other Jurisdiction of Incorporation or Organization) |
(I.R.S. Employer Identification No.) |
c/o Trump Hotels & Casino Resorts Holdings, L.P.
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)
Commission File No.: 333-104916-07
TRUMP CASINO FUNDING, INC.
(Exact Name of Registrant as Specified in its Charter)
| Delaware | 45-0475877 | |
| (State or Other Jurisdiction of Incorporation or Organization) |
(I.R.S. Employer Identification No.) |
c/o Trump Hotels & Casino Resorts Holdings, L.P.
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)
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 Registrant was required to file such reports), and (2) have been subject to such filing requirements for the past 90 days. Yes x No ¨.
Indicate by check mark whether either one of the Registrants is an accelerated filer (as defined by Rule 12b-2 of the Exchange Act). Yes ¨ No x.
As of August 16, 2004, there were 100 shares of Trump Casino Funding, Inc.’s common stock, par value $.01 per share, outstanding. Trump Casino Funding, Inc. meets the conditions set forth in General Instructions H(1)(a) and (b) of Form 10-Q and is therefore filing this form with the reduced disclosure format.
TRUMP CASINO HOLDINGS, L.L.C.
| Page No. | ||
| PART I - FINANCIAL INFORMATION |
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| ITEM 1 - Financial Statements |
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| Condensed Consolidated Balance Sheets as of December 31, 2003 and June 30, 2004 (unaudited) |
1 | |
| 2 | ||
| 3 | ||
| 4 | ||
| Notes to Condensed Consolidated Financial Statements (unaudited) |
5 | |
| ITEM 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations |
14 | |
| ITEM 3 - Quantitative and Qualitative Disclosures About Market Risk |
31 | |
| 31 | ||
| PART II - OTHER INFORMATION |
||
| 32 | ||
| ITEM 2 - Changes in Securities, Use of Proceeds and Issuer Purchases of Equity Securities |
32 | |
| 32 | ||
| ITEM 4 - Submission of Matters to a Vote of Security Holders |
32 | |
| 32 | ||
| 33 | ||
| SIGNATURES |
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| 34 | ||
| 34 | ||
| 35 | ||
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
TRUMP CASINO HOLDINGS, L.L.C.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
| December 31, 2003 |
June 30, 2004 |
|||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| CURRENT ASSETS |
||||||||
| Cash and cash equivalents |
$ | 34,817 | $ | 37,090 | ||||
| Receivables, net |
12,438 | 10,537 | ||||||
| Inventories |
3,322 | 3,049 | ||||||
| Prepaid expenses and other current assets |
3,364 | 3,934 | ||||||
| Total current assets |
53,941 | 54,610 | ||||||
| PROPERTY AND EQUIPMENT, NET |
508,166 | 502,647 | ||||||
| INVESTMENTS IN BUFFINGTON HARBOR RIVERBOATS, L.L.C. |
29,743 | 28,535 | ||||||
| DEFERRED BOND AND LOAN ISSUANCE COSTS, NET |
19,531 | 17,875 | ||||||
| OTHER ASSETS |
21,779 | 25,129 | ||||||
| Total assets |
$ | 633,160 | $ | 628,796 | ||||
| LIABILITIES AND EQUITY | ||||||||
| CURRENT LIABILITIES |
||||||||
| Current maturities of long-term debt |
$ | 10,272 | $ | 9,520 | ||||
| Accounts payable and accrued expenses |
46,743 | 47,006 | ||||||
| Accrued income taxes |
1,125 | 20,043 | ||||||
| Due to affiliates |
7,567 | 8,468 | ||||||
| Accrued interest payable |
5,665 | 6,161 | ||||||
| Total current liabilities |
71,372 | 91,198 | ||||||
| LONG-TERM DEBT, LESS CURRENT MATURITIES |
464,255 | 468,338 | ||||||
| LONG-TERM DEBT, RELATED PARTIES |
15,425 | 15,888 | ||||||
| OTHER LONG-TERM LIABILITIES |
1,803 | 1,413 | ||||||
| Total liabilities |
552,855 | 576,837 | ||||||
| CAPITAL |
||||||||
| Contributed capital |
298,922 | 298,922 | ||||||
| Accumulated deficit |
(218,617 | ) | (246,963 | ) | ||||
| Total capital |
80,305 | 51,959 | ||||||
| Total liabilities and capital |
$ | 633,160 | $ | 628,796 | ||||
See accompanying notes.
1
TRUMP CASINO HOLDINGS, L.L.C.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands)
| For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
|||||||||||||||
| 2003 |
2004 |
2003 |
2004 |
|||||||||||||
| REVENUES |
||||||||||||||||
| Gaming |
$ | 101,859 | $ | 100,854 | $ | 196,904 | $ | 201,400 | ||||||||
| Rooms |
5,585 | 5,565 | 10,427 | 10,338 | ||||||||||||
| Food and beverage |
9,059 | 9,024 | 16,714 | 16,775 | ||||||||||||
| Management fees |
1,186 | 2,204 | 2,149 | 4,489 | ||||||||||||
| Other |
3,731 | 3,696 | 5,725 | 6,323 | ||||||||||||
| Gross revenues |
121,420 | 121,343 | 231,919 | 239,325 | ||||||||||||
| Less-promotional allowances |
21,230 | 21,900 | 41,457 | 41,992 | ||||||||||||
| Net revenues |
100,190 | 99,443 | 190,462 | 197,333 | ||||||||||||
| COSTS AND EXPENSES |
||||||||||||||||
| Gaming |
49,268 | 48,302 | 96,096 | 96,794 | ||||||||||||
| Rooms |
1,753 | 1,663 | 3,183 | 3,145 | ||||||||||||
| Food and beverage |
3,894 | 3,637 | 6,911 | 6,730 | ||||||||||||
| General and administrative |
22,967 | 22,266 | 44,222 | 45,755 | ||||||||||||
| General and administrative - related party |
1,161 | 1,133 | 3,979 | 2,284 | ||||||||||||
| Debt renegotiation costs |
23 | — | 401 | — | ||||||||||||
| Depreciation and amortization |
7,117 | 7,327 | 14,349 | 14,580 | ||||||||||||
| 86,183 | 84,328 | 169,141 | 169,288 | |||||||||||||
| Income from operations |
14,007 | 15,115 | 21,321 | 28,045 | ||||||||||||
| NON-OPERATING INCOME (EXPENSE) |
||||||||||||||||
| Interest income |
212 | 62 | 614 | 65 | ||||||||||||
| Interest expense |
(16,392 | ) | (17,558 | ) | (31,276 | ) | (34,207 | ) | ||||||||
| Interest expense - related party |
(654 | ) | (747 | ) | (6,931 | ) | (1,430 | ) | ||||||||
| Gain on debt retirement, net |
— | — | 7,931 | — | ||||||||||||
| Other non-operating income (expense) |
(6 | ) | 625 | (20 | ) | 625 | ||||||||||
| Non-operating expense, net |
(16,840 | ) | (17,618 | ) | (29,682 | ) | (34,947 | ) | ||||||||
| Loss before income taxes and equity in loss from Buffington Harbor, LLC |
(2,833 | ) | (2,503 | ) | (8,361 | ) | (6,902 | ) | ||||||||
| Equity in loss from Buffington Harbor, LLC |
(615 | ) | (613 | ) | (1,230 | ) | (1,226 | ) | ||||||||
| Provision for income taxes |
(300 | ) | (1,022 | ) | (600 | ) | (20,218 | ) | ||||||||
| Net loss |
$ | (3,748 | ) | $ | (4,138 | ) | $ | (10,191 | ) | $ | (28,346 | ) | ||||
See accompanying notes.
2
TRUMP CASINO HOLDINGS, L.L.C.
CONDENSED CONSOLIDATED STATEMENTS OF CAPITAL/(DEFICIT)
FOR THE SIX MONTHS ENDED JUNE 30, 2004
(unaudited)
(in thousands)
| Contributed Capital |
Accumulated Deficit |
Total |
|||||||||
| Balance at December 31, 2003 |
$ | 298,922 | $ | (218,617 | ) | $ | 80,305 | ||||
| Net loss |
— | (28,346 | ) | (28,346 | ) | ||||||
| Balance at June 30, 2004 |
$ | 298,922 | $ | (246,963 | ) | $ | 51,959 | ||||
See accompanying notes.
3
TRUMP CASINO HOLDINGS, L.L.C.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
| For the Six Months Ended June 30, |
||||||||
| 2003 |
2004 |
|||||||
| CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||
| Net loss |
$ | (10,191 | ) | $ | (28,346 | ) | ||
| Adjustments to reconcile net loss to net cash flows provided by operating activities - |
||||||||
| Depreciation and amortization |
14,349 | 14,580 | ||||||
| Non cash gain on debt refinancing, net |
(7,931 | ) | — | |||||
| Issuance of PIK debt in satisfaction of accrued interest |
8,636 | 2,005 | ||||||
| Equity in loss from Buffington Harbor, L.L.C. |
1,230 | 1,226 | ||||||
| Accretion of bond discount |
2,346 | 1,104 | ||||||
| Amortization of loan costs |
1,624 | 1,567 | ||||||
| Provision for losses on receivables |
853 | 918 | ||||||
| Valuation allowance - CRDA investments |
1,353 | 535 | ||||||
| (Increase) decrease in receivables |
(2,423 | ) | 983 | |||||
| Decrease in inventories |
135 | 273 | ||||||
| Decrease (increase) in prepaid expenses and other current assets |
325 | (570 | ) | |||||
| Increase in other assets |
(1,978 | ) | (2,307 | ) | ||||
| Increase in due to affiliates |
1,444 | 901 | ||||||
| Increase in current liabilities |
||||||||