SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended: September 30, 2004
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 | |
| (Address of principal executive offices) | (Zip Code) | |
(609) 449-6515
(Registrant’s telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Indicate by check mark whether the registrant (1) has 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) has been subject to such filing requirements for the past 90 days. Yes x No ¨
Indicate by check mark whether the registrant is an accelerated filer (as defined by Rule 12b-2 of the Exchange Act). Yes ¨ No x
As of November 15, 2004, there were 29,904,764 shares of common stock and 1,000 shares of class B common stock (having a voting equivalency of 13,918,723 shares of common stock) of Trump Hotels & Casino Resorts, Inc. outstanding.
TRUMP HOTELS & CASINO RESORTS, INC.
INDEX TO FORM 10-Q
| Page No. | ||
| PART I— FINANCIAL INFORMATION | ||
| ITEM 1— Financial Statements | ||
| 1 | ||
| 2 | ||
| 3 | ||
| 4 | ||
| Notes to Condensed Consolidated Financial Statements of Trump Hotels & Casino Resorts Inc. |
5 | |
| ITEM 2 – Management’s Discussion and Analysis of Financial Conditions and Results of Operations |
16 | |
| ITEM 3 – Quantitative and Qualitative Disclosures About Market Risk |
38 | |
| ITEM 4 – Controls and Procedures |
38 | |
| PART II — OTHER INFORMATION | ||
| ITEM 1 – Legal Proceedings |
39 | |
| ITEM 2 – Unregistered Sale of Equity Securities and Use of Proceeds |
39 | |
| ITEM 3 – Defaults Upon Senior Securities |
39 | |
| ITEM 4 – Submission of Matters to a Vote of Security Holders |
39 | |
| ITEM 5 – Other Information |
39 | |
| ITEM 6 – Exhibits |
40 | |
| SIGNATURE | ||
| 41 | ||
| EXHIBIT INDEX | 42 | |
PART I - FINANCIAL INFORMATION
TRUMP HOTELS & CASINO RESORTS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except share data)
| December 31, 2003 |
September 30, 2004 |
|||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| CURRENT ASSETS: |
||||||||
| Cash and cash equivalents |
$ | 95,672 | $ | 124,047 | ||||
| Receivables, net |
38,042 | 35,330 | ||||||
| Inventories |
11,749 | 11,619 | ||||||
| Prepaid expenses and other current assets |
11,689 | 16,512 | ||||||
| Total Current Assets |
157,152 | 187,508 | ||||||
| INVESTMENT IN BUFFINGTON HARBOR, L.L.C. |
29,743 | 28,384 | ||||||
| PROPERTY AND EQUIPMENT, NET |
1,755,734 | 1,724,570 | ||||||
| DEFERRED BOND AND LOAN ISSUANCE COSTS, NET |
26,497 | 21,548 | ||||||
| OTHER ASSETS |
62,307 | 75,614 | ||||||
| TOTAL ASSETS |
$ | 2,031,433 | $ | 2,037,624 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||||||
| CURRENT LIABILITIES: |
||||||||
| Current maturities of long-term debt |
$ | 29,399 | $ | 34,309 | ||||
| Accounts payable and accrued expenses |
142,383 | 173,941 | ||||||
| Due to affiliates, net |
2,230 | 3,201 | ||||||
| Accrued interest payable |
30,040 | 83,824 | ||||||
| Total Current Liabilities |
204,052 | 295,275 | ||||||
| NON-CURRENT LIABILITIES: |
||||||||
| Long-term debt, net of current maturities |
1,781,498 | 1,788,541 | ||||||
| Long-term debt, related parties |
15,425 | 15,888 | ||||||
| Other long-term liabilities |
24,881 | 23,842 | ||||||
| TOTAL LIABILITIES |
2,025,856 | 2,123,546 | ||||||
| STOCKHOLDERS’ EQUITY (DEFICIT): |
||||||||
| Common Stock, $.01 par value, 75,000,000 shares authorized, 32,101,493 issued; 29,904,764 outstanding |
321 | 321 | ||||||
| Class B Common Stock, $.01 par value, 1,000 shares authorized, issued and outstanding |
— | — | ||||||
| Additional Paid in Capital |
470,566 | 470,566 | ||||||
| Accumulated Deficit |
(445,110 | ) | (536,609 | ) | ||||
| Less treasury stock at cost, 2,196,729 shares |
(20,200 | ) | (20,200 | ) | ||||
| TOTAL STOCKHOLDERS’ EQUITY (DEFICIT) |
5,577 | (85,922 | ) | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) |
$ | 2,031,433 | $ | 2,037,624 | ||||
See accompanying notes.
1
TRUMP HOTELS & CASINO RESORTS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2004
(unaudited)
(dollars in thousands, except share data)
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| 2003 |
2004 |
2003 |
2004 |
|||||||||||||
| REVENUES: |
||||||||||||||||
| Gaming |
$ | 324,339 | $ | 325,100 | $ | 938,471 | $ | 921,661 | ||||||||
| Rooms |
21,905 | 22,253 | 60,254 | 59,756 | ||||||||||||
| Food and beverage |
35,897 | 37,457 | 97,194 | 99,431 | ||||||||||||
| Management fees |
839 | 1,672 | 2,988 | 6,161 | ||||||||||||
| Other |
12,383 | 14,541 | 29,624 | 34,483 | ||||||||||||
| Gross revenues |
395,363 | 401,023 | 1,128,531 | 1,121,492 | ||||||||||||
| Less — Promotional allowances |
86,334 | 91,692 | 233,839 | 242,740 | ||||||||||||
| Net Revenues |
309,029 | 309,331 | 894,692 | 878,752 | ||||||||||||
| COSTS AND EXPENSES: |
||||||||||||||||
| Gaming |
150,777 | 152,700 | 437,292 | 432,252 | ||||||||||||
| Rooms |
7,460 | 7,354 | 23,060 | 21,794 | ||||||||||||
| Food and beverage |
13,064 | 12,852 | 35,479 | 35,392 | ||||||||||||
| General and administrative |
67,664 | 69,726 | 203,968 | 202,693 | ||||||||||||
| General and administrative-related party |
109 | 188 | 2,010 | 2,357 | ||||||||||||
| Depreciation and amortization |
24,515 | 27,489 | 69,952 | 77,603 | ||||||||||||
| Debt renegotiation costs |
— | 2,857 | 2,951 | 2,857 | ||||||||||||
| 263,589 | 273,166 | 774,712 | 774,948 | |||||||||||||
| Income from operations |
45,440 | 36,165 | 119,980 | 103,804 | ||||||||||||
| NON-OPERATING INCOME AND (EXPENSE): |
||||||||||||||||
| Interest income |
139 | 204 | 1,207 | 560 | ||||||||||||
| Interest expense |
(55,186 | ) | (56,878 | ) | (167,785 | ) | (169,073 | ) | ||||||||
| Interest expense - related party |
(664 | ) | (747 | ) | (1,973 | ) | (2,177 | ) | ||||||||
| Gain on debt refinancing, net |
— | — | 2,892 | — | ||||||||||||
| Other non-operating income (expense), net |
7 | (702 | ) | (20 | ) | 2,089 | ||||||||||
| (55,704 | ) | (58,123 | ) | (165,679 | ) | (168,601 | ) | |||||||||
| Loss before equity in loss from Buffington Harbor, L.L.C., provision for income taxes and minority interest |
(10,264 | ) | (21,958 | ) | (45,699 | ) | (64,797 | ) | ||||||||
| Equity in loss from Buffington Harbor, L.L.C. |
(625 | ) | (204 | ) | (1,855 | ) | (1,430 | ) | ||||||||
| Loss before income taxes and minority interest |
(10,889 | ) | (22,162 | ) | (47,554 | ) | (66,227 | ) | ||||||||
| Provision for income taxes |
(1,526 | ) | (2,983 | ) | (3,935 | ) | (25,272 | ) | ||||||||
| Loss before minority interest |
(12,415 | ) | (25,145 | ) | (51,489 | ) | (91,499 | ) | ||||||||
| Minority interest |
— | — | 5,061 | — | ||||||||||||
| NET LOSS |
$ | (12,415 | ) | $ | (25,145 | ) | $ | (46,428 | ) | $ | (91,499 | ) | ||||
| Basic and diluted loss per share |
$ | (0.43 | ) | $ | (0.84 | ) | $ | (1.90 | ) | $ | (3.06 | ) | ||||
| Weighted average number of shares outstanding : |
||||||||||||||||
| Basic and diluted |
29,046,640 | 29,904,764 | 24,381,340 | 29,904,764 | ||||||||||||
See accompanying notes.
2
TRUMP HOTELS & CASINO RESORTS, INC.
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIT)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2004
(unaudited)
(dollars in thousands)
| Common Stock Amount |
Add’l Paid In Capital |
Accum Deficit |
Treasury Stock |
Total Stockholders’ Equity (Deficit) |
||||||||||||||
| Balance, December 31, 2003 |
$ | 321 | $ | 470,566 | $ | (445,110 | ) | $ | (20,200 | ) | $ | 5,577 | ||||||
| Net Loss |
— | — | (91,499 | ) | — | (91,499 | ) | |||||||||||
| Balance, September 30, 2004 |
$ | |||||||||||||||||