-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, a91HTFdwSe+tx70owdCIjfYLgiElrX1VUQ8MmhCeTlJ82Pd1vhOFYdI+hqJ9jMp8 3AYBoMaAICi53Hyaoy93XA== 0000016095-94-000006.txt : 19940224 0000016095-94-000006.hdr.sgml : 19940224 ACCESSION NUMBER: 0000016095-94-000006 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19940222 ITEM INFORMATION: 5 FILED AS OF DATE: 19940223 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CAESARS WORLD INC CENTRAL INDEX KEY: 0000016095 STANDARD INDUSTRIAL CLASSIFICATION: 7990 IRS NUMBER: 590773674 STATE OF INCORPORATION: FL FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: 8-K SEC ACT: 34 SEC FILE NUMBER: 001-05976 FILM NUMBER: 94511996 BUSINESS ADDRESS: STREET 1: 1801 CENTURY PARK E STE 2600 CITY: LOS ANGELES STATE: CA ZIP: 90067 BUSINESS PHONE: 3105522711 MAIL ADDRESS: STREET 1: 1801 CENTURY PARK EAST STREET 2: SUITE 2600 CITY: LOS ANGELES STATE: CA ZIP: 90067 FORMER COMPANY: FORMER CONFORMED NAME: LUMS INC DATE OF NAME CHANGE: 19720123 8-K 1 FORM 8-K SECOND QUARTER PRESS RELEASE SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 February 22, 1994 CAESARS WORLD, INC. (Exact name of issuer as specified in its charter) Florida 1-5979 59-0773674 (State or Other (Commission (IRS Employer of Jurisdiction File Number) Identification Incorporation Number) or Organization) 1801 Century Park East 90067 Suite 2600 (Zip Code) Los Angeles, California (Address of Principal Executive Offices) (310) 552-2711 Registrant's telephone number, including area code Item 5. Other Events On February 22, 1994, Registrant issued the following press release: LOS ANGELES, CALIFORNIA -- Caesars World, Inc. (NYSE: CAW) today announced net income for the fiscal 1994 second quarter was $21,960,000, or 90 cents per share, compared with $25,527,000, or $1.05 per share, in the fiscal 1993 second quarter. Revenue for the quarter ended January 31, 1994, totaled $257,981,000, compared with $264,473,000 in the prior-year quarter. Net income for the first six months of fiscal 1994 was a record $49,808,000, or $2.04 per share, compared with $40,494,000, or $1.66 per share, in the comparable fiscal 1993 period. Revenue for the six months of fiscal 1994 amounted to $527,064,000, compared with $497,035,000 in the same prior-year period. Henry Gluck, chairman and chief executive officer, noted that a major contributor to the decline in the quarterly comparisons was lower table-game win percentages in the company's Nevada operations. "We are nevertheless pleased that Caesars Palace in Las Vegas continued to maintain its strong casino play in spite of the opening of three mega-resorts and the ensuing nationwide publicity and marketing programs that are part of all major openings," he said. Gluck pointed out that improved results throughout the company accounted for the fiscal 1994 six-month performance which established records in revenue, net income and earnings per share for any comparable period in Caesars World's history. In the company's Nevada operations, the table-game win percentage for the fiscal 1994 second quarter, although above historical averages, was still below the prior-year quarter and was the principal contributor to declines in both revenue and contributions to operating income. The level of table-game activity was about the same during both quarters. Slot machine activity in Nevada was about 5 percent higher in the 1994 quarter but this was offset by a lower slot win percentage resulting in a relatively flat quarterly slot revenue comparison. Higher marketing and staffing expenses were partially offset by a lower provision for doubtful accounts during the 1994 second quarter. Six-month results from Nevada in fiscal 1994 reflected all-time record table-game activity and win, a higher table-game win percentage compared with the same 1993 six months, and a 7 percent rise in slot win over the comparable 1993 period. The fiscal 1994 six-month results were partially offset by increased marketing expenses and a higher provision for doubtful accounts. In New Jersey, the lower results during fiscal 1994 can be primarily attributed to increased competition and recent bad weather. Caesars Atlantic City's lower casino revenue during the fiscal 1994 reporting periods was due to a decline in table-game and slots activity, offset in part by an increase in table-game win percentages and the opening late in October of a Simulcast Casino. This new area features high-tech horse race betting, a poker section and additional casino table games. Caesars Atlantic City's contributions to operating income in fiscal 1994 benefited from a reduction in expenses. Caesars World's net interest expenses have decreased due to lower outstanding debt and a debt refinancing which was substantially completed during the fiscal 1993 first quarter. CAESARS WORLD, INC SUMMARY OF EARNINGS - Unaudited (In thousands, except net income per share)
Three Months Six Months For the periods ended January 31 1994 1993 1994 1993 Revenue Nevada $168,048 $171,950 $323,272 $290,181 New Jersey 76,048 79,552 170,084 174,615 Casino/hotel operations 244,096 251,502 493,356 464,796 Pocono Resorts 8,882 8,184 23,374 21,910 Other (a) 5,003 4,787 10,334 10,329 Total revenue $257,981 $264,473 $527,064 $497,035 Contributions to operating income Nevada $ 38,319 $ 42,466 $ 65,803 $ 55,697 New Jersey 7,140 8,939 29,782 28,768 Casino/hotel operations 45,459 51,405 95,585 84,465 Pocono Resorts 371 188 5,448 5,017 Other expenses (a) (6,174) (4,749) (10,775) (8,930) Operating income 39,656 46,844 90,258 80,552 Interest income and dividend income 719 179 1,647 986 Interest expense (4,668) (5,850) (9,778) (16,225) Income before income taxes 35,707 41,173 82,127 65,313 Income taxes (b) 13,747 15,646 32,319 24,819 Net income $ 21,960 $ 25,527 $ 49,808 $ 40,494 Net income per share $ .90 $ 1.05 $ 2.04 $ 1.66 Average number of common and common equivalent shares outstanding 24,535 24,394 24,468 24,328 (a) Other revenue is primarily from merchandising operations. Other expenses include the contribution from merchandising operations and corporate expenses. (b) The effective income tax rate during the six months ended January 31, 1994, was 1.4 percentage points higher than the same period in 1993. The higher tax rate reflects the impact of two non-recurring tax charges. In August 1993, the Federal tax rate increased, retroactive to January 1, 1993, from 34 to 35 percent. The company also changed its method for income tax accounting by adopting FASB 109 effective August 1, 1993. The impact of this cumulative change in accounting and the retroactive change in the corporate tax rate aggregated a net charge of approximately $750,000 in the first quarter of fiscal 1994.
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CAESARS WORLD, INC. By /s/Roger Lee Senior Vice President, Finance & Administration February 23, 1994 -----END PRIVACY-ENHANCED MESSAGE-----