EX-99.1 2 y99989exv99w1.txt PRESS RELEASE Exhibit 99.1 CONTACT: JOHN P. SALDARELLI SECRETARY AND TREASURER (914) 242-7700 FOR IMMEDIATE RELEASE AMERICAN REAL ESTATE PARTNERS, L.P. REPORTS SECOND QUARTER AND SIX MONTH RESULTS MOUNT KISCO, NEW YORK, AUGUST 9, 2004 - American Real Estate Partners, L.P. (NYSE:ACP) today reported the following second quarter and six month financial results: In the second quarter of 2004 earnings were $81,786,000 compared to a loss of $2,787,000 in the second quarter of 2003. Of this difference, approximately $47 million was from an increase in income from discontinued operations as a result of gains on sale of real estate, approximately $19 million was from a write-down of other investments in 2003, approximately $8 million was the result of a gain on the sale of certain marketable debt securities and approximately $7 million was the result of increased income from hotel and casino operations. For the second quarter, diluted earnings (loss) per weighted average limited partnership unit outstanding were $1.54 in 2004 and ($.13) in 2003. Earnings in the six months ended June 30, 2004 were $144,806,000 compared to $11,605,000 in the six months ended June 30, 2003. Of this increase, approximately $54 million was from an increase in income from discontinued operations as a result of gains on sale of real estate, approximately $19 million was from a write-down of other investments in 2003, approximately $37 million was the result of a gain on the sale of certain marketable debt securities, approximately $15 million was the result of increased income from hotel and casino operations and approximately $8 million was from increased interest income. For the six months ended June 30, 2004, diluted earnings per weighted average limited partnership unit outstanding were $2.66 compared to $.07 in 2003. The financial statements have been restated for the three and six months ended June 30, 2003 to include the earnings of our subsidiaries: National Energy Group, Inc. and American Casino & Entertainment Properties LLC. American Real Estate Partners, L.P. is a master limited partnership. FOR IMMEDIATE RELEASE AMERICAN REAL ESTATE PARTNERS, L.P. REPORTS SECOND QUARTER AND SIX MONTH RESULTS CONSOLIDATED RESULTS OF EARNINGS IN THOUSANDS OF DOLLARS EXCEPT PER UNIT DATA
SECOND QUARTER ENDED JUNE 30, 2004 2003 ---------------------------------------- ------------ ------------ (RESTATED) (1) (UNAUDITED) Revenues $ 117,901 $ 90,645 ============ ============ Operating income $ 25,834 $ 15,541 Write-down of other investments -- (18,798) Loss on sales and disposition of real estate (226) (272) Gain on sales of marketable debt securities 8,310 -- Income tax expense (3,088) (3,167) ------------ ------------ Income from continuing operations 30,830 (6,696) Income from discontinued operations 50,956 3,909 ------------ ------------ Net earnings $ 81,786 $ (2,787) ============ ============ Net earnings per L.P. unit: Basic: Income (loss) from continuing operations $ .63 $ (.21) Income from discontinued operations 1.08 .08 ------------ ------------ Basic earnings (loss) per L.P. unit $ 1.71 $ (.13) ============ ============ Weighted average units outstanding 46,098,284 46,098,284 ============ ============ Diluted: Income (loss) from continuing operations $ .58 $ (.21) Income from discontinued operations .96 .08 ------------ ------------ Diluted earnings (loss) per L.P. unit $ 1.54 $ (.13) ============ ============ Weighted average units and equivalent units outstanding 51,938,033 46,098,284 ============ ============
(1) THE FINANCIAL STATEMENTS HAVE BEEN RESTATED TO REFLECT THE EARNINGS OF OUR SUBSIDIARIES: I) NATIONAL ENERGY GROUP, INC., AND II) AMERICAN CASINO AND ENTERTAINMENT PROPERTIES LLC. FOR IMMEDIATE RELEASE AMERICAN REAL ESTATE PARTNERS, L.P. REPORTS SECOND QUARTER AND SIX MONTH RESULTS CONSOLIDATED RESULTS OF EARNINGS IN THOUSANDS OF DOLLARS EXCEPT PER UNIT DATA
SIX MONTHS ENDED JUNE 30, 2004 2003 ----------------------------------------- ------------ ------------ (RESTATED) (1) (UNAUDITED) Revenues $ 222,023 $ 184,245 ============ ============ Operating income $ 50,732 $ 31,872 Provision for loss on real estate -- (200) Write down of other investments -- (18,798) Write-down of equity securities available for sale -- (961) Gain on sales and disposition of real estate 5,821 866 Gain on sales of marketable debt securities 37,167 -- Income tax expense (9,257) (7,059) ------------ ------------ Income from continuing operations 84,463 5,720 Income from discontinued operations 60,343 5,885 ------------ ------------ Net earnings $ 144,806 $ 11,605 ============ ============ Net earnings per L.P. unit: Basic: Income (loss) from continuing operations $ 1.68 $ (.06) Income from discontinued operations 1.28 .13 ------------ ------------ Basic earnings per L.P. unit $ 2.96 $ .07 ============ ============ Weighted average units outstanding 46,098,284 46,098,284 ============ ============ Diluted: Income (loss) from continuing operations $ 1.53 $ (.06) Income from discontinued operations 1.13 .13 ------------ ------------ Diluted earnings per L.P. unit $ 2.66 $ .07 ============ ============ Weighted average units and equivalent units outstanding 52,218,668 46,098,284 ============ ============
(1) THE FINANCIAL STATEMENTS HAVE BEEN RESTATED TO REFLECT THE EARNINGS OF OUR SUBSIDIARIES: I) NATIONAL ENERGY GROUP, INC., AND II) AMERICAN CASINO AND ENTERTAINMENT PROPERTIES LLC.