-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RxdiKPBnRkeo7HXKBaiZKwJge6T0z29T+Yvp/Yg301bWPpnN1XJl22aEuamqXeA0 HpgvUrYX6iFrQ9Zq6IezdQ== 0001104659-06-025740.txt : 20060418 0001104659-06-025740.hdr.sgml : 20060418 20060418171145 ACCESSION NUMBER: 0001104659-06-025740 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060418 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060418 DATE AS OF CHANGE: 20060418 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARRAHS ENTERTAINMENT INC CENTRAL INDEX KEY: 0000858339 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MISCELLANEOUS AMUSEMENT & RECREATION [7990] IRS NUMBER: 621411755 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10410 FILM NUMBER: 06765365 BUSINESS ADDRESS: STREET 1: ONE HARRAHS COURT CITY: LAS VEGAS STATE: NV ZIP: 89119 BUSINESS PHONE: 7024076000 MAIL ADDRESS: STREET 1: ONE HARRAHS COURT CITY: LAS VEGAS STATE: NV ZIP: 89119 FORMER COMPANY: FORMER CONFORMED NAME: PROMUS COMPANIES INC DATE OF NAME CHANGE: 19920703 8-K 1 a06-9092_18k.htm CURRENT REPORT OF MATERIAL EVENTS OR CORPORATE CHANGES

 

UNITED STATES

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

 

April 18, 2006

Date of Report (Date of earliest event reported)

 

Harrah’s Entertainment, Inc.

(Exact name of registrant as specified in its charter)

 

Delaware

 

001-10410

 

62-1411755

(State of Incorporation)

 

(Commission File Number)

 

(IRS Employer

 

 

 

 

Identification Number)

 

One Harrah’s Court

Las Vegas, Nevada 89119

(Address of principal executive offices) (Zip Code)

 

(702) 407-6000

(Registrant’s telephone number, including area code)

 

N/A

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 


 

Item 7.01               Regulation FD Disclosure.

 

We are revising the property groupings for our reporting regions to provide subsets of financial information by the major market areas in which we operate to support the discussion of our financial results in future earnings releases and in management’s discussion and analysis of financial condition and results of operations. This Current Report on Form 8-K discloses unaudited historical Revenue, Income from Operations and Property EBITDA (earnings before interest, taxes, depreciation, and amortization) for each fiscal quarter during 2005, 2004 and 2003 for each of our revised reporting regions. The unaudited financial information is attached hereto as Exhibit 99.1, including a reconciliation of Property EBITDA to Income from Operations, and is incorporated by reference herein. Property EBITDA is not a Generally Accepted Accounting Principles or GAAP measurement but is commonly used in the gaming industry as a measure of performance and as a basis for valuation of gaming companies.

 

Our revised reporting regions group our properties as follows:

 

Las Vegas

 

Iowa/Missouri

Rio

 

Harrah’s St. Louis

Caesars Palace

 

Harrah’s Council Bluffs

Bally’s Las Vegas

 

Horseshoe Council Bluffs/Bluffs Run

Flamingo Las Vegas

 

Harrah’s North Kansas City

Imperial Palace

 

Illinois/Indiana

Harrah’s Las Vegas

 

Harrah’s Metropolis

Paris Las Vegas

 

Caesars Indiana

Atlantic City

 

Horseshoe Hammond

Harrah’s Atlantic City

 

Harrah’s Joliet

Showboat Atlantic City

 

Other Nevada

Bally’s Atlantic City

 

Harrah’s Reno

Caesars Atlantic City

 

Harrah’s Lake Tahoe

Louisiana/Mississippi

 

Harvey’s Lake Tahoe

Harrah’s New Orleans

 

Bill’s Lake Tahoe

Grand Biloxi

 

Harrah’s Laughlin

Horseshoe Bossier City

 

Managed/International/Other

Harrah’s Louisiana Downs

 

Harrah’s Cherokee

Grand Tunica

 

Harrah’s Prairie Band

Horseshoe Tunica

 

Harrah’s Ak-Chin

Sheraton Tunica

 

Harrah’s Rincon

 

 

Conrad Punta del Este

 

Our Flamingo Laughlin, Reno Hilton and Harrah’s Lake Charles properties are currently categorized as discontinued operations due to decisions to sell those properties. We have entered into definitive agreements to sell Flaming Laughlin and Reno Hilton, and the sales are expected to close in the second quarter of 2006. We have also entered into a non-binding letter of intent to sell Harrah’s Lake Charles.

 

The information, including exhibits attached hereto, in this Current Report is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section.  The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, except as otherwise expressly stated in such filing.

 

2


 

Item 9.01               Financial Statements and Exhibits.

 

(d) Exhibits. The following exhibit is being filed herewith:

 

99.1                           Harrah’s Entertainment, Inc.’s Unaudited Supplemental Financial Information.

 

3


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

HARRAH’S ENTERTAINMENT, INC.

 

 

 

 

 

 

Date:   April 18, 2006

By:

/s/ Anthony D. McDuffie

 

 

 

Anthony D. McDuffie

 

 

Senior Vice President, Controller and Chief
Accounting Officer

 

4


 

EXHIBIT INDEX

 

Exhibit
Number

 

Document Description

 

 

 

99.1

 

Harrah’s Entertainment, Inc.’s Unaudited Supplemental Financial Information.

 

5

 EX-99.1 2 a06-9092_1ex99d1.htm EX-99

Exhibit 99.1

 

HARRAH’S ENTERTAINMENT, INC.

CONSOLIDATING SUPPLEMENTAL FINANCIAL INFORMATION

(UNAUDITED)

 

 

 

2005 (a)

 

 

 

First
Quarter

 

Second
Quarter

 

Third
Quarter

 

Fourth
Quarter

 

Year

 

 

 

(In millions)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

Las Vegas

 

$

248.8

 

$

316.1

 

$

670.1

 

$

715.0

 

$

1,950.0

 

Atlantic City

 

183.2

 

259.0

 

562.1

 

481.4

 

1,485.7

 

Louisiana/Mississippi

 

237.7

 

266.7

 

326.5

 

236.4

 

1,067.3

 

Iowa/Missouri

 

183.2

 

181.5

 

184.2

 

186.1

 

734.9

 

Illinois/Indiana

 

205.5

 

224.4

 

292.9

 

276.7

 

999.5

 

Other Nevada

 

138.7

 

146.7

 

186.2

 

144.2

 

615.7

 

Managed/International/Other

 

22.1

 

29.0

 

50.4

 

55.3

 

156.9

 

Total Revenues

 

$

1,219.2

 

$

1,423.4

 

$

2,272.4

 

$

2,095.1

 

$

7,010.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Income From Operations

 

 

 

 

 

 

 

 

 

 

 

Las Vegas

 

$

69.8

 

$

79.5

 

$

146.3

 

$

145.6

 

$

441.1

 

Atlantic City

 

42.7

 

63.8

 

150.5

 

96.6

 

353.6

 

Louisiana/Mississippi

 

41.3

 

40.9

 

46.4

 

(107.4

)

21.1

 

Iowa/Missouri

 

33.7

 

28.8

 

30.1

 

26.5

 

119.1

 

Illinois/Indiana

 

41.2

 

44.8

 

52.3

 

38.8

 

177.1

 

Other Nevada

 

15.6

 

21.3

 

50.4

 

16.0

 

103.3

 

Managed/International/Other

 

3.3

 

(16.9

)

(5.9

)

(14.2

)

(33.6

)

Corporate Expense

 

(16.4

)

(21.9

)

(32.4

)

(27.0

)

(97.7

)

Caesars acquisition costs

 

(4.0

)

(16.7

)

(15.2

)

(19.1

)

(55.0

)

Total Income from operations

 

$

227.2

 

$

223.6

 

$

422.5

 

$

155.8

 

$

1,029.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Property EBITDA

 

 

 

 

 

 

 

 

 

 

 

Las Vegas

 

$

85.4

 

$

102.0

 

$

193.9

 

$

205.7

 

$

586.9

 

Atlantic City

 

63.0

 

92.0

 

199.7

 

138.5

 

493.2

 

Louisiana/Mississippi

 

56.0

 

58.9

 

77.6

 

59.6

 

252.2

 

Iowa/Missouri

 

51.4

 

48.7

 

49.0

 

47.8

 

196.9

 

Illinois/Indiana

 

49.1

 

54.3

 

65.4

 

55.0

 

223.9

 

Other Nevada

 

28.6

 

33.9

 

60.5

 

29.5

 

152.4

 

Managed/International/Other

 

9.7

 

5.7

 

9.3

 

(3.0

)

21.7

 

Total Property EBITDA

 

$

343.2

 

$

395.5

 

$

655.4

 

$

533.1

 

$

1,927.2

 

 

The sum of the quarterly amounts may not equal the annual amounts reported due to rounding.

 

(a)   The historical results presented have been revised to reflect the reclassification of the operating results of Harrah’s Lake Charles to discontinued operations.

 


 

HARRAH’S ENTERTAINMENT, INC.

CONSOLIDATING SUPPLEMENTAL FINANCIAL INFORMATION

(UNAUDITED)

 

 

 

2004 (a)

 

 

 

First
Quarter

 

Second
Quarter

 

Third
Quarter

 

Fourth
Quarter

 

Year

 

 

 

(In millions)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

Las Vegas

 

$

225.2

 

$

235.8

 

$

226.1

 

$

231.7

 

$

918.9

 

Atlantic City

 

181.8

 

193.9

 

227.2

 

178.0

 

780.9

 

Louisiana/Mississippi

 

141.1

 

128.5

 

235.7

 

219.1

 

724.4

 

Iowa/Missouri

 

169.1

 

173.7

 

185.0

 

184.3

 

712.1

 

Illinois/Indiana

 

99.0

 

99.3

 

202.3

 

187.2

 

587.8

 

Other Nevada

 

138.9

 

148.6

 

174.9

 

133.6

 

596.0

 

Managed/International/Other

 

17.7

 

18.9

 

20.2

 

20.1

 

76.7

 

Total Revenues

 

$

972.8

 

$

998.7

 

$

1,271.4

 

$

1,154.0

 

$

4,396.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Income From Operations

 

 

 

 

 

 

 

 

 

 

 

Las Vegas

 

$

58.9

 

$

58.4

 

$

47.3

 

$

52.3

 

$

217.0

 

Atlantic City

 

44.6

 

52.1

 

69.4

 

33.4

 

199.5

 

Louisiana/Mississippi

 

21.8

 

14.6

 

38.6

 

29.8

 

104.8

 

Iowa/Missouri

 

26.5

 

51.1

 

34.2

 

34.5

 

146.3

 

Illinois/Indiana

 

15.7

 

15.6

 

38.7

 

33.0

 

103.0

 

Other Nevada

 

15.2

 

22.5

 

41.9

 

9.5

 

89.0

 

Managed/International/Other

 

2.8

 

(11.7

)

0.3

 

(9.1

)

(17.7

)

Corporate Expense

 

(14.7

)

(15.8

)

(17.4

)

(18.8

)

(66.8

)

Caesars acquisition costs

 

—

 

—

 

—

 

(2.3

)

(2.3

)

Total Income from operations

 

$

170.8

 

$

186.8

 

$

253.0

 

$

162.3

 

$

772.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Property EBITDA

 

 

 

 

 

 

 

 

 

 

 

Las Vegas

 

$

73.3

 

$

72.4

 

$

64.2

 

$

67.1

 

$

276.9

 

Atlantic City

 

61.2

 

69.8

 

88.3

 

52.2

 

271.5

 

Louisiana/Mississippi

 

28.3

 

23.8

 

53.0

 

44.5

 

149.6

 

Iowa/Missouri

 

41.4

 

51.3

 

52.2

 

53.8

 

198.8

 

Illinois/Indiana

 

19.8

 

19.9

 

46.6

 

40.0

 

126.2

 

Other Nevada

 

27.4

 

36.0

 

55.1

 

23.6

 

142.2

 

Managed/International/Other

 

9.2

 

2.5

 

6.4

 

1.2

 

19.2

 

Total Property EBITDA

 

$

260.6

 

$

275.7

 

$

365.8

 

$

282.4

 

$

1,184.4

 

 

The sum of the quarterly amounts may not equal the annual amounts reported due to rounding.

 

(a)   The historical results presented have been revised to reflect the reclassification of the operating results of Harrah’s Lake Charles to discontinued operations.

 


 

HARRAH’S ENTERTAINMENT, INC.

CONSOLIDATING SUPPLEMENTAL FINANCIAL INFORMATION

(UNAUDITED)

 

 

 

2003 (a)

 

 

 

First
Quarter

 

Second
Quarter

 

Third
Quarter

 

Fourth
Quarter

 

Year

 

 

 

(In millions)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

Las Vegas

 

$

196.9

 

$

188.2

 

$

189.3

 

$

196.5

 

$

770.9

 

Atlantic City

 

178.4

 

206.0

 

214.6

 

182.3

 

781.3

 

Louisiana/Mississippi

 

125.0

 

124.2

 

140.7

 

129.5

 

519.4

 

Iowa/Missouri

 

168.2

 

168.6

 

174.3

 

168.6

 

679.7

 

Illinois/Indiana

 

104.8

 

105.7

 

92.9

 

87.2

 

390.6

 

Other Nevada

 

135.5

 

139.5

 

172.3

 

128.6

 

575.9

 

Managed/International/Other

 

21.3

 

22.9

 

24.9

 

21.5

 

90.6

 

Total Revenues

 

$

930.1

 

$

955.1

 

$

1,009.0

 

$

914.2

 

$

3,808.4

 

 

 

 

 

 

 

 

 

 

 

 

 

Income From Operations

 

 

 

 

 

 

 

 

 

 

 

Las Vegas

 

$

39.9

 

$

37.0

 

$

32.3

 

$

35.7

 

$

144.9

 

Atlantic City

 

43.6

 

63.0

 

67.8

 

42.9

 

217.3

 

Louisiana/Mississippi

 

23.1

 

15.3

 

20.5

 

18.3

 

77.2

 

Iowa/Missouri

 

30.2

 

31.9

 

29.4

 

23.6

 

115.1

 

Illinois/Indiana

 

22.6

 

17.2

 

18.6

 

16.1

 

74.5

 

Other Nevada

 

16.9

 

18.3

 

39.4

 

1.3

 

75.9

 

Managed/International/Other

 

6.8

 

5.5

 

3.8

 

(4.7

)

11.4

 

Corporate Expense

 

(12.1

)

(15.7

)

(11.5

)

(13.3

)

(52.6

)

Caesars acquisition costs

 

—

 

—

 

—

 

—

 

—

 

Total Income from operations

 

$

171.0

 

$

172.5

 

$

200.3

 

$

119.9

 

$

663.7

 

 

 

 

 

 

 

 

 

 

 

 

 

Property EBITDA

 

 

 

 

 

 

 

 

 

 

 

Las Vegas

 

$

56.6

 

$

53.1

 

$

48.6

 

$

51.9

 

$

210.2

 

Atlantic City

 

58.4

 

78.7

 

82.9

 

58.2

 

278.2

 

Louisiana/Mississippi

 

30.4

 

25.0

 

28.6

 

23.5

 

107.5

 

Iowa/Missouri

 

43.1

 

45.5

 

45.1

 

39.6

 

173.3

 

Illinois/Indiana

 

27.0

 

21.3

 

22.6

 

20.2

 

91.1

 

Other Nevada

 

28.4

 

30.3

 

51.7

 

20.0

 

130.4

 

Managed/International/Other

 

10.4

 

9.4

 

10.7

 

(0.7

)

29.8

 

Total Property EBITDA

 

$

254.3

 

$

263.3

 

$

290.2

 

$

212.7

 

$

1,020.5

 

 

The sum of the quarterly amounts may not equal the annual amounts reported due to rounding.

 

(a)   The historical results presented have been revised to reflect the reclassification of the operating results of Harrah’s Lake Charles to discontinued operations.

 


 

HARRAH’S ENTERTAINMENT, INC.

Las Vegas Region

SUPPLEMENTAL FINANCIAL INFORMATION

RECONCILIATION OF PROPERTY EBITDA TO INCOME FROM OPERATIONS

(UNAUDITED)

 

 

 

First
Quarter

 

Second
Quarter

 

Third
Quarter

 

Fourth
Quarter

 

Year

 

 

 

(In millions)

 

2005

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

248.8

 

$

316.1

 

$

670.1

 

$

715.0

 

$

1,950.0

 

Property operating expenses

 

(163.4

)

(214.1

)

(476.2

)

(509.3

)

(1,363.1

)

Property EBITDA

 

85.4

 

102.0

 

193.9

 

205.7

 

586.9

 

Depreciation and amortization

 

(15.3

)

(21.3

)

(38.9

)

(50.9

)

(126.4

)

Operating profit

 

70.1

 

80.7

 

155.0

 

154.8

 

460.5

 

Amortization of intangible assets

 

—

 

—

 

(7.0

)

0.1

 

(6.9

)

Income on interests in nonconsolidated affiliates

 

—

 

—

 

—

 

—

 

—

 

Write-downs, reserves and recoveries and project opening costs

 

(0.3

)

(1.2

)

(1.7

)

(9.3

)

(12.5

)

Income from operations

 

$

69.8

 

$

79.5

 

$

146.3

 

$

145.6

 

$

441.1

 

 

 

 

 

 

 

 

 

 

 

 

 

2004

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

225.2

 

$

235.8

 

$

226.1

 

$

231.7

 

$

918.9

 

Property operating expenses

 

(151.9

)

(163.4

)

(161.9

)

(164.6

)

(642.0

)

Property EBITDA

 

73.3

 

72.4

 

64.2

 

67.1

 

276.9

 

Depreciation and amortization

 

(13.7

)

(13.5

)

(14.2

)

(13.9

)

(55.1

)

Operating profit

 

59.6

 

58.9

 

50.0

 

53.2

 

221.8

 

Amortization of intangible assets

 

—

 

—

 

—

 

—

 

—

 

Income on interests in nonconsolidated affiliates

 

—

 

—

 

—

 

—

 

—

 

Write-downs, reserves and recoveries and project opening costs

 

(0.7

)

(0.5

)

(2.7

)

(0.9

)

(4.8

)

Income from operations

 

$

58.9

 

$

58.4

 

$

47.3

 

$

52.3

 

$

217.0

 

 

 

 

 

 

 

 

 

 

 

 

 

2003

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

196.9

 

$

188.2

 

$

189.3

 

$

196.5

 

$

770.9

 

Property operating expenses

 

(140.3

)

(135.1

)

(140.7

)

(144.6

)

(560.7

)

Property EBITDA

 

56.6

 

53.1

 

48.6

 

51.9

 

210.2

 

Depreciation and amortization

 

(16.7

)

(16.1

)

(16.3

)

(16.2

)

(65.3

)

Operating profit

 

39.9

 

37.0

 

32.3

 

35.7

 

144.9

 

Amortization of intangible assets

 

—

 

—

 

—

 

—

 

—

 

Income on interests in nonconsolidated affiliates

 

—

 

—

 

—

 

—

 

—

 

Write-downs, reserves and recoveries and project opening costs

 

—

 

—

 

—

 

—

 

—

 

Income from operations

 

$

39.9

 

$

37.0

 

$

32.3

 

$

35.7

 

$

144.9

 

 

The sum of the quarterly amounts may not equal the annual amounts reported due to rounding.

 


 

HARRAH’S ENTERTAINMENT, INC.

Atlantic City Region

SUPPLEMENTAL FINANCIAL INFORMATION

RECONCILIATION OF PROPERTY EBITDA TO INCOME FROM OPERATIONS

(UNAUDITED)

 

 

 

First
Quarter

 

Second
Quarter

 

Third
Quarter

 

Fourth
Quarter

 

Year

 

 

 

(In millions)

 

2005

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

183.2

 

$

259.0

 

$

562.1

 

$

481.4

 

$

1,485.7

 

Property operating expenses

 

(120.2

)

(167.0

)

(362.4

)

(342.9

)

(992.5

)

Property EBITDA

 

63.0

 

92.0

 

199.7

 

138.5

 

493.2

 

Depreciation and amortization

 

(18.5

)

(22.2

)

(33.3

)

(35.1

)

(109.1

)

Operating profit

 

44.5

 

69.8

 

166.4

 

103.4

 

384.1

 

Amortization of intangible assets

 

—

 

—

 

(11.6

)

(3.3

)

(14.9

)

Income on interests in nonconsolidated affiliates

 

—

 

—

 

—

 

—

 

—

 

Write-downs, reserves and recoveries and project opening costs

 

(1.8

)

(6.0

)

(4.3

)

(3.5

)

(15.6

)

Income from operations

 

$

42.7

 

$

63.8

 

$

150.5

 

$

96.6

 

$

353.6

 

 

 

 

 

 

 

 

 

 

 

 

 

2004

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

181.8

 

$

193.9

 

$

227.2

 

$

178.0

 

$

780.9

 

Property operating expenses

 

(120.6

)

(124.1

)

(138.9

)

(125.8

)

(509.4

)

Property EBITDA

 

61.2

 

69.8

 

88.3

 

52.2

 

271.5

 

Depreciation and amortization

 

(16.6

)

(17.5

)

(17.9

)

(18.0

)

(70.1

)

Operating profit

 

44.6

 

52.3

 

70.4

 

34.2

 

201.4

 

Amortization of intangible assets

 

—

 

—

 

—

 

—

 

—

 

Income on interests in nonconsolidated affiliates

 

—

 

—

 

—

 

—

 

—

 

Write-downs, reserves and recoveries and project opening costs

 

—

 

(0.2

)

(1.0

)

(0.8

)

(1.9

)

Income from operations

 

$

44.6

 

$

52.1

 

$

69.4

 

$

33.4

 

$

199.5

 

 

 

 

 

 

 

 

 

 

 

 

 

2003

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

178.4

 

$

206.0

 

$

214.6

 

$

182.3

 

$

781.3

 

Property operating expenses

 

(120.0

)

(127.3

)

(131.7

)

(124.1

)

(503.1

)

Property EBITDA

 

58.4

 

78.7

 

82.9

 

58.2

 

278.2

 

Depreciation and amortization

 

(14.7

)

(14.5

)

(15.0

)

(15.4

)

(59.6

)

Operating profit

 

43.7

 

64.2

 

67.9

 

42.8

 

218.6

 

Amortization of intangible assets

 

—

 

—

 

—

 

—

 

—

 

Income on interests in nonconsolidated affiliates

 

—

 

—

 

—

 

—

 

—

 

Write-downs, reserves and recoveries and project opening costs

 

(0.1

)

(1.2

)

(0.1

)

0.1

 

(1.3

)

Income from operations

 

$

43.6

 

$

63.0

 

$

67.8

 

$

42.9

 

$

217.3

 

 

The sum of the quarterly amounts may not equal the annual amounts reported due to rounding.

 


 

HARRAH’S ENTERTAINMENT, INC.

Louisiana/Mississippi Region (a)

SUPPLEMENTAL FINANCIAL INFORMATION

RECONCILIATION OF PROPERTY EBITDA TO INCOME FROM OPERATIONS

(UNAUDITED)

 

 

 

First
Quarter

 

Second
Quarter

 

Third
Quarter

 

Fourth
Quarter

 

Year

 

 

 

(In millions)

 

2005

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

237.7

 

$

266.7

 

$

326.5

 

$

236.4

 

$

1,067.3

 

Property operating expenses

 

(181.7

)

(207.8

)

(248.9

)

(176.8

)

(815.1

)

Property EBITDA

 

56.0

 

58.9

 

77.6

 

59.6

 

252.2

 

Depreciation and amortization

 

(12.2

)

(15.7

)

(16.2

)

(17.3

)

(61.3

)

Operating profit

 

43.8

 

43.2

 

61.4

 

42.3

 

190.9

 

Amortization of intangible assets

 

(1.3

)

(1.3

)

(4.3

)

(0.5

)

(7.6

)

Income on interests in nonconsolidated affiliates

 

—

 

—

 

—

 

—

 

—

 

Write-downs, reserves and recoveries and project opening costs

 

(1.2

)

(1.0

)

(10.7

)

(149.2

)

(162.2

)

Income from operations

 

$

41.3

 

$

40.9

 

$

46.4

 

$

(107.4

)

$

21.1

 

 

 

 

 

 

 

 

 

 

 

 

 

2004

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

141.1

 

$

128.5

 

$

235.7

 

$

219.1

 

$

724.4

 

Property operating expenses

 

(112.8

)

(104.7

)

(182.7

)

(174.6

)

(574.8

)

Property EBITDA

 

28.3

 

23.8

 

53.0

 

44.5

 

149.6

 

Depreciation and amortization

 

(5.3

)

(6.5

)

(12.7

)

(12.1

)

(36.6

)

Operating profit

 

23.0

 

17.3

 

40.3

 

32.4

 

113.0

 

Amortization of intangible assets

 

—

 

—

 

(1.0

)

(1.7

)

(2.7

)

Income on interests in nonconsolidated affiliates

 

—

 

—

 

—

 

—

 

—

 

Write-downs, reserves and recoveries and project opening costs

 

(1.2

)

(2.7

)

(0.7

)

(0.9

)

(5.5

)

Income from operations

 

$

21.8

 

$

14.6

 

$

38.6

 

$

29.8

 

$

104.8

 

 

 

 

 

 

 

 

 

 

 

 

 

2003

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

125.0

 

$

124.2

 

$

140.7

 

$

129.5

 

$

519.4

 

Property operating expenses

 

(94.6

)

(99.2

)

(112.1

)

(106.0

)

(411.9

)

Property EBITDA

 

30.4

 

25.0

 

28.6

 

23.5

 

107.5

 

Depreciation and amortization

 

(6.6

)

(7.4

)

(6.8

)

(5.5

)

(26.3

)

Operating profit

 

23.8

 

17.6

 

21.8

 

18.0

 

81.2

 

Amortization of intangible assets

 

—

 

—

 

—

 

—

 

—

 

Income on interests in nonconsolidated affiliates

 

—

 

—

 

—

 

—

 

—

 

Write-downs, reserves and recoveries and project opening costs

 

(0.7

)

(2.3

)

(1.3

)

0.3

 

(4.0

)

Income from operations

 

$

23.1

 

$

15.3

 

$

20.5

 

$

18.3

 

$

77.2

 

 

The sum of the quarterly amounts may not equal the annual amounts reported due to rounding.

 

(a)   The historical results presented have been revised to reflect the reclassification of the operating results of Harrah’s Lake Charles to discontinued operations.

 


 

HARRAH’S ENTERTAINMENT, INC.

Iowa/Missouri Region

SUPPLEMENTAL FINANCIAL INFORMATION

RECONCILIATION OF PROPERTY EBITDA TO INCOME FROM OPERATIONS

(UNAUDITED)

 

 

 

First
Quarter

 

Second
Quarter

 

Third
Quarter

 

Fourth
Quarter

 

Year

 

 

 

(In millions)

 

2005

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

183.2

 

$

181.5

 

$

184.2

 

$

186.1

 

$

734.9

 

Property operating expenses

 

(131.8

)

(132.8

)

(135.2

)

(138.3

)

(538.0

)

Property EBITDA

 

51.4

 

48.7

 

49.0

 

47.8

 

196.9

 

Depreciation and amortization

 

(16.4

)

(16.2

)

(17.2

)

(18.0

)

(67.8

)

Operating profit

 

35.0

 

32.5

 

31.8

 

29.8

 

129.1

 

Amortization of intangible assets

 

(1.0

)

(1.0

)

(1.0

)

(1.0

)

(4.1

)

Income on interests in nonconsolidated affiliates

 

—

 

—

 

—

 

—

 

—

 

Write-downs, reserves and recoveries and project opening costs

 

(0.3

)

(2.7

)

(0.7

)

(2.3

)

(5.9

)

Income from operations

 

$

33.7

 

$

28.8

 

$

30.1

 

$

26.5

 

$

119.1

 

 

 

 

 

 

 

 

 

 

 

 

 

2004

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

169.1

 

$

173.7

 

$

185.0

 

$

184.3

 

$

712.1

 

Property operating expenses

 

(127.7

)

(122.4

)

(132.8

)

(130.5

)

(513.3

)

Property EBITDA

 

41.4

 

51.3

 

52.2

 

53.8

 

198.8

 

Depreciation and amortization

 

(13.8

)

(14.4

)

(15.8

)

(17.1

)

(61.1

)

Operating profit

 

27.6

 

36.9

 

36.4

 

36.7

 

137.7

 

Amortization of intangible assets

 

(1.0

)

(1.0

)

(1.0

)

(1.0

)

(4.1

)

Income on interests in nonconsolidated affiliates

 

—

 

—

 

—

 

—

 

—

 

Write-downs, reserves and recoveries and project opening costs

 

(0.1

)

15.2

 

(1.2

)

(1.2

)

12.7

 

Income from operations

 

$

26.5

 

$

51.1

 

$

34.2

 

$

34.5

 

$

146.3

 

 

 

 

 

 

 

 

 

 

 

 

 

2003

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

168.2

 

$

168.6

 

$

174.3

 

$

168.6

 

$

679.7

 

Property operating expenses

 

(125.1

)

(123.1

)

(129.2

)

(129.0

)

(506.4

)

Property EBITDA

 

43.1

 

45.5

 

45.1

 

39.6

 

173.3

 

Depreciation and amortization

 

(11.9

)

(12.2

)

(13.4

)

(13.7

)

(51.2

)

Operating profit

 

31.2

 

33.3

 

31.7

 

25.9

 

122.1

 

Amortization of intangible assets

 

(1.0

)

(1.0

)

(1.0

)

(1.0

)

(4.0

)

Income on interests in nonconsolidated affiliates

 

—

 

—

 

—

 

—

 

—

 

Write-downs, reserves and recoveries and project opening costs

 

—

 

(0.4

)

(1.3

)

(1.3

)

(3.0

)

Income from operations

 

$

30.2

 

$

31.9

 

$

29.4

 

$

23.6

 

$

115.1

 

 

The sum of the quarterly amounts may not equal the annual amounts reported due to rounding.

 


 

HARRAH’S ENTERTAINMENT, INC.

Illinois/Indiana Region

SUPPLEMENTAL FINANCIAL INFORMATION

RECONCILIATION OF PROPERTY EBITDA TO INCOME FROM OPERATIONS

(UNAUDITED)

 

 

 

First
Quarter

 

Second
Quarter

 

Third
Quarter

 

Fourth
Quarter

 

Year

 

 

 

(In millions)

 

2005

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

205.5

 

$

224.4

 

$

292.9

 

$

276.7

 

$

999.5

 

Property operating expenses

 

(156.4

)

(170.1

)

(227.5

)

(221.7

)

(775.6

)

Property EBITDA

 

49.1

 

54.3

 

65.4

 

55.0

 

223.9

 

Depreciation and amortization

 

(7.3

)

(8.6

)

(9.6

)

(13.1

)

(38.6

)

Operating profit

 

41.8

 

45.7

 

55.8

 

41.9

 

185.3

 

Amortization of intangible assets

 

(0.3

)

(0.3

)

(2.8

)

(3.3

)

(6.8

)

Income on interests in nonconsolidated affiliates

 

—

 

—

 

—

 

—

 

—

 

Write-downs, reserves and recoveries and project opening costs

 

(0.3

)

(0.6

)

(0.7

)

0.2

 

(1.4

)

Income from operations

 

$

41.2

 

$

44.8

 

$

52.3

 

$

38.8

 

$

177.1

 

 

 

 

 

 

 

 

 

 

 

 

 

2004

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

99.0

 

$

99.3

 

$

202.3

 

$

187.2

 

$

587.8

 

Property operating expenses

 

(79.2

)

(79.4

)

(155.7

)

(147.2

)

(461.6

)

Property EBITDA

 

19.8

 

19.9

 

46.6

 

40.0

 

126.2

 

Depreciation and amortization

 

(4.1

)

(4.2

)

(7.5

)

(6.3

)

(22.0

)

Operating profit

 

15.7

 

15.7

 

39.1

 

33.7

 

104.2

 

Amortization of intangible assets

 

—

 

—

 

(0.4

)

(0.3

)

(0.7

)

Income on interests in nonconsolidated affiliates

 

—

 

—

 

—

 

—

 

—

 

Write-downs, reserves and recoveries and project opening costs

 

—

 

(0.1

)

—

 

(0.4

)

(0.5

)

Income from operations

 

$

15.7

 

$

15.6

 

$

38.7

 

$

33.0

 

$

103.0

 

 

 

 

 

 

 

 

 

 

 

 

 

2003

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

104.8

 

$

105.7

 

$

92.9

 

$

87.2

 

$

390.6

 

Property operating expenses

 

(77.8

)

(84.4

)

(70.3

)

(67.0

)

(299.5

)

Property EBITDA

 

27.0

 

21.3

 

22.6

 

20.2

 

91.1

 

Depreciation and amortization

 

(4.1

)

(4.1

)

(4.1

)

(4.1

)

(16.4

)

Operating profit

 

22.9

 

17.2

 

18.5

 

16.1

 

74.7

 

Amortization of intangible assets

 

—

 

—

 

—

 

—

 

—

 

Income on interests in nonconsolidated affiliates

 

—

 

—

 

—

 

—

 

—

 

Write-downs, reserves and recoveries and project opening costs

 

(0.3

)

—

 

0.1

 

—

 

(0.2

)

Income from operations

 

$

22.6

 

$

17.2

 

$

18.6

 

$

16.1

 

$

74.5

 

 

The sum of the quarterly amounts may not equal the annual amounts reported due to rounding.

 


 

HARRAH’S ENTERTAINMENT, INC.

Other Nevada Region

SUPPLEMENTAL FINANCIAL INFORMATION

RECONCILIATION OF PROPERTY EBITDA TO INCOME FROM OPERATIONS

(UNAUDITED)

 

 

 

First
Quarter

 

Second
Quarter

 

Third
Quarter

 

Fourth
Quarter

 

Year

 

 

 

(In millions)

 

2005

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

138.7

 

$

146.7

 

$

186.2

 

$

144.2

 

$

615.7

 

Property operating expenses

 

(110.1

)

(112.8

)

(125.7

)

(114.7

)

(463.3

)

Property EBITDA

 

28.6

 

33.9

 

60.5

 

29.5

 

152.4

 

Depreciation and amortization

 

(12.8

)

(12.7

)

(12.7

)

(12.9

)

(51.1

)

Operating profit

 

15.8

 

21.2

 

47.8

 

16.6

 

101.3

 

Amortization of intangible assets

 

(0.2

)

(0.2

)

(0.2

)

(0.2

)

(0.7

)

Income on interests in nonconsolidated affiliates

 

—

 

—

 

—

 

—

 

—

 

Write-downs, reserves and recoveries and project opening costs

 

—

 

0.3

 

2.8

 

(0.4

)

2.7

 

Income from operations

 

$

15.6

 

$

21.3

 

$

50.4

 

$

16.0

 

$

103.3

 

 

 

 

 

 

 

 

 

 

 

 

 

2004

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

138.9

 

$

148.6

 

$

174.9

 

$

133.6

 

$

596.0

 

Property operating expenses

 

(111.5

)

(112.6

)

(119.8

)

(110.0

)

(453.8

)

Property EBITDA

 

27.4

 

36.0

 

55.1

 

23.6

 

142.2

 

Depreciation and amortization

 

(11.9

)

(12.7

)

(12.8

)

(13.2

)

(50.8

)

Operating profit

 

15.5

 

23.3

 

42.3

 

10.4

 

91.4

 

Amortization of intangible assets

 

(0.2

)

(0.2

)

(0.2

)

(0.2

)

(0.7

)

Income on interests in nonconsolidated affiliates

 

—

 

—

 

—

 

—

 

—

 

Write-downs, reserves and recoveries and project opening costs

 

(0.1

)

(0.6

)

(0.2

)

(0.7

)

(1.7

)

Income from operations

 

$

15.2

 

$

22.5

 

$

41.9

 

$

9.5

 

$

89.0

 

 

 

 

 

 

 

 

 

 

 

 

 

2003

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

135.5

 

$

139.5

 

$

172.3

 

$

128.6

 

$

575.9

 

Property operating expenses

 

(107.1

)

(109.2

)

(120.6

)

(108.6

)

(445.5

)

Property EBITDA

 

28.4

 

30.3

 

51.7

 

20.0

 

130.4

 

Depreciation and amortization

 

(11.4

)

(11.5

)

(12.0

)

(11.9

)

(46.8

)

Operating profit

 

17.0

 

18.8

 

39.7

 

8.1

 

83.6

 

Amortization of intangible assets

 

(0.2

)

(0.1

)

(0.2

)

(0.2

)

(0.7

)

Income on interests in nonconsolidated affiliates

 

—

 

—

 

—

 

—

 

—

 

Write-downs, reserves and recoveries and project opening costs

 

0.1

 

(0.4

)

(0.1

)

(6.6

)

(7.0

)

Income from operations

 

$

16.9

 

$

18.3

 

$

39.4

 

$

1.3

 

$

75.9

 

 

The sum of the quarterly amounts may not equal the annual amounts reported due to rounding.

 


 

HARRAH’S ENTERTAINMENT, INC.

Managed/International/Other Region

SUPPLEMENTAL FINANCIAL INFORMATION

RECONCILIATION OF PROPERTY EBITDA TO INCOME FROM OPERATIONS

(UNAUDITED)

 

 

 

First
Quarter

 

Second
Quarter

 

Third
Quarter

 

Fourth
Quarter

 

Year

 

 

 

(In millions)

 

2005

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

22.1

 

$

29.0

 

$

50.4

 

$

55.3

 

$

156.9

 

Property operating expenses

 

(12.4

)

(23.3

)

(41.1

)

(58.3

)

(135.2

)

Property EBITDA

 

9.7

 

5.7

 

9.3

 

(3.0

)

21.7

 

Depreciation and amortization

 

(4.9

)

(7.2

)

(9.9

)

(9.5

)

(31.4

)

Operating profit

 

4.8

 

(1.5

)

(0.6

)

(12.5

)

(9.7

)

Amortization of intangible assets

 

(0.7

)

(0.6

)

(5.6

)

(2.1

)

(8.9

)

Income on interests in nonconsolidated affiliates

 

(0.2

)

—

 

0.8

 

0.6

 

1.2

 

Write-downs, reserves and recoveries and project opening costs

 

(0.6

)

(14.8

)

(0.5

)

(0.2

)

(16.2

)

Income from operations

 

$

3.3

 

$

(16.9

)

$

(5.9

)

$

(14.2

)

$

(33.6

)

 

 

 

 

 

 

 

 

 

 

 

 

2004

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

17.7

 

$

18.9

 

$

20.2

 

$

20.1

 

$

76.7

 

Property operating expenses

 

(8.5

)

(16.4

)

(13.8

)

(18.9

)

(57.5

)

Property EBITDA

 

9.2

 

2.5

 

6.4

 

1.2

 

19.2

 

Depreciation and amortization

 

(3.8

)

(4.1

)

(4.8

)

(4.8

)

(17.4

)

Operating profit

 

5.4

 

(1.6

)

1.6

 

(3.6

)

1.8

 

Amortization of intangible assets

 

—

 

—

 

(0.6

)

(0.6

)

(1.3

)

Income on interests in nonconsolidated affiliates

 

0.5

 

(0.2

)

(0.7

)

(0.6

)

(0.9

)

Write-downs, reserves and recoveries and project opening costs

 

(3.1

)

(9.9

)

—

 

(4.3

)

(17.3

)

Income from operations

 

$

2.8

 

$

(11.7

)

$

0.3

 

$

(9.1

)

$

(17.7

)

 

 

 

 

 

 

 

 

 

 

 

 

2003

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

21.3

 

$

22.9

 

$

24.9

 

$

21.5

 

$

90.6

 

Property operating expenses

 

(10.9

)

(13.5

)

(14.2

)

(22.2

)

(60.8

)

Property EBITDA

 

10.4

 

9.4

 

10.7

 

(0.7

)

29.8

 

Depreciation and amortization

 

(3.7

)

(3.8

)

(3.9

)

(3.8

)

(15.2

)

Operating profit

 

6.7

 

5.6

 

6.8

 

(4.5

)

14.6

 

Amortization of intangible assets

 

—

 

—

 

—

 

—

 

—

 

Income on interests in nonconsolidated affiliates

 

0.1

 

(0.1

)

(0.5

)

(0.4

)

(0.9

)

Write-downs, reserves and recoveries and project opening costs

 

—

 

—

 

(2.5

)

0.2

 

(2.3

)

Income from operations

 

$

6.8

 

$

5.5

 

$

3.8

 

$

(4.7

)

$

11.4

 

 

The sum of the quarterly amounts may not equal the annual amounts reported due to rounding.

 


 

HARRAH’S ENTERTAINMENT, INC.

TOTAL ALL REGIONS

SUPPLEMENTAL FINANCIAL INFORMATION

RECONCILIATION OF PROPERTY EBITDA TO INCOME FROM OPERATIONS

(UNAUDITED)

 

 

 

First
Quarter

 

Second
Quarter

 

Third
Quarter

 

Fourth
Quarter

 

Year

 

 

 

(In millions)

 

2005

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

1,219.2

 

$

1,423.4

 

$

2,272.4

 

$

2,095.1

 

$

7,010.0

 

Property operating expenses

 

(876.0

)

(1,027.9

)

(1,617.0

)

(1,562.0

)

(5,082.8

)

Property EBITDA

 

343.2

 

395.5

 

655.4

 

533.1

 

1,927.2

 

Depreciation and amortization

 

(87.4

)

(103.9

)

(137.8

)

(156.8

)

(485.7

)

Operating profit

 

255.8

 

291.6

 

517.6

 

376.3

 

1,441.5

 

Amortization of intangible assets

 

(3.5

)

(3.4

)

(32.5

)

(10.3

)

(49.9

)

Income on interests in nonconsolidated affiliates

 

(0.2

)

—

 

0.8

 

0.6

 

1.2

 

Write-downs, reserves and recoveries and project opening costs

 

(4.5

)

(26.0

)

(15.8

)

(164.7

)

(211.1

)

Corporate expense

 

(16.4

)

(21.9

)

(32.4

)

(27.0

)

(97.7

)

Caesars acquisition costs

 

(4.0

)

(16.7

)

(15.2

)

(19.1

)

(55.0

)

Income from operations

 

$

227.2

 

$

223.6

 

$

422.5

 

$

155.8

 

$

1,029.0

 

 

 

 

 

 

 

 

 

 

 

 

 

2004

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

972.8

 

$

998.7

 

$

1,271.4

 

$

1,154.0

 

$

4,396.8

 

Property operating expenses

 

(712.2

)

(723.0

)

(905.6

)

(871.6

)

(3,212.4

)

Property EBITDA

 

260.6

 

275.7

 

365.8

 

282.4

 

1,184.4

 

Depreciation and amortization

 

(69.2

)

(72.9

)

(85.7

)

(85.4

)

(313.1

)

Operating profit

 

191.4

 

202.8

 

280.1

 

197.0

 

871.3

 

Amortization of intangible assets

 

(1.2

)

(1.2

)

(3.2

)

(3.8

)

(9.5

)

Income on interests in nonconsolidated affiliates

 

0.5

 

(0.2

)

(0.7

)

(0.6

)

(0.9

)

Write-downs, reserves and recoveries and project opening costs

 

(5.2

)

1.2

 

(5.8

)

(9.2

)

(19.0

)

Corporate expense

 

(14.7

)

(15.8

)

(17.4

)

(18.8

)

(66.8

)

Caesars acquisition costs

 

—

 

—

 

—

 

(2.3

)

(2.3

)

Income from operations

 

$

170.8

 

$

186.8

 

$

253.0

 

$

162.3

 

$

772.8

 

 

 

 

 

 

 

 

 

 

 

 

 

2003

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

930.1

 

$

955.1

 

$

1,009.0

 

$

914.2

 

$

3,808.4

 

Property operating expenses

 

(675.8

)

(691.8

)

(718.8

)

(701.5

)

(2,787.9

)

Property EBITDA

 

254.3

 

263.3

 

290.2

 

212.7

 

1,020.5

 

Depreciation and amortization

 

(69.0

)

(69.7

)

(71.5

)

(70.6

)

(280.6

)

Operating profit

 

185.3

 

193.6

 

218.7

 

142.1

 

739.9

 

Amortization of intangible assets

 

(1.2

)

(1.2

)

(1.2

)

(1.2

)

(4.8

)

Income on interests in nonconsolidated affiliates

 

0.1

 

—

 

(0.5

)

(0.4

)

(0.9

)

Write-downs, reserves and recoveries and project opening costs

 

(1.1

)

(4.2

)

(5.2

)

(7.3

)

(17.9

)

Corporate expense

 

(12.1

)

(15.7

)

(11.5

)

(13.3

)

(52.6

)

Income from operations

 

$

171.0

 

$

172.5

 

$

200.3

 

$

119.9

 

$

663.7

 

 

The sum of the quarterly amounts may not equal the annual amounts reported due to rounding.

 

 -----END PRIVACY-ENHANCED MESSAGE-----