-----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, MGKr59U/1Hqjv81gAuzWgxGXQG4OSNH3kEBT8oq3DzGXgvLLVrEUKy+vElUtlTqd mE4+nlo7KTbNoU002Nh+3Q== 0000083394-01-000002.txt : 20010213 0000083394-01-000002.hdr.sgml : 20010213 ACCESSION NUMBER: 0000083394-01-000002 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010206 FILED AS OF DATE: 20010212 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SUN INTERNATIONAL HOTELS LTD CENTRAL INDEX KEY: 0000914444 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MISCELLANEOUS AMUSEMENT & RECREATION [7990] IRS NUMBER: 980136554 STATE OF INCORPORATION: C5 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: SEC FILE NUMBER: 001-04226 FILM NUMBER: 1533195 BUSINESS ADDRESS: STREET 1: 1415 EAST SUNRISE BLVD STREET 2: 10TH FLOOR CITY: FORT LAUDERDALE STATE: FL ZIP: 33304 BUSINESS PHONE: 9547132500 MAIL ADDRESS: STREET 1: 1414 EAST SUNRISE BLVD STREET 2: CORAL TOWERS CITY: FORT LAUDERDALE STATE: FL ZIP: 33304 6-K 1 0001.txt PRESS RELEASE 4TH QUARTER EARNINGS FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 REPORT OF FOREIGN ISSUER PURSUANT TO RULE 13a-16 or 15d-16 under the securities exchange act of 1934 For the month of February 2001 SUN INTERNATIONAL HOTELS LIMITED -------------------------------- (Translation of registrant's name into English) Coral Towers, Paradise Island, The Bahamas ------------------------------------------ (address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F X Form 40-F ---------- ---------- Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes No X ---------- ---------- If "yes" is marked, indicate below this file number assigned to the registrant in connection with Rule 12g-3-2(b): N/A Page 1 of 8 Exhibit Index is on Page 3 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, thereunto duly authorized. Date: February 6, 2001 SUN INTERNATIONAL HOTELS LIMITED By: /s/Charles D. Adamo Name: Charles D. Adamo Title: Executive Vice President Corporate Development & General Counsel EXHIBIT LIST Exhibit Description Page No. - ------- ----------- -------- 1. Press Release dated 2/6/01 Fourth Quarter Earnings ..............................4 2. Sun International Hotels Limited Condensed Consolidated Statements of Operations ......7 3. Sun International Hotels Limited Summary Segment Data .................................8 Sun International FROM: Sun International The Bahamas Contact: John Allison Tel: 1.242.363.6016 FOR IMMEDIATE RELEASE - -------------------------------------------------------------------------------- SUN INTERNATIONAL ANNOUNCES FOURTH QUARTER EARNINGS PARADISE ISLAND, The Bahamas, February 6, 2001 - Sun International Hotels Limited (NYSE: SIH) reported net income for the fourth quarter of $3.8 million, excluding the effects of the $229.2 million write down of the investment in Resorts Atlantic City to its realizable value, pre-opening costs and sales of real estate at its Paradise Island operations. Earnings in the quarter compared to $11.3 million in the same period last year. The pre-opening costs related to the expansion of the Company's deluxe Ocean Club hotel on Paradise Island and the new Ocean Club Golf Course. Earnings per share for the period, excluding these non-recurring items, were $0.14 compared to $0.34 for the same period last year. Including the non-recurring items referred to above, the Company generated a net loss for the fourth quarter of $229.3 million, compared to net income of $11.3 million for the same period last year. The reduction in operating earnings for the quarter was due mainly to a lower contribution from Atlantis (which had benefited from a $12.0 million insurance recovery in the fourth quarter of 1999) and a lower contribution from the Mohegan Sun Casino, partially offset by an improved performance from Resorts Atlantic City. Interest income also declined during the quarter, due to the repayment in December 1999 by the Mohegan Tribe of $94.1 million of Subordinated Notes held by the Company. Paradise Island The Company's flagship Paradise Island operations generated EBITDA of $20.7 million, compared to $28.9 million during the same period last year that had included a $12.0 million insurance recovery. Atlantis achieved an average occupancy of 73% for the quarter and recorded an average room rate of $227, an increase in average rate of 11% over the same period last year. During the quarter, Atlantis' 423-room Beach Tower was fully refurbished and reopened prior to the Christmas holiday season. The Ocean Club, the Company's high-end boutique hotel on Paradise Island, achieved an average occupancy of 61% for the quarter at an average rate of $479. The expansion of the hotel included the addition of 50 luxurious rooms including 10 deluxe suites, as well as a new beachfront restaurant, Dune, operated by well-known restaurateur Jean-Georges and opened on schedule early in October 2000. The new Ocean Club Golf Course, by Tom Weiskopf, hosted the PGA "Father and Son" golf tournament in December 2000 and the Michael Jordan Celebrity Classic in January 2001. Extensive publicity for the Company's Paradise Island facilities was achieved by the televising of both events in the United States by the NBC network. Atlantic City Resorts Atlantic City generated EBITDA of $3.1 million for the quarter, compared to $0.9 million for the same period last year. Gaming revenues for the quarter of $53.2 million were approximately 2% ahead of the same quarter of last year, despite a severe winter storm that hurt all Atlantic City casinos over the last two days of the quarter. The improvement in gaming revenues year-on-year was achieved despite a decline of 1% in Atlantic City's aggregate gaming revenues. Slots revenues continued to show improvement compared to the same period last year, with growth of approximately 7% compared to an industry growth of 1%. Table revenues declined by 10%, primarily due to a reduction in the average hold percentage to 14.2% from 15.3% in last year's fourth quarter. During December 2000, a new bus customer center was opened, with improved facilities for this important customer segment. Connecticut The Mohegan Sun Casino generated gross operating revenues of $202.3 million, a 6% increase over the same period last year. The Company's share of Mohegan Sun income was $4.7 million for the quarter compared to $8.9 million in the prior year. Through December 31, 1999, the Mohegan Sun Casino was managed by Trading Cove Associates. In exchange for relinquishing its rights under its then existing agreements, effective January 1, 2000, Trading Cove Associates began to receive payments of 5% of gross revenues of the Mohegan Sun. These relinquishment payments are currently contributing less income than was previously earned under the prior management contracts. However, the relinquishment payments continue for a period of 15 years, whereas the management contract was to expire in 2003. The property is currently on track with its budgeted $960 million expansion, which will include 115,000 additional square feet of gaming space, a 1,200-room luxury hotel, a 100,000-square foot convention center, a 10,000-seat events center and additional retail and restaurant facilities. It is anticipated that the new casino will open in the fall of 2001 with the hotel opening in the spring of 2002. The relinquishment payments will be based on gross revenues of the expanded Mohegan Sun complex. Other Matters During the third quarter of 2000, the Company entered into a definitive agreement to sell its Resorts Atlantic City to an affiliate of Colony Capital LLC for a purchase price of $140 million, such purchase price to accrue interest at an annual rate of 6% until closing. In addition, Colony has a two-year option to acquire the undeveloped real estate adjacent to Resorts Atlantic City for a purchase price of $40 million, which option can be extended for an additional two years under certain circumstances. The sale is subject to certain customary conditions, including approval by the New Jersey Casino Control Commission, and is also subject to Colony receiving certain financing in order to consummate the transaction. The parties still expect to close the transaction during the first quarter of 2001. As a result of entering into the agreement to sell Resorts Atlantic City, the company has written down its investment and taken a loss of $229.2 million for the quarter. Inquiries should be directed to John Allison, Executive Vice President - Chief Financial Officer of Sun International Hotels Limited at 1.242.363.6016 This press release contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. (Condensed Consolidated Statements of Operations and Summary Segment Data are attached) Sun International Hotels Limited Condensed Consolidated Statements of Operations (In Thousands of Dollars Except Per Share Data)
For the Three Months For the Twelve Months Ended December 31, Ended December 31, ---------------------- ---------------------- (Unaudited) 2000 1999 2000 1999 --------- --------- --------- --------- Revenues: Casino and resort revenues $ 169,867 $ 157,006 $ 755,866 $ 696,517 Less: promotional allowances (11,313) (12,263) (51,779) (50,240) --------- --------- --------- --------- 158,554 144,743 704,087 646,277 Tour operations 9,208 7,130 33,192 28,714 Management and other fees 11,062 13,118 35,763 46,898 Real estate related 3,146 -- 108,650 -- Insurance recovery -- 12,009 -- 14,209 Other 772 728 3,003 2,869 --------- --------- --------- --------- 182,742 177,728 884,695 738,967 --------- --------- --------- --------- Expenses: Casino and resort expenses 110,578 102,513 453,573 423,869 Tour operations 8,182 6,375 29,626 27,816 Selling, general and administrative 25,406 26,171 103,465 89,593 Real estate related 1,533 -- 32,272 -- Corporate expenses 6,704 5,054 25,340 20,629 Depreciation and amortization 15,889 14,297 60,223 57,230 Write-off of Desert Inn costs -- -- 11,202 -- Transactions costs -- -- 7,014 -- Pre-opening expenses 5,529 -- 7,616 5,398 Write Down of Assets to be Sold 229,208 -- 229,208 -- --------- --------- --------- --------- 403,029 154,410 959,539 624,535 --------- --------- --------- --------- Operating income (loss) (220,287) 23,318 (74,844) 114,432 Other income and expenses: Interest income 1,396 3,231 4,194 12,725 Interest expense, net of capitalization (11,997) (13,513) (45,678) (50,699) Equity in earnings of associated companies 2,458 928 4,225 2,628 Other, net 19 (805) (688) 60 --------- --------- --------- --------- Income (loss) before income taxes (228,411) 13,159 (112,791) 79,146 Provision for income taxes (877) (1,847) (6,313) (9,324) --------- --------- --------- --------- Net income (loss) $(229,288) $ 11,312 $(119,104) $ 69,822 ========= ========= ========= ========= Diluted earnings (loss) per share $ (8.30) $ 0.34 $ (3.86) $ 2.05 Weighted average number of shares outstanding (1) 27,638 33,170 30,850 34,005 (1) Includes the effect of outstanding stock options.
Sun International Hotels Limited Summary Segment Data (In Millions) (Unaudited)
For the Three For the Twelve Months Months Ended December 31, Ended December 31, -------------------- ------------------- 2000 1999 2000 1999 -------- -------- -------- -------- Paradise Island Operations Gross revenues (1) $105.7 $104.8 $472.6 $440.9 Casino 30.7 28.7 132.1 130.5 Hotel (2) 75.0 64.1 340.5 296.2 Insurance recovery - 12.0 - 14.2 EBITDA (3) $ 20.7 $ 28.9 $128.1 $133.2 Atlantis Occupancy rate 73% 74% 83% 81% Average room rate $ 227 $ 204 $ 242 $ 211 Resorts Atlantic City Gross revenues $ 64.1 $ 64.0 $283.2 $269.8 Casino 53.2 52.4 235.8 221.1 Hotel 10.9 11.6 47.4 48.7 EBITDA (4) $ 3.1 $ 0.9 $ 23.8 $ 16.3 (1) The three month and twelve month periods of 2000 exclude revenues of $3.1 million and $108.7 million, respectively, from Ocean Club Estates lot sales. (2) Excludes results of the Company's wholly owned tour operator. (3) The three month and twelve month periods of 2000 exclude a gain of $1.6 million and $76.4 million, respectively, from Ocean Club Estates lot sales; and exclude pre-opening expense of $5.5 million and $7.6 million, respectively. (4) The twelve month period of 1999 excludes pre-opening expense of $5.4 million.
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