Hard Rock Hotel & Casino in Las Vegas Reports 3rd Quarter Net
Revenues, EBITDA & Net Income LAS VEGAS, Oct. 27 /PRNewswire/
-- Hard Rock Hotel, Inc. ("Hard Rock"), which owns and operates the
Hard Rock Hotel & Casino in Las Vegas, Nevada, today reported
that 3rd quarter net revenues increased $3.5 million or 10% to
$37.2 million compared with $33.7 million in the year-earlier
three-month period. Earnings before interest, taxes, depreciation
and amortization and loss on early extinguishment of debt
("Adjusted EBITDA") (1), increased $1.9 million or 24% to $9.8
million compared with $7.9 million in the year-earlier period. Net
income remained consistent at $1.9 million. (Logo:
http://www.newscom.com/cgi-bin/prnh/20010507/HRHCLOGO ) Quarterly
net revenues improved due primarily to increased food and beverage
revenue and increased hotel revenue. Adjusted EBITDA increased due
to improvements in net operating profits in every department except
for retail, which remained constant. Peter Morton, Hard Rock's
Chairman of the Board and Chief Executive Officer, commenting on
the quarterly results stated, "Our record 3rd quarter Adjusted
EBITDA performance was also the 2nd highest of any quarter in the
Company's history. It was achieved through the implementation of
several new programs designed to stimulate revenues while
controlling costs in combination with the hard work of our
employees. The Company has never been in a better position both
financially and operationally." There will be a conference call
open to investors: Date: Wednesday, October 29, 2003 Time: 2:00
P.M. Eastern Daylight Time 11:00 A.M. Pacific Daylight Time Dial:
(888) 273-9885 Domestic only CONTACT: Jim Bowen of Hard Rock Hotel,
Inc., 702-693-5031 This press release contains certain
forward-looking statements, which Hard Rock is making in reliance
on the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Investors are cautioned that all
forward-looking statements are subject to significant risks and
uncertainties. Forward-looking statements involve known and unknown
risks, uncertainties and other factors that may cause the actual
results, performance, or achievements of Hard Rock, or industry
results, to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements. Additional information concerning risk
factors that could cause actual results or events to differ
materially from those projected in the forward-looking statements
are contained in Hard Rock's filings with the Securities and
Exchange Commission. HARD ROCK HOTEL, INC. (in thousands, except
share and per share amounts) (unaudited) Three Months Ended Nine
Months Ended September 30, September 30, 2003 2002 2003 2002
Revenue: Casino $15,225 $15,217 $43,272 $42,363 Lodging 8,015 6,833
23,111 20,655 Food and beverage 12,406 10,212 35,804 31,830 Retail
2,256 2,219 6,492 6,844 Other income 2,123 1,987 5,810 5,603 Gross
revenues 40,025 36,468 114,489 107,295 Less: complimentaries
(2,787) (2,736) (8,392) (8,099) Net revenues 37,238 33,732 106,097
99,196 Costs and expenses: Casino 8,281 8,503 25,030 24,767 Lodging
1,981 1,856 5,765 5,373 Food and beverage 6,474 5,568 18,576 16,155
Retail 958 925 2,819 2,923 Other 1,076 1,032 2,957 2,950 Marketing
2,314 2,265 5,551 5,862 Related party expenses 1,071 1,001 3,276
2,779 General and administrative 5,293 4,539 14,691 12,730
Pre-opening expense 37 100 60 100 Total costs and expenses 27,485
25,789 78,725 73,639 Earnings before interest, taxes, depreciation
and amortization and loss on early extinguishment of debt
("Adjusted EBITDA") 9,753 7,943 27,372 25,557 Depreciation and
amortization 2,990 2,826 8,766 8,483 Interest expense, net 4,928
3,242 11,947 9,902 Loss on early extinguishment of debt -- -- 4,258
-- Income tax (benefit) provision -- -- (100) -- Other (income)
expense, net (53) (4) (20) 40 Net Income 1,888 1,879 2,521 7,132
Preferred stock dividends -- 1,386 2,346 4,029 Income applicable to
common shareholders $1,888 $493 $175 $3,103 BASIC AND DILUTED NET
INCOME PER SHARE Applicable to common shareholders $24.83 $6.48
$2.30 $40.82 Weighted average number of common shares outstanding
76,023 76,023 76,023 76,023 Reconciliation of Net Income to
Adjusted EBITDA (1) (in thousands) (unaudited) Three Months Ended
Nine Months Ended September 30, September 30, 2003 2002 2003 2002
Net Income (Loss) $1,888 $1,879 $2,521 $7,132 Depreciation and
amortization 2,990 2,826 8,766 8,483 Interest expense, net 4,928
3,242 11,947 9,902 Loss on early extinguishments of debt -- --
4,258 -- Income tax (benefit) provision -- -- (100) -- Other
(income) expense, net (53) (4) (20) 40 Earnings before interest,
taxes, depreciation and amortization and loss on early
extinguishments of debt ("Adjusted EBITDA") $9,753 $7,943 $27,372
$25,557 (1)Adjusted EBITDA consists of earnings before interest,
taxes, depreciation and amortization and loss on early
extinguishment of debt, as applicable. Adjusted EBITDA is presented
solely as a supplemental disclosure because management believes
that it is 1) a widely used measure of operating performance in the
gaming industry, and 2) a principal basis for valuation of gaming
companies. Adjusted EBITDA should not be construed as an
alternative to operating income, as an indicator of the Company's
operating performance, or as an alternative to cash flows from
operating activities, as a measure of liquidity, or as any other
measure determined in accordance with generally accepted accounting
principles. The Company has significant uses of cash flows,
including capital expenditures, interest payments and debt
principal repayments, which are not reflected in Adjusted EBITDA.
Also, other gaming companies that report Adjusted EBITDA
information may calculate Adjusted EBITDA in a different manner
than the Company.
http://www.newscom.com/cgi-bin/prnh/20010507/HRHCLOGO
http://photoarchive.ap.org/ DATASOURCE: Hard Rock Hotel, Inc.
CONTACT: Jim Bowen of Hard Rock Hotel, Inc., +1-702-693-5031 Web
site: http://www.hardrockhotel.com/
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