-----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, FfnYIwTFsSpVBK3uhh3qNhmqd9qaDu2cALirKIlkouhKB6KODt0K5yI7muBUAjvy 3PRn7suHxRQYOPf7KfBcMQ== 0000899647-01-500008.txt : 20010726 0000899647-01-500008.hdr.sgml : 20010726 ACCESSION NUMBER: 0000899647-01-500008 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20010724 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20010725 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RIVIERA HOLDINGS CORP CENTRAL INDEX KEY: 0000899647 STANDARD INDUSTRIAL CLASSIFICATION: HOTELS & MOTELS [7011] IRS NUMBER: 880296885 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-21430 FILM NUMBER: 1688416 BUSINESS ADDRESS: STREET 1: 2901 LAS VEGAS BLVD SOUTH CITY: LAS VEGAS STATE: NV ZIP: 89109 BUSINESS PHONE: 7027345110 MAIL ADDRESS: STREET 1: 2901 LAS VEGAS BLVD S CITY: LAS VEGAS STATE: NV ZIP: 89109 8-K 1 rhc8k_072401.txt RIVIERA HOLDINGS CORP 8K 072401 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934 Date of Report (Date of earliest event reported): July 24, 2001 RIVIERA HOLDINGS CORPORATION (exact name of registrant as specified in its charter) Nevada 000-21430 88-0296885 (State of (Commission (IRS Employer Incorporation) File Number) Identification No.) 2901 Las Vegas Boulevard Las Vegas, Nevada 89109 (Address of principal office) (Zip code) Registrant's Telephone number, (702) 794-9527 including area code Item 5. Other Events On July 24, 2001,Riviera Holdings Corporation (RHC) released its second quarter, 2001 financial results. A copy of the press release disclosing those results is filed as an exhibit hereto. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits (a) Not Applicable (b) Not Applicable (c) Exhibits Exhibit 99 Press Release dated July 24, 2001, announcing RHC second quarter, 2001, financial results. SIGNATURE Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: July 24, 2001 RIVIERA HOLDINGS CORPORATION By: /s/ Duane Krohn Treasurer and CFO EXHIBIT INDEX Exhibit Number Description 99 Press Release dated July 24, 2001, announcing RHC second quarter, 2001, financial results. EX-99 2 rhcpr_072401.txt RIVIERA HOLDINGS PRESS RELEASE 7/24/01 Riviera Holdings Corporation 2901 Las Vegas Boulevard South Las Vegas, NV 89109 Investor Relations: (800) 362-1460 TRADED: AMEX RIV www.theriviera.com FOR FURTHER INFORMATION: AT THE COMPANY: INVESTOR RELATIONS CONTACT: Duane Krohn, Treasurer and CFO Betsy Truax, Skorpus Consulting (702) 794-9527 Voice (208) 241-3704 Voice (702) 794-9442 Fax (208) 232-5317 Fax Email: dkrohn@theriviera.com Email: etruax@aol.com FOR IMMEDIATE RELEASE: RIVIERA REPORTS SECOND QUARTER 2001 RESULTS LAS VEGAS, NV July 24, 2001 -- Riviera Holdings Corporation (AMEX: RIV) today reported financial results for the second quarter of 2001. Net revenues for the quarter were $54.8 million, up 2.6 percent from net revenues of $53.4 million in the second quarter of 2000. EBITDA (Earnings Before Interest, Income Taxes, Depreciation, Amortization, pre-opening expenses, and other income and expense, net) for the quarter was $10.6 million, up 6.5 percent from EBITDA of $9.9 million in the second quarter of 2000. The net loss was $(70,000) or $(0.02) per share compared to a net loss of $(553,000) or $(0.14) per share in the second quarter of 2000. For the first half of 2001, net revenues were $107.0 million, up 4.3 percent from net revenues of $102.6 million in the first half of 2000. EBITDA for the first half was $20.3 million, down 2.5 percent from EBITDA of $20.8 million in the first half of 2000. Net income decreased from $122,000 or $0.03 per share in the first six months of 2000 to a loss of ($728,000) or ($0.20) per share in the first half of 2001. Riviera Holdings Corporation had cash and short-term investments of $50 million, working capital of $27 million and shareholders' equity of $16 million at June 30, 2001. Second Quarter 2001 Highlights - - Riviera Black Hawk contributed $2.8 million in EBITDA, an increase of 430 percent from the second quarter of 2000 and up 11 percent from the first quarter of 2001 - - Rising marketing costs, the slowing of the national economy and competition for show entertainment resulted in a $1.7 million decrease in Riviera Las Vegas EBITDA to $7.8 million - - Riviera Las Vegas ADR (Average Daily Rate) and occupancy increased slightly during the second quarter - - Cash and short-term investments totaled $50 million William L. Westerman, Chairman of the Board and CEO, said, Riviera Black Hawks increased contribution to EBITDA of $2.3 million over the prior year and $276,000 over the first quarter of 2001 is very encouraging. Our efforts in Black Hawk and our understanding of that market are paying off as Riviera Black Hawk s operating performance continues to post improved results on a quarterly basis. At Riviera Las Vegas, EBITDA was adversely affected by increased energy costs and the general softness of the economy, which reduced the average expenditure by customers visiting Las Vegas. However, the fact that we were able to increase both consolidated EBITDA and net income for the second quarter through Black Hawks contribution to earnings emphasizes how important it was for us to diversify our earnings base. Riviera Las Vegas Bob Vannucci, President of Riviera Las Vegas, said, Net revenues in Las Vegas were down $1.9 million or 4.3 percent for the quarter. EBITDA decreased $1.7 million or 17.8 percent compared to the same quarter in 2000. Revenue decreases were attributable to a soft economy and to increased competition from 30 additional shows on the Las Vegas Strip this year alone. Revenues were down in all departments except rooms, which increased $150,000, or 1.3 percent. ADR was up slightly for the quarter, while occupancy continues at an above Strip average of approximately 98.5 percent. Second quarter rooms occupied by conventions were comparable to 2000 at 34 percent of occupied room nights. Marketing expenses increased sharply for the quarter due to start up costs of new programs. We increased our slot room blocks, adjusted slot comp criteria back to last years requirements, added new direct mail and telemarketing programs, and scheduled more special events. Energy costs, net of the surcharge established in March of 2001 increased by $172,000 in the second quarter and $718,000 in the first six months of 2001 over the comparable periods in 2000. Now that most of the major Las Vegas properties have adopted surcharges, we believe we will encounter less resistance from hotel guests to our surcharge. Additionally, we are investing over $1.2 million in various energy conservation projects. These projects, which will be completed in the third quarter of 2001, will ameliorate the adverse effect of increased natural gas and electricity rates at Riviera Las Vegas. Overall, we believe we have taken the necessary steps to adjust our business according to current market conditions, and to ensure that we continue to maximize the strengths of Riviera Las Vegas in order to offer our customers a level of service and value that is important to them, said Mr. Vannucci. Riviera Black Hawk Ron Johnson, President of Riviera Black Hawk, said, Second quarter 2001 revenues for Riviera Black Hawk were $12.0 million, $3.4 million higher than second quarter 2000 revenues. Second quarter EBITDA, before management fees, was $2.8 million, up $2.3 million from last year's second quarter. Continuing the trend we have seen over the past three quarters, Riviera Black Hawk revenues in the second quarter of 2001 were up $1.0 million or 9.3 percent over the first quarter of 2001, and EBITDA, before management fees, was up $276,000 or 10.9 percent over the first quarter of 2001. Our fair share (win per gaming device per day) of the Black Hawk gaming market has increased steadily from 84 percent for the 11 months the casino was open in 2000 to 94 percent in the first quarter of 2001 and 101 percent in the second quarter of 2001. Gains in market share have also contributed to improvements in operating margins. EBITDA margins before management fees increased from 16.6 percent for the 11 months in 2000 to 23.2 percent in the first quarter of 2001 and 23.5 percent in the second quarter of 2001. We continue to refine our direct mail marketing programs to our expanding player base. Our targeted programs have resulted in higher response rates, which in turn have improved the cost effectiveness of our marketing efforts, said Mr. Johnson. Safe Harbor Statement: The forward-looking statements included in this news release, which reflect management's best judgment based on factors currently known, involve risks and uncertainties including expansion timetables, hotel and casino market conditions and other risks detailed from time to time in the Company's SEC reports, including the Report on Form 10-K for December 31, 2000. Actual results may differ. About Riviera Holdings: Riviera Holdings Corporation owns and operates the Riviera Hotel and Casino on the Las Vegas Strip and the Riviera Black Hawk Casino in Black Hawk, Colorado. Riviera is traded on the American Stock Exchange under the symbol RIV. --Tables Follow--
Riviera Holdings Corporation Financial Summary Periods Ended June 30 ($ in 000s except per share data) Second Quarter Six Months Ended 2001 2000 2001 2000 Net Revenues: Riviera Las Vegas $42,838 $44,771 $84,068 $86,255 Riviera Black Hawk 11,990 8,574 22,960 16,176 Riviera Gaming Management 0 99 0 202 Total Net Revenues 54,828 53,444 107,028 102,633 EBITDA: Riviera Las Vegas 7,750 9,432 14,912 17,032 Riviera Black Hawk 2,819 529 5,362 3,706 Riviera Gaming Management 0 (39) (2) 57 Total EBITDA 10,569 9,922 20,272 20,795 EBITDA Margin: Riviera Las Vegas 18.1% 21.1% 17.7% 19.7% Riviera Black Hawk 23.5% 6.2% 23.3% 22.9% Riviera Gaming Management 0 -39.4% 0 28.2% Total EBITDA 19.3% 18.6% 18.9% 20.3% Net Income (Loss) $(70) $(553) $(728) $122 Weighted Average Diluted Shares Outstanding 3,668 3,933 3,670 4,031 Net Income (Loss) Per Share $(0.02) $(0.14) $(0.20) $0.03
Balance Sheet Summary ($ in 000s) Jun 30, Dec 31, 2001 2000 Cash and short term investments $49,530 $52,174 Total current assets 60,014 65,663 Property and equipment, net 204,672 207,030 Total assets 275,317 283,710 Total current liabilities 32,715 37,060 Long-term debt, net of current portion 219,319 223,172 Total shareholders equity 16,131 16,945
RIVIERA HOLDINGS CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands except per share amounts) Three Months Ended Six Months Ended June 30, June 30, 2001 2000 2001 2000 --------------------------- ---------------------------- Casino $ 31,045 $ 28,632 $ 58,314 $ 4,431 Rooms 11,736 11,580 24,471 22,553 Food and beverage 8,493 8,659 16,410 16,048 Entertainment 5,864 6,282 11,763 12,563 Other 2,500 2,812 4,928 5,417 -------------------------------------------------------- Total 59,638 57,965 115,886 111,012 Less promotional allowances 4,810 4,521 8,858 8,379 --------------------------- ---------------------------- Net revenues 54,828 53,444 107,028 102,633 --------------------------- ---------------------------- COSTS AND EXPENSES: Direct costs and expenses of operating departments: Casino 16,790 15,456 32,111 28,335 Rooms 6,242 6,229 12,228 11,856 Food and beverage 5,690 5,635 11,002 10,795 Entertainment 4,126 4,976 8,386 9,584 Other 854 861 1,609 1,584 Other operating expenses: General and administrative 10,557 10,365 21,420 19,684 Preopening Expenses Riviera Black Hawk 0 0 0 1,222 Depreciation and amortization 4,287 4,353 8,546 8,642 --------------------------- ---------------------------- Total costs and expenses 48,546 47,875 95,302 91,702 --------------------------- ---------------------------- INCOME FROM OPERATIONS 6,282 5,569 11,726 10,931 --------------------------- ---------------------------- OTHER INCOME (EXPENSE): Interest expense (6,747) (7,340) (13,531) (13,844) Interest income 368 660 753 1,133 Interest capitalized 0 0 0 616 Other, net (27) 60 (31) 1,189 --------------------------- ---------------------------- Total other income (expense) (6,406) (6,620) (12,809) (10,906) --------------------------- ---------------------------- INCOME (LOSS) BEFORE TAXES (124) (1,051) (1,083) 25 --------------------------- ---------------------------- PROVISION (BENEFIT) FOR INCOME TAXES (54) (498) (355) (97) --------------------------- ---------------------------- NET INCOME (LOSS) $ (70) $ (553) $ (728) $ 122 =========================== ============================ EARNINGS PER SHARE DATA: Weighted average common shares outstanding 3,668 3,933 3,670 3,675 Basic earnings per share $ (0.02) $ (0.14) $ (0.20) $ 0.03 =========================== ============================
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