-----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, JtpixEHPgM068eSGyokrGrGnNu7AXDKt7fQ1QragSSJg240xVN+lNDwjALsWzA2/ kLbqH8TyIpRGzUr36DkAig== 0000899647-02-000004.txt : 20020414 0000899647-02-000004.hdr.sgml : 20020414 ACCESSION NUMBER: 0000899647-02-000004 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20020212 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20020212 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: 1934 Act SEC FILE NUMBER: 000-21430 FILM NUMBER: 02538382 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 rhc8k21202.txt RHC8K021202 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): February 12, 2002 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 February 12, 2002, Riviera Holdings Corporation announced through a press release its fourth 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 February 12, 2002 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: February 12, 2002 RIVIERA HOLDINGS CORPORATION By: /s/ Duane Krohn Treasurer and CFO EXHIBIT INDEX Exhibit Number Description 99 Press Release dated February 12, 2002, announcing Riviera Holdings Corporation fourth quarter, 2001, financial results. EX-99 3 rhcpr21202.txt RHC PRESS RELEASE 021202 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 FOURTH QUARTER 2001 RESULTS LAS VEGAS, NV - February 12, 2002 -- Riviera Holdings Corporation (AMEX: RIV) today reported financial results for the fourth quarter of 2001. Net revenues for the quarter were $44.0 million, down from net revenues of $49.5 million in the fourth quarter of 2000. Income from operations for the quarter was $2.2 million down $1.3 million from the fourth quarter of 2000. EBITDA (Earnings Before Interest, Income Taxes, Depreciation, Amortization, pre-opening expenses, and other income and expense, net) for the quarter was $6.5 million down $1.6 million from the fourth quarter of 2000. The net loss was ($3.2) million or ($0.92) per share compared to a net loss of ($2.0) million or ($0.53) per share in the fourth quarter of 2000. For the year ended December 31, 2001, net revenues were $202.0 million, comparable to net revenues of $201.5 million in 2000. Income from operations for the year ended December 31, 2001 was $17.0 million compared to $16.9 million for 2000. Income from operations at Riviera Black Hawk for 2001 was $9 million and exceeded Riviera Las Vegas by $1.0 million. EBITDA for the year ended December 31, 2001 was $34.2 million, down $1.7 million or 4.8 percent compared to EBITDA of $35.9 million for 2000. The net loss increased from ($4.2) million or ($1.05) per share in 2000 to ($6.4) million or ($1.79) per share in the year ended December 31, 2001. Riviera Holdings Corporation had cash and short-term investments of $46.6 million, working capital of $21.3 million and shareholders' equity of $9.0 million at December 31, 2001. Fourth Quarter 2001 Highlights - - Riviera Black Hawk contributed $3.7 million in EBITDA, an increase of $1.8 million from the fourth quarter of 2000 - - The September 11 terrorist attacks, the slowing of the national economy and rising marketing costs resulted in a $3.4 million decrease in Riviera Las Vegas EBITDA - - Riviera Las Vegas occupancy decreased from 91.6 percent in the fourth quarter of 2000 to 78.4 percent in the fourth quarter of 2001 - - Riviera Las Vegas ADR (Average Daily Rate) increased $1.11 to $64.00 during the fourth quarter - - Cash and short-term investments totaled $46.6 million at December 31, 2001 - - Management explores other gaming venues to further expand revenue base Riviera Las Vegas Bob Vannucci, President of Riviera Las Vegas, said, "Net revenues in Las Vegas were down $8.5 million or 21.4 percent for the quarter across all departments. For the quarter, the average daily rate increased $1.11 to $64.00, however, occupancy decreased 13.2 percent to 78.4 percent. Slot machine coin-in or volume decreased 17 percent for the quarter and win decreased a corresponding 15.5 percent. Our margins in Las Vegas were pressured by the slow down in the economy even before the September 11 terrorist attack. We are spending more marketing dollars to increase demand and we believe we will have to continue to focus on our incentive programs through the rest of the year and into 2003. "The booking window for most of our business segments is 60 to 120 days out. As a result, the period after September 11 resulted in significantly lower bookings for November and December 2001. Our customers arrive primarily by air, as our southern California base is less than 15 percent of our occupancy. Our primary focus before September 11 was on customers living in the eastern United States. We increased our gaming marketing expenditures to protect and to continue to grow our loyal slot customer base. We increased our room marketing efforts to concentrate on customers in the western United States, and we believe these efforts will be successful beginning in February 2002, based on the pace of advance bookings. Call volumes, booking patterns and occupancy began to normalize in mid January. We had an excellent Super Bowl and expect occupancy increases for February and March. Although we see recovery on the weekends, the midweek occupancy rates vary significantly from day to day primarily due to competitive pressures," said Mr. Vannucci. Riviera Black Hawk Ron Johnson, President of Riviera Black Hawk, said, "Fourth quarter 2001 revenues for Riviera Black Hawk were $12.6 million, $3.0 million higher than fourth quarter 2000 revenues. Since Riviera Black Hawk serves primarily a local market, the terrorist attacks of September 11 did not significantly affect our quarterly performance. Fourth quarter EBITDA was a record $3.7 million, up $1.8 million from last year's fourth quarter. EBITDA margin for the fourth quarter was 29.4 percent. "Our share of the Black Hawk slot market has been increasing steadily from 9.7 percent for the 11 months the casino was open in 2000, to 11.4 percent for the 12 months of 2001. Gains in market share have also contributed to improvements in operating margins. EBITDA margins increased from 18.7 percent for the 11 months in 2000 to 25.9 percent in the 12 months ending December 31, 2001. "Black Hawk Casino by Hyatt opened in December 2001 helping to increase the Black Hawk market gaming revenue by 17.2 percent over December 2000. The December increase was the largest monthly increase in 2001 over the previous year. Gaming revenue in December, historically one of the slowest months of the year, was the fifth highest in the Black Hawk market history. Riviera Black Hawk gaming revenue continued to grow in December 2001, up 11.9 percent over December 2000. "We continue to refine our marketing efforts. We are attempting to strike a balance between player incentives, gaming product, food offerings and entertainment as our primary marketing programs. We are particularly impressed with the popularity of our remodeled buffet and the impact it is having on casino traffic and play," said Mr. Johnson. William L. Westerman, Chairman of the Board and CEO, said, "The importance of diversifying our earnings base through our investment in Black Hawk was substantiated by 2001's results. Before the events of September 11th, the increase in Black Hawk's EBITDA was offsetting declines in Las Vegas attributable to the stagnant economy and competitive pressures. Black Hawk's increase in EBITDA of almost 100 percent ameliorated Las Vegas' precipitous drop in the fourth quarter. "We continue to explore projects that would further diversify our holdings. We recently filed a proposal with Jefferson County, Missouri, seeking their endorsement for a casino/hotel development project to be located approximately 22 miles south of downtown St. Louis. If we gain the support of the Jefferson County Commission, we will file a formal application with the Missouri Gaming Commission. State gaming regulators have indicated, however, that the site selection process would not begin again until late summer or early fall of 2002. "I personally want to commend Bob Vannucci and the Las Vegas team for their cost-cutting efforts in Las Vegas, which minimized the effect of the slump in revenues, especially in our most profitable departments. I regret that it was necessary to reduce our staff in response to the decline in business and look forward to bringing our laid off employees back to full time status," said Mr. Westerman. 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 December 31 ($ in 000's except per share data) Fourth Quarter Year Ended ---------------- ------------ 2001 2000 2001 2000 ---- ---- ---- ---- Net Revenues: Riviera Las Vegas $31,351 $39,898 $152,985 $166,037 Riviera Black Hawk 12,608 9,592 49,046 35,262 Riviera Gaming Management - - - 232 Total Net Revenues 43,959 49,490 202,031 201,531 Income (loss) from Operations: Riviera Las Vegas (138) 2,596 7,996 14,353 Riviera Black Hawk 2,371 921 8,976 2,438 Riviera Gaming Management - - (1) 88 Total Income from Operations 2,233 3,517 16,971 16,879 EBITDA(1): Riviera Las Vegas 2,833 6,234 21,493 29,243 Riviera Black Hawk 3,713 1,867 12,722 6,597 Riviera Gaming Management - - (1) 88 Total EBITDA 6,546 8,101 34,214 35,928 EBITDA Margin: Riviera Las Vegas 9.0% 15.6% 14.0% 17.6% Riviera Black Hawk 29.4% 19.5% 25.9% 18.7% Riviera Gaming Management 37.9% Total EBITDA Margin 14.9% 16.4% 16.9% 17.8% Net Loss ($3,179) ($1,981) ($6,407) ($4,215) Weighted average basic and diluted shares outstanding 3,437 3,768 3,573 4,013 Basic and diluted earnings per share ($0.92) ($0.53) ($1.79) ($1.05)
Balance Sheet Summary ($ in 000's) Dec 31, Dec 31, 2001 2000 Cash and short term investments $46,606 $52,174 Total current assets 55,470 65,663 Property and equipment, net 200,531 207,030 Total assets 267,818 283,710 Total current liabilities 34,175 37,060 Long-term debt, net of current portion 217,288 223,172 Total shareholders' equity 8,964 16,945
1 EBITDA consists of earnings before interest, income taxes, depreciation, amortization, preopening expenses, and Other, net. While EBITDA should not be construed as a substitute for operating income or a better indicator of Liquidity than cash flow from operating activities, which are determined in accordance with generally accepted accounting principles (`GAAP"), it is included in herein to provide additional information with respect to the ability of the Company to meet its future debt service, capital expenditures and working capital requirements. Although EBITDA is not necessarily a measure of the Company's ability to fund its cash needs, management believes that certain investors find EBITDA to be a useful tool for measuring the ability of the Company to service its debt. EBITDA margin is EBITDA as a percent of net revenues. The Company's definition of EBITDA may not be comparable to other companies' definitions.
RIVIERA HOLDINGS CORPORATION Condensed Consolidated Statements of Operations Three Months Ended Year Ended December 31, December 31, -------------------------------------------------- (In thousands, except per share amounts) 2001 2000 2001 2000 -------------------------------------------------- Casino $ 25,846 $ 26,352 $114,039 $107,692 Rooms 9,797 11,405 44,255 43,820 Food and beverage 7,032 7,078 31,256 30,756 Entertainment 3,445 5,955 20,692 24,526 Other 1,981 2,549 9,119 10,538 --------------------------------------------------- Total 48,101 53,339 219,361 217,332 -------------------------------------------------- Less promotional allowances 4,142 3,849 17,330 15,801 --------------------------------------------------- Net revenues 43,959 49,490 202,031 201,531 -------------------------------------------------- COSTS AND EXPENSES: Direct costs and expenses of operating departments: Casino 14,275 14,472 62,845 57,647 Rooms 5,191 5,739 23,339 23,364 Food and beverage 4,798 5,240 21,426 21,432 Entertainment 2,589 4,643 14,900 18,959 Other 648 730 3,068 3,146 Other operating expenses: General and administrative 9,912 10,565 42,239 41,055 Preopening Expenses - Riviera Black Hawk - - - 1,222 Depreciation and amortization 4,313 4,584 17,243 17,827 -------------------------------------------------- Total costs and expenses 41,726 45,973 185,060 184,652 -------------------------------------------------- INCOME FROM OPERATIONS 2,233 3,517 16,971 16,879 -------------------------------------------------- OTHER INCOME (EXPENSE): Interest expense (6,685) (7,041) (26,864) (27,805) Interest income 212 508 1,274 2,429 Interest capitalized - - 616 Other, net (5) 21 (28) 1,171 --------------------------------------------------- Total other income (expense) (6,478) (6,512) (25,618) (23,589) -------------------------------------------------- LOSS BEFORE BENEFIT FOR TAXES (4,245) (2,995) (8,647) (6,710) -------------------------------------------------- BENEFIT FOR INCOME TAXES (1,066) (1,014) (2,240) (2,495) -------------------------------------------------- NET LOSS $ (3,179) $ (1,981) $ (6,407) $ (4,215) ================================================== LOSS PER SHARE DATA: Loss per share, basic and diluted $ (0.92) $ (0.53) $ (1.79) $ (1.05) ================================================== Weighted average common shares outstanding, basic and diluted 3,437 3,768 3,573 4,013 --------------------------------------------------
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