-----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, P9anhfBYClcvg9fDZJs3PIRw7bzFN0Vs5mgGTglrPoJJrv0XuZAn8D235dC9zzhb SYDP6C//MYjtAZRZCGi9oQ== 0000899647-02-000009.txt : 20020422 0000899647-02-000009.hdr.sgml : 20020422 ACCESSION NUMBER: 0000899647-02-000009 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20020422 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20020422 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: 02617536 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 rhc8k042202.txt RHC PRESS RELEASE 04/22/02 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): April 22, 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 April 22, 2002 Riviera Holdings Corporation (RHC) released its first quarter, 2002 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 April 22, 2002, announcing RHC first quarter, 2002, 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: April 22, 2002 RIVIERA HOLDINGS CORPORATION By: /s/ Duane Krohn Treasurer and CFO EXHIBIT INDEX Exhibit Number Description 99 Press Release dated April 22, 2002, announcing RHC first quarter, 2002, financial results. EX-99 3 rhcpr_042202.txt PRESS RELEASE 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 FIRST QUARTER 2002 RESULTS LAS VEGAS, NV - April 22, 2002 -- Riviera Holdings Corporation (AMEX: RIV) today reported financial results for the first quarter of 2002. Net revenues for the quarter were $46.5 million, down 11.0 percent from net revenues of $52.2 million in the first quarter of 2001. Income from operations for the quarter was $3.7 million down $1.8 million from the first quarter of 2001. EBITDA (Earnings Before Interest, income Taxes, Depreciation, Amortization and other income and expense, net) for the quarter was $8.2 million, down 15.7 percent from EBITDA of $9.7 million in the first quarter of 2001. The net loss was ($2.8 million) or ($0.82) cents per share compared to a net loss of ($658,000) or ($0.18) cents per share in the first quarter of 2001. Riviera Holdings Corporation had cash and short-term investments of $41.5 million, working capital of $20.1 million and shareholders' equity of $6.2 million at March 31, 2002. First Quarter 2002 Highlights - - Riviera Black Hawk contributed $2.9 million in EBITDA, an increase of $403,000 from the first quarter of 2001 - - Riviera Las Vegas EBITDA decreases $1.9 million or 27 percent due to continued economic impact and subsequent rise in marketing costs - - Riviera Las Vegas occupancy decreased from 96.3 percent in the first quarter of 2001 to 87.9 percent in the first quarter of 2002 - - Riviera Las Vegas ADR (Average Daily Rate) decreased $5.82 to $62.32 during the first quarter - - Cash and short-term investments totaled $41.5 million at March 31, 2002 - - Management explores other gaming venues to further expand revenue base Riviera Las Vegas Bob Vannucci, President of Riviera Las Vegas, said, "Although net revenues in Las Vegas were down $6.5 million or 15.8 percent for the first quarter, we saw improvements each month with March equaling the prior year's March EBITDA. For the quarter, the average daily rate decreased $5.82 to $62.32 and occupancy decreased 8.4 points to 87.9 percent. Hotel occupancy improved each month during the first quarter of 2002, from 74.5 percent in January to 89.5 percent in February and 99.6 percent in March. We have been able to bring occupancy back to normal levels; however, the ADR remained 9 percent below normal in March 2002. Slot machine coin-in or volume decreased 13.8 percent for the quarter while slot win decreased only 9.4 percent. Our margins in Las Vegas continue to be pressured by the economy and competitor actions, but have improved each month. For the quarter our margins were 15.1 percent compared to 17.4 percent in the same quarter of 2001. We are spending more marketing dollars to increase demand and will continue to focus and grow our incentive programs through the rest of the year and into 2003. "Our primary focus before September 11 was on customers arriving primarily by air and living in the mid-west and eastern United States. We increased our gaming marketing expenditures to protect and attract our loyal slot customer base. We increased our room marketing efforts towards customers in the western United States, and saw positive results by late January of 2002. Call volumes, booking patterns and occupancy began to normalize in mid January. We had an excellent Super Bowl and saw our hotel occupancy increase dramatically in February and March. Our tour operator programs have restored long haul vacation visitor bookings back to normal, although room rates continue to be depressed due to competitive pressures. Citywide convention attendance and room bookings continue to lag behind prior years. We have replaced much of that business with smaller in house conventions and increased business from our tour operators and loyal gaming customers," said Mr. Vannucci. Riviera Black Hawk First quarter 2002 revenues for Riviera Black Hawk were $11.8 million, an increase of $819,000 or 7.5 percent over first quarter 2001 revenues. First quarter EBITDA was $2.9 million, up $403,000 or 15.8 percent higher than last year's first quarter. EBITDA margin for the first quarter increased to 25 percent. Ron Johnson, President of Riviera Black Hawk, said, "It is encouraging to note that gaming revenues in the Black Hawk Market grew by a healthy 15.7 percent in the first quarter of 2002 compared to the first quarter of 2001, more than offsetting the 12.0 percent increase in gaming devices as a result of the opening of the Hyatt Casino in December, 2001. This continues a historical trend of growth for the Black Hawk market as new casinos offering a variety of new amenities have expanded the market's appeal to a broader base of customers. "We continue to refine our marketing efforts by constantly measuring the success rates of our own programs, while monitoring the offerings of our competitors. We are attempting to strike a balance between player incentives, gaming product, food offerings and entertainment as our primary marketing programs," said Mr. Johnson. Consolidated Operations and New Venues William L. Westerman, Chairman of the Board and CEO, said, "We are encouraged by the fact that the decline in EBITDA from the prior year's quarter decreased from 19 percent in the fourth quarter of 2001 to 16 percent in the first quarter of 2002, and especially the improving trend with EBITDA for March 2002 compared to the prior year. In Las Vegas, with occupancy and restaurant covers returning to mostly normal levels, we have been able to recall all of our regular employees who were laid off following September 11. Black Hawk's continued successful EBITDA margins and return on investment motivate us to accelerate our diversification efforts. "We believe we will be endorsed by Jefferson County, Missouri for a casino/hotel development project located approximately 22 miles south of downtown St. Louis. As soon as we secure the Commission's endorsement, we will file a formal application with the Missouri Gaming Commission. However, we have been informed that the site selection process will not begin until late summer or early fall. Assuming we get approval from the state regulators, construction work should start in early 2003, with a completion date in late 2004 or early 2005. "We are pursuing another diversification possibility and have recently filed an application with the New Mexico Racing Commission to build and operate a "racino" with 600 slot machines in Hobbs, New Mexico. Lubbock and Odessa, Texas are within a 100-mile radius of Hobbs, and Amarillo, Texas is less than 200 miles away. The closest competitive gaming facility is 150 miles from Hobbs. We have an agreement for an option on 296 acres for this facility. The project would be a joint venture in which we would own 51 percent. The minority partner has been active for a long time in New Mexico's racing community. We understand that a total of four applications have been filed and that only one applicant may be granted a license. "Last week we celebrated Riviera Las Vegas's 47th anniversary and we are looking forward to our 50th. This has been a difficult six months for our property and we expect the remainder of 2002 and even 2003 to be challenging for all Las Vegas operators. However, the trend is going in the right direction as we are seeing slow, yet steady improvement in the Las Vegas market," 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, financing requirements and other risks detailed from time to time in the Company's SEC reports, including the Report on Form 10-K for December 31, 2001. 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 March 31 First Quarter ($ in 000s) ------------- 2002 2001 Var %Var ----- ----- --- ---- Net Revenues: Riviera Las Vegas $34,709 $41,229 $(6,520) -15.8% Riviera Black Hawk 11,789 10,970 819 7.5% Total Net Revenues 46,498 52,199 (5,701) -10.9% Operating Income: Riviera Las Vegas 2,259 4,110 (1,851) -45.0% Riviera Black Hawk 1,428 1,335 93 6.9% Total Operating Income 3,687 5,445 (1,758) -32.3% EBITDA (1): Riviera Las Vegas 5,235 7,162 (1,927) -26.9% Riviera Black Hawk 2,946 2,543 403 15.8% Total EBITDA 8,181 9,705 (1,524) -15.7% Margins: Riviera Las Vegas 15.1% 17.4% Riviera Black Hawk 25.0% 23.2% Total Margins 17.6% 18.6% Net income (loss) $(2,834) $ (658) Weighted average basic and diluted shares outstanding 3,437 3,675 Basic and diluted earnings (loss) per share $ (0.82) $ (0.18)
1 EBITDA consists of earnings before interest, income taxes, depreciation, amortization 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.
Balance Sheet Summary ($ in 000s) Mar 31, Dec 31, 2002 2001 Cash and short term investments $41,544 $46,606 Total current assets 50,491 55,470 Property and equipment, net 197,427 200,531 Total assets 260,431 267,818 Total current liabilities 30,262 34,175 Long-term debt, net of current portion 216,492 217,288 Total shareholders' equity 6,205 8,964
RIVIERA HOLDINGS CORPORATION AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended March 31 (in thousands, except per share amounts) 2002 2001 ------------------------------- Casino $26,063 $27,270 Rooms 10,719 12,735 Food and beverage 7,859 7,917 Entertainment 4,208 5,900 Other 2,051 2,426 ------------------------------- Total 50,900 56,248 ------------------------------- Less promotional allowances 4,402 4,049 ------------------------------- Net revenues 46,498 52,199 ------------------------------- COSTS AND EXPENSES: Direct costs and expenses of operating departments: Casino 14,372 15,320 Rooms 5,454 5,986 Food and beverage 5,090 5,312 Entertainment 2,787 4,261 Other 680 754 Other operating expenses: General and administrative 9,934 10,861 Depreciation and amortization 4,494 4,260 ------------------------------- Total costs and expenses 42,811 46,754 ------------------------------- INCOME FROM OPERATIONS 3,687 5,445 ------------------------------- OTHER INCOME (EXPENSE): Interest expense (6,688) (6,785) Interest income 179 386 Other, net (12) (4) ------------------------------- Total other income (expense) (6,521) (6,403) ------------------------------- INCOME (LOSS) BEFORE PROVISION FOR TAXES (2,834) (958) ------------------------------- PROVISION (BENEFIT) FOR INCOME TAXES 0 (300) ------------------------------- NET INCOME (LOSS) ($2,834) ($658) =============================== EARNINGS (LOSS) PER SHARE DATA: Weighted average basic and diluted common shares outstanding 3,437 3,675 ------------------------------- Basic and diluted earnings (loss) per share $ (0.82) $ (0.18) ===============================
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