-----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, QJ8gQdZk6W/teYK5BXKYpFKwT7BuDkXNI7HXXh53HlfWo3Dvyygn5njX6Gc58CYt 9ILbGhooF3ZTwXHgXfaVMQ== 0000899647-04-000025.txt : 20040727 0000899647-04-000025.hdr.sgml : 20040727 20040726145402 ACCESSION NUMBER: 0000899647-04-000025 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040721 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20040726 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: 04930750 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_072104.txt RHC8K_072104 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 21, 2004 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 7. Financial Statements, Pro Forma Financial Information and Exhibits (a) Not Applicable (b) Not Applicable (c) Exhibits Exhibit 99 Riviera Holdings Corporation Press Release dated July 21, 2004 Item 9. Regulation FD Disclosure and Item 12. Results of Operations and Financial Condition On July 21, 2004, Riviera Holdings Corporation (Amex: RIV) announced through a press release its second quarter, 2004, financial results. A copy of the press release disclosing those results is filed as an exhibit hereto. 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 26, 2004 RIVIERA HOLDINGS CORPORATION By: /s/ Duane Krohn Treasurer and CFO EXHIBIT INDEX Exhibit Number Description 99 Riviera Holdings Corporation Press Release dated July 21, 2004. EX-99 2 rhcpr_072104a.txt RHC PRESS RELEASE_072104 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 RECORD EBITDA RESULTS FOR SECOND QUARTER 2004 LAS VEGAS, NV - July 21, 2004 -- Riviera Holdings Corporation (AMEX: RIV) today reported financial results for the second quarter ended June 30, 2004. Net revenues for the quarter were $52.8 million, up $4.5 million or 9.2 percent from the second quarter of 2003. Income from operations was $7.6 million, up $3.1 million or 70.6 percent from the second quarter of 2003. EBITDA (1) was $10.9 million, up $2.3 million from the second quarter of 2003 and a record for any quarter in the Company's history. Net income for the quarter was $829,000 or $0.23 per diluted share compared to a net loss of ($2.4 million) or ($0.70) per share in the second quarter of 2003. Net revenues for the first half of 2004 were $103.3 million, up $7.4 million or 7.8 percent from the first half of 2003. Income from operations was $14.9 million, up $5.8 million or 63.4 percent from the first half of 2003. EBITDA was $21.6 million, up $4.1 million from the first half of 2003 and a record for any six month period in the Company's history. Net income for the first half was $1.4 million or $0.38 per diluted share compared to a net loss of ($4.6 million) or ($1.32) per share in the first half of 2003. Second Quarter 2004 Highlights * Second quarter net income of $829,000 is a $3.3 million improvement from second quarter of 2003 * Riviera Black Hawk revenues were up 8.6 percent * Riviera Black Hawk EBITDA was up $755,000 or 21.5 percent * Riviera Las Vegas revenues were up $3.4 million or 9.5 percent * Riviera Las Vegas EBITDA was up $1.7 million or 26.3 percent * Riviera Las Vegas occupancy was 95.3 percent compared with 93.4 percent in the second quarter of 2003, ADR (Average Daily Rate) increased $2.19 to $62.63 * The Company has $20 million in cash plus its $30 million revolver available Riviera Las Vegas Robert Vannucci, President of Riviera Las Vegas, said, "We are following the trend on the Las Vegas Strip with revenues increasing $3.4 million or 9.5 percent in the second quarter compared to the same period last year. EBITDA for the second quarter was up $1.7 million as EBITDA margins (2) increased from 17.7 percent to 20.4 percent. We were able to bring almost 50 percent of our revenue increase to the EBITDA line. "Casino revenues were up 8 percent over the second quarter of last year, as the business mix of customers in the hotel rooms and attending shows included more affinity groups (pool players and similar groups) with a better gaming profile. We have invested $2.8 million in new slot machines this year and we have our new slot monitoring system installed on approximately 80 percent of our machines as of the end of the quarter. We anticipate that the system will be connected to substantially all of our slot machines by the end of July 2004 and the that we will have approximately 560 machines (40 percent) converted to ticket-in, ticket-out technology by the end of the year. "Room occupancy was 95.3 percent up two percentage points from the same period last year. Average daily room rate (ADR) was $62.63, up $2.19, and revenue per available room (Rev Par) was $59.70 for the quarter compared with $56.43, for the second quarter last year. Convention rooms represented 34 percent of rooms sold for the quarter and 42 percent of the revenue, as the ADR was over $80 for this sector of our business. "Entertainment revenues increased 26.7 percent and we sold 50,000 more tickets this quarter than the same quarter last year. This additional traffic flow also enhanced casino revenues. "Our location on the Las Vegas Strip will continue to see more foot traffic as the Hilton Grand Vacations Club time shares, Wynn Las Vegas and recently announced luxury condominium projects draw more people to the north end. Riviera Las Vegas is located on 26 acres of prime real estate on the north end of the Las Vegas Strip. Recent land transactions on the Las Vegas Strip are indicators that the land in our financial statements has a fair market value well in excess of its $21 million recorded book value." Riviera Black Hawk Ron Johnson, President of Riviera Black Hawk, said, "The second quarter was another record breaking quarter for Riviera Black Hawk. We were able to achieve all time highs for gaming revenue, total revenue, EBITDA and market share. Net revenues reached a record $13.4 million during the quarter. EBITDA for the quarter grew by 21.5 percent to a record $4.3 million. EBITDA margin on net revenues increased to 31.9 percent. "The second quarter benefited from the continued strength of our marketing programs. We continue to invest our marketing dollars in areas that profitably build slot revenues and market share. We have also increased customer service by reducing the processing time for transactions in several key areas. Going forward we expect to see additional benefits as we take advantage of ticket-in, ticket-out technology. "We are also encouraged that gaming revenue in the Black Hawk/Central City Market continued to grow in the second quarter. Year-to-date the market has grown 3.7 percent over the first half of last year. Improved economic conditions in the Denver Metro area appear to be a driving force behind this growth. We are looking forward to the new access road expected to be open before yearend. This new road will provide additional access to the Black Hawk/Central City Market, expanding the capabilities of the market to handle additional weekend traffic." Consolidated Operations William L. Westerman, Chairman of the Board, said, "We are pleased the trend of increasing earnings continued and actually accelerated in the second quarter of 2004. Consolidated EBITDA increased by 27.2 percent for the second quarter and 23.5 percent for the first six months of 2004, respectively, as compared with 2003. The second quarter EBITDA of $10.9 million and first six months EBITDA of $21.6 million both set records for any quarter and semi-annual periods. Our cash flow for 2004 has been greater than budget and we are using the additional funds for investments in slot machines to accelerate our conversion to cashless operations. "The Missouri Gaming commission has indicated that it will need more time to evaluate the competing proposals for additional casino licenses in the St. Louis area and to render a decision on whether to select one or more applications as a priority for investigation. We believe that a more thorough evaluation of all current proposals will further differentiate our project from the other proposals. Studies have consistently shown that a casino entertainment complex in Jefferson County would provide the most incremental benefit to the State of Missouri and to the local host community. We are encouraged by the overwhelming support we continue to receive from Jefferson County residents and local government officials." Conference Call Information In conjunction with the release of second quarter 2004 financial results, Riviera will broadcast a conference call at 2 p.m. Eastern Daylight Time on Wednesday, July 21, 2004. Investors can listen to the call via the Internet at http://phx.corporate-ir.net/playerlink.zhtml?c=96408&s=wm&e=904976 or www.theriviera.com or by dialing 800-289-0487. A rebroadcast of the conference is available through July 27, 2004 by dialing 719-457-0820; pass code 621872. Safe Harbor Statement: The forward-looking statements included in this news release, which reflect management's best judgment based on factors currently known to it, involve risks and uncertainties including expansion objectives and timetables, hotel and casino market conditions, financing requirements, regulatory approvals and other risks and uncertainties detailed from time to time in the Company's filings with the Securities and Exchange Commission, including the Report on Form 10-K for December 31, 2003. Actual results may differ materially. 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 ("AMEX") under the symbol RIV. Informal discussions with AMEX staff indicate that the Company may meet the standards of AMEX policy Sec. 1003(a). According to that policy, AMEX will not normally consider suspending dealings in or delisting the securities of a company, which is below the earnings or net worth standards if the Company is in compliance with the following: (1)Total value of market capitalization of at least $50,000,000; or total assets and revenue of $50,000,000 each in its last fiscal year, or in two of its last three fiscal years; and (2)The company has at least 1,000,000 shares publicly held, a market value of publicly held shares of at least $15,000,000 and at least 400 round lot shareholders. --Tables Follow--
Riviera Holdings Corporation Financial Summary Three Months Ended June 30 Six Months Ended June 30 ($ in 000's except per share data) 2004 2003 Var %Var 2004 2003 Var %Var Net Revenues: Riviera Las Vegas $39,437 $36,027 $3,410 9.5% $76,760 $71,762 $4,998 7.0% Riviera Black Hawk 13,357 12,301 1,056 8.6% 26,494 24,057 2,437 10.1% ------------------------ ------------------------- Total Net Revenues 52,794 48,328 4,466 9.2% 103,254 95,819 7,435 7.8% Operating Income: Riviera Las Vegas 6,171 3,703 2,468 66.6% 11,843 7,953 3,890 48.9% Riviera Black Hawk 2,796 2,034 762 37.5% 5,606 3,604 2,002 55.5% Corporate Expenses (1,404) (1,305 (99) -7.6% (2,512) (2,416) (96) -4.0% ------------------------ ------------------------- Total Operating Income 7,563 4,432 3,131 70.6% 14,937 9,141 5,796 63.4% EBITDA (1): Riviera Las Vegas 8,056 6,378 1,678 26.3% 15,643 13,403 2,240 16.7% Riviera Black Hawk 4,265 3,510 755 21.5% 8,508 6,535 1,973 30.2% Corporate Expenses (1,404) (1,305) (99) -7.6% (2,512) (2,416) (96) -4.0% ------------------------ ------------------------- Total EBITDA 10,917 8,583 2,334 27.2% 21,639 17,522 4,117 23.5% EBITDA Margins (2): Riviera Las Vegas 20.4% 17.7% 2.7% 20.4% 18.7% 1.7% Riviera Black Hawk 31.9% 28.5% 3.4% 32.1% 27.2% 4.9% Consolidated 20.7% 17.8% 2.9% 21.0% 18.3% 2.7% Net Income (Loss) $ 829 $ (2,436) $3,265 $1,369 $(4,595) $5,964 EARNINGS (LOSS) PER SHARE DATA: Shares used in calculating net income (loss) per common share: Basic 3,488 3,474 14 3,487 3,471 16 Diluted 3,672 3,474 198 3,610 3,471 139 Net Income (loss) per common share Basic $ 0.24 $ (0.70) $ 0.94 $ 0.39 $ (1.32) $ 1.71 Diluted $ 0.23 $ (0.70) $ 0.93 $ 0.38 $(1.32) $ 1.70
(1) EBITDA consists of earnings before interest, income taxes, depreciation, and amortization, as shown in the reconciliation to net income (loss) in the tables of this release. 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 by certain investors. Management uses property-level EBITDA (EBITDA before corporate expense) as the primary measure of the Company's business segment properties' performance, including the evaluation of operating personnel. EBITDA should not be construed as an alternative to operating income as an indicator of the Company's operating performance, 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 EBITDA. Also, other gaming companies that report EBITDA information may calculate EBITDA in a different manner than the Company. A reconciliation of EBITDA to net income (loss) is included in the financial schedules accompanying this release. (2) EBITDA margins represent EBITDA divided by Net Revenues
Riviera Holdings Corporation Reconciliation of Operating Income (Loss) to EBITDA: Interest Income Income (Income) & Operating Management 000's (Loss) Tax Expense Income Depreciation Fee EBITDA Second Quarter 2004: Riviera Las Vegas $4,006 $ 2,130 $ 35 $ 6,171 $ 2,357 $ (472) $ 8,056 Riviera Black Hawk 805 - 1,991 2,796 997 472 4,265 Corporate (3,982) (2,130) 4,708 (1,404) - - (1,404) ------ ------ ----- ------- ------ ------ -------- $ 829 $ - $6,734 $ 7,563 3,354 $ - $10,917 Second Quarter 2003: Riviera Las Vegas $2,317 $ 1,343 $ 43 $ 3,703 $ 3,059 (384) $ 6,378 Riviera Black Hawk (22) - 2,056 2,034 1,092 384 3,510 Corporate (4,731) (1,343) 4,769 (1,305) - - (1,305) ------- ------- ------ ------- ------ ------ -------- $(2,436) $ - $6,868 $ 4,432 $ 4,151 $ - $8,583 Six Months Ended June 30, 2004: Riviera Las Vegas $7,642 $ 4,114 $ 87 $ 11,843 $ 4,724 $ (924) $15,643 Riviera Black Hawk 1,608 - 3,998 5,606 1,978 924 8,508 Corporate (7,881) (4,114) 9,483 (2,512) - - (2,512) ------- ------- ----- ------- ------ ------- -------- $1,369 $ - $13,568 $14,937 $6,702 $ - $21,639 Six Months Ended June 30, 2003: Riviera Las Vegas $ 4,980 $ 2,888 $ 85 $ 7,953 $6,180 $ (730) $13,403 Riviera Black Hawk (512) - 4,116 3,604 2,201 730 6,535 Corporate (9,063) (2,888) 9,535 (2,416) - - (2,416) -------- ------- ------- ------- ----- ----- ------- $(4,595) $ - $13,736 $9,141 $8,381 $ - $17,522
Balance Sheet Summary ($ in 000's) June 30, Dec. 31, 2004 2003 ----------------------------- Cash and short term investments $19,679 $19,344 Total current assets 28,495 27,361 Property and equipment, net 179,151 180,293 Total assets 220,887 221,538 Total current liabilities 28,701 29,788 Long-term debt, net of current portion 215,547 215,875 Total shareholders' (deficiency) equity (28,613) (30,037)
RIVIERA HOLDINGS CORPORATION AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended Six Months Ended June 30 June 30 ($ In 000's except per share data) 2004 2003 2004 2003 -------------------- ------------------- Revenues: Casino $29,550 $27,091 $56,629 $53,468 Rooms 11,679 11,229 24,217 22,454 Food and beverage 9,066 8,529 17,866 16,542 Entertainment 5,571 4,471 10,227 8,870 Other 2,119 2,059 4,166 4,010 --------------------- ------------------- Total 57,985 53,379 113,105 105,344 --------------------- ------------------- Less promotional allowances 5,191 5,051 9,851 9,525 -------------------- ------------------- Net revenues 52,794 48,328 103,254 95,819 -------------------- ------------------- COSTS AND EXPENSES: Direct costs and expenses of operating departments: Casino 13,782 13,897 27,336 27,967 Rooms 6,656 6,491 13,020 12,344 Food and beverage 6,166 5,749 11,967 11,053 Entertainment 3,725 2,919 6,777 5,875 Other 724 709 1,439 1,358 Other operating expenses: General and administrative 10,824 9,980 21,076 19,700 Depreciation and amortization 3,354 4,151 6,702 8,381 -------------------- ------------------- Total costs and expenses 45,231 43,896 88,317 86,678 -------------------- ------------------- INCOME FROM OPERATIONS 7,563 4,432 14,937 9,141 -------------------- ------------------- OTHER INCOME (EXPENSE): Interest expense (6,738) (6,879) (13,578) (13,760) Interest income 4 11 10 24 Other, net - - - - -------------------- ------------------- Total other income (expenses) (6,734) (6,868) (13,568) (13,736) -------------------- ------------------- NET INCOME (LOSS) $829 $(2,436) $1,369 $(4,595) ==================== =================== EARNINGS PER SHARE DATA: Shares used in calculating net income/ (loss) per common share: Basic 3,488 3,474 3,487 3,471 Diluted 3,672 3,474 3,610 3,471 Net Income (loss) per common share Basic $0.24 $(0.70) $0.39 $(1.32) Diluted $0.23 $(0.70) $0.38 $(1.32)
### -----END PRIVACY-ENHANCED MESSAGE-----