SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
May 17, 1994
CAESARS WORLD, INC.
(Exact name of issuer as specified in its charter)
Florida 1-5979 59-0773674
(State or Other (Commission (IRS Employer of
Jurisdiction File Number) Identification
Incorporation Number)
or Organization)
1801 Century Park East 90067
Suite 2600 (Zip Code)
Los Angeles, California
(Address of Principal
Executive Offices)
(310) 552-2711
Registrant's telephone number, including area code
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Item 5. Other Events
On May 17, 1994, Registrant issued the following press release:
LOS ANGELES, CALIFORNIA -- Caesars World, Inc. (NYSE/CAW) today
announced net income for the fiscal 1994 third quarter was $11,648,000, or 47
cents per share, compared with $17,035,000, or 69 cents per share, in the
fiscal 1993 third quarter.
Revenue for the fiscal 1994 quarter ended April 30, 1994, was
$237,244,000, compared with $224,409,000 in the same fiscal 1993 quarter.
Caesars World's net income for the fiscal 1994 nine-month period amounted
to $61,456,000, or $2.51 per share, compared with $57,529,000, or $2.36 per
share, in the fiscal 1993 nine months. Revenue for the nine months of fiscal
1994 totaled $764,308,000, compared with $721,444,000 in the same prior-year
period.
The company said both table-game and slots activity in its Nevada
operations established records for any third quarter in Caesars World's
history. As previously announced, the lower earnings, when comparing the
fiscal third quarters, principally resulted from increased marketing expenses
related to the higher volume of business in Nevada, including a larger
provision for bad debts reflecting increased marketing costs and a world
heavyweight championship fight at Caesars Palace. The table-game win
percentages in Nevada were lower than the five-year average but about the same
as the year-earlier quarter.
For the fiscal 1994 nine months in Nevada, the company also realized
record table-game and slots activity as well as slots win. Table-game win
percentages were about average but higher than the comparable percentages in
the year-earlier nine months.
In New Jersey, Caesars Atlantic City revenue increased during the fiscal
1994 third quarter, primarily due to slots activity and the impact from the
Simulcast Casino which opened in October 1993 and features high-tech horse race
betting, a poker section and additional casino table games. The contribution
to earnings from New Jersey declined slightly during both the fiscal 1994 third
quarter and nine months due to higher operating costs, principally reflecting
higher payroll for additional employees in the expanded casino.
During both fiscal 1994 reporting periods, when compared with the fiscal
1993 periods, Caesars World's net interest expenses decreased due to lower
outstanding debt and a debt refinancing which was substantially completed
during the fiscal 1993 first quarter.
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CAESARS WORLD, INC
SUMMARY OF EARNINGS - Unaudited
(In thousands, except net income per share)
<CAPTION>
Three Months Nine Months
For the periods ended April 30 1994 1993 1994 1993
<S> <C> <C> <C> <C>
Revenue
Nevada $142,157 $133,153 $465,429 $423,334
New Jersey 80,389 76,526 250,473 251,141
Casino/hotel operations 222,546 209,679 715,902 674,475
Pocono Resorts 9,798 9,734 33,172 31,644
Other (a) 4,900 4,996 15,234 15,325
Total revenue $237,244 $224,409 $764,308 $721,444
Contributions to operating income
Nevada $ 14,686 $ 22,893 $ 80,489 $ 78,590
New Jersey 11,014 12,400 40,796 41,168
Casino/hotel operations 25,700 35,293 121,285 119,758
Pocono Resorts 1,002 1,133 6,450 6,150
Other expenses (a) (3,826) (3,852) (14,601) (12,782)
Operating income 22,876 32,574 113,134 113,126
Interest income 756 272 2,403 1,258
Interest expense (4,693) (5,371) (14,471) (21,596)
Income before income taxes 18,939 27,475 101,066 92,788
Income taxes (b) 7,291 10,440 39,610 35,259
Net income $ 11,648 $ 17,035 $ 61,456 $ 57,529
Net income per share $ .47 $ .69 $ 2.51 $ 2.36
Average number of common and common
equivalent shares outstanding 24,620 24,588 24,532 24,418
(a) Other revenue is primarily from merchandising operations. Other expenses
include the contribution from merchandising operations and corporate
expenses.
(b) The effective income tax rate during the nine months ended April 30, 1994,
was 1.2 percentage points higher than the same period in 1993. The higher
tax rate reflects the impact of two non-recurring tax charges. In August
1993, the Federal tax rate increased, retroactive to January 1, 1993, from
34 to 35 percent. The company also changed its method for income tax
accounting by adopting FASB 109 effective August 1, 1993. The impact of
this cumulative change in accounting and the retroactive change in the
corporate tax rate aggregated a net charge of approximately $750,000 in the
first quarter of fiscal 1994.
</TABLE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CAESARS WORLD, INC.
By /s/Philip L. Ball
Philip L. Ball
Senior Vice President,
Secretary & General Counsel
May 17, 1994
