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
August 25, 1994
CAESARS WORLD, INC.
(Exact name of issuer as specified in its charter)
Florida 1-5979 59-0773674
(State of Other (Commission (IRS Employer of
Jurisidiction File Number) Identification
or Organization) Number)
1801 Century Park East
Suite 2600
Los Angeles, California 90067
(Address of Principal (Zip Code)
Executive Office)
(310) 552-2711
Registrant's telephone number, including area code
Item 5. Other Events.
On August 24, 1994, Registrant issued the following press release:
LOS ANGELES, CALIFORNIA -- Caesars World, Inc. (NYSE/CAW)
today announced net income for fiscal 1994 was $78,361,000,
or $3.19 per share, compared with $83,215,000, or $3.40 per
share, for fiscal 1993.
Revenue for the fiscal year ended July 3l, 1994,
surpassed the billion dollar mark for the first time in the
company's history, totaling $1,015,766,000, compared with
$983,459,000 in fiscal 1993.
Henry Gluck, chairman and chief executive officer,
said, "We are pleased to report that casino activity in
both our Nevada and New Jersey operations achieved record
levels in fiscal 1994. The decline in earnings principally
reflects fiscal 1994 fourth quarter results which were down
from the prior-year quarter due to significantly lower
table-game win percentages in our Nevada operations." The
company had announced in June 1994 that it anticipated a
substantial reduction in profits as a result of unusually
large losses during the middle of the month to a small
number of long-term, table-game customers in Nevada.
Net income for the fiscal 1994 fourth quarter was
$16,905,000, or 69 cents per share, compared with
$25,686,000, or $1.04 per share, during the fiscal 1993
fourth quarter. Revenue totaled $251,458,000, compared
with $262,015,000 in the fiscal 1993 quarter.
For the full year, the company's Nevada table-game
activity and win increased over fiscal 1993 despite a
slightly lower table-game win percentage. The full-year
slots activity and win results established all-time highs
for the Nevada operations. However, operating income in
Nevada declined due to higher marketing and payroll costs,
and an increased provision for bad debts.
In New Jersey, increased contributions to income
during the fiscal 1994 fourth quarter and full-year
reporting periods resulted largely from casino operations
at Caesars Atlantic City. Record slots revenue was
realized in both reporting periods and there was a positive
impact from the Simulcast Casino which opened in October
1993 and included high-tech horse race betting, a poker
section and casino table games. Keno was introduced into
this expanded area during June 1994. For the full year,
the improved results in New Jersey were partially offset by
slightly lower table-game win and by higher operating
costs, notably the increased payroll for additional
employees in the expanded casino.
During the fiscal 1994 fourth quarter, the company
also realized a positive contribution to earnings from an
unconsolidated affiliate in Windsor, Canada. Caesars
World has a one-third interest in the joint venture which
operates an interim Windsor casino which opened in May
1994.
The company's other expenses decreased from the fiscal
1993 fourth quarter, primarily due to a reduction in legal
expenses, expense accruals and lower costs associated with
stock appreciation rights. These reduced expenses were
partially offset by higher costs related to the pursuit of
expansion opportunities in potential new gaming venues.
During both fiscal 1994 reporting periods, when
compared with the same 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.
<TABLE>
CAESARS WORLD, INC.
CONSOLIDATED INCOME STATEMENT DATA
(Unaudited)
(In thousands, except net income per share)
<CAPTION>
Three Months Twelve Months
For the periods ended July 31 1994 1993 1994 1993
<S> <C> <C> <C> <C>
Revenue
Nevada $131,256 $151,173 $ 596,685 $ 574,507
New Jersey 100,054 93,947 350,527 345,088
Earnings of unconsolidated affilate (a) 1,958 - 1,958 -
Casino/hotel operations 233,268 245,120 949,170 919,595
Pocono Resorts 13,116 12,533 46,288 44,177
Other (a) 5,074 4,362 20,308 19,687
Total revenue $251,458 $262,015 $1,015,766 $ 983,459
Contributions to Operating Income
Nevada $ 4,618 $ 27,899 $ 85,107 $ 106,489
New Jersey 22,936 19,513 63,732 60,681
Earnings of unconsolidated affiliate (a) 1,958 - 1,958 -
Casino/hotel operations 29,512 47,412 150,797 167,170
Pocono Resorts 3,089 2,950 9,539 9,100
Other expenses (b) (1,230) (4,377) (15,831) (17,159)
Operating income 31,371 45,985 144,505 159,111
Interest income 942 490 3,345 1,748
Interest expense (4,824) (5,287) (19,295) (26,883)
Income before income taxes 27,489 41,188 128,555 133,976
Income taxes (c) 10,584 15,502 50,194 50,761
Net income $ 16,905 $ 25,686 $ 78,361 $ 83,215
Net income per share $ 0.69 $ 1.04 $ 3.19 $ 3.40
Average number of common and common
equivalent shares outstanding 24,528 24,583 24,567 24,475
<FN>
(a) Represents Caesars proportionate share of unconsolidated
affiliate in Windsor, Canada which began
operations on May 17, 1994.
(b) Other revenue is primarily from merchandising operations.
Other expenses include the contribution
from merchandising operations and corporate expenses.
(c) The effective income tax rate during the nine months ended
April 30, 1994, was higher than the
same period in 1993. 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 under signed
hereunto duly authorized.
CAESARS WORLD, INC.
By /s/Philip L. Ball
Philip L. Ball
Senior Vice President,
Secretary & General Counsel
August 25, 1994
