================================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the Quarterly Period Ended September 30, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ______ to ______
Commission File No.: 333-643
TRUMP ATLANTIC CITY ASSOCIATES
(Exact Name of Registrant as specified in its charter)
<TABLE>
<S> <C>
New Jersey 22-3213714
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number)
2500 Boardwalk
Atlantic City, New Jersey 08401
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (609) 441-6060
Former name, former address and formal fiscal year, if changed since last
report: NOT APPLICABLE
TRUMP ATLANTIC CITY FUNDING, INC.
(Exact Name of Registrant as specified in its charter)
<C>
Delaware 22-3418939
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number)
2500 Boardwalk
Atlantic City, New Jersey 08401
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (609) 441-6060
Former name, former address and formal fiscal year, if changed since last
report: NOT APPLICABLE
TRUMP ATLANTIC CITY FUNDING II, INC.
(Exact Name of Registrant as specified in its charter)
Delaware 22-3550202
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number)
2500 Boardwalk
Atlantic City, New Jersey 08401
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (609) 441-6060
Former name, former address and formal fiscal year, if changed since last
report: NOT APPLICABLE
TRUMP ATLANTIC CITY FUNDING III, INC.
(Exact Name of Registrant as specified in its charter)
Delaware 22-3550203
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number)
2500 Boardwalk
Atlantic City, New Jersey 08401
(Address of principal executive offices) (Zip Code)
</TABLE>
Registrant's telephone number, including area code: (609) 441-6060
Former name, former address and formal fiscal year, if changed since last
report: NOT APPLICABLE
Indicate by check mark whether the Registrants (1) have filed all Reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrants were required to file such reports), and (2) have been subject to
such filing requirements for the past 90 days. Yes X No
As of November 13, 1998, there were 100 shares of Trump Atlantic City
Funding, Inc.'s Common Stock outstanding.
As of November 13, 1998, there were 100 shares of Trump Atlantic City
Funding II, Inc.'s Common Stock outstanding.
As of November 13, 1998, there were 100 shares of Trump Atlantic City
Funding III, Inc.'s Common Stock outstanding.
Trump Atlantic City Funding, Inc., Trump Atlantic City Funding II, Inc. And
Trump Atlantic City Funding III, Inc. meets the conditions set forth in General
Instruction (H)(1)(a) and (b) of Form 10-Q and is therefore filing this form
with the reduced disclosure format.
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<PAGE>
TRUMP ATLANTIC CITY ASSOCIATES AND SUBSIDIARIES
INDEX TO FORM 10-Q
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<CAPTION>
PAGE NO.
--------
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PART I -- FINANCIAL INFORMATION
ITEM 1 -- Financial Statements
Condensed Consolidated Balance Sheets of Trump Atlantic City Associates and
Subsidiaries as of September 30, 1998 (unaudited) and December 31, 1997........................ 1
Condensed Consolidated Statements of Operations of Trump Atlantic City Associates and
Subsidiaries for the Three and Nine Months Ended September 30, 1998 and 1997 (unaudited)....... 2
Condensed Consolidated Statement of Capital of Trump Atlantic City Associates and
Subsidiaries for the Nine Months Ended September 30, 1998 (unaudited).......................... 3
Condensed Consolidated Statements of Cash Flows of Trump Atlantic City Associates and
Subsidiaries for the Nine Months Ended September 30, 1998 and 1997 (unaudited)................. 4
Notes to Condensed Consolidated Financial Statements of Trump Atlantic City Associates and
Subsidiaries (unaudited)....................................................................... 5-6
ITEM 2 -- Management's Discussion and Analysis of Financial Condition and
Results of Operations.................................................................... 7-11
ITEM 3 -- Quantitative and Qualitative Disclosures About Market Risk................................. 11
PART II -- OTHER INFORMATION
ITEM 1 -- Legal Proceedings.......................................................................... 12-13
ITEM 2 -- Changes in Securities and Use of Proceeds.................................................. 13
ITEM 3 -- Defaults Upon Senior Securities............................................................ 13
ITEM 4 -- Submission of Matters to a Vote of Security Holders........................................ 13
ITEM 5 -- Other Information.......................................................................... 13
ITEM 6 -- Exhibits and Reports on Form 8-K........................................................... 13
SIGNATURES
SIGNATURE -- Trump Atlantic City Associates........................................................ 14
SIGNATURE -- Trump Atlantic City Funding, Inc. .................................................... 15
SIGNATURE -- Trump Atlantic City Funding II, Inc. ................................................. 16
SIGNATURE -- Trump Atlantic City Funding III, Inc. ................................................ 17
</TABLE>
i
<PAGE>
PART I -- FINANCIAL INFORMATION
ITEM 1 -- FINANCIAL STATEMENTS
TRUMP ATLANTIC CITY ASSOCIATES AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
ASSETS
<TABLE>
<CAPTION>
September 30, December 31,
1998 1997
------------- ------------
(unaudited)
<S> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents............................. $ 141,763 $ 114,879
Receivables, net...................................... 58,962 56,478
Inventories........................................... 10,304 9,880
Advances to affiliates, net........................... 26,492 21,880
Other current assets.................................. 8,538 7,319
---------- ----------
Total Current Assets................................ 246,059 210,436
PROPERTY AND EQUIPMENT, NET............................. 1,430,634 1,460,050
DEFERRED LOAN COSTS, NET................................ 32,061 36,842
OTHER ASSETS............................................ 43,541 31,745
---------- ----------
Total Assets........................................ $1,752,295 $1,739,073
========== ==========
LIABILITIES AND CAPITAL
CURRENT LIABILITIES:
Current maturities of long-term debt.................. $ 4,446 $ 6,964
Accounts payable and accrued expenses................. 80,546 73,478
Accrued interest payable.............................. 60,938 23,850
---------- ----------
Total Current Liabilities........................... 145,930 104,292
LONG-TERM DEBT, net of current maturities............... 1,298,683 1,300,027
OTHER LONG-TERM LIABILITIES............................. 5,557 6,815
---------- ----------
Total Liabilities................................... 1,450,170 1,411,134
---------- ----------
CAPITAL:
Partners' Capital..................................... 349,191 373,790
Accumulated Deficit................................... (47,066) (45,851)
---------- ----------
Total Capital....................................... 302,125 327,939
---------- ----------
Total Liabilities and Capital....................... $1,752,295 $1,739,073
========== ==========
The accompanying notes are an integral part of these condensed
consolidated financial statements.
</TABLE>
1
<PAGE>
<TABLE>
<CAPTION>
TRUMP ATLANTIC CITY ASSOCIATES AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(UNAUDITED)
(IN THOUSANDS)
Three Months Nine Months
Ended September 30, Ended September 30,
---------------------- --------------------------
1998 1997 1998 1997
--------- --------- ---------- ----------
<S> <C> <C> <C> <C>
REVENUES:
Gaming............................................ $ 251,680 $ 238,596 $ 672,339 $ 686,237
Rooms............................................. 21,851 23,683 58,479 62,707
Food and Beverage................................. 30,047 31,751 83,146 87,878
Other............................................. 9,062 10,669 24,303 26,419
--------- --------- ---------- ----------
Gross Revenues.................................. 312,640 304,699 838,267 863,241
Less--Promotional allowances........................ 35,785 39,250 98,378 106,051
--------- --------- ---------- ----------
Net Revenues.................................... 276,855 265,449 739,889 757,190
--------- --------- ---------- ----------
COSTS AND EXPENSES:
Gaming............................................ 146,654 144,739 409,461 424,379
Rooms............................................. 7,686 7,484 21,356 21,315
Food and Beverage................................. 10,027 10,040 28,300 28,168
General and Administrative........................ 43,093 39,215 124,390 124,143
Depreciation and Amortization..................... 15,474 15,137 46,085 50,146
--------- --------- ---------- ----------
222,934 216,615 629,592 648,151
--------- --------- ---------- ----------
Income from operations.......................... 53,921 48,834 110,297 109,039
--------- --------- ---------- ----------
NON-OPERATING INCOME AND (EXPENSES):
Interest income................................... 1,236 560 4,482 1,992
Interest expense.................................. (38,475) (35,839) (115,994) (107,657)
--------- --------- ---------- ----------
Non-Operating expense, net........................ (37,239) (35,279) (111,512) (105,665)
--------- --------- ---------- ----------
NET INCOME (LOSS)................................. $ 16,682 $ 13,555 $ (1,215) $ 3,374
========= ========= ========== ==========
The accompanying notes are an integral part of these condensed consolidated financial statements.
</TABLE>
2
<PAGE>
<TABLE>
<CAPTION>
TRUMP ATLANTIC CITY ASSOCIATES AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CAPITAL
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998
(UNAUDITED)
(IN THOUSANDS)
RETAINED
EARNINGS
PARTNERS' (ACCUMULATED
CAPITAL DEFICIT) TOTAL
--------- ------------ ---------
<S> <C> <C> <C>
Balance, December 31, 1997 ................................................ $ 373,790 $ (45,851) $ 327,939
Net Loss. ................................................................. -- (1,215) (1,215)
Reversal of capital contributed by THCR Holdings .......................... (24,599) -- (24,599)
--------- --------- ---------
Balance, September 30, 1998 ............................................... $ 349,191 $ (47,066) $ 302,125
========= ========= =========
The accompanying notes are an integral part of this condensed consolidated financial statement.
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
TRUMP ATLANTIC CITY ASSOCIATES AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(UNAUDITED)
(DOLLARS IN THOUSANDS)
NINE MONTHS ENDED
SEPTEMBER 30,
----------------------
1998 1997
--------- ---------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) .............................................................. $ (1,215) $ 3,374
Adjustments to reconcile net loss to net cash flows from operating activities--
Noncash charges --
Depreciation and amortization .............................................. 46,085 50,146
Accretion of discounts on indebtedness ..................................... 582 --
Provisions for losses on receivables ....................................... 9,422 4,982
Amortization of deferred loan offering costs ............................... 5,000 4,946
Valuation allowance of CRDA investments .................................... 2,834 2,941
Increase in receivables ..................................................... (11,904) (14,438)
Increase in inventories ..................................................... (425) (278)
Increase in advances to affiliates .......................................... (29,209) (1,614)
Increase in other current assets ............................................ (598) (1,090)
(Increase)/decrease in other assets ......................................... (7,413) 188
Increase in accounts payable and accrued expenses ........................... 6,724 6,065
Increase in accrued interest payable ........................................ 37,087 33,756
Decrease in other long-term liabilities ..................................... (1,879) (2,285)
--------- ---------
Net cash provided by operating activities .................................. 55,091 86,693
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment, net ...................................... (14,708) (63,449)
Purchase of CRDA investments ................................................. (7,808) (7,994)
--------- ---------
Net cash used in investing activities ...................................... (22,516) (71,443)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Additional borrowings ....................................................... 1,164 2,001
Payments and current maturities of long-term debt ........................... (6,635) (7,158)
Cost of issuing debt ........................................................ (220) --
Contributed capital by Trump Hotels & Casino Resorts Holdings, L.P. ......... -- 10,144
--------- ---------
Net cash (used in) provided by financing activities ........................ (5,691) 4,987
--------- ---------
NET INCREASE IN CASH & CASH EQUIVALENTS .......................................... 26,884 20,237
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR ................................... 114,879 71,320
--------- ---------
CASH AND CASH EQUIVALENTS AT SEPTEMBER 30 ........................................ $ 141,763 $ 91,557
========= =========
CASH INTEREST PAID ............................................................... $ 73,899 $ 68,911
========= =========
Supplemental Disclosure of noncash activities:
Purchase of property and equipment under capitalized lease obligations ........... $ 2,192 $ 3,204
========= =========
Reversal of capital contribution ................................................. $ 24,599 $ --
========= =========
The accompanying notes are an integral part of these condensed consolidated financial statements.
</TABLE>
4
<PAGE>
TRUMP ATLANTIC CITY ASSOCIATES AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
(1) CONDENSED FINANCIAL STATEMENTS
The accompanying condensed consolidated financial statements include those
of Trump Atlantic City Associates, a New Jersey general partnership ("Trump AC")
and it's subsidiaries: Trump Plaza Associates, a New Jersey general partnership
("Plaza Associates"), which owns and operates the Trump Plaza Hotel and Casino
located in Atlantic City, New Jersey ("Trump Plaza"), Trump Taj Mahal
Associates, a New Jersey general partnership ("Taj Associates"), which owns and
operates the Trump Taj Mahal Casino Resort located in Atlantic City, New Jersey
(the "Taj Mahal"), Trump Atlantic City Funding, Inc., a Delaware corporation
("Trump AC Funding"), Trump Atlantic City Funding II, Inc., a Delaware
corporation ("Trump AC Funding II"), Trump Atlantic City Funding III, Inc., a
Delaware corporation ("Trump AC Funding III"), Trump Atlantic City Corporation,
a Delaware corporation ("TACC"), Trump Casino Services, L.L.C., a New Jersey
limited liability company ("Trump Services"), and Trump Communications, L.L.C.,
a New Jersey limited liability company ("Trump Communications") (Plaza
Associates, Taj Associates, TACC, Trump Services and Trump Communications are
collectively referred to herein as the "Subsidiary Guarantors"). Trump AC's sole
sources of liquidity are distributions in respect of its interests in Plaza
Associates and Taj Associates. Trump AC is owned by Trump Hotels & Casino
Resorts Holdings, L.P., a Delaware limited partnership ("THCR Holdings"). THCR
Holdings is currently a 63.4% owned subsidiary of Trump Hotels & Casino Resorts,
Inc. ("THCR"). Trump AC, Trump AC Funding, Trump AC Funding II and Trump AC
Funding III have no independent operations and, therefore, their ability to
service debt is dependent upon the successful operations of Plaza Associates and
Taj Associates. There are no restrictions on the ability of the Subsidiary
Guarantors of the $1.2 billion aggregate principal amount of 11 1/4% First
Mortgage Notes due 2006 (the "TAC I Notes") of Trump AC and Trump AC Funding
(the "TAC I Notes"), the $75,000,000 aggregate principal amount of 11 1/4% First
Mortgage Notes (TAC II) due 2006 (the "TAC II Notes") of Trump AC and Trump AC
Funding II and the $25,000,000 aggregate principal amount of 11 1/4% First
Mortgage Notes (TAC III) due 2006 (the "TAC III Notes" and, collectively with
the TAC I Notes and TAC II Notes, the "TAC Notes") of Trump AC and Trump AC
Funding III to distribute funds to Trump AC. The indentures under which the TAC
Notes were issued restrict the ability of Trump AC and its subsidiaries to make
distributions or pay dividends, as the case may be, unless certain financial
ratios are achieved. In addition, the ability of Plaza Associates and Taj
Associates to make payments of dividends or distributions (except for payment of
interest) through Trump AC to THCR Holdings may be restricted by the New Jersey
Casino Control Commission ("CCC").
Plaza Associates owns and operates the 1,404 room Trump Plaza which
commenced operations in 1984. Trump AC acquired Taj Associates on April 17,
1996. Taj Associates owns and operates the 1,250 room Taj Mahal which was opened
on April 2, 1990.
All significant intercompany balances and transactions have been
eliminated in the accompanying condensed consolidated financial statements. The
minority interests in Plaza Associates and Taj Associates have not been
separately reflected in the consolidated financial statements of Trump AC since
they are not material.
The accompanying condensed consolidated financial statements have been
prepared by Trump AC without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission ("SEC"). Accordingly, certain information and
note disclosures normally included in financial statements prepared in
conformity with generally accepted accounting principles have been condensed or
omitted. In the opinion of Trump AC, all adjustments, consisting of only normal
recurring adjustments, necessary to present fairly the financial position,
results of operations and cash flows for the periods presented, have been made.
These condensed consolidated financial statements should be read in
conjunction with the consolidated financial statements and notes thereto
included in the annual report on Form 10-K for the year ended December 31, 1997
filed with the SEC.
The casino industry in Atlantic City is seasonal in nature; therefore,
results of operations for the three and nine months ended September 30, 1998 are
not necessarily indicative of the operating results for a full year.
The separate financial statements of the Subsidiary Guarantors have not
been included because (i) the Subsidiary Guarantors constitute all of Trump AC's
direct and indirect subsidiaries; (ii) the Subsidiary Guarantors have fully and
unconditionally guaranteed the TAC I Notes, the TAC II Notes and the TAC III
Notes on a joint and several basis; (iii) the aggregate assets, liabilities,
earnings and equity of the Subsidiary Guarantors are substantially equivalent to
the assets, liabilities, earnings and equity of Trump AC on a consolidated
basis; and (iv) the separate financial and other disclosures concerning the
Subsidiary Guarantors are not deemed material to investors. The assets and
operations of Trump AC Funding, Trump AC Funding II and Trump AC Funding III are
not significant.
Certain reclassifications have been made to prior year financial statements
to conform to the current year presentation.
(2) PROPERTY AND EQUIPMENT
During the second quarter of 1997, Trump AC revised its estimates of the
useful lives of buildings, building improvements and furniture and fixtures
which were acquired in 1996. Buildings and building improvements were
reevaluated to have a forty year life and furniture and fixtures were determined
to have a seven year life. Trump AC believes these changes more appropriately
reflect the timing of the economic benefits to be received from these assets
during their estimated useful lives.
5
<PAGE>
For the three and nine months ended September 30, 1998, the net effect of
applying these new lives was to increase net income by $0 and $1,951,000
respectively.
(3) TRANSACTIONS WITH AFFILIATES
During the third quarter of 1996 and first quarter 1997, Plaza Associates
exercised its option to purchase two parcels of land underlying Trump Plaza's
main tower. The $24,599,000 acquisition cost was paid by THCR Holdings on behalf
of Plaza Associates and recorded by Plaza Associates as a capital contribution.
As it was the intention of THCR Holdings that the acquisition costs be repaid by
Plaza Associates, this amount has been reversed and recorded as "Advances to
Affiliates."
In April and May of 1996 THCR Holdings contributed $19,500,000 of capital
to Plaza Associates for improvements related to Trump World's Fair. This amount,
which was originally recorded as contributed capital has been reclassified as
"Advances to Affiliates" in October, 1998.
(4) ACCOUNTS RECEIVABLE
Plaza Associates is appealing a real estate tax assessment by the City of
Atlantic City. Included in accounts receivable is $5,191,000 which Plaza
Associates estimates will be recoverable on the settlement of the appeal.
(5) COMBINED FINANCIAL INFORMATION--TRUMP AC FUNDING, TRUMP AC FUNDING II AND
TRUMP AC FUNDING III
Combined financial information relating to Trump AC Funding, Trump AC
Funding II and Trump AC Funding III as of September 30, 1998 is as follows:
<TABLE>
<S> <C>
Total Assets (including TAC Notes receivable of $1,296,255,000 and related
interest receivable) ........................................................ $1,357,193,000
==============
Total Liabilities and Capital (including TAC Notes payable of $1,296,255,000 and
related interest payable) ................................................... $1,357,193,000
==============
Interest Income ................................................................ $ 109,657,000
==============
Interest Expense ............................................................... $ 109,657,000
==============
Net Income ..................................................................... --
==============
</TABLE>
6
<PAGE>
ITEM 2--MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
CAPITAL RESOURCES AND LIQUIDITY
Cash flows from operating activities are Trump AC's principal source of
liquidity. In December 1997 Trump AC and Trump AC Funding II issued $75,000,000
of TAC II Notes and Trump AC and Trump AC Funding III issued $25,000,000 of TAC
III Notes. Proceeds from the offerings of the TAC II Notes and the TAC III Notes
are intended by Trump AC to provide expansion funds and working capital for
operations. Accordingly, Trump AC expects to have sufficient liquidity to meet
its obligations. Cash flow is managed based upon the seasonality of the
operations. Any excess cash flow achieved from operations during peak periods is
utilized to subsidize non-peak periods where necessary.
The indentures under which the TAC Notes were issued restrict the ability
of Trump AC and its subsidiaries to make distributions or pay dividends, as the
case may be, unless certain financial ratios are achieved. In addition, the
ability of Plaza Associates and Taj Associates to make payments of dividends or
distributions (except for payment of interest) through Trump AC to THCR Holdings
may be restricted by the CCC.
Capital expenditures for Trump AC were $14,708,000 and $63,449,000 for the
nine months ended September 30, 1998 and 1997, respectively. Capital
expenditures for improvements to Trump Plaza's existing facilities were
$8,338,000 and $24,798,000 for the nine months ended September 30, 1998 and
1997, respectively. In addition, in 1997, Plaza Associates exercised its option
to purchase from Seashore Four Associates, an entity beneficially owned by
Donald J. Trump, one of the parcels of land underlying Trump Plaza's main tower,
pursuant to the terms of a lease, the payments under which were terminated upon
the exercise of such option. The purchase price and associated closing costs
were $10,144,000. In 1996 and 1997 Plaza Associates purchased related property
for $24,599,000 with capital contributed by THCR Holdings. This amount which was
originally recorded as contributed capital was reclassified as "Advances to
Affiliates" during the second quarter, 1998. Also, in April and May of 1996 THCR
Holdings contributed $19,500,000 million of capital to Plaza Associates for
improvements related to Trump World's Fair. This amount, which was originally
recorded as contributed capital, was reclassified as "Advances to Affiliates" in
October 1998.
Capital expenditures attributable to the Taj Mahal were $5,849,000 and
$37,948,000 for the nine months ended September 30, 1998 and 1997, respectively.
Capital expenditures for improvements to existing facilities were approximately
$5,849,000 and $7,596,000 for the nine months ended September 30, 1998 and 1997,
respectively. Capital expenditures attributable to the expansion of the facility
were approximately $30,352,000 for the nine months ended September 30, 1997.
The expansion at the Taj Mahal (the "Taj Mahal Expansion") consisted of the
construction of a new 14-bay bus terminal which was completed in December 1996,
a 2,400 space expansion of the existing self parking facilities, which was
completed in May 1997, and an approximate 7,000 square foot casino expansion
with 260 slot machines which was completed in July 1997. The total costs of the
Taj Mahal Expansion including amounts expended in 1996 and 1997 were
approximately $43,500,000 and have been funded principally out of cash from
operations.
Trump AC has assessed the year 2000 issue and has begun implementing a plan
to insure its systems are year 2000 compliant. Analysis has been made of Trump
AC's various customer support and internal administration systems with
appropriate modifications having been made or underway. Testing the
modifications will be ongoing during 1998 and is expected to be completed during
early 1999. Trump AC is approximately 50% complete in its modifications.
Trump AC believes that the issues of concern are predominately software
related versus hardware related. Further, Trump AC relies upon third party
suppliers for support of their individual systems provided to Trump AC. These
are primarily support of property, plant and equipment, such as telephones,
elevators and fire safety systems. Contact has been made with all significant
system suppliers and Trump AC is at various stages of assessment, negotiation
and implementation. When necessary, contracts have been issued to update these
systems so as to insure year 2000 compliance. The cost of addressing the year
2000 issue is not expected to be material, and will be funded out of operations.
If Trump AC did not assess the year 2000 issue and provide for its
compliance, it would be forced to convert to manual systems to carry on its
business. Since Trump AC expects to be fully year 2000 compliant, it does not
feel that a contingency plan is necessary at this time.
7
<PAGE>
RESULTS OF OPERATIONS: OPERATING REVENUES AND EXPENSES
The financial information presented below reflects the results of
operations of Trump AC. Because Trump AC has no business operations other than
its interests in Plaza Associates and Taj Associates at September 30, 1998, its
results of operations are not discussed below.
Comparison of Three-Month Periods Ended September 30, 1998 and 1997. The
following table includes selected data of Plaza Associates and Taj Associates
for the three months ended September 30, 1998 and 1997.
<TABLE>
<CAPTION>
Three Months Ended September 30,
-------------------------------------------------------------------------
1998 1997 1998 1997 1998 1997
Plaza Plaza Taj Taj Total Total
Associates Associates Associates Associates Trump AC Trump AC
--------------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C> <C> <C>
Revenues:
Gaming .................... $ 103,669 $ 100,772 $ 148,011 $ 137,824 $ 251,680 $ 238,596
Other ..................... 28,849 30,840 32,111 35,263 60,960 66,103
--------- --------- --------- --------- --------- ---------
Gross Revenues ............ 132,518 131,612 180,122 173,087 312,640 304,699
Less: Promotional Allowances .. 17,767 18,448 18,018 20,802 35,785 39,250
--------- --------- --------- --------- --------- ---------
Net Revenues .............. 114,751 113,164 162,104 152,285 276,855 265,449
--------- --------- --------- --------- --------- ---------
Costs & Expenses:
Gaming .................... 62,017 62,273 84,637 82,466 146,654 144,739
General & Administrative .. 19,889 17,525 23,255 21,649 43,093 39,215
Depreciation & Amortization 6,495 6,118 8,910 8,990 15,474 15,137
Other ..................... 8,886 8,802 8,827 8,722 17,713 17,524
--------- --------- --------- --------- --------- ---------
Total Costs and Expenses .. 97,287 94,718 125,629 121,827 222,934 216,615
--------- --------- --------- --------- --------- ---------
Income from Operations ........ 17,464 18,446 36,475 30,458 53,921 48,834
--------- --------- --------- --------- --------- ---------
Non-Operating Income ........ 144 126 226 260 1,236 560
Interest Expense ............ (11,883) (12,189) (23,502) (23,650) (38,475) (35,839)
--------- --------- --------- --------- --------- ---------
Total Non-Operating Expense . (11,739) (12,063) (23,276) (23,390) (37,239) (35,279)
--------- --------- --------- --------- --------- ---------
Net Income .................... $ 5,725 $ 6,383 $ 13,199 $ 7,068 $ 16,682 $ 13,555
========= ========= ========= ========= ========= =========
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
Three Months Ended September 30,
---------------------------------------------------------------------------------------------
1998 1997 1998 1997 1998 1997
Plaza Plaza Taj Taj Total Total
Associates Associates Associates Associates Trump AC Trump AC
---------------------------------------------------------------------------------------------
(dollars in thousands)
<S> <C> <C> <C> <C> <C> <C>
Table Game Revenues ............. $ 27,897 $ 25,540 $ 60,087 $ 48,816 $ 87,984 $ 74,356
Incr (Decr) over Prior Period ... $ 2,357 $ 11,271 $ 13,628
Table Game Drop ................. $ 177,853 $ 172,673 $ 328,457 $ 346,450 $ 506,310 $ 519,123
Incr (Decr) over Prior Period ... $ 5,180 $ (17,993) $ (12,813)
Table Win Percentage ............ 15.7% 14.8% 18.2% 14.1% 17.4% 14.3%
Incr (Decr) over Prior Period ... 0.9pts 4.1pts 3.1pts
Number of Table Games ........... 101 110 156 155 257 265
Incr (Decr) over Prior Period ... (9) 1 (8)
Slot Revenues ................... $ 75,772 $ 75,232 $ 82,498 $ 84,083 $ 158,270 $ 159,315
Incr (Decr) over Prior Period ... $ 540 $ (1,585) $ (1,045)
Slot Handle ..................... $ 929,397 $ 932,471 $ 1,011,646 $ 996,477 $ 1,941,043 $ 1,928,948
Incr (Decr) over Prior Period ... $ (3,074) $ 15,169 $ 12,095
Slot Win Percentage ............. 8.2% 8.1% 8.2% 8.4% 8.2% 8.3%
Incr (Decr) over Prior Period ... 0.1pts (0.2)pts (0.1)pts
Number of Slot Machines ......... 4,204 4,090 4,136 4,136 8,340 8,226
Incr (Decr) over Prior Period ... 114 0 114
Poker Revenues .................. -- -- $ 4,689 $ 4,259 $ 4,689 $ 4,259
Incr (Decr) over Prior Period ... -- $ 430 $ 430
Number of Poker Tables .......... -- -- 62 63 62 63
Incr (Decr) over Prior Period ... -- (1) (1)
Other Gaming Revenues ........... -- -- $ 737 $ 666 $ 737 $ 666
Incr (Decr) over Prior Period ... -- $ 71 $ 71
Total Gaming Revenues ........... $ 103,669 $ 100,772 $ 148,011 $ 137,824 $ 251,680 $ 238,596
Incr (Decr) over Prior Period ... $ 2,897 $ 10,187 $ 13,084
Number of Guest Rooms ........... 1,404 1,404 1,250 1,250 2,654 2,654
Occupancy Rate .................. 95.5% 91.6% 98.2% 96.8% 96.7% 94.0%
Average Daily Rate (Room Revenue) $ 84.68 $ 88.23 $ 101.09 $ 119.12 $ 92.52 $ 103.21
</TABLE>
Gaming revenues are the primary source of Trump AC's revenues. The year
over year increase in gaming revenues was due primarily to an increase in table
games revenue at both the Taj Mahal and Trump Plaza. The increase in table games
revenue was due primarily to the increased table win percentage at both the Taj
Mahal and Trump Plaza. Table games revenues represent the amount retained by
Trump AC from amounts wagered at table games. The table win percentage tends to
be fairly constant over the long term, but may vary significantly in the short
term, due to large wagers by "high rollers". The Atlantic City industry table
win percentages were 15.5% and 14.6% for the quarters ended September 30, 1998
and 1997, respectively.
9
<PAGE>
Comparison of Nine-Month Periods Ended September 30, 1998 and 1997. The
following table includes selected data of Plaza Associates and Taj Associates
for the nine months ended September 30, 1998 and 1997.
<TABLE>
<CAPTION>
Nine Months Ended September 30,
-------------------------------------------------------------------------------------------
1998 1997 1998 1997 1998 1997
Plaza Plaza Taj Taj Total Total
Associates Associates Associates Associates Trump AC Trump AC
-------------------------------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C> <C> <C>
Revenues:
Gaming .................... $ 283,934 $ 285,507 $ 388,405 $ 400,730 $ 672,339 $ 686,237
Other ..................... 77,048 83,726 88,880 93,278 165,928 177,004
----------- ----------- ----------- ----------- ----------- -----------
Gross Revenues ............ 360,982 369,233 477,285 494,008 838,267 863,241
Less: Promotional Allowances .. 47,822 49,741 50,556 56,310 98,378 106,051
----------- ----------- ----------- ----------- ----------- -----------
Net Revenues .............. 313,160 319,492 426,729 437,698 739,889 757,190
----------- ----------- ----------- ----------- ----------- -----------
Costs & Expenses:
Gaming .................... 172,504 178,719 236,957 245,660 409,461 424,379
General & Administrative .. 58,712 59,429 65,776 64,631 124,390 124,143
Depreciation & Amortization 18,697 18,115 27,204 31,948 46,085 50,146
Other ..................... 24,228 24,590 25,428 24,893 49,656 49,483
----------- ----------- ----------- ----------- ----------- -----------
Total Costs and Expenses .. 274,141 280,853 355,365 367,132 629,592 648,151
----------- ----------- ----------- ----------- ----------- -----------
Income from Operations ........ 39,019 38,639 71,364 70,566 110,297 109,039
----------- ----------- ----------- ----------- ----------- -----------
Non-Operating Income ........ 947 429 1,608 892 4,482 1,992
Interest Expense ............ (35,778) (36,580) (70,631) (71,077) (115,994) (107,657)
----------- ----------- ----------- ----------- ----------- -----------
Total Non-Operating Expense . (34,831) (36,151) (69,023) (70,185) (111,512) (105,665)
----------- ----------- ----------- ----------- ----------- -----------
Net income/(loss) ............. $ 4,188 $ 2,488 $ 2,341 $ 381 $ (1,215) $ 3,374
=========== =========== =========== =========== =========== ===========
<CAPTION>
Nine Months Ended September 30,
-------------------------------------------------------------------------------------------
1998 1997 1998 1997 1998 1997
Plaza Plaza Taj Taj Total Total
Associates Associates Associates Associates Trump AC Trump AC
-------------------------------------------------------------------------------------------
(dollars in thousands)
<S> <C> <C> <C> <C> <C> <C>
Table Game Revenues ........... $ 76,297 $ 71,085 $ 149,278 $ 156,584 $ 225,575 $ 227,669
Incr (Decr) over Prior Period . $ 5,212 $ (7,306) $ (2,094)
Table Game Drop ............... $ 485,620 $ 496,513 $ 903,011 $ 991,231 $ 1,388,631 $ 1,487,744
Incr (Decr) over Prior Period . $ (10,893) $ (88,220) $ (99,113)
Table Win Percentage .......... 15.7% 14.3% 16.5% 15.8% 16.2% 15.3%
Incr (Decr) over Prior Period . 1.4pts 0.7pts 0.9pts
Number of Table Games ......... 110 118 155 160 265 278
Incr (Decr) over Prior Period . (8) (5) (13)
Slot Revenues ................. $ 207,637 $ 214,422 $ 224,544 $ 230,059 $ 432,181 $ 444,481
Incr (Decr) over Prior Period . $ (6,785) $ (5,515) $ (12,300)
Slot Handle ................... $ 2,562,350 $ 2,622,704 $ 2,742,643 $ 2,751,430 $ 5,304,993 $ 5,374,134
Incr (Decr) over Prior Period . $ (60,354) $ (8,787) $ (69,141)
Slot Win Percentage ........... 8.1% 8.2% 8.2% 8.4% 8.1% 8.3%
Incr (Decr) over Prior Period . (0.1)pts (0.2)pts (0.2)pts
Number of Slot Machines ....... 4,124 4,080 4,137 3,924 8,261 8,004
Incr (Decr) over Prior Period . 44 213 257
Poker Revenues ................ -- -- $ 12,584 $ 12,169 $ 12,584 $ 12,169
Incr (Decr) over Prior Period . -- $ 415 $ 415
Number of Poker Tables ........ -- -- 62 63 62 63
Incr (Decr) over Prior Period . -- (1) (1)
Other Gaming Revenues ......... -- -- $ 1,999 $ 1,918 $ 1,999 $ 1,918
Incr (Decr) over Prior Period . -- $ 81 $ 81
Total Gaming Revenues ......... $ 283,934 $ 285,507 $ 388,405 $ 400,730 $ 672,339 $ 686,237
Incr (Decr) over Prior Period . $ (1,573) $ (12,325) $ (13,898)
Number of Guest Rooms.......... 1,404 1,404 1,250 1,250 2,654 2,654
Occupancy Rate................. 87.1% 89.7% 91.3% 93.7% 89.1% 91.5%
Average Daily Rate
(Room Revenue) .............. $ 80.50 $ 81.73 $ 101.40 $ 108.42 $ 90.59 $ 94.61
</TABLE>
10
<PAGE>
Gaming revenues are the primary source of Trump AC's revenues. The year
over year decrease in gaming revenues was due primarily to Taj Associates last
year's first quarter results which included an unusual approximately $8 million
dollar table game win from one premium player, a decline in high-end
international table game players due to Asian economic conditions and the
decline in slot revenues at both the Taj Mahal and Trump Plaza as the result of
an increased competitive marketplace. Table games revenues represent the amount
retained by Trump AC from amounts wagered at table games. The table win
percentage tends to be fairly constant over the long term, but may vary
significantly in the short term, due to large wagers by "high rollers". The
Atlantic City industry table win percentages were 15.3% and 14.9% for the nine
months ended September 30, 1998 and 1997, respectively. The year over year
decrease in slot revenues at both the Taj Mahal and Trump Plaza was primarily
due to increased competitiveness in the marketplace.
Substantially proportionate to the decrease in gaming revenues, gaming
costs and expenses decreased $14,918,000 or 3.5% from the comparable period in
1997. This decrease primarily represents marketing and promotional costs.
Insurance reserves were reduced by approximately $2,200,000 as a result of
an internal risk management review at both Plaza Associates and Taj Associates.
During the second quarter of 1997, Trump AC revised its estimates of the
useful lives of buildings, building improvements, furniture and fixtures which
were acquired in 1996. Buildings and building improvements were re-evaluated to
have a forty year life and furniture and fixtures were determined to have a
seven year life. Trump AC believes these changes more appropriately reflect the
timing of the economic benefits to be received from these assets during their
estimated useful lives. For the nine months ended September 30, 1998, the net
effect of applying these new lives was to increase net income by $1,951,000.
SEASONALITY
The casino industry in Atlantic City is seasonal in nature; accordingly,
the results of operations for the period ending September 30, 1998 are not
necessarily indicative of the operating results for a full year.
IMPORTANT FACTORS RELATING TO FORWARD LOOKING STATEMENTS
The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for forward-looking statements so long as those statements are
identified as forward-looking and are accompanied by meaningful cautionary
statements identifying important factors that could cause actual results to
differ materially from those projected in such statements. In connection with
certain forward-looking statements contained in this Quarterly Report on Form
10-Q and those that may be made in the future by or on behalf of the
Registrants, the Registrants note that there are various factors that could
cause actual results to differ materially from those set forth in any such
forward-looking statements. The forward-looking statements contained in this
Quarterly Report were prepared by management and are qualified by, and subject
to, significant business, economic, competitive, regulatory and other
uncertainties and contingencies, all of which are difficult or impossible to
predict and many of which are beyond the control of the Registrants.
Accordingly, there can be no assurance that the forward-looking statements
contained in this Quarterly Report will be realized or that actual results will
not be significantly higher or lower. The statements have not been audited by,
examined by, compiled by or subjected to agreed-upon procedures by independent
accountants, and no third-party has independently verified or reviewed such
statements. Readers of this Quarterly Report should consider these facts in
evaluating the information contained herein. In addition, the business and
operations of the Registrants are subject to substantial risks which increase
the uncertainty inherent in the forward-looking statements contained in this
Quarterly Report. The inclusion of the forward-looking statements contained in
this Quarterly Report should not be regarded as a representation by the
Registrants or any other person that the forward-looking statements contained in
this Quarterly Report will be achieved. In light of the foregoing, readers of
this Quarterly Report are cautioned not to place undue reliance on the
forward-looking statements contained herein.
ITEM 3--QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Pursuant to the General Instructions to Rule 305 of Regulation S-K, the
quantitative and qualitative disclosures called for by this Item 3 and by Rule
305 of Regulation S-K are inapplicable to the Registrants at this time.
11
<PAGE>
PART II -- OTHER INFORMATION
ITEM 1--LEGAL PROCEEDINGS
General. Trump AC, its partners, certain members of its former executive
committee, and certain of its employees, have been involved in various legal
proceedings. Such persons and entities are vigorously defending the allegations
against them and intend to contest vigorously any future proceedings. In
general, Trump AC has agreed to indemnify such persons against any and all
losses, claims, damages, expenses (including reasonable costs, disbursements and
counsel fees) and liabilities (including amounts paid or incurred in
satisfaction of settlements, judgments, fines and penalties) incurred by them in
said legal proceedings.
Plaza Associates. The Casino Reinvestment Development Authority ("CRDA"),
as required, set aside certain funds for investment in hotel development
projects in Atlantic City undertaken by casino licensees which result in the
construction or rehabilitation of at least 200 hotel rooms. These investments
are to fund up to 27% of the cost to casino licensees of such projects. In June
1993, Plaza Associates made application for such funding to the CRDA with
respect to its proposed construction of the Trump Plaza East facilities,
demolition of a certain structure adjacent thereto, development of an
appurtenant public park, roadway and parking area and acquisition of the entire
project site. The CRDA, in rulings through January 10, 1995, approved the hotel
development project and, with respect to same and pursuant to a credit agreement
between them, reserved to Plaza Associates the right to take investment tax
credits up to approximately $14.2 million. Plaza Associates has, except for
three small parcels discussed below, acquired the site and constructed and
presently operates and maintains the proposed hotel tower, public park, roadway
and parking area.
As part of its approval and on the basis of its powers of eminent domain,
the CRDA, during 1994, initiated certain condemnation proceedings in the
Superior Court of New Jersey, Atlantic County, to acquire five small parcels of
land within the project site. Plaza Associates has since acquired two of the
parcels and proceedings with respect to those parcels have been concluded. The
court, in a July 20, 1998 opinion, directed entry of judgments dismissing the
CRDA actions with respect to the remaining three parcels, which, if acquired,
would be included in the public park and parking area of the project on the
basis of the court's determination that the CRDA had failed to establish that a
valid primarily public purpose justified acquisition of the parcels. Written
orders of dismissal were entered by the court on July 28. The right of the CRDA
to appeal these judgments expired on September 11, 1998. The judgments were not
appealed.
Additionally, with respect to the two parcels to be included in the public
park portion of the project, the CRDA, by a separate motion, sought an order
that Plaza Associates' application and credit agreement be deemed amended to
terminate the CRDA obligation to acquire the two parcels and to enable the CRDA
to abandon the condemnation proceedings with respect to these two parcels. This
motion was opposed by Plaza Associates. By order dated April 1, 1998, the Court
denied the motion but granted the CRDA leave to amend its pleadings by a filing
within 14 days from the date thereof formally asserting a claim for specific
performance of the alleged agreement. The CRDA did not file any such amended
pleading within this permitted time period.
Also, the defendants in two of the condemnation proceedings filed a
separate joint complaint in the New Jersey Superior Court alleging, among other
claims, that the CRDA and Plaza Associates were wrongfully attempting to deprive
them of property rights in violation of their constitutional and civil rights.
Coking, et al. v. Casino Reinvestment Development Authority, et al., Docket No.
ATL-L-2555-97. CRDA's motion for summary judgment on the complaint and Plaza
Associates' motion to dismiss it for failure to state a claim were granted by
the New Jersey Superior Court on October 24, 1997 and November 11, 1997.
Other Litigation. Various legal proceedings are now pending against Trump
AC. Trump AC considers all such proceedings to be ordinary litigation incident
to the character of its business. Trump AC believes that the resolution of these
claims, to the extent not covered by insurance, will not, individually or in the
aggregate, have a material adverse effect on the financial condition or results
of operations of Trump AC.
From time to time, Plaza Associates and Taj Associates may be involved in
routine administrative proceedings involving alleged violations of certain
provisions of the Casino Control Act. However, management believes that the
final outcome of these proceedings will not, either individually or in the
aggregate, have a material adverse effect on Plaza Associates or Taj Associates
or on the ability of Plaza Associates or Taj Associates to otherwise retain or
renew any casino or other licenses required under the Casino Control Act for the
operation of Trump Plaza and the Taj Mahal.
12
<PAGE>
ITEM 2--CHANGES IN SECURITIES AND USE OF PROCEEDS
None.
ITEM 3--DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4--SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
ITEM 5--OTHER INFORMATION
None.
ITEM 6--EXHIBITS AND REPORTS ON FORM 8-K
A. EXHIBITS:
EXHIBIT NO. DESCRIPTION OF EXHIBIT
----------- ----------------------
27.1 Financial Data Schedule of Trump Atlantic City Associates.
27.2 Financial Data Schedule of Trump Atlantic City Funding, Inc.
27.3 Financial Data Schedule of Trump Atlantic City Funding II, Inc.
27.4 Financial Data Schedule of Trump Atlantic City Funding III, Inc.
B. CURRENT REPORTS ON FORM 8-K:
The Registrants did not file any Current Reports on Form 8-K during the
period beginning July 1, 1998 and ending September 30, 1998.
13
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
TRUMP ATLANTIC CITY ASSOCIATES
(Registrant)
By: TRUMP ATLANTIC CITY HOLDING, INC.,
its general partner
Date: November 13, 1998
By: /S/ FRANCIS X. MCCARTHY JR.
-------------------------------------
FRANCIS X. MCCARTHY JR.
EXECUTIVE VICE PRESIDENT FINANCE AND
CHIEF FINANCIAL OFFICER
(DULY AUTHORIZED OFFICER AND
PRINCIPAL FINANCIAL OFFICER)
14
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
TRUMP ATLANTIC CITY FUNDING, INC.
(Registrant)
Date: November 13, 1998
By: /S/ FRANCIS X. MCCARTHY JR.
-------------------------------------
FRANCIS X. MCCARTHY JR.
EXECUTIVE VICE PRESIDENT FINANCE AND
CHIEF FINANCIAL OFFICER
(DULY AUTHORIZED OFFICER AND
PRINCIPAL FINANCIAL OFFICER)
15
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
TRUMP ATLANTIC CITY FUNDING II, INC.
(Registrant)
Date: November 13, 1998
By: /S/ FRANCIS X. MCCARTHY JR.
-------------------------------------
FRANCIS X. MCCARTHY JR.
EXECUTIVE VICE PRESIDENT FINANCE AND
CHIEF FINANCIAL OFFICER
(DULY AUTHORIZED OFFICER AND
PRINCIPAL FINANCIAL OFFICER)
16
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
TRUMP ATLANTIC CITY FUNDING III, INC.
(Registrant)
Date: November 13, 1998
By: /S/ FRANCIS X. MCCARTHY JR.
------------------------------------
FRANCIS X. MCCARTHY JR.
EXECUTIVE VICE PRESIDENT FINANCE AND
CHIEF FINANCIAL OFFICER
(DULY AUTHORIZED OFFICER AND
PRINCIPAL FINANCIAL OFFICER)
17
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000897729
<NAME> Trump Atlantic City Associates
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 141,763
<SECURITIES> 0
<RECEIVABLES> 80,143
<ALLOWANCES> 21,181
<INVENTORY> 10,304
<CURRENT-ASSETS> 246,059
<PP&E> 1,742,725
<DEPRECIATION> 312,091
<TOTAL-ASSETS> 1,752,295
<CURRENT-LIABILITIES> 145,903
<BONDS> 1,296,255
0
0
<COMMON> 0
<OTHER-SE> 302,125
<TOTAL-LIABILITY-AND-EQUITY> 1,752,295
<SALES> 739,889
<TOTAL-REVENUES> 838,267
<CGS> 0
<TOTAL-COSTS> 459,117<F1>
<OTHER-EXPENSES> 170,475<F2>
<LOSS-PROVISION> 9,422
<INTEREST-EXPENSE> 115,994
<INCOME-PRETAX> (1,215)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,215)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,215)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>Includes gaming, lodging, food & beverage and other
<F2>Includes general & administration and depreciation & amortization expenses
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0001006918
<NAME> Trump Atlantic City Funding, Inc.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 56,250
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 56,250
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 1,256,250
<CURRENT-LIABILITIES> 56,250
<BONDS> 1,200,000
<COMMON> 0
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 1,256,000
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 101,250
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0001052517
<NAME> Trump Atlantic City Funding II, Inc.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 3,516
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 3,516
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 76,006
<CURRENT-LIABILITIES> 3,516
<BONDS> 72,490
<COMMON> 0
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 76,006
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 6,305
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0001052519
<NAME> Trump Atlantic City Funding III, Inc.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 1,172
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,172
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 24,937
<CURRENT-LIABILITIES> 1,172
<BONDS> 23,765
<COMMON> 0
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 24,937
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,102
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
