================================================================================
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 June 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 August 14, 1998, there were 100 shares of Trump Atlantic City
Funding, Inc.'s Common Stock outstanding.
As of August 14, 1998, there were 100 shares of Trump Atlantic City Funding
II, Inc.'s Common Stock outstanding.
As of August 14, 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
<TABLE>
<CAPTION>
Page No.
--------
<S> <C>
PART I -- FINANCIAL INFORMATION
ITEM 1 -- Financial Statements
Condensed Consolidated Balance Sheets of Trump Atlantic City Associates and
Subsidiaries as of June 30, 1998 (unaudited) and December 31, 1997............................. 1
Condensed Consolidated Statements of Operations of Trump Atlantic City Associates and
Subsidiaries for the Three and Six Months Ended June 30, 1998 and 1997 (unaudited)............. 2
Condensed Consolidated Statement of Capital of Trump Atlantic City Associates and
Subsidiaries for the Six Months Ended June 30, 1998 (unaudited)................................ 3
Condensed Consolidated Statements of Cash Flows of Trump Atlantic City Associates and
Subsidiaries for the Six Months Ended June 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.................................................. 14
ITEM 3 -- Defaults Upon Senior Securities............................................................ 14
ITEM 4 -- Submission of Matters to a Vote of Security Holders........................................ 14
ITEM 5 -- Other Information.......................................................................... 14
ITEM 6 -- Exhibits and Reports on Form 8-K........................................................... 14
SIGNATURES
Signature -- Trump Atlantic City Associates........................................................ 15
Signature -- Trump Atlantic City Funding, Inc. .................................................... 16
Signature -- Trump Atlantic City Funding II, Inc. ................................................. 17
Signature -- Trump Atlantic City Funding III, Inc. ................................................ 18
</TABLE>
i
<PAGE>
PART I -- FINANCIAL INFORMATION
ITEM 1 -- FINANCIAL STATEMENTS
TRUMP ATLANTIC CITY ASSOCIATES AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
ASSETS
June 30, December 31,
1998 1997
---------- -----------
(unaudited)
CURRENT ASSETS:
Cash and cash equivalents ....................... $ 86,387 $ $114,879
Receivables, net ................................ 59,535 56,478
Inventories ..................................... 8,921 9,880
Advances to affiliates, net ..................... 25,500 21,880
Other current assets ............................ 9,556 7,319
---------- ----------
Total Current Assets .......................... 189,899 210,436
PROPERTY AND EQUIPMENT, NET ....................... 1,438,500 1,460,050
DEFERRED LOAN COSTS, NET .......................... 34,538 36,842
OTHER ASSETS ...................................... 36,458 31,745
---------- ----------
Total Assets .................................. $1,699,395 $1,739,073
========== ==========
LIABILITIES AND CAPITAL
CURRENT LIABILITIES:
Current maturities of long-term debt ............ $5,827 $6,964
Accounts payable and accrued expenses ........... 79,109 73,478
Accrued interest payable ........................ 24,396 23,850
---------- ----------
Total Current Liabilities ..................... 109,332 104,292
LONG-TERM DEBT, net of current maturities ......... 1,298,838 1,300,027
OTHER LONG-TERM LIABILITIES ....................... 5,782 6,815
---------- ----------
Total Liabilities ............................. 1,413,952 1,411,134
---------- ----------
CAPITAL:
Partners' Capital ............................... 349,191 373,790
Accumulated Deficit ............................. (63,748) (45,851)
---------- ----------
Total Capital ................................. 285,443 327,939
---------- ----------
Total Liabilities and Capital ................. $1,699,395 $1,739,073
========== ==========
The accompanying notes are an integral part of
these condensed consolidated financial statements.
1
<PAGE>
<TABLE>
TRUMP ATLANTIC CITY ASSOCIATES AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(unaudited)
(in thousands)
<CAPTION>
Three Months Six Months
Ended June 30, Ended June 30,
-------------- --------------
1998 1997 1998 1997
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
REVENUES:
Gaming ............................................... $ 218,895 $ 232,498 $ 420,659 $ 447,641
Rooms ................................................ 19,709 21,336 36,628 39,024
Food and Beverage .................................... 27,355 29,781 53,099 56,127
Other ................................................ 7,655 8,611 15,241 15,750
--------- --------- --------- ---------
Gross Revenues ..................................... 273,614 292,226 525,627 558,542
Less--Promotional allowances ........................... 32,176 35,700 62,593 66,801
--------- --------- --------- ---------
Net Revenues ....................................... 241,438 256,526 463,034 491,741
--------- --------- --------- ---------
COSTS AND EXPENSES:
Gaming ............................................... 136,155 145,193 262,807 279,640
Rooms ................................................ 7,230 7,339 13,670 13,831
Food and Beverage .................................... 10,106 9,552 18,273 18,128
General and Administrative ........................... 40,045 42,180 81,297 84,928
Depreciation and Amortization ........................ 15,183 14,248 30,611 35,009
--------- --------- --------- ---------
208,719 218,512 406,658 431,536
--------- --------- --------- ---------
Income from operations ............................. 32,719 38,014 56,376 60,205
--------- --------- --------- ---------
NON-OPERATING INCOME AND (EXPENSES):
Interest income ...................................... 1,379 617 3,246 1,432
Interest expense ..................................... (38,740) (35,957) (77,519) (71,818)
--------- --------- --------- ---------
Non-Operating expense, net ........................... (37,361) (35,340) (74,273) (70,386)
--------- --------- --------- ---------
NET INCOME (LOSS) ...................................... $ (4,642) $ 2,674 $ (17,897) $ (10,181)
========= ========= ========= =========
</TABLE>
The accompanying notes are an integral part of these
condensed consolidated financial statements.
2
<PAGE>
<TABLE>
TRUMP ATLANTIC CITY ASSOCIATES AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CAPITAL
FOR THE SIX MONTHS ENDED JUNE 30, 1998
(unaudited)
(in thousands)
<CAPTION>
Retained
Earnings
Partners' (Accumulated
Capital Deficit) Total
<S> <C> <C> <C>
Balance, December 31, 1997 ................................................ $ 373,790 $ (45,851) $ 327,939
Net Loss .................................................................. -- (17,897) (17,897)
Reversal of capital contributed by THCR Holdings .......................... (24,599) -- (24,599)
--------- --------- ---------
Balance, June 30, 1998 .................................................... $ 349,191 $ (63,748) $ 285,443
========= ========= =========
</TABLE>
The accompanying notes are an integral part of this
condensed consolidated financial statement.
3
<PAGE>
<TABLE>
TRUMP ATLANTIC CITY ASSOCIATES AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(unaudited)
(dollars in thousands)
<CAPTION>
Six Months Ended
June 30,
--------------------------
1998 1997
--------- ---------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss ....................................................................................... $ (17,897) $ (10,181)
Adjustments to reconcile net loss to net cash flows from operating activities --
Noncash charges --
Depreciation and amortization .............................................................. 30,611 35,009
Accretion of discounts on indebtedness ..................................................... 394 --
Provisions for losses on receivables ....................................................... 5,423 4,378
Amortization of deferred loan offering costs ............................................... 3,484 3,345
Valuation allowance of CRDA investments .................................................... 1,764 1,932
Increase in receivables ..................................................................... (8,480) (11,856)
Decrease/(increase) in inventories .......................................................... 959 (42)
Increase in advances to affiliates .......................................................... (28,217) (2,540)
Increase in other current assets ............................................................ (1,656) (2,215)
Increase in other assets .................................................................... (1,921) (178)
Increase in accounts payable and accrued expenses ........................................... 5,597 8,871
Increase in accrued interest payable ........................................................ 546 56
Decrease in other long-term liabilities ..................................................... (1,614) (960)
--------- ---------
Net cash provided by operating activities .................................................. (11,007) 25,619
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment, net ..................................................... (7,726) (51,215)
Purchase of CRDA investments ................................................................ (5,064) (5,085)
--------- ---------
Net cash used in investing activities ...................................................... (12,790) (56,300)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Additional borrowings ....................................................................... 1,047 1,837
Payments and current maturities of long-term debt ........................................... (4,561) (4,735)
Cost of issuing debt ........................................................................ (1,181) --
Contributed capital by Trump Hotels & Casino Resorts Holdings, L.P. ......................... -- 10,144
--------- ---------
Net cash (used in) provided by financing activities ....................................... (4,695) 7,246
--------- ---------
NET INCREASE IN CASH & CASH EQUIVALENTS .......................................................... (28,492) (23,435)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR ................................................... 114,879 71,320
--------- ---------
CASH AND CASH EQUIVALENTS AT JUNE 30 ............................................................. $ 86,387 $ 47,885
========= =========
CASH INTEREST PAID ............................................................................... $ 73,664 $ 68,355
========= =========
Supplemental Disclosure of noncash activities:
Purchase of property and equipment under capitalized lease obligations ........................... $ 1,673 $ 1,689
========= =========
Reversal of Capital Contribution ................................................................. $ 24,599 $ --
========= =========
</TABLE>
The accompanying notes are an integral part of these
condensed consolidated financial statements.
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"), 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 guarantors (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 six months ended June 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 six months ended June 30, 1998, the net effect of applying
these new lives was to decrease net loss by $0 and $1,951,000 respectively.
(3) Transactions with Affiliates
During the quarter ended June 30, 1998 Plaza Associates reclassified
$24,599,000 representing the cost of property acquired by Plaza Associates in
1996 and 1997 with capital contributed by THCR Holdings to Advances from
Affiliates. Trump AC repaid THCR Holdings $18,450,000 of this amount during the
quarter ended June 30, 1998.
(4) Accounts Receivable
Plaza Associates is appealing a real estate tax assessment by the City of
Atlantic City. Included in accounts receivable is $4,400,000 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 June 30, 1998 is as follows:
Total Assets (including TAC Notes receivable of $1,296,067,000
and related interest receivable) .............................. $1,320,442,000
==============
Total Liabilities and Capital (including TAC Notes payable
of $1,296,067,000 and related interest payable) ............... $1,320,442,000
==============
Interest Income ............................................... $ 73,093,000
==============
Interest Expense .............................................. $ 73,093,000
==============
Net Income .................................................... --
==============
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 meets
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 New Jersey Casino Control Commission ("CCC").
Capital expenditures for Trump AC were $7,726,000 and $51,215,000 for the
six months ended June 30, 1998 and 1997, respectively. Capital expenditures for
improvements to Trump Plaza's existing facilities were $5,234,000 and
$20,987,000 for the six months ended June 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 addition, 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, has been reclassified as Advances to
Affiliates.
Capital expenditures attributable to the Taj Mahal were $2,157,000 and
$29,603,000 for the six months ended June 30, 1998 and 1997, respectively.
Capital expenditures for improvements to existing facilities were approximately
$2,157,000 and $5,147,000 for the six months ended June 30, 1998 and 1997,
respectively. Capital expenditures attributable to the expansion of the facility
were approximately $24,456,000 for the six months ended June 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 resolve the issue, which is expected to be completed in early 1999. Based
upon management's assessment, it is anticipated that associated costs incurred
to satisfactorily complete the plan will not be material.
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 June 30, 1998, its
results of operations are not discussed below.
7
<PAGE>
Comparison of Three-Month Periods Ended June 30, 1998 and 1997. The
following table includes selected data of Plaza Associates and Taj Associates
for the three months ended June 30, 1998 and 1997.
<TABLE>
<CAPTION>
Three Months Ended June 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 ............................... $ 92,972 $ 97,865 $ 125,923 $ 134,633 $ 218,895 $ 232,498
Other ................................ 25,145 28,376 29,574 31,352 54,719 59,728
--------- --------- --------- --------- --------- ---------
Gross Revenues ....................... 118,117 126,241 155,497 165,985 273,614 292,226
Less: Promotional Allowances ............. 15,732 16,732 16,444 18,968 32,176 35,700
--------- --------- --------- --------- --------- ---------
Net Revenues ......................... 102,385 109,509 139,053 147,017 241,438 256,526
--------- --------- --------- --------- --------- ---------
Costs & Expenses:
Gaming ............................... 56,468 61,195 79,687 83,998 136,155 145,193
General & Administrative ............. 18,793 21,388 21,271 20,742 40,045 42,180
Depreciation & Amortization .......... 6,149 5,458 8,977 8,758 15,183 14,248
Other ................................ 8,760 8,324 8,576 8,567 17,336 16,891
--------- --------- --------- --------- --------- ---------
Total Costs and Expenses ............. 90,170 96,365 118,511 122,065 208,719 218,512
--------- --------- --------- --------- --------- ---------
Income from Operations ................... 12,215 13,144 20,542 24,952 32,719 38,014
--------- --------- --------- --------- --------- ---------
Non-Operating Income ................... 382 142 1,193 242 1,379 617
Interest Expense ....................... (11,912) (12,198) (23,549) (23,759) (38,740) (35,957)
--------- --------- --------- --------- --------- ---------
Total Non-Operating Expense ............ (11,530) (12,056) (22,356) (23,517) (37,361) (35,340)
--------- --------- --------- --------- --------- ---------
Net Income/(loss) ........................ $ 685 $ 1,088 $ (1,814) $ 1,435 $ (4,642) $ 2,674
========= ========= ========= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
Three Months Ended June 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 ................. $ 23,492 $ 23,563 $ 47,635 $ 50,440 $ 71,127 $ 74,003
Incr (Decr) over Prior Period ....... $ (71) $ (2,805) $ (2,876)
Table Game Drop ..................... $ 156,155 $ 164,495 $ 299,903 $ 326,825 $ 456,058 $ 491,320
Incr (Decr) over Prior Period ....... $ (8,340) $ (26,922) $ (35,262)
Table Win Percentage ................ 15.0% 14.3% 15.9% 15.4% 15.6% 15.1%
Incr (Decr) over Prior Period ....... 0.7 pts 0.5 pts 0.5 pts
Number of Table Games ............... 111 110 153 158 264 268
Incr (Decr) over Prior Period ....... 1 (5) (4)
Slot Revenues ....................... $ 69,480 $ 74,302 $ 73,666 $ 79,584 $ 143,146 $ 153,886
Incr (Decr) over Prior Period ....... $ (4,822) $ (5,918) $ (10,740)
Slot Handle ......................... $ 856,661 $ 902,888 $ 898,989 $ 921,770 $ 1,755,650 $ 1,824,658
Incr (Decr) over Prior Period ....... $ (46,227) $ (22,781) $ (69,008)
Slot Win Percentage ................. 8.1% 8.2% 8.2% 8.6% 8.2% 8.4%
Incr (Decr) over Prior Period ....... (0.1) pts (0.4) pts. (0.2) pts
Number of Slot Machines ............. 4,092 4,064 4,130 3,838 8,222 7,902
Incr (Decr) over Prior Period ....... 28 292 320
Poker Revenues ...................... -- -- $ 3,975 $ 3,910 $ 3,975 $ 3,910
Incr (Decr) over Prior Period ....... -- -- $ 65 $ 65
Number of Poker Tables .............. -- -- 61 62 61 62
Incr (Decr) over Prior Period ....... -- -- (1) (1)
Other Gaming Revenues ............... -- -- $ 647 $ 699 $ 647 $ 699
Incr (Decr) over Prior Period ....... -- -- $ (52) $ (52)
Total Gaming Revenues ............... $ 92,972 $ 97,865 $ 125,923 $ 134,633 $ 218,895 $ 232,498
Incr (Decr) over Prior Period ....... $ (4,893) $ (8,710) $ (13,603)
Number of Guest Rooms ............... 1,404 1,404 1,250 1,250 2,654 2,654
Occupancy Rate ...................... 88.3% 92.4% 90.5% 93.9% 89.4% 93.1%
Average Daily Rate (Room Revenue) ... $ 78.72 $ 81.25 $ 105.13 $ 109.88 $ 91.32 $ 94.85
8
</TABLE>
<PAGE>
Gaming revenues are the primary source of Trump AC's revenues. The year
over year decrease in gaming revenues was due primarily to the decline in slot
revenues at both Trump Taj Mahal and Trump Plaza as the result of an increased
competitive marketplace. The decline in table games revenue at the Trump Taj
Mahal was due to the decline of high-end international table game players due to
Asian economic conditions. Directly proportionate to the decrease in gaming
revenues, gaming costs and expenses decreased $9,038,000, or 6.2% from the
comparable period in 1997. This decrease primarily represents marketing and
promotional costs. 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 14.9% and 14.7% for the quarters ended June 30, 1998 and
1997, respectively.
Comparison of Six-Month Periods Ended June 30, 1998 and 1997. The following
table includes selected data of Plaza Associates and Taj Associates for the
six months ended June 30, 1998 and 1997.
<TABLE>
<CAPTION>
Six Months Ended June 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 ............................... $ 180,265 $ 184,735 $ 240,394 $ 262,906 $ 420,659 $ 447,641
Other ................................ 48,199 52,886 56,769 58,015 104,968 110,901
--------- --------- --------- --------- --------- ---------
Gross Revenues ....................... 228,464 237,621 297,163 320,921 525,627 558,542
Less: Promotional Allowances ............. 30,055 31,293 32,538 35,508 62,593 66,801
--------- --------- --------- --------- --------- ---------
Net Revenues ......................... 198,409 206,328 264,625 285,413 463,034 491,741
--------- --------- --------- --------- --------- ---------
Costs & Expenses:
Gaming ............................... 110,487 116,446 152,320 163,194 262,807 279,640
General & Administrative ............. 38,823 41,904 42,521 42,982 81,297 84,928
Depreciation & Amortization .......... 12,202 11,997 18,294 22,958 30,611 35,009
Other ................................ 15,342 15,788 16,601 16,171 31,943 31,959
--------- --------- --------- --------- --------- ---------
Total Costs and Expenses ............. 176,854 186,135 229,736 245,305 406,658 431,536
--------- --------- --------- --------- --------- ---------
Income from Operations ................... 21,555 20,193 34,889 40,108 56,376 60,205
--------- --------- --------- --------- --------- ---------
Non-Operating Income ................... 803 303 1,382 632 3,246 1,432
Interest Expense ....................... (23,895) (24,391) (47,129) (47,427) (77,519) (71,818)
--------- --------- --------- --------- --------- ---------
Total Non-Operating Expense ............ (23,092) (24,088) (45,747) (46,795) (74,273) (70,386)
--------- --------- --------- --------- --------- ---------
Net loss ................................. $ (1,537) $ (3,895) $ (10,858) $ (6,687) $ (17,897) $ (10,181)
========= ========= ========= ========= ========= =========
</TABLE>
9
<PAGE>
<TABLE>
<CAPTION>
Six Months Ended June 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 .................. $ 48,400 $ 45,544 $ 89,191 $ 107,768 $ 137,591 $ 153,312
Incr (Decr) over Prior Period ........ $ 2,856 $ (18,577) $ (15,721)
Table Game Drop ...................... $ 307,767 $ 323,840 $ 574,555 $ 644,781 $ 882,322 $ 968,621
Incr (Decr) over Prior Period ........ $ (16,073) $ (70,226) $ (86,299)
Table Win Percentage ................. 15.7% 14.1% 15.5% 16.7% 15.6% 15.8%
Incr (Decr) over Prior Period ........ 1.6 pts (1.2) pts. (.2) pts
Number of Table Games ................ 114 123 154 162 268 285
Incr (Decr) over Prior Period ........ (9) (8) (17)
Slot Revenues ........................ $ 131,865 $ 139,191 $ 142,046 $ 145,976 $ 273,911 $ 285,167
Incr (Decr) over Prior Period ........ $ (7,326) $ (3,930) $ (11,256)
Slot Handle .......................... $ 1,632,953 $ 1,690,232 $ 1,730,997 $ 1,754,954 $ 3,363,950 $ 3,445,186
Incr (Decr) over Prior Period ........ $ (57,279) $ (23,957) $ (81,236)
Slot Win Percentage .................. 8.1% 8.2% 8.2% 8.3% 8.1% 8.3%
Incr (Decr) over Prior Period ........ (0.1) pts (0.1) pts. (0.2) pts
Number of Slot Machines .............. 4,084 4,075 4,137 3,818 8,221 7,893
Incr (Decr) over Prior Period ........ 9 319 328
Poker Revenues ....................... -- -- $ 7,895 $ 7,910 $ 7,895 $ 7,910
Incr (Decr) over Prior Period ........ -- -- $ (15) $ (15)
Number of Poker Tables ............... -- -- 62 63 62 63
Incr (Decr) over Prior Period ........ -- -- (1) (1)
Other Gaming Revenues ................ -- -- $ 1,262 $ 1,252 $ 1,262 $ 1,252
Incr (Decr) over Prior Period ........ -- -- $ 10 $ 10
Total Gaming Revenues ................ $ 180,265 $ 184,735 $ 240,394 $ 262,906 $ 420,659 $ 447,641
Incr (Decr) over Prior Period ........ $ (4,470) $ (22,512) $ (26,982)
Number of Guest Rooms ................ 1,404 1,404 1,250 1,250 2,654 2,654
Occupancy Rate ....................... 82.9% 88.6% 87.9% 92.2% 85.2% 90.2%
Average Daily Rate (Room Revenue) .... $ 78.05 $ 78.31 $ 101.58 $ 102.71 $ 89.48 $ 90.05
</TABLE>
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, an unusually low table game win
percentage in the current year, and a decline in high-end international table
game players due to Asian economic conditions. 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 15.2% and 15.1% for the six
months ended June 30, 1998 and 1997, respectively. The year over year decrease
in slot revenues at both Trump Taj Mahal and Trump Plaza was due primarily to
increased competitiveness in the marketplace.
Substantially proportionate to the decrease in gaming revenues, gaming
costs and expenses decreased $16,833,000 or 6.0% from the comparable period in
1997. This decrease primarily represents marketing and promotional costs.
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. For the six months ended June 30, 1998, the
net effect of applying these new lives was to decrease net loss by $1,951,000.
Seasonality
The casino industry in Atlantic City is seasonal in nature; accordingly,
the results of operations for the period ending June 30, 1998 are not
necessarily indicative of the operating results for a full year.
10
<PAGE>
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 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, 1998. The right of the
CRDA to appeal these judgments will expire on September 11, 1998.
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. On March 13, 1997, THCR filed a lawsuit in the United
States District Court, District of New Jersey, against Mirage, the State of New
Jersey ("State"), the New Jersey Department of Transportation ("NJDOT"), the
South Jersey Transportation Authority ("SJTA"), the CRDA, the New Jersey
Transportation Trust Fund Authority and others. THCR was seeking declaratory and
injunctive relief to recognize and prevent violations by the defendants of the
casino clause of the New Jersey State Constitution and various federal
securities and environmental laws relating to proposed infrastructure
improvements in the Atlantic City marina area. While this action was pending,
defendants State and CRDA then filed an action in the New Jersey State Court
seeking a declaratory judgment as to the claim relating to the casino clause of
the New Jersey State Constitution. On May 1, 1997, the United States District
Court dismissed the federal claims and ruled that the State constitutional
claims should be pursued in State Court. On April 2, 1998, the United States
Court of Appeals for the Third Circuit affirmed the dismissal; THCR's petition
to the Third Circuit for a rehearing was denied. On May 14, 1997 the State Court
entered a summary judgment in favor of the State and the CRDA, which was
affirmed by the Appellate Division on March 20, 1998. This decision is currently
being appealed in the State Supreme Court.
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.
12
<PAGE>
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.
13
<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 April 1, 1998 and ending June 30, 1998.
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 ASSOCIATES
(Registrant)
By: TRUMP ATLANTIC CITY HOLDING, INC.,
its general partner
Date: August 14, 1998
By: /s/ NICHOLAS L. RIBIS
----------------------------------
Nicholas L. Ribis
President
(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, INC.
(Registrant)
Date: August 14, 1998
By: /s/ NICHOLAS L. RIBIS
----------------------------------
Nicholas L. Ribis
President
(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 II, INC.
(Registrant)
Date: August 14, 1998
By: /s/ NICHOLAS L. RIBIS
----------------------------------
Nicholas L. Ribis
President
(Duly Authorized Officer and
Principal Financial Officer)
17
<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: August 14, 1998
By: /s/ NICHOLAS L. RIBIS
----------------------------------
Nicholas L. Ribis
President
(Duly Authorized Officer and
Principal Financial Officer)
18
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000897729
<NAME> Trump Atlantic City Associates
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 86,387
<SECURITIES> 0
<RECEIVABLES> 79,878
<ALLOWANCES> 20,343
<INVENTORY> 8,921
<CURRENT-ASSETS> 189,899
<PP&E> 1,735,540
<DEPRECIATION> 297,040
<TOTAL-ASSETS> 1,699,395
<CURRENT-LIABILITIES> 109,332
<BONDS> 1,296,067
0
0
<COMMON> 0
<OTHER-SE> 285,443
<TOTAL-LIABILITY-AND-EQUITY> 1,699,395
<SALES> 463,034
<TOTAL-REVENUES> 525,627
<CGS> 0
<TOTAL-COSTS> 294,750<F1>
<OTHER-EXPENSES> 111,908<F2>
<LOSS-PROVISION> 5,423
<INTEREST-EXPENSE> 77,519
<INCOME-PRETAX> (17,897)
<INCOME-TAX> 0
<INCOME-CONTINUING> (17,897)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (17,897)
<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> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 22,500
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 22,500
<PP&E> 1,222,500
<DEPRECIATION> 22,500
<TOTAL-ASSETS> 1,200,000
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 1,222,500
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 0
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 67,500
<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> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 1,406
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,406
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 73,770
<CURRENT-LIABILITIES> 1,406
<BONDS> 72,364
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 73,770
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 4,195
<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> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 469
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 469
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 24,172
<CURRENT-LIABILITIES> 469
<BONDS> 23,703
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 24,172
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,398
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
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<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
