Harrah's Entertainment reports results

27 Feb 2008

LAS VEGAS, Nevada -- (PRESS RELEASE) -- Harrah's Entertainment, Inc. today reported the following financial results for the 2007 fourth quarter:


    COMPANY WIDE RESULTS
    (in millions, except per share)

                       2007     2006    Percent    2007      2006    Percent
                      Fourth   Fourth   Increase   Full      Full    Increase
                      Quarter  Quarter (Decrease)  Year      Year   (Decrease)

    Total revenues   $2,627.5 $2,430.6    8.1%  $10,825.2  $9,673.9   11.9%
    Property EBITDA     622.8    562.8   10.7%    2,825.5   2,610.3    8.2%
    Adjusted EPS from
     Continuing
     operations         $0.42    $0.45   -6.7%      $3.25     $3.34   -2.7%

Property EBITDA, Adjusted EPS from Continuing Operations and Adjusted EBITDA are not Generally Accepted Accounting Principles (GAAP) measurements but are commonly used in the gaming industry as measures of performance and as bases for valuation of gaming companies and, in the case of Adjusted EBITDA, as a measure of compliance with certain debt covenants. Reconciliations of Adjusted EPS from Continuing Operations to GAAP EPS, Property EBITDA to income from operations and Adjusted EBITDA to income from continuing operations are attached to this release.

On a GAAP basis, fourth-quarter income from operations was $145.8 million, compared with $229.7 million in the year-ago quarter. The company reported a fourth-quarter net loss of $47.8 million, compared with net income of $47.6 million in the 2006 fourth quarter.

The fourth-quarter 2007 loss was due to impairment charges of $169.6 million recorded in the period for certain intangible assets. These pre-tax write-offs were included in "Project opening costs and other items."

During the fourth quarter, Harrah's was honored by BusinessWeek magazine as one of the country's top corporate donors and best places to launch a career. The company also received plaudits as one of Fortune magazine's "Most Admired Companies," from IDG's Computerworld magazine as one of the "Best Places to Work in Information Technology," and from the influential civil-rights organization Human Rights Campaign for being the first gaming company to receive a perfect score in HRC's Corporate Equity Index.

On January 28, 2008, Harrah's Entertainment was acquired by affiliates of Apollo Global Management, LLC and TPG Capital, LP in a transaction valued at $29.7 billion, including assumption of $12.4 billion of debt but excluding transaction costs. Harrah's stockholders received $90 cash for each share of common stock, or a total of $17.3 billion.

"Our customer-loyalty program and geographic diversification continued to serve us well in the fourth quarter, when Harrah's properties in Nevada, Illinois, Louisiana, Mississippi and Atlantic City outperformed their respective markets," said Gary Loveman, Harrah's chairman, president and chief executive officer. "Our ability to achieve strong operating results -- as well as close on the TPG-Apollo transaction -- in a challenging economic climate demonstrates the efficacy of a business strategy focused on growing same-store revenues and stimulating cross-market play.

"As we move forward as a private company, we will continue to pursue both organic growth and new development projects, domestically and internationally, that will maximize cash flows and returns on investment," Loveman said.

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	Harrah's Entertainment reports results 27 Feb 2008 LAS VEGAS, Nevada -- (PRESS RELEASE) -- Harrah's Entertainment, Inc. today reported the following financial results for the 2007 fourth quarter: COMPANY WIDE RESULTS (in millions, except per share) 2007 2006 Percent 2007 2006 Percent Fourth Fourth Increase Full Full Increase Quarter Quarter (Decrease) Year Year (Decrease) Total revenues $2,627.5 $2,430.6 8.1% $10,825.2 $9,673.9 11.9% Property EBITDA 622.8 562.8 10.7% 2,825.5 2,610.3 8.2% Adjusted EPS from Continuing operations $0.42 $0.45 -6.7% $3.25 $3.34 -2.7% Property EBITDA, Adjusted EPS from Continuing Operations and Adjusted EBITDA are not Generally Accepted Accounting Principles (GAAP) measurements but are commonly used in the gaming industry as measures of performance and as bases for valuation of gaming companies and, in the case of Adjusted EBITDA, as a measure of compliance with certain debt covenants. Reconciliations of Adjusted EPS from Continuing Operations to GAAP EPS, Property EBITDA to income from operations and Adjusted EBITDA to income from continuing operations are attached to this release. On a GAAP basis, fourth-quarter income from operations was $145.8 million, compared with $229.7 million in the year-ago quarter. The company reported a fourth-quarter net loss of $47.8 million, compared with net income of $47.6 million in the 2006 fourth quarter. The fourth-quarter 2007 loss was due to impairment charges of $169.6 million recorded in the period for certain intangible assets. These pre-tax write-offs were included in "Project opening costs and other items." During the fourth quarter, Harrah's was honored by BusinessWeek magazine as one of the country's top corporate donors and best places to launch a career. The company also received plaudits as one of Fortune magazine's "Most Admired Companies," from IDG's Computerworld magazine as one of the "Best Places to Work in Information Technology," and from the influential civil-rights organization Human Rights Campaign for being the first gaming company to receive a perfect score in HRC's Corporate Equity Index. On January 28, 2008, Harrah's Entertainment was acquired by affiliates of Apollo Global Management, LLC and TPG Capital, LP in a transaction valued at $29.7 billion, including assumption of $12.4 billion of debt but excluding transaction costs. Harrah's stockholders received $90 cash for each share of common stock, or a total of $17.3 billion. "Our customer-loyalty program and geographic diversification continued to serve us well in the fourth quarter, when Harrah's properties in Nevada, Illinois, Louisiana, Mississippi and Atlantic City outperformed their respective markets," said Gary Loveman, Harrah's chairman, president and chief executive officer. "Our ability to achieve strong operating results -- as well as close on the TPG-Apollo transaction -- in a challenging economic climate demonstrates the efficacy of a business strategy focused on growing same-store revenues and stimulating cross-market play. "As we move forward as a private company, we will continue to pursue both organic growth and new development projects, domestically and internationally, that will maximize cash flows and returns on investment," Loveman said.