Barclay s Capital Gaming, Hospitality & Leisure Credit Conference September 2008

Transcription

1 Barclay s Capital Gaming, Hospitality & Leisure Credit Conference September 2008

2 Forward-Looking Statements This presentation contains statements that we believe are, or may be considered to be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of All statements other than statements of historical fact included in this presentation regarding the prospects of our industry or our prospects, plans, financial position or business strategy, may constitute forward-looking statements. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you that these expectations will prove to be correct. These forwardlooking statements are subject to certain known and unknown risks and uncertainties, as well as assumptions, that could cause actual results to differ materially from those reflected in these forward-looking statements. Readers are cautioned not to place undue reliance on any forward-looking statements contained herein, which reflect management s opinions only as of the date hereof. Except as required by law, we undertake no obligation to revise or publicly release the results of any revision to any forward-looking statements. You are advised, however, to consult any additional disclosures we make in our reports to the SEC.

3 Overview* Market Conditions Sale of Trump Marina Taj Mahal Chairman Tower Opening Atlantic City Results 2nd Quarter Highlights Strategy & Opportunities Financial Review * All References to the Company in this presentation refer to the Company s continuing operations, Trump Taj Mahal and Trump Plaza. Trump Marina has been excluded from the Company s results as a results of the pending sale of the property.

4 Market Review Atlantic City facing challenging series of conditions Regional slot competition continues to have effect More than 2500 new rooms opened in 2008, including the Taj Chairman Tower Macro-economic concerns - gas prices and weakened economy Smoking ban

5 Market Review However, TRMP has made market share gains: Second quarter slot win: Competitors down 7.8% TRMP was down 4.0% YTD slot win: Competitors down 8.8% TRMP is down 2.2%

6 Market Review Through the first two quarters, the Plaza and Taj have outpaced all other properties in town other than Harrah s Marina in change in gross operating profit* 9.9 Gross Operating Profit - YOY % Change % Change Harrah's Marina Trump Plaza Trump Taj Mahal Bally's AC Borgata Caesars Showboat Trump Marina AC Hilton Tropicana Resorts * As reported to the New Jersey Casino Control Commission

7 Sale of Trump Marina Transaction value: $316 million Sold to Coastal Development, LLC, who intends to re-brand the property under the Margaritaville brand Expected to close in late 2008 / early 2009 Currently exploring options for proceeds, including: Additional development in Atlantic City Reducing debt Projects to diversify outside of Atlantic City

8 The Chairman Tower at Trump Taj Mahal Opened 380 rooms Labor Day weekend Remainder of 782 rooms expected to open by close of Standard Rooms 70 one-, two- and three-bedroom suites 4 super suites On budget of $255 million Achieving premium pricing compared to existing hotel tower Ability to book larger groups and conventions Large, premium rooms and suites among Atlantic City s best product

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11 CHAIRMAN ROOM

12 CHAIRMAN ROOM

13 CHAIRMAN ROOM

14 SUITE A

15 SUITE A

16 SUITE A

17 Chairman Tower Sales Convention and transient bookings strong Expect approximately 10,000 room nights from group sales in 2008 alone Achieving cash premium over existing tower rooms Partnered with Expedia.com and Hotels.com for online marketing campaign targeted at Atlantic City, Philadelphia and New York travelers

18 Chairman Tower Marketing Use Chairman Tower debut as key opportunity to re-brand the new Taj Mahal Introduced thenewtaj.com and online marketing campaigns Introduced marketing campaign to promote tower, refresh image, and introduce the new experience throughout the entire facility

19 TRMP Image Advertising

20 New Taj Mahal Advertising

21 Chairman Tower Advertising

22 thenewtaj.com

23 Upgraded Gaming Experience

24 Upgraded Dining and Entertainment

25 Upgraded Dining and Entertainment

26 Second Quarter Highlights Revenue management initiatives continue to be successful: Occupancy improved to 91.2% from 89.4% RevPAR increased 2.5% to $87.56 Cash room revenue of $7.4 million was consistent with 2007 Continued cost savings resulted in $2.5 million year-to-date decrease in payroll and related costs, following a $15 million impact in 2007 Continued to outpace competitors in slot revenue; unfavorable table hold at the Taj Mahal impacted table revenue results Table hold at Taj had negative revenue impact of approximately $4.5 million

27 Strategy and Opportunities Utilize Chairman Tower to attract high-value customers and additional convention and meeting business Opening of Il Mulino restaurant at the Taj Mahal in September will add important new amenity Continue to implement cost savings measures where possible while maintaining customer service levels Continued refinement of revenue drivers, including: One Card marketing program Cross-property play initiatives

28 Financial Results Q2 EBITDA increased at the Company s continuing operations, despite a decrease in net revenues FINANCIAL RESULTS Three Months Ended June 30, ($ in thousands) Net Revenue Taj $ $ Plaza Total Revenue $ $ Property EBITDA Taj $ 22.3 $ 24.0 Plaza Total Property EBITDA Corporate Expenses (6.2) (10.3) Consolidated EBITDA $ 22.9 $ 21.9

29 Summary Capitalization ($ in MM) June 30, December 31, Cash $ 81.5 $ Restricted Cash Long-term debt: Senior Secured Credit Facility Term Loans (a) Senior Notes 1, ,249.0 Capitalized Lease Obligations Total long-term debt 1, ,643.8 Less: Current Maturities (4.8) (5.5) Long-term debt, net of current maturities $ 1,691.5 $ 1,638.3 (a) $50 million of the delayed-draw term loan available at 6/30/08

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