Trump Casinos Continue Losing Streak

ATLANTIC CITY, NJ-In results released this week, Trump Entertainment showed Q2 declines in net revenues and gross operating profits for its three casino/hotel properties here, and an overall net loss. Trump Entertainment is the successor company that emerged from the Chapter 11 bankruptcy of Trump Hotels & Casino Resorts Inc.

In an earnings report complicated by the fact that the Chapter 11 proceedings occurred in mid-quarter, the results were listed in two columns, marked “predecessor company” and “reorganized company.” For the quarter ended June 30, net revenues for the company’s Trump Taj Mahal, Trump Plaza and Trump Marina properties dropped by 4% to just over $246 million. Gross operating profits fell by nearly 19% to $45.8 million. Overall, including the company riverboat casino in Gary, IN, the company lost $17.6 million for the quarter. The company hasn’t shown a profit in nearly a decade.

During a conference call this week, company officials said it was difficult to make comparisons with the same period of a year ago because of the bankruptcy proceedings and the altered configuration of the company. “This has been one of the most complicated times in our history,” company treasurer John P. Burke said during the call. “That’s what happens when you emerge from bankruptcy.”

The call also marked the emergence of new CEO James B. Perry, former president/CEO of Argosy Gaming. Donald Trump, who remains as chairman of the reorganized company, was forced to step down as part of the Chapter 11 agreement approved by the courts.

During the conference call, Perry outlined plans to conduct a marketing study aimed at gauging the general perception of the Trump brand as the basis for a new marketing effort. The goal is to have that effort, as well as a capital plan for expansion and renovation of the company’s properties, in place by year’s end. The first priority, according to Perry, is the previously announced new 1,250-room hotel tower at the Taj Mahal, which is expected to cost at least $150 million.

Pressed by analysts on whether any of the company’s properties could be sold, Perry declined to comment. He did stress the company’s commitment to the Atlantic City market and suggested that Trump Entertainment would consider expanding to Las Vegas or other markets. “Our recapitalized company has emerged with an improved balance sheet, lower interest expense and access to the capital we need to improve our operating results,” Perry told analysts.