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International Guild of Hospitality & Restaurant Managers
Hollywood
Casino Corp. (AMEX:HWD)
Two Galleria Tower, Suite 2200
13455 Noel Road, LB 48
Dallas, TX 75240
Phone: (972) 392-7777
Fax: (972) 716-3896
Employees (last reported count): 4,650
Financial Summary:
Hollywood Casino Corp. develops, owns and operates themed casino entertainment facilities through its subsidiaries: Aurora, a riverboat-style casino in Aurora, IL, and Tunica Casino in MS. For the nine months ended 9/30/02, net revenues rose 9% to $376.8 million. Net loss decreased 76% to $7.3M. Results reflect higher gross wagering, table games/slot machine hold percentages, improved operating margin and lower depreciation charges
Information:
Hollywood
Casino Corporation (HCC), incorporated in 1990, develops, owns and operates
distinctively themed casino entertainment facilities under the service mark
Hollywood Casino. Through its subsidiaries, the Company owns and operates a
dockside casino and entertainment facility in Aurora, Illinois, approximately 35
miles west of downtown Chicago (the Aurora Casino); a casino, hotel and
entertainment complex in Tunica County, Mississippi, located approximately 30
miles south of Memphis, Tennessee (the Tunica Casino), and a destination gaming
resort located in Shreveport, Louisiana, approximately 180 miles east of Dallas,
Texas (the Shreveport Casino).
The Company owns all of the outstanding common stock of Hollywood Casino -
Aurora, Inc. (HCA), HWCC - Tunica, Inc. (HCT), HWCC - Louisiana, Inc. (HCL) and
HWCC - Shreveport, Inc. (Shreveport Management). HCA is an
The Aurora Casino
Prior to February 15, 2002, the Aurora Casino, which commenced operations in
June 1993, conducted its gaming operations on two, four-level riverboats having
a combined casino space of approximately 32,000 square feet. In March 2001, the
Aurora Casino began construction of a major expansion, highlighted by the
construction of a new dockside facility to replace the Aurora Casino's two
riverboats. The first half of the dockside facility and a new casino entrance
were completed and opened on February 15, 2002. The second half of the dockside
casino, together with a new buffet and parking facility are expected to open in
June 2002. Until the second half of the dockside casino is completed, the Aurora
Casino will continue to operate the larger of its two existing riverboat
casinos. The Aurora Casino has approximately 38,000 square feet of gaming space
with approximately 1,077 slot machines and 41 table games. The completed
dockside facility will have 53,000 square feet of gaming space on a single
level. Food service, passenger waiting and various administrative functions are
housed in an adjacent four-level pavilion. The 64,000-square-foot, land-based
pavilion features a glass-domed, four-story atrium with two upscale lounges, the
Fairbanks gourmet steakhouse, the Hollywood Epic Buffet, a 1950's-style diner, a
high-end customer lounge and a private, intimate dinning room, the Gold Room,
for premium players. The Aurora Casino also offers retail items at the Hollywood
Casino Studio Store, a highly themed shopping facility that offers movies on
video, soundtrack compact discs and logo merchandise from major Hollywood
studios.
The Tunica Casino
The Tunica Casino, which commenced operations in August 1994, features a
54,000-square-foot, single-level casino with approximately 1,600 slot machines
and approximately 40 table games. The Tunica Casino's 505-room hotel and
123-space recreational vehicle park provide overnight accommodations for its
patrons. The casino includes the highly themed Adventure Slots gaming area,
featuring multimedia displays of memorabilia from famous adventure motion
pictures and over 200 slot machines. Additional entertainment amenities include
the Fairbanks gourmet steakhouse, the Hollywood Epic Buffet, a 1950's-style
diner (the Hollywood Diner), an entertainment lounge, a premium players' club, a
themed bar facility, an indoor pool and showroom, banquet and meeting
facilities. In November 1998, the Tunica Casino opened an 18-hole championship
golf course adjacent to the facility through a joint venture with Harrah's
Entertainment, Inc. and Boyd Gaming Corporation.
The Tunica Casino faces intense competition from Sam's Town, Harrah's Mardi
Gras, Isle of Capri, Casino Center, Binion's Horseshoe, Sheraton Casino,
Goldstrike Casino, Bally's, Fitzgeralds, Grand Casinos and Beau Rivage.
The Shreveport Casino
The Shreveport Casino commenced operations on December 20, 2000. The destination
resort consists of a 403-room, all suite, art deco-style hotel and a three-level
riverboat dockside casino. The casino contains approximately 59,000 square feet
of space with approximately 1,434 slot machines and approximately 66 table
games. The centerpiece of the resort is an approximately 170,000 square foot
land-based pavilion housing numerous restaurants and entertainment amenities. An
85-foot wide seamless entrance connects the casino to the land-based pavilion on
all three levels resulting in the feel of a land-based casino. The pavilion
features a 60-foot-high atrium, enabling patrons to see the casino floor from
almost anywhere in the pavilion. Other amenities include the Fairbanks gourmet
steakhouse, the Hollywood Epic Buffet, a 1950's-style casual diner (the
Hollywood Diner), a premium players' club (the Hollywood Director's Club) and an
entertainment show room (the Hollywood Celebrity Lounge).
The Shreveport Casino is owned by the Shreveport Partnership, which, through HCS
I, Inc. and HCS II, Inc., is in turn owned by HCL. The Shreveport Partnership
operates the Shreveport Casino under a management agreement with Shreveport
Management. The management agreement provides that the Shreveport Partnership
pays a management fee of 2% of net revenues plus an increasing percentage (5 to
10%) of the Shreveport Casino's annual earnings before interest, taxes,
depreciation and amortization (EBITDA) above $25 million.
The Shreveport Casino competes with Binion's Horseshoe, Harrah's, the Isle of
Capri and Casino Magic.
Disclaimer:
The data included within the Financial section is solely for information
and does not construe a recommendation and/or endorsement by IGHRM or its
members to invest funds with any of the companies listed. You are strongly
advised
to obtain professional advice with qualified individuals or corporations for any
investments of funds.
© 1999-2001 International Guild of Hospitality and Restaurant Managers
Inc. All rights reserved.
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