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Hollywood Casino Corp.

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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
Illinois corporation that owns and operates the Aurora Casino . HCT is a Texas corporation formed by HCC during 1993 to acquire and complete the Tunica Casino. HCL is a Louisiana corporation formed by HCC in 1993 to pursue gaming opportunities in Louisiana . HCL owns the partnership (the Shreveport Partnership), which has an effective 100% ownership interest in the Shreveport Casino. HCC's joint venture partner holds a residual interest in the event that the Shreveport Casino is ever sold amounting to 10% plus any capital contributions made by the joint venture partner to the Shreveport Partnership or otherwise credited to their account. Shreveport Management is a Louisiana corporation formed by HCC in 1997, which holds the management contract for the Shreveport Casino.

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.

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