PARADISE ISLAND, The Bahamas - Oct. 23, 2003
-- Kerzner International Limited (NYSE:KZL) (the �Company�) today reported
results for the third quarter of 2003.
-
Diluted EPS of $0.22 Compared to Net Loss Per Share
of $0.02 Achieved Last Year
-
Adjusted EPS Of $0.27 Compared to $0.08 Achieved
Last Year
-
Paradise Island Reports Record Third Quarter Revenue
and EBITDA
-
Construction of Phase III-A In the Bahamas Commences
in Quarter
-
Kerzner to Acquire Additional Real Estate on Paradise
Island
-
Kerzner Announces Agreement to Develop Atlantis,
the Palm in Dubai
The Company recorded net income in the quarter of
$6.5 million, compared to a net loss of $0.4 million for the same period
last year resulting in net income per share of $0.22 compared to a net
loss per share of $0.02 for the same period last year. Adjusted net income
for the quarter was $8.1 million compared to $2.2 million in the same period
last year. Adjusted net income per share for the quarter was $0.27 as compared
to $0.08 achieved in the same period last year.
Butch Kerzner, President of the Company, commented,
�For the second consecutive quarter, Paradise Island reported record levels
of gross revenue and EBITDA. We had a terrific summer at Paradise Island,
as Atlantis benefited from strong demand in the leisure and casino businesses.
These record results were achieved despite closing the One&Only Ocean
Club for the month of September to commence construction of Phase III.
Our record top line performance at the properties flowed through to the
bottom line, as we achieved record EBITDA of $28.4 million, an increase
of 17% over last year�s previous record of $24.2 million. The continued
strength in this business, despite the general soft conditions in the travel
market, supports our decision to expand our properties on Paradise Island.
We broke ground on Phase III this quarter as we began the expansion of
the One&Only Ocean Club. The remaining components of this first phase
of the Phase III expansion are on track and expected to begin later this
year. We look forward to starting the second phase of this expansion late
next year, which ultimately will leverage the physical infrastructure on
the island as well as the overall customer demand that we have developed
for this destination.�
Butch Kerzner continued, �In addition to posting
these strong results this quarter at Paradise Island, and commencing the
next expansion phase at the property, we also showed significant progress
in our growth initiatives outside of Paradise Island. We announced plans
to develop Atlantis, The Palm, our second branded Atlantis resort, which
is to be located at the center of the The Palm, Jumeirah, a $1.5 billion
land reclamation that is one of two man-made islands being developed in
Dubai, United Arab Emirates that are expected to be the largest of their
kind in the world. We are extremely excited about the prospect of taking
the Atlantis brand and product to a more global audience.�
Paradise Island
The Company�s Paradise Island operations achieved
record third quarter gross revenue of $117.7 million and EBITDA of $28.4
million as compared to $112.5 million and $24.2 million, respectively,
in the same period last year. Atlantis benefited from a strong July and
August as occupancy was 94% and 92%, respectively, which was in line and
up 1%, respectively, as compared to the same months last year. August�s
occupancy results were the highest ever achieved for that month since opening
Phase II in late 1998. In September, business levels were below last year,
primarily from an anticipated decrease in group business. The pace of group
business for 2004 continues to be strong on a year on year basis.
Atlantis�s revenue per available room (�RevPAR�)
for the quarter was $177 as compared to $176 in the same period last year.
In the quarter, Atlantis achieved an average occupancy of 79% at a $225
average daily room rate (�ADR�), which compares to an average occupancy
of 82% and ADR of $214 in the same period last year.
In the Atlantis Casino, table and slot volumes
were strong in the quarter. Table drop decreased by 7% from the same period
last year. However, last years results included the effect of the Michael
Jordan Celebrity Invitational, which is returning to its customary January
slot in 2004. Excluding the estimated effect of this event, table drop
was up by 6%. Slot win was also strong, increasing by 5% over the same
period last year. Pegasus, the Atlantis Casino�s new race and sportsbook,
opened in early September. This new casino attraction offers a more complete
gaming experience and allows the resort to capitalize on demand in the
casino during major United States sporting events that take place during
peak visitation periods, such as the Super Bowl and Final Four.
In the quarter, the Company began construction
of the approximately $100 million first phase of Phase III (�Phase III-A�)
with the commencement of construction of three new luxurious villas to
the One&Only Ocean Club, along with a high end boardroom meeting facility
and kids pool at the resort. The other two major components of Phase III-A
include the Marina Village, which includes new restaurants and retail space
to be developed around the Atlantis Marina, along with an expansion to
Harborside at Atlantis (�Harborside�), which will add approximately 120
two-bedroom suites to the existing timeshare project. Development planning
is underway for Marina Village and the Harborside expansion and construction
of these projects is expected to commence by early 2004. The additions
to the One&Only Ocean Club are expected to be completed in time for
the 2005 high season. Construction on the $500 million second phase of
Phase III (�Phase III-B�), which includes a 1,200-room hotel, is expected
to commence by the end of 2004, with completion expected by Christmas 2006.
In the quarter, the Company took an important
step toward acquiring strategically located real estate adjacent to Atlantis.
The Company announced that it had entered into an agreement to acquire
the assets of Club Mediterranee (Bahamas) Limited on Paradise Island for
approximately $40 million. This resort, which includes an existing 306-room
hotel, spans Paradise Island between Nassau Harbour on the south side and
the ocean on the north side with a prime beachfront location. The approximately
20-acre site borders the eastern boundary of the proposed site of the new
hotel that is part of Phase III-B and is therefore ideally positioned for
future expansion of the Company�s investments on Paradise Island. The transaction
is subject to closing conditions, including relevant governmental approvals.
Atlantis, The Palm
In the quarter, the Company announced it had agreed
to form a joint venture with Nakheel LLC, the developer of The Palm, to
create Atlantis, The Palm, a $650 million development project in Dubai,
United Arab Emirates. The first phase of this project is expected to include
a 1,000-room resort and an extensive water theme park situated on 1.5 miles
of beachfront. The agreement also provides for an additional 25 acres of
land for future development that would ultimately enable Atlantis, The
Palm to grow its room capacity to at least 2,000 rooms.
Architectural and conceptual planning is under
way for Atlantis, The Palm. Construction is expected to commence before
the end of 2004 and it is anticipated that the project will be completed
by early 2007. The agreement provides for the initial development of Atlantis,
The Palm, which is expected to include:
-
A 1,000-room luxury hotel that will have impressive
views of The Palm, Jumeirah, and will have some unusual and distinctive
architectural features, as is the case at Atlantis, Paradise Island; and
-
An extensive water-theme park, the largest in the
region, with capacity for over 5,000 daily visitors, that will also include
one of the world�s largest man-made marine habitats, a snorkel trail, a
swim-with-the-dolphins encounter program, an array of water slides and
The Dig, an Atlantis-themed �archeological� experience.
The Company and Nakheel have jointly agreed to invest
a total of $120 million in the form of equity financing in the project
with the balance of the financing expected to be raised at the local level
and which may include an equity component. As part of this transaction,
the Company has agreed to enter into a development services agreement,
for which it expects to earn a development fee of $15 million, and a long-term
management agreement with the joint venture company. This transaction is
subject to various closing conditions, including obtaining all requisite
governmental consents and binding commitments for the necessary financing.
Connecticut
Mohegan Sun reported slot revenues in the quarter
of $212.7 million, an increase of 6% compared to the same period last year.
Slot win per unit per day was $383 for the quarter, a 9% increase compared
to the same period last year. In the quarter, Mohegan Sun continued to
increase its share of the growing Connecticut slots market to nearly 50%.
In the quarter, the Connecticut market grew by 4% over the same period
last year.
Trading Cove Associates (�TCA�), an entity 50%-owned
by the Company, receives payments from the Mohegan Tribal Gaming Authority
of 5% of gross operating revenues of the expanded Mohegan Sun operation.
The Company recorded income from TCA of $9.5 million in the quarter compared
to $8.5 million reported in the same period last year.
One&Only Resorts
The One&Only Ocean Club, the Company�s luxury
resort hotel on Paradise Island, performed very well during the quarter.
The resort achieved an average occupancy of 82% and an ADR of $563. The
resort was temporarily closed in the quarter on September 2 in order to
commence construction of the Ocean Club expansion. For July and August
combined, RevPAR at the Ocean Club was up a strong 11% as compared to the
same period last year. The resort was re-opened on October 6.
Paul O�Neil, CEO of the Company�s Paradise Island
business, commented, �The One&Only Ocean Club had an outstanding summer,
achieving its sixth consecutive quarter of record RevPAR. Against the backdrop
of these strong results, we started construction of the three new luxury
villas in the third quarter. We are confident that these new villas will
be extremely popular and will also further establish the One&Only brand
at the highest end of the travel market.�
In the quarter, the Company earned fees of $1.7
million from its non-Paradise Island luxury resort operations, as compared
to $0.9 million in the same period last year. Business trends have improved
in the Indian Ocean and Dubai as results have rebounded following the end
of the war in Iraq. On a comparable basis, which excludes results for those
resorts that were not open for all of both periods, the Company experienced
a RevPAR increase in its non-Paradise Island luxury resort properties in
the quarter of 16% over the same period last year.
The One&Only properties in the Indian Ocean
experienced strong business levels, as the refurbishment of the One&Only
Le Touessrok has been favorably received following its re-introduction
late last year. Also in the Indian Ocean, the One&Only Kanuhura has
achieved excellent results as it has benefited from favorable travel trends
to the Maldives. In Dubai, the One&Only Royal Mirage continued to achieve
the highest RevPAR in its market and has managed to increase RevPAR despite
doubling the number of rooms this year.
As previously announced, a major initiative was
taken to launch the One&Only brand in Europe. Accordingly, the associated
advertising costs have impacted the results in the quarter. The Company
reported an EBITDA loss from luxury resort operations, excluding the One&Only
Ocean Club, of $1.3 million as compared to a loss of $0.3 million of EBITDA
for the same period last year. These higher marketing expense levels are
not expected to continue into next year.
Construction of the One&Only Palmilla, the
Company�s 50%-owned luxury resort in Los Cabos, Mexico, remains on schedule
for an early 2004 grand reopening. The resort was closed at the end of
the first quarter in order to commence an expansion project that will increase
the room count from 115 rooms to 172 rooms and will significantly upgrade
the amenities and public areas. The expansion is subject to obtaining all
necessary local permits and approvals.
In the quarter, the Company also announced the
appointment of seasoned hospitality executive J.T. Kuhlman as Chief Executive
Officer of One&Only Resorts. Mr. Kuhlman will have global responsibility
for the strategic development of One&Only Resorts, including future
resort acquisitions, joint ventures, partnerships and management contracts,
and overall responsibility for the management and development of the One&Only
team.
�The appointment of J.T. Kuhlman to One&Only
Resorts represents a serious commitment on our part to grow the One&Only
brand significantly over the next five years,� commented Butch Kerzner.
�J.T. and his team will play a crucial role in maintaining and building
on the superior quality product of our resorts to ensure that One&Only
becomes the finest luxury resort company in the world.�
Liquidity
At the end of the quarter, the Company held $41.4
million in cash and cash equivalents, including $1.4 million in restricted
cash. Total interest-bearing debt at the end of the quarter was $400.5
million, which is essentially comprised of $400.0 million of 8 7/8% Senior
Subordinated Notes due 2011. The Company�s Revolving Credit Facility is
undrawn and the Company has commitments from its lenders for $262 million
available under this credit facility, which is net of a $38 million guaranty
in respect to the redevelopment of the One&Only Palmilla. The Company
expects to begin discussions in 2004 with its lenders and anticipates that
it will enter into a new credit facility as part of a financing package
for future phases of development.
The Company sold its debt securities in London
Clubs International that it purchased in 2002, for $13.3 million and recognized
a $0.8 million loss on this transaction which has been included in the
accompanying condensed consolidated statement of operations. The Company
has also advanced $7.5 million in the form of mezzanine financing related
to the development of a One&Only luxury resort in the Maldives. The
Company will receive LIBOR plus 500 basis points on these advances. These
advances are secured by resort assets and rank second in priority to any
senior bank local project financing.
In the quarter, the Company incurred $16.4 million
in capital expenditures, and has funded $35.9 million for the year to date.
In the fourth quarter, the Company anticipates it will fund between $20
million and $25 million in capital expenditures mainly related to Phase
III-A at Paradise Island.
As of September 30, 2003, shareholders� equity
was $812.8 million and the Company had 28.7 million Ordinary Shares outstanding.
UK Gaming
The gaming license in Northampton that the Company
agreed to acquire from London Clubs has been recently renewed. The Company
has submitted its filings to the British Gaming Board, and expects the
license to be transferred by the end of the first quarter 2004. The Company
ultimately expects to develop and operate a 30,000 square foot facility
in Northampton, which is approximately 75 miles from London.
Condensed Consolidated Statements of Operations,
Reconciliation of Adjusted Net Income to GAAP Net Income, Reconciliation
of EBITDA to GAAP Net Income, Summary Segment Data and Hotel Operating
Performance Data are attached.
Kerzner International Limited
Condensed Consolidated Statements
of Operations
(In Thousands of Dollars Except
Per Share Data)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
--------------------- ---------------------
2003 2002(1)(2) 2003
2002(1)(2)
---------- ---------- ---------- ----------
(Unaudited)
(Unaudited)
Revenues:
Casino
and resort
revenues
$117,678 $112,531 $404,132 $389,539
Less:
promotional
allowances
(5,013) (4,602) (17,870) (17,146)
---------- ---------- ---------- ----------
Net casino and
resort revenues 112,665 107,929
386,262 372,393
Tour operations
12,403 10,276 39,928
30,376
Relinquishment
and
development fees 9,455
8,502 26,374 24,296
Management
and other
fees
2,402 1,266
7,674 5,588
Insurance
recovery
- -
2,819 1,100
Other
1,339 1,127
3,715 3,315
---------- ---------- ---------- ----------
138,264 129,100 466,772
437,068
---------- ---------- ---------- ----------
Expenses:
Casino
and resort
expenses
64,829 65,250 203,659
200,727
Tour operations
11,178 9,050 35,294
26,584
Selling,
general and
administrative 24,324
21,155 76,103 63,349
Corporate
expenses 8,358
7,781 24,491 21,902
Depreciation
and
amortization
13,904 13,923 41,537
40,781
---------- ---------- ---------- ----------
122,593 117,159 381,084
353,343
---------- ---------- ---------- ----------
Income from operations
15,671 11,941 85,688
83,725
Other income and
(expenses):
Interest
income
615 1,066 2,635
2,458
Interest
expense, net
of capitalization (7,114)
(9,313) (21,917) (30,227)
Equity
in earnings
(losses) of
associated companies,
net
(1,382) (941)
122 887
Gain on
replacement of
damaged assets
- -
2,514 -
Gain on
settlement of
territorial and other
disputes
- -
- 5,069
Loss on
early
extinguishment of
debt
- (876)
- (15,882)
Other,
net
(876) (122)
(932) (204)
---------- ---------- ---------- ----------
(8,757) (10,186) (17,578) (37,899)
Income from continuing
operations before income
taxes and minority
interest
6,914 1,755 68,110
45,826
Provision for income taxes
(64) (393)
(370) (1,183)
Minority interest
(133) -
(662) -
---------- ---------- ---------- ----------
Income from continuing
operations
6,717 1,362 67,078
44,643
Income (loss) from
discontinued operations,
net of income tax
effect
(204) (1,799) 1,305
(5,698)
---------- ---------- ---------- ----------
Net income (loss)
$6,513 $(437) $68,383
$38,945
========== ========== ========== ==========
Diluted net income (loss)
per share:
Income
from continuing
operations
$0.22 $0.05
$2.29 $1.56
Income
(loss) from
discontinued
operations, net of
income tax effect
- (0.07) 0.04
(0.20)
---------- ---------- ---------- ----------
$0.22 $(0.02) $2.33
$1.36
========== ========== ========== ==========
Weighted average number of
shares outstanding -
diluted
30,075 28,722 29,323
28,538
(1) The operating results of Kerzner
Interactive have been classified
as discontinued
operations for all periods presented.
(2) Loss on early extinguishment
of debt, net of income tax effect,
has been reclassified
from an extraordinary loss to other income
and expenses.
Kerzner International Limited
Reconciliation of Adjusted Net
Income to GAAP Net Income
(In Thousands of Dollars Except
Per Share Data)
(Unaudited)
For the Three Months For
the Nine Months
Ending September 30, Ending September
30,
--------------------------- ----------------------------
2003
2002 2003
2002
--------------------------- ----------------------------
$ EPS
$ EPS $
EPS $ EPS
--------------------------- ----------------------------
Adjusted net
income (1) $8,074 $0.27
$2,238 $0.08 $64,373 $2.20 $54,356 $1.90
Income (loss)
from
discontinued
operations,
net of income
tax
effect (2) (204)
- (1,799) (0.07) 1,305 0.04 (5,698)(0.200)
Insurance
recovery (3)
- - -
- 2,819 0.10 1,100 0.04
Gain on
replacement
of damaged
assets (3)
- - -
- 2,514 0.09 -
-
Share of loss
from
remediation
costs at
Harborside (4) (192)
- - -
(751)(0.03) -
-
Share of loss
from the
One&Only
Palmilla
pre-
opening
expenses
(5)
(1,165)(0.05) - -
(1,877)(0.07) -
-
Early
extinguishment
of debt, net
of income
tax
effect (6)
- - (876) (0.03)
- - (15,882) (0.56)
Gain on
settlement of
territorial and
other
disputes (7)
- - -
- - -
5,069 0.18
Net income
(loss)
$6,513 $0.22 $(437)$(0.02)$68,383 $2.33 $38,945 $1.36
========================================================
(1) Adjusted net income is defined
as net income (loss) before
income (loss) from discontinued
operations, net of income tax effect,
insurance recovery, gain on replacement
of damaged assets, share of
loss from remediation costs at
Harborside, share of loss from the
One&Only Palmilla pre-opening
expenses, early extinguishment of debt,
net of income tax effect, and gain
on settlement of territorial and
other disputes. Adjusted net income
is presented to assist investors
and management in analyzing the
performance of the Company and is a
principal basis for valuation of
companies. Management considers
adjusted net income to be a better
measure on which to analyze current
results and base expectations of
future results than net income from
continuing operations computed
in accordance with generally accepted
accounting principles in the United
States (�U.S. GAAP�). This
information should not be considered
as an alternative to U.S. GAAP,
nor should it be considered as
an indicator of the overall financial
performance of the Company.
(2) The Company discontinued the
operations of its online gaming subsidiary, Kerzner Interactive, in the
first quarter of 2003. The Company has recognized $4.5 million of income
related to an option agreement with Station Casinos, Inc. which was terminated
during the first quarter of 2003, which was reduced by net losses incurred
while winding down the operations of the business, including the writedown
of net assets and other associated costs.
(3) Insurance recovery represents
a business interruption
settlement related to the Hurricane
Michelle claim. Gain on
replacement of damaged assets represents
insurance proceeds received
in excess of the net book value
of assets damaged during Hurricane
Michelle.
(4) The Company recorded a loss
for its share of remediation costs related to Harborside arising primarily
from damage incurred from Hurricane Michelle. This loss has not been reduced
by any potential insurance recovery, but Harborside has filed a claim with
its insurers, which is presently under negotiation.
(5) In April 2003, the One&Only
Palmilla was temporarily closed in order to commence an approximate $80.0
million expansion project. As a result, the Company recorded a loss for
its 50% share of the pre-opening expenses incurred subsequent to the closing
of the resort.
(6) The Company recognized a loss
on early extinguishment of debt arising primarily from the refinancing
of 9% Senior Subordinated Notes and open market repurchases of 8 5/8% Senior
Subordinated Notes.
(7) In 2002, the Company recognized
a gain on settlement of
territorial and other disputes
with a principal shareholder.
Kerzner International Limited
Reconciliation of EBITDA to GAAP
Net Income
(In Thousands of Dollars Except
Per Share Data)
(Unaudited)
For the Three Months For
the Nine Months
Ended September 30, Ended September
30,
------------------- -------------------
2003
2002 2003 2002
--------- --------- --------- ---------
EBITDA (1)
$ 29,575 $ 25,864 $124,406 $123,406
Insurance recovery
- -
2,819 1,100
Depreciation and
amortization
(13,904) (13,923) (41,537) (40,781)
Other expense, net
(8,757) (10,186) (17,578) (37,899)
Provision for income taxes
(64) (393) (370)
(1,183)
Minority interest
(133) -
(662) -
Income (loss) from
discontinued operations,
net of income tax effect
(204) (1,799) 1,305 (5,698)
--------- --------- --------- ---------
Net income (loss)
$ 6,513 $ (437) $ 68,383 $ 38,945
(1) EBITDA is defined as net income
before insurance recovery, depreciation and amortization, other expense,
net, provision for income taxes, minority interest and income (loss) from
discontinued operations, net of income tax effect. Although EBITDA is not
a measure of performance under U.S. GAAP, the information is presented
because management believes it provides useful information regarding the
Company�s ability to incur and service debt. In addition, management uses
EBITDA to assess the Company�s operating performance, measure cash flows
from operations before debt service and to make capital investment decisions.
This information should not be considered as an alternative to any measure
of performance as promulgated under U.S. GAAP, nor should it be considered
as an indicator of the overall financial performance of the Company. The
Company�s method of calculating EBITDA may be different from the calculation
used by other companies and, therefore, comparability may be limited.
Kerzner International Limited
Summary Segment Data
(In Thousands of Dollars)
(Unaudited)
For the Three Months
For the Nine Months
Ended September 30, Ended
September 30,
------------------- -------------------
2003
2002 2003 2002
--------- --------- --------- ---------
EBITDA: (1)
Paradise Island (2)
$ 28,419 $ 24,247 $120,307 $116,028
Mohegan Sun
9,455 8,502 26,374
24,296
Luxury resorts (3)(4)
(1,296) (312) (1,789)
1,393
Corporate and other (5)
(7,003) (6,573) (20,486) (18,311)
--------- --------- --------- ---------
$ 29,575 $ 25,864 $124,406
$123,406
========= ========= ========= =========
Paradise Island:
Gross revenues: (6)
Casino
$ 32,084 $ 26,818 $102,359 $ 92,624
Rooms
40,453 40,538 150,140 147,504
Food and beverage
30,176 30,390 102,754 102,709
Other
14,965 14,785 48,879
46,702
--------- --------- --------- ---------
$117,678 $112,531 $404,132 $389,539
Promotional allowances
(5,013) (4,602) (17,870) (17,146)
--------- --------- --------- ---------
Net revenues
$112,665 $107,929 $386,262 $372,393
========= ========= ========= =========
EBITDA margin (7)
25.2% 22.5% 31.1%
31.2%
(1) EBITDA is defined as net income
before insurance recovery, depreciation and amortization, other expense,
net, provision for income taxes, minority interest and income (loss) from
discontinued operations, net of income tax effect.
(2) Includes the results of operations
from the Company�s wholly owned tour operator and the One&Only Ocean
Club.
(3) Includes management and development
fees from the Company�s luxury resort business, excluding the One&Only
Ocean Club, and expenses relating to operating these businesses.
(4) Reported before any reduction
related to the minority interest in One&Only (Indian Ocean) Management
Limited that the Company does not own. One&Only (Indian Ocean) Ocean
Management Limited is responsible for managing and developing the Company�s
luxury resorts in Mauritius and Maldives. Effective January 1, 2003, the
Company has an ownership interest of 80% in this entity. For the quarter
and nine
months ended September 30, 2003,
the minority interest in this
business decreased net income by
$0.1 million and $0.7 million,
respectively.
(5) Corporate and other represents
corporate expenses reduced by certain revenues not attributable to Paradise
Island, Mohegan Sun or luxury resorts.
(6) Excludes revenue from the Company�s
wholly owned tour operator and includes the results of the One&Only
Ocean Club.
(7) Paradise Island�s EBITDA margin
is defined as EBITDA divided
by net revenues.
Kerzner International Limited
Hotel Operating Performance Data
(Unaudited)
For the Three For the Nine
Months Ended Months Ended
September 30, September 30,
------------- -------------
2003 2002 2003
2002
------ ------ ------ ------
Atlantis:
Occupancy
79% 82% 82%
84%
ADR (1)
$225 $214 $261
$253
RevPar (2)
$177 $176 $215
$213
One&Only Ocean Club: (3)
Occupancy
82% 65% 80%
67%
ADR (1)
$563 $539 $753
$719
RevPar (2)
$462 $349 $603
$483
Management believes that results
of operations in the hotel
industry are best explained by
three key performance measures;
occupancy, average daily rate (�ADR�)
and revenue per available room
(�RevPAR�) levels. These measures
are influenced by a variety of
factors including national, regional
and local economic conditions,
the degree of competition with
other hotels in the area and changes in
travel patterns. The demand for
accommodations at Atlantis and the
One&Only Ocean Club is also
affected by normal recurring seasonal
patterns in which Atlantis and
the One&Only Ocean Club experience
lower occupancy levels in the fall
and winter months (September
through mid-December) which may
result in lower revenues, lower net
income and less cash flow during
these months.
(1) Average daily rate represents
total room revenues divided by the total number of paid room nights occupied
by resort guests.
(2) Revenue per available room
represents total room revenues divided by total available rooms.
(3) The One&Only Ocean Club
2003 results exclude rooms that were temporarily closed from September
2, 2003 through September 30, 2003 in order for the Company to commence
the Ocean Club expansion that is part of its Phase III-A development on
Paradise Island. |
Kerzner International Limited is a leading international
developer and operator of premier casinos, resorts and luxury hotels. The
Company�s flagship destination is Atlantis, a 2,317-room, ocean-themed
resort located on Paradise Island, The Bahamas. Atlantis is a unique destination
casino resort featuring three interconnected hotel towers built around
a 7-acre lagoon and a 34-acre marine environment that includes the world�s
largest open-air marine habitat. The Company also developed and receives
certain income derived from Mohegan Sun in Uncasville, Connecticut. Following
the completion of a $1 billion expansion, the Native American-themed Mohegan
Sun has become one of the premier casino resort destinations in the United
States. In its luxury resort hotel business, the Company operates luxury
resorts primarily under the One&Only brand. The Company manages nine
resort hotels in The Bahamas, Mauritius, Dubai, the Maldives and Mexico
and has entered into an agreement to develop and manage a tenth property
in the Maldives.
This press release contains forward-looking statements,
which are made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995.
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