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Jul 23, 2002 16:57 ET

Hard Rock Hotel & Casino in Las Vegas Reports 2nd Quarter Revenues, EBITDA and Net Income Up

LAS VEGAS, July 23 /PRNewswire/ -- Hard Rock Hotel, Inc. ("Hard Rock"), which owns and operates the Hard Rock Hotel & Casino in Las Vegas, Nevada, today reported quarterly net revenues, EBITDA and net income of $34.1 million, $9.7 million and $3.7 million, respectively, for the quarter ended June 30, 2002.

(Photo: http://www.newscom.com/cgi-bin/prnh/20010507/HRHCLOGO )

Hard Rock said 2nd quarter net income increased 61% to $3.7 million compared with $2.3 million in the year-earlier period as net revenues increased 4% to $34.1 million from $32.7 million. Cash flow, or earnings before interest, taxes, depreciation and amortization ("EBITDA"), increased 4% to $9.7 million from $9.3 million.

Net revenues improved due to increases in table games volume and hold percentage and food and beverage revenues that were offset partially by reductions in slot volume and hold percentage compared with the year-earlier period. Average daily hotel rates and occupancy and retail sales remained approximately constant during the comparative 2nd quarter periods.

Marketing and entertainment expenditures increased $0.6 million primarily related to Hard Rock's new national advertising campaign and higher caliber entertainment offerings in the Joint. Net income was positively affected by decreases in depreciation expense, interest rates and outstanding borrowings.

Peter Morton, Hard Rock's Chairman of the Board and Chief Executive Officer, commenting on the quarterly results stated, "We are pleased with our 2nd quarter operating results. We believe that the marketing and entertainment expenditures this past quarter will more than pay for themselves through increased awareness of the property which will translate into additional future revenues."

The Company's new President and Chief Operating Officer, Don Marrandino, noted, "We are excited about installing IGT's EZ-Pay ticket-in/out system in the 3rd quarter which we believe will improve our slot performance and customer convenience."

There will be a conference call open to investors:

-- Date: Thursday, July 25, 2002

-- Time: 2:00 P.M. Eastern Daylight Time

11:00 A.M. Pacific Daylight Time

Dial: 800-553-0288 Domestic only

Contact: Jim Bowen of Hard Rock Hotel, Inc., 702-693-5031

The press release contains certain forward-looking statements, which Hard Rock is making in reliance on the safe harbor provisions of the Private Securities Litigation Act of 1995. Investors are cautioned that all forward- looking statements are subject to significant risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Additional information concerning risk factors that could cause actual results or events to differ materially from those projected in the forward-looking statements are contained in the Hard Rock's filings with the Securities and Exchange Commission.

HARD ROCK HOTEL, INC.

(in thousands, except share and per share amounts)

(unaudited)

Three Months Ended Year Ended

June 30, June 30,

2002 2001 2002 2001
Revenue:

Casino $13,753 $13,528 $27,146 $26,108

Lodging 7,209 7,234 13,822 14,409

Food and beverage 11,658 10,259 21,618 20,189

Retail 2,384 2,337 4,625 4,641

Other income 1,964 1,928 3,616 3,663

Gross revenues 36,968 35,286 70,827 69,010

Less: complimentaries (2,820) (2,567) (5,363) (5,398)

Net revenues 34,148 32,719 65,464 63,612

Costs and expenses:

Casino 8,452 8,199 16,264 15,639

Lodging 1,783 1,939 3,517 3,655

Food and beverage 5,557 5,206 10,587 10,241

Retail 989 965 1,998 1,997

Other 1,047 956 1,918 1,769

Marketing 1,658 1,069 3,597 2,432

General and administrative 4,946 5,077 9,969 10,144

Total costs and expenses 24,432 23,411 47,850 45,877

Earnings before interest,

taxes, depreciation and

amortization ("EBITDA") 9,716 9,308 17,614 17,735

Depreciation and amortization 2,744 3,085 5,657 6,063

Interest expense, net 3,285 3,635 6,660 7,843

Income tax provision -- 239 -- 239

Other (income) expense, net 44 -- 44 --

Net Income (Loss) 3,731 2,349 5,253 3,590

Preferred stock dividends 1,337 1,215 2,643 2,399

Loss applicable to common

shareholders $2,394 $1,134 $2,610 $1,191

BASIC AND DILUTED NET LOSS

PER SHARE

Applicable to common

shareholders $31.49 $14.92 $34.33 $15.67

Weighted average number of

common shares outstanding 76,023 76,023 76,023 76,023