Hard Rock International Releases 2004 Year-End Earnings Report
25 Février 2005 - 3:00PM
PR Newswire (US)
Hard Rock International Releases 2004 Year-End Earnings Report
ORLANDO, Fla., Feb. 25 /PRNewswire-FirstCall/ -- Hard Rock
International today announced its earnings for 2004 as part of a
report issued by its parent company, The Rank Group Plc
(NASDAQ:RANKY). Hard Rock's total revenues for the year were $426
million versus $382 million for 2003 -- a growth of 11.5%.
Operating profit showed a 35.3% increase with $51.0 million for
2004 versus $37.7 million for the same period in 2003, prior to
exceptional items. "Hard Rock Cafe's like-for-like sales returned
to positive territory in 2004, and investments made in extending
the brand into hotels and casinos are now starting to deliver real
returns to Hard Rock," said Hamish Dodds, president and CEO of Hard
Rock International. "Against a background of improving performance
in the cafes, at the conclusion of 2004 there was more than $1
billion of third party investment in Hard Rock branded casino and
hotel developments which delivered solid contributions to our 2004
results. As we look forward to 2005, we are already engaged in a
number of exciting new projects which we are confident will
continue to enhance the value of our brand throughout the world."
Restaurant Performance Overall cafe sales were up by 9.0% versus
the same period last year. In the company-owned cafes,
like-for-like sales for the year were up 0.4% driven by a recovery
in Europe +4.9%, while North America was slightly below last year
(-1.0%). Overall food and beverage sales were up 3.4% and
merchandise sales were down 5.0%. Profits from company-owned cafes
increased 18.7% contributing $47.2 million for 2004 versus $39.8
million for 2003, prior to exceptional items. The improvement in
profitability was particularly notable in the second half of the
year and reflects the results of a detailed review and reassessment
of cafe performance with an improved focus on margin management.
Additionally, profits from franchised cafes and other income
increased 4.1% with $9.9 million for 2004 versus $9.5 million for
2003. Within Hard Rock Cafe, four new company-owned locations
opened this year - in Bristol, United Kingdom in April, Louisville,
Kentucky in May, Destin, Florida in July, and at the Foxwoods
Resort Casino in Connecticut in August. The Fort Lauderdale cafe
was relocated to within the larger of the two Seminole Hard Rock
Hotel and Casinos, in Hollywood, Florida and opened in May 2004.
Also in November, after 20 years on its 57th Street site, Hard Rock
International announced its New York cafe is relocating to Times
Square during the third quarter of 2005. In its new location, the
cafe is set to become a New York landmark featuring a 700-seat
restaurant, a 1,500 square-foot retail shop and a live music area
for concerts and special events. Eight new franchised cafes opened
in 2004. In Europe, new cafes opened in Catania, Italy, in
February, Dublin, Ireland in June, Athens, Greece in September and
Gothenburg, Sweden in December. South/Central America also had
franchise growth with the openings of Buenos Aires, Argentina in
May and Panama in September. The Middle East also had two
franchised openings including Hurghada, Egypt and Kuwait City,
Kuwait, in November. In 2005, new franchised cafes are scheduled to
open in Belo Horizonte (Brazil), Canary Islands, Caracas
(Venezuela) and Santo Domingo (Dominican Republic), with additional
franchise deals in various stages of development. Hotel and Casino
Performance Hotel and casino franchise income contributed profits
of $18.1 million in 2004, reflecting another good performance by
the Orlando hotel, dividends from the Group's interest in the
Universal Rank Hotel partnership in Orlando, fees relating to the
hotel joint venture with Sol Melia and the first time contribution
of fees from the two Seminole hotel and casinos that opened in
Tampa and Hollywood, Florida. Continued record occupancy and room
rate at the Orlando hotel coupled with solid performances at the
two major hotel and casino developments on the Seminole Tribe of
Florida's properties are indications of Hard Rock's true potential
as a hotel and casino brand. The Seminole Hard Rock Hotel and
Casinos were only open for a partial year, and a full year's
contribution will be a further boost to performance in 2005. The
hotel joint venture with Sol Melia announced in July its plan to
open a Hard Rock Hotel in New York City in 2006. The Paramount
Hotel will, after undergoing a major refurbishment, operate under
the Hard Rock Hotel brand and become the third hotel within the
joint venture -- Chicago opened in January 2004 and San Diego, a
franchised hotel, is expected to open in 2006. In November, the
joint venture announced Europe's first Hard Rock Hotel in Madrid.
Scheduled to open in late 2005, the Tryp Reina Victoria Hotel, in
the heart of Madrid's old city, will be refurbished and re-branded
Hard Rock Hotel Madrid, offering the finest services and facilities
for both business and leisure travelers. The $235 million
development of the new Hard Rock Hotel and Casino in Biloxi,
Mississippi, is well underway and on track to open in the third
quarter of 2005. The company continues to explore other
opportunities to license the Hard Rock brand for gaming projects
both in the United States and internationally, and recently hired a
seasoned gaming executive Michael Soll as Vice President of Casinos
to further this strategy. Exceptional items Hard Rock, following a
detailed review of asset portfolio and in furtherance of its focus
on its core businesses, decided to relocate a number of key cafes,
starting with New York, to close The Vault, a rock and roll museum
in Orlando, and to write down a number of underperforming cafe
units. The effect of these actions has meant that an exceptional
charge of $57.0 million has been included in the 2004 results. Hard
Rock International, one of the most globally-recognized music,
entertainment and dining brands, has 122 signature Hard Rock Cafes
in 41 countries and owns the world's greatest collection of music
memorabilia. Known for its collectible and fashion merchandise,
live concerts, Hard Rock Live performance venues, hardrock.com and
Hard Rock Hotels and Casinos, Hard Rock International, Inc. is a
wholly-owned subsidiary of London-based The Rank Group Plc
(NASDAQ:RANKY). For more information on Hard Rock, visit
http://www.hardrock.com/. DATASOURCE: Hard Rock International
CONTACT: John Gogarty or Deborah Sierchio, both of Coyne PR,
+1-973-316-1665, for Hard Rock International Web site:
http://www.hardrock.com/
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