Revenues fall, loss grows for poker firm

Nov 29, 2005 3:59 AM

Citing a decrease in domestic television license revenues, WPT Enterprises Inc. (WPTE) reported a net loss for the third quarter of fiscal 2005 that ended on Oct. 2.

The company said the loss for the period was $1.6 million or $0.08 per share compared to last year’s net loss of $500,000 or $0.03 per share.

Revenues fell to $2.1 million or 28.5% less than in the comparable quarter of 2004. Cause of the drop was given as domestic television license fees that came in at $400,000 down from the previous year’s $2.4 million. The decline, the company explained, was due to the delivery of only one Season Four episode during the third quarter of 2005 compared to six episodes of Season Two delivered during the comparable period.

International licensing fees moved up slightly from last year’s $300,000 to $400,000.

Guidance for the fourth quarter placed revenues in the range of $4.5 million to $5 million.

Share value of WPTE has dropped substantially since rising to about $29.50 a share following the announcement that a group led by Doyle "Texas Dolly" Brunson was bidding for the company. The bid was withdrawn shortly after the company said it could find no substance to support the offer.

In recent weeks, the company’s shares have been in the $6 to $8 dollar range.

Ameristar Casinos

Construction delays at a casino in Colorado caused Ameristar Casinos Inc. (ASCA) to report a decline in earnings for the third quarter of the current fiscal year.

The company said that it earned $16.1 million or $0.28 per diluted share, down a bit from last year’s earnings of $16.6 million or $0.30 per diluted share.

The Colorado expansion project that encountered construction delays happened at the company’s Mountain High Casino in Black Hawk, Colo. This, the company said, contributed to a $1.5 million operating loss in the quarter. The disruption is expected to last through the first quarter of 2006.

Revenues during the third quarter rose 10.6% to $238.6 million from last year’s $215.7 million.

Sands Regent

Both revenue and net income increased during the first quarter of fiscal 2006 for Sands Regent (SNDS) gaming company, headquartered in Reno, Nev.

First quarter net income, the company reported, was $1.9 million, a 14.6% increase over the corresponding quarter of 2005. Revenue during the period increased 10.3% to $24.1 million and income from operations was up 4.3% to $3.3 million.

The results included a partial quarter of operations of the Depot Casino and Red Hawk Sports Bar in Dayton, Nev. that the company acquired on Sept. 1. Ferenc Szony, president and CEO, said the acquisitions had performed "up to expectations" during the first month of operations.