Poor results from a new facility caused a break in eight straight quarters of positive financial reports filed by Hollywood Casino Corp. (HWD).
The company said that during the period ended on March 31 the company showed a loss of 23 cents per share, compared with net income per share of 8 cents a year earlier.
The problem, the company said, was its new riverboat casino in Shreveport, La.
"While our Aurora [Illinois] and Tunica [Mississippi] properties continued to generate impressive results in the quarter, our Shreveport casino had a very disappointing first quarter of operations," said Edward I. Pratt III, president and COO.
Cash flow for the Aurora casino increased by 4.7 percent to a record $17.7 million and jumped 1.2 percent to $6.2 million in Tunica. In Shreveport, however, the company reported cash flow of $4.4 million.
PDS Financial Corp. (PDSF), the Las Vegas-based gaming company that recently announced it was acquiring all small gaming properties operated by PT Gaming, reported quarterly net income of 12 cents per share, compared with 5 cents in the corresponding period a year ago.
The company reported that for the three-month period ended March 31, it had net income of $464,000, primarily due to sales-type lease revenues of $9.8 million. Also, the company said, it had equipment sales of $3.5 million, which compared favorably with last year’s $2.6 million.
As for its announcement relative to PT Gaming, PDS Financial said it had signed a definitive agreement to acquire the company’s 23 sports bar-themed gaming and pub locations in the Las Vegas metropolitan area. Closing on the acquisition is expected to be around September 1.
With revenues that were higher by 17 percent, Mikohn Gaming reported first-quarter earnings of $440,000, or 4 cents a share, compared with last year’s $202,000, or 2 cents a share.
Revenues for the period doubled to $5.7 million from 2000’s $2.4 million even though "glitches" in the platform used for the company’s "Yahtzee" and "Battleship" games impacted revenues during the early part of the quarter, the company said.
The problems were corrected by the end of February, according to Dave Thompson, chairman and CEO.
Don Barden’s Majestic Star Casino in Gary, Ind., set a record with revenues of $32.6 million for the first fiscal quarter, compared with last year’s $31.3 million for the same period last year.
The property lost $76,665, however, a substantial reduction from last year’s net loss of $367,923.
The Majestic Star has been operated by the Detroit entrepreneur since 1993. Barden and Donald Trump’s Gary subsidiary, Trump Indiana Inc., joined forces to jointly own and operate facilities that are common to each company’s riverboat.
The Sands Regent (SNDS), operator of a casino in Reno, Nev., reported an increase in earnings per share from last year’s 10 cents to 11 cents for the first nine-months of the fiscal year.
For the quarter ended on March 31, however, the company experienced a loss of 2 cents a share, compared with last year’s net income of 3 cents a share.
In explaining the decline, the company noted that because of winter storms, the Reno-area market experienced an overall decline.
Peter Morton’s Hard Rock Hotel & Casino in Las Vegas said it was hit with bad luck at the tables during the first quarter of the fiscal year, which resulted in a cash flow decrease of 16 percent.
Although table game drop increased by 17 percent to $71.7 million, a decrease in table game hold percentage resulted in net revenues dropping to $30.9 million from $31.4 million. Net income declined to $1.2 million from last year’s $2.4 million.
There was good news, however, on two other fronts. The average daily room rate jumped 13 percent. Revenue from food and beverage operations was up 26 percent.