Casino companies' downgraded and reports released

Apr 7, 2009 5:08 PM
Earnings by Ray Poirier |

Analysts at SMH Capital took a very sour look at gaming stocks on Monday, downgrading four widely-held companies.

Reduced ratings were applied to Boyd Gaming Corp. (BYD), Penn National Gaming Inc. (PENN), Ameristar Casinos Inc. (ASCA), and Pinnacle Entertainment Inc. (PNK).

Quarterly reports were discussed this week. Gaming Partners International Corporation (GPIC), showed a net profit for the fourth quarter of $1.8 million or $0.22 per share compared to net income of $900,000 or $0.11 per share in the fourth quarter of 2007.

Lakes Entertainment Inc. (LACO), had a loss from operations of $61.1 million compared to last year’s loss of $4.4 million. Included in the loss was write downs totaling $42.8 million.

Nevada Gold & Casinos Inc. (UWN) showed a net loss of $500,000 compared to net income of $27 million in the third quarter of fiscal 2008. Eliminating the gains and losses from extraordinary activities, the net loss per share was $0.04.

And, in filings by privately-held companies, these results were noted: American Casino & Entertainment Properties, operator of the Arizona Charlie’s properties, a quarterly loss of $31.4 million; Las Vegas Hilton, operated by Colony Capital, a net loss of $437,000, and Planet Hollywood Resort, a loss of $45 million during the quarter.