While casinos were taking a hit, Mikohn Gaming Corp. rolled with the punches last quarter.
The Las Vegas-based game maker posted a 54 percent increase in income over last year (before an extraordinary charge for retiring debt). Revenues totaled $28.2 million, the same as last year. After recognizing the $3.1 million charge, net loss for the third quarter amounted to $1.9 million, equal to 16 cents per share.
Revenues for the first nine months improved 6 percent to $81.3 million from $76.5 million in the previous year. EBITDA for the nine months was $22.6 million, an 18 percent increase from $19.1 million one year earlier.
“Our strategy of shifting our focus to gaming operations over the last several years and our emphasis on branded knowledge-based and strategy-based games has yielded very positive results,’’ said David J. Thompson, chairman and CEO. “In the third quarter, we reached new milestones as recurring revenues from gaming operations contributed 44 percent of total revenues and 83 percent of cash flow.’’
Mikohn now has 4,200 leased games in the field, a big jump from just four years ago when the company had just a few hundred units. The company had net placements of 209 branded slot games in the third quarter 2001, bringing total placements to 2,600 branded slot games.
Reporting that no contracts had been canceled or deferred in the wake of Terror Tuesday, Thompson said Mikohn will benefit from its geographic diversity. “Currently, 94 percent of our gaming operations revenue comes from outside the Las Vegas Strip and Downtown markets, which substantially lowers our exposure to air travel reductions. We expect continued positive results in the fourth quarter, driven by the strength of our gaming operations,’’ he stated.