From mining to gaming, Nevada Gold reports record earnings

Nov 19, 2002 8:01 AM

   Nevada Gold & Casinos Inc. (UWN), whose company profile has changed from a mining company to a gaming operator, reported a record second quarter ended on Sept. 30 with earnings jumping to $0.16 a share from last year’s $0.09 a share.

   During the period, revenues increased to $1.35 million from the $186,981 recorded in the second quarter of fiscal 2002.

   The improvement in revenues, the company said, was primarily attributable to interest income on loans to Dry Creek Ranceria’s River Rock Casino, estimated gaming equipment lease income from Route 66 casino Project, and gains from the sale of the Wellesley Island property.

   The company added that it will continue on the course of “monetizing our other non-gaming assets” so that it can transform the company completely into a gaming company.

Wheeling Island

   Wheeling Island Gaming Inc, a subsidiary of privately-held Delaware North Companies, Inc., showed a modest decline in earnings for the quarter just completed, primarily because of a change in the reimbursement policies of the West Virginia Lottery Commission.

   However, gaming revenues increased $2.5 million to $21.9 million during the period, primarily because of an increase in slot machines. The company added 223 machines during the year ended on Sept. 29.

   The company owns and operates a greyhound racing track which has a slot machine center attached. Increased attendance during the past year has caused the company to begin an expansion program scheduled for completion during the third quarter of 2003. Inc. (UBET), the online wagering company, substantially reduced its operating loss during the third quarter ended on Sept. 30.

   The company said the operating loss was $2.1 million while the loss during the corresponding period a year ago was $3.7 million.

   Spurring the improvement during the third quarter of 2002, the company said, were gains in both its financial and operations results. Total betting handle increased during the third quarter to $46.3 million, up 146% from the $18.8 million recorded in the third quarter of 2001. Also, third quarter revenues jumped to $8.1 million from last year’s $1.1 million.

Horseshoe Gaming

   Jack Binion’s Horseshoe Gaming Holding Corp. reported third quarter income of $24.8 million compared to last year’s $18.9 million after accounting for extraordinary items.

   Consolidated earnings before interest, taxes, depreciation, amortization and certain other items, generally referred to in accounting practices as EBITDA was $52.2 million. This was almost identical to last year’s $52.6 million.

   In the third quarter of 2002, the company’s operation in Hammond, Ind., benefited from dockside gaming and the continued improvements associated with the re-branding efforts.

   Partially offsetting this benefit was a 4% decrease in play in Bossier City and an 8% drop in Tunica.


   Also reporting for the period were: Paul-Son Gaming Corporation (PSON) which experienced a consolidated net loss of $564,000 or $0.12 a share compared to net income of $137,000 or $0.03 a share last year, and Casino Journal that showed an operating loss of $35,075 compared to last year’s loss of $241.426.