Sales increase for gaming supplier

Tuesday, Feb. 23, 1999 | 10:01 a.m.

In the fourth quarter of 1997, the Las Vegas company earned $658,000, or 6 cents a share, on revenues of $25 million.

Earnings before interest, taxes, depreciation and amortization (cash flow, or EBITDA) grew 65 percent, from $3.1 million in the fourth quarter of 1997 to $5.1 million.

However, for the year, Mikohn posted a loss of $8 million, or 76 cents per share, down from a profit of $2.4 million, or 23 cents per share, in 1997. Annual revenues increased slightly, from $98.5 million in 1997 to $99 million.

The loss was due to the company's $35 million acquisition of Caribbean Stud manufacturer Progressive Games Inc., and restructuring and consolidation charges intended to make Mikohn more profitable. The company also reported greater research and development charges related to Mikohn's "intense focus on the development of new slot and table games."

"With substantially lower casino equipment sales throughout the industry in 1998, our traditional interior signage and progressive jackpot system lines came under pressure," said David J. Thompson, chairman, president and chief executive of Mikohn. "However, we successfully bid on major projects at Bellagio, Beau Rivage, Mandalay Bay and the Venetian in the latter part of the year."

Mikohn makes casino games, progressive systems and interior and exterior signs. Last year, the company announced plans to close its Rapid City, S.D., interior sign plant, and to build a new plant near Hurricane, Utah.