Lady Luck net jumps

Tuesday, July 27, 1999 | 10:57 a.m.

Lady Luck Gaming Corp. today reported sharply higher second-quarter net income and cash flow after adjusting for the year-ago sale of a Biloxi casino.

The Las Vegas-based riverboat operator said net income was $2.2 million, or 46 cents a share, in the June 30 quarter, compared with net of $2.5 million, or 52 cents a share, in the year-ago period. Revenue was $37.6 million, up a bit from $37 million in the 1998 quarter.

The second-quarter 1998 earnings included a net gain on the sale of the Biloxi facility of $1.1 million, or 23 cents a share.

On a pro forma basis, Lady Luck's same-store net income for the latest quarter was 46 cents a share, up 170 percent from 17 cents a share in the 1998 period.

Cash flow rose 29 percent, to $10.1 million from $7.8 million, Lady Luck said.

For 1999's first half, the company posted net income of $5.3 million, or $1.09 a share, compared with net of $4.6 million, or 93 cents a share, in the first six months of 1998. Revenue was $74.3 million, down from $78.2 million.

First-half cash flow rose 15 percent this year, to $20.9 million from $18.1 million.

"Our second-quarter results include $437,000 of pre-opening marketing and other expenses related to the April 30 opening of our Country Hotel facility in Lula, Miss., said Lady Luck President Alain Unboldi.

"Thus far in the quarter, we are seeing the benefits of our $20 million expansion, which includes a 314-room hotel.

"Early third-quarter results in Coahoma, where we have increased guest capacity, suggest a trend toward the improved results we have seen in our Bettendorf joint venture since completion of the expansion there in 1998," Uboldi said.

"Our addition of a hotel in Bettendorf is driving significant increases in revenues and cash flow at that facility."

Lady Luck Gaming operates dockside and riverboat casinos and related amenities in Mississippi and Iowa and is developing more projects in Mississippi and Missouri.

Lady Luck stock was quoted at $4.625, up 25 cents, in midday trading today.