Anchor Gaming earnings decline

Thursday, Oct. 28, 1999 | 11:31 a.m.

Las Vegas-based slot designer and casino operator Anchor Gaming Inc. said net income for the fiscal 2000 first quarter, ended Sept. 30, dropped to $15.8 million, or $1.30 a share, from $19 million, or $1.48 a share, in the fiscal 1999 first period.

Revenues soared 96.6 percent, to $127 million from $64.6 million, due largely to the acquisition of Powerhouse Technologies Inc., which was acquired two days before the latest quarter began.

Anchor said cash flow, or earnings before interest, taxes, depreciation and amortization, rose 22.8 percent, to $41 million from $33.4 million.

Anchor Gaming President Michael Rumbolz said the company hopes to regain the momentum that saw it post year-over-year earnings gains for several quarters.

During the latest three-month period, he said, Anchor began distributing its video Wheel of Fortune game -- product of a joint venture with International Game Technology -- in Nevada and New Jersey.

"Preliminary results are very positive, with installations and orders in hand for more than 2,200 units," he said.

Rumbolz also noted that during the quarter, Anchor signed a development and management agreement with the Pala Band of Mission Indians for a new casino near San Diego.

"When we begin operation of this casino, expected to open prior to April 2001, Anchor's gaming operations segment will include two very successful casinos in Colorado, a racetrack and casino in New Mexico just outside El Paso, Texas, and the California casino and entertainment facility," he said.