Santa Fe Gaming’s earnings improve

Monday, April 24, 2000 | 11:22 a.m.

Santa Fe Gaming Corp. of Las Vegas today reported net income of $1.6 million, or 25 cents per share, for the quarter ending March 31. The results were a substantial improvement over the net loss of $2.9 million, or 48 cents per share, recorded in the year-ago quarter.

This profit was the result of debt reduction following the sale of a 40-acre land parcel in Henderson in November 1999 for $37.25 million. Santa Fe recorded a benefit of $704,000 during the most recent quarter from early debt payment, and reduced its interest expenses to $5 million, a $1.27 million decrease.

Station Casinos Inc. purchased the land, as well as the right of first refusal to acquire the Santa Fe hotel-casino in northwest Las Vegas.

However, Santa Fe's improved earnings were also assisted by strong operations at its flagship casino, where revenues rose 12.6 percent to $22.2 million. Overall company revenues rose 8.8 percent to $35.1 million.

Cash flow showed a more marked increase, rising 22.1 percent to $8.8 million.

Most of this cash flow increase came from the Santa Fe, where cash flow increased $1.56 million, or 28 percent, to $7.2 million.

Cash flow at the company's Pioneer Hotel and Gambling Hall in Laughlin rose 18.4 percent to $3.3 million.