Riviera earnings improve

Tuesday, April 25, 2000 | 10:35 a.m.

Assisted by its new casino near Denver, Riviera Holdings Corp. of Las Vegas today reported big increases in revenues, net income and cash flow.

Riviera posted net income of $675,000, or 15 cents per share, for the quarter ending March 31. That's up from income of $166,000, or 3 cents per share, reported in the year-ago period.

Earnings per share were improved by a 590,000 share buyback completed during the quarter.

Revenues during the quarter rose 23 percent to $49.7 million. But a more substantial increase was reported in cash flow, which rose 51 percent to $10.9 million, a record for the company.

The strengthened results were almost entirely caused by Riviera Black Hawk Casino, which opened about 30 miles west of Denver on Feb. 4. During its two months of operations, Black Hawk posted cash flow of $3.2 million on revenues of just $7.9 million -- a 40 percent cash flow margin.

However, an improved performance at the Riviera on the Las Vegas Strip also helped the company's earnings. The hotel-casino posted record first-quarter slot revenue, and the hotel's average daily room rate rose 7.7 percent to $59.61. Occupancy during the quarter averaged 96.4 percent.

"We continue to reap the benefits of our convention center expansion with increased non-gaming revenue, which represents 55 percent of our total revenues," said Bill Westerman, Riviera chairman and chief executive.

The Riviera posted revenues of $41.7 million for the quarter, a 4.2 percent increase. Cash flow increased 9.2 percent to $7.6 million.