Loss narrows in quarter for Santa Fe Gaming

Tuesday, Aug. 15, 2000 | 10:59 a.m.

Locals casino operator Santa Fe Gaming Corp. on Monday reported narrowing losses for its most recent quarter, as the company prepares to sell its flagship property to Station Casinos Inc.

Santa Fe reported a net loss of $2.1 million, or 33 cents per share, for the quarter ending June 30. Though operating in the red, the results were improved over the loss of $6.1 million, or 99 cents per share, posted in the year-ago quarter.

Top-line results improved for the company as well. Santa Fe recorded revenues of $33.2 million, a 3 percent increase over the year-ago quarter, while cash flow rose 12 percent to $8.7 million. Santa Fe attributed improved revenues to a $400,000 increase in revenues both at the Santa Fe hotel-casino in northwest Las Vegas and the Pioneer Hotel and Gambling Hall in Laughlin.

By year's end, Santa Fe plans to close on a deal to sell the Santa Fe to Station for $205 million. A $36 million credit facility extended by Station as part of this deal helped Santa Fe pay off $43.2 million in outstanding junk bonds on Aug. 11, the company said. These bonds had been in default since coming due in late 1998, and had sent Santa Fe subsidiary Pioneer Finance Corp. into bankruptcy.

An additional $121.1 million in proceeds from the Santa Fe sale has already been earmarked for debt repayment, Santa Fe indicated in its quarterly report.

Separately, Las Vegas-based Casino Journal Publishing Group Inc. posted decreased net income for the quarter, though operating results improved over the year-ago period.

Casino Journal posted net income of $199,000, or 3 cents per share, down from net income of $283,000, or 6 cents per share. Revenues fell 8 percent to $3.3 million.

Casino Journal said the lower revenues were the result of the expiration of certain consulting and licensing contracts, while net income declined as the result of payments made to minority interest partners in the company's trade shows. Casino Journal said its cash flow of $505,000 and operating income of $440,000 were both records for the company, but did not provide year-ago comparisons.

The company also said it has closed on its acquisition of Poker Digest for $3.7 million in stock and options. Casino Journal said the publication should add nearly $1.5 million a year in revenues.

Casino Journal is the publisher of a series of gaming-related magazines, including the trade magazine Casino Journal and the consumer publication Strictly Slots. The company also organizes several gaming industry trade shows, including the American Gaming Summit, held each January in Las Vegas.