LV firm’s profit down

Wednesday, Aug. 16, 2000 | 10:32 a.m.

Alliance Gaming Corp. of Las Vegas today reported a 50 percent decline in earnings per share for its most recent quarter, the result of several one-time charges.

Alliance reported net income of $786,000, or 8 cents per share, for the quarter ending June 30. That's down from net income of $2.02 million, or 16 cents per share, in the year-ago quarter.

The decrease was caused by a non-cash charge of $1.2 million for the write-down of assets at one of the company's overseas sales offices and a $500,000 charge for additional tax reserves at the company's German subsidiary.

Revenue declined less than 1 percent to $128.9 million, while cash flow fell 8 percent to $15.9 million. The largest growth was posted by Alliance's casino operations, which saw revenues and cash flow rise 20 percent for the quarter. The company's casinos in Vicksburg, Miss., and Sparks in Northern Nevada posted $6.6 million in cash flow, more than any other Alliance division.

Gains in the casino division were offset by declines in cash flows from Bally Gaming & Systems and its Bally Wulff German subsidiary. Bally Gaming cash flow fell 34 percent to $5 million, while cash flow at Bally Wulff declined 30 percent to $1.9 million.

Though revenues at Alliance's route operations -- which are being sold -- rose 20 percent to $50.1 million, cash flow dropped 5 percent to $6.2 million.

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