Land sale results in first-quarter profit

Tuesday, Feb. 15, 2000 | 11:41 a.m.

Santa Fe Gaming Corp. today reported a first-quarter profit of $8.6 million, or $1.15 per share, a gain driven primarily by the sale of a Henderson land parcel to former competitor Station Casinos Inc.

The Las Vegas casino operator lost $3.86 million, or 54 cents per share, in the year-ago quarter. Revenues in the quarter ending Dec. 31 rose 8.8 percent to $32.8 million.

The company's recurring cash flow fell 2.8 percent, to $7.8 million. However, Santa Fe was able to post a significant profit with a $12.1 million gain from the sale of a 40-acre parcel near the Sunset Station hotel-casino to Station Casinos. Santa Fe also gained $2 million from the early extinguishment of debt.

The Santa Fe-Station deal, announced late last year, also gave Station the right of first refusal to purchase Santa Fe. Santa Fe signed a non-compete pact with Station as part of the deal.

At Santa Fe's namesake casino in North Las Vegas, revenues rose 10.1 percent, to $21.36 million. But operating income fell 31.8 percent, to $2.7 million.

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