Operator reports big jump in earnings

Tuesday, March 7, 2000 | 10:33 a.m.

Horseshoe Gaming Holding Corp. reported net income of $9.1 million for the quarter ending Dec. 31, a 78 percent jump from earnings in the year-ago period.

Horseshoe said its earnings were driven upward by its recent expansion into the Chicago market. Horseshoe acquired Empress Entertainment Inc. on Dec. 1, giving it casinos in Joliet, Ill., and Hammond, Ind. These two casinos produced combined cash flow of $125.5 million in 1999.

Revenues for the quarter rose 40 percent, to $161.9 million, while cash flow increased to $46.9 million, a 95 percent increase.

For all of 1999, Horseshoe recorded net income of $32.4 million, a 29 percent increase, while revenues rose 14 percent to $525.6 million. Cash flow increased 29 percent to $148.6 million.

In addition to its two Chicago-area casinos, Horseshoe also owns casinos in Tunica, Miss., and Hammond, Ill. Though the company is headed by Jack Binion, former majority owner of Binion's Horseshoe in downtown Las Vegas, Horseshoe Gaming has no affiliation with the downtown property. Binion sold all but 1 percent of the casino's stock to sister Becky Behnen in 1998.

Formerly based in Las Vegas, Horseshoe Gaming moved its corporate headquarters to Joliet following the Empress acquisition.