Riverboat operator posts profit increase

Monday, Nov. 6, 2000 | 10:13 a.m.

Horseshoe Gaming Holding Corp. of Joliet, Ill., reported net income of $20.7 million for the quarter ending Sept. 30, a 109 percent increase over results in the year-ago quarter.

Revenues for the riverboat operator rose 111 percent, to $260.8 million, while cash flow increased 81 percent to $60.4 million.

The huge increase in earnings was primarily caused by Horseshoe's acquisition of the Empress casinos in Joliet, Ill., and Hammond, Ind., on Dec. 1, 1999. The two properties added $125.5 million in revenues and $34.1 million in cash flow during the quarter.

Operating results also improved at Horseshoe's two previously owned casinos in Tunica, Miss., and Bossier City, La. Cash flow rose 12 percent at Tunica, to $21.3 million, while Horseshoe Bossier City saw a 22 percent cash flow increase.

Results were hurt by a jump in corporate expenses from $2 million in the year-ago quarter to $15.2 million in the 2000 quarter. Horseshoe attributed these increased charges to an expanded corporate staff to run the Empress properties, legal fees related to the company's regulatory fight to keep its Illinois license, severance packages to former executives, and donations to a fund designed to invest in minority-owned businesses.

Horseshoe Gaming is controlled by Jack Binion, former owner of Binion's Horseshoe, but the company has no affiliation with the downtown Las Vegas property.