Business briefs for August 16, 2001

Thursday, Aug. 16, 2001 | 11:19 a.m.

Revenues up, but losses continue for company

The former owner of a Las Vegas sports theme park and its parent company have reported increased revenues from its golf and retail operations but continue to lose money on loan payments.

All-American SportPark Inc. reported a loss of $424,062, 13 cents a share, on revenues of $662,976 for the company's second quarter ended June 30. That compares with a loss of $723,162, 23 cents a share, on revenues of $624,784 for the same quarter a year ago.

The company, two-thirds owned by Sports Entertainment Enterprises Inc., continues to operate the 42-acre lighted nine-hole Callaway Golf Center at Las Vegas Boulevard South and Sunset Road.

Higher revenues were attributed to increased play at the golf course and its related attractions, but losses were blamed on interest payments on loans for the company's discontinued theme park operation. Still, the company reported a loss of $107,799, 3 cents a share, on continuing operations, with the company citing higher payroll, advertising and utility costs at the golf center.

All-American turned over its sports theme park to its landlord, Urban Land Co. of Nevada, to pay its debts. Urban Land has reopened the park as the Sports Center.

Sports Entertainment Enterprises also reported higher revenues and diminished losses. The company, which owns a golf and tennis retail store at Sahara Avenue and Rainbow Boulevard in addition to its interest in All-American SportPark, reported a loss of $419,962, 5 cents a share, on revenues of $1.53 million for the quarter. That compares with a loss of $710,550, 9 cents a share, on revenues of $1.46 million for the comparable year-ago quarter.

Former official alleges wrongdoing at Vegas firm

A former executive of eDestiny Inc. of Las Vegas sued the company and its board of directors, alleging she was wrongfully terminated for "whistle-blowing" after she reported possible securities violations by eDestiny's management to the Nevada Secretary of State's securities division.

Tawana Crabb also known as TK Crabb, who said she was eDestiny's vice president of business development from December 1999 through August 2000, sued the company and its directors, Danny Lee, Richard Luke and Scott Stephens, in Clark County District Court.

Crabb accused the board members of selling eDestiny shares for their own accounts in violation of their fiduciary duties and securities laws, falsifying financial reports to make the stock more attractive and failing to maintain proper records.

The suit said the state opened an investigation of eDestiny and its board after Crabb contacted the state in early August 2000 when the board failed to take steps to resolve her complaints. The state declined comment on whether it was investigating eDestiny.

The defendants could not be reached for comment.

Ranch sued over girl's drowning

The family of Denise Lindsey Matson sued Rainbow Ranch Inc., a ranch in Rainbow Canyon in Lincoln County, alleging its negligence caused Matson's death.

Delbert Matson, the father of one-year old Denise Lindsey and a Rainbow Ranch employee, sued the ranch, alleging his daughter, on Aug. 4, 2000, drowned in an allegedly unfenced pond on the property. The suit said the pond ranged in depth from several inches to eight feet, and was allegedly mostly unfenced except for a small portion that had partial barbed wire.

The defendant could not be reached for comment.

Lower price negotiated for LV company

Las Vegas-based Chadmoore Wireless Group Inc. has renegotiated the terms of its buyout by Nextel Communications Inc., a move made necessary by a plunge in Nextel shares over the last year.

The deal will lower the value of the takeover by $30 million.

Chadmoore had initially agreed to sell all its assets to Nextel on Aug. 21, 2000, for stock then valued at $160 million. However, a severe decline in Nextel's share value made it "unlikely that (Chadmoore) stockholders would approve the transaction because the value of Nextel shares to be delivered to Chadmoore was substantially less than anticipated."

Nextel shares traded at $56.31 the day the deal was announced; they now trade at $13.08.

Under terms of the new agreement, signed June 29, Chadmoore shareholders will receive Nextel stock now valued at $130 million. This will "achieve more certainty with respect to the price terms of the transaction," Chadmoore said.

The agreement is subject to approval by Chadmoore shareholders and regulatory approvals.

Separately, the company reported a loss of $3.15 million, or 6 cents per share, for the quarter ending June 30. This compares to a loss of $3.31 million, or 7 cents per share, one year ago. Revenues declined 35 percent to $1.27 million.

Chadmoore holds mobile radio licenses in about 180 U.S. markets, primarily in smaller American cities. These licenses are used to offer customers two-way radio service, usually used in conjunction with a traditional mobile telephone. Currently, however, Chadmoore only offers this service in a few U.S. markets, including Memphis, Tenn., and Little Rock, Ark.

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