Quarterly earnings improve for LV gambling company

Tuesday, Aug. 21, 2001 | 10:40 a.m.

Fitzgeralds Gaming Corp. of Las Vegas reported significantly improved earnings for the quarter ending July 1.

The company reported net income applicable to shareholders of $5.61 million, or $1.02 per share. This compares to a net loss of $5.03 million, or 91 cents per share, in the year-ago period. This was attributed primarily to decreases in deprecation, amortization and interest costs, as Fitzgeralds is now operating under Chapter 11 bankruptcy protection.

Net revenues increased 4 percent to $53.88 million, while cash flow rose 1.1 percent to $8.87 million.

Cash flow at Fitzgeralds Las Vegas was down 21 percent to $840,000, but revenues increased 2 percent to $13.6 million and operating income rose 823 percent to $840,000.

Casino revenues were up 3 percent, but average daily room rates were down 4 percent during the quarter. This was offset partially by a 0.9 percentage point increase in occupancy, the company said.

Fitzgeralds Tunica (Miss.) reported the strongest quarter, with cash flow increasing 37 percent to $4.89 million. Fitzgeralds Reno was the weak spot, with cash flow down 38 percent to $1.36 million. Fitzgeralds blamed a weakened economy in the casino's target markets.

Detroit businessman Don Barden, who controls Majestic Star Casino of Gary, Ind., is buying three casinos from Fitzgeralds including its 638-room, downtown Las Vegas property.