Weather hurts Horseshoe Gaming earnings

Wednesday, Feb. 28, 2001 | 11:30 a.m.

JOLIET, Ill. -- Horseshoe Gaming Holding Corp. today became the latest gaming company to report poor earnings for the quarter ending Dec. 31.

The riverboat casino operator posted a net loss of $1.3 million for the quarter, compared to net income of $9.1 million for the year-ago quarter. Revenues rose 51 percent to $239.3 million, while cash flow fell 1 percent to $46.4 million.

Like many other gaming companies, Horseshoe blamed severe winter weather in the Midwest for the loss, as well as construction disruption and increased competition.

Cash flow before non-recurring charges fell 23 percent at Bossier City, La., to $11.8 million, the result of increased competition in the market. At Tunica, Miss., cash flow fell 19 percent to $16.6 million, which the company blamed on disruption and expenses related to the casino's expansion. In Hammond, Ind., cash flow dropped 44 percent to $8.4 million, the result of severe weather and construction disruption.

The only property to post improved results was the Empress in Joliet, Ill., where cash flow increased 16 percent to $16.3 million. However, as the result of a January settlement with the Illinois Gaming Board, Horseshoe has agreed to sell the Joliet casino. The company said it has retained an investment banker to assist with the sale process.

Privately held Horseshoe Gaming is controlled by Jack Binion, former owner and operator of Binion's Horseshoe in downtown Las Vegas. However, the company currently has no connection to the Las Vegas casino.