Aladdin says it’s generating positive cash flow

Tuesday, Jan. 30, 2001 | 10:50 a.m.

After a difficult opening, the Aladdin recorded positive cash flow for the quarter ending Dec. 31, its chief executive said Monday.

Just as important, Richard Goeglein said he expects the property will be able to make an interest payment of $11.7 million on its bank debt due Thursday.

"We did make money in October, and we did make money for the fourth quarter," Goeglein said. "We expect to be there on Thursday."

The possibility of default on the Aladdin's bank debt had been raised by the company's last financial report in mid-November. At the time, the Aladdin reported it had unrestricted cash of $10.3 million on Nov. 9 -- less than needed to make the Feb. 1 interest payment. Goeglein declined to comment on how the Aladdin made up the cash shortfall since that time.

From November through Sept. 28, the Aladdin will be required to make $55 million in principal and interest payments on its bank debt. The Aladdin is not required to make cash payments on its bonds until March 2003.

Over the quarter ending Sept. 30, the Aladdin's first in operation, the property reported a net loss of $40.2 million. About $20.2 million of this loss was interest expense, while another $19.2 million was pre-opening expense. The property posted negative cash flow of $3.2 million for the quarter.

So far in January, results have been mixed, Goeglein said.

"We had a very good Super Bowl weekend," Goeglein said. "January, up until the Super Bowl weekend, was disappointing for everybody. The overall level of business in the city was not as good as all of us were expecting it to be."