LV firm’s operating results improve

Thursday, Nov. 1, 2001 | 10:32 a.m.

Mikohn Gaming Corp. of Las Vegas reported a loss for the quarter ending Sept. 30 because of a one-time charge taken for the early extinguishment of debt.

The one-time charge of $3.14 million resulted in a loss of $1.94 million, or 16 cents per share. But when this charge is factored out, Mikohn would have earned $1.2 million, or 10 cents per share, compared to net income of $780,000, or 7 cents per share, in the year-ago quarter.

Revenues remained flat at $28.2 million, but cash flow increased 29 percent to $8.5 million.

The company's profitability was improved by its shift away from product sales toward revenue-participation slots and table games. Revenues from this segment rose 49 percent to $12.5 million, primarily from the placement of more slot machines. Product sale revenues fell 21 percent to $15.7 million.

Mikohn said 94 percent of its participation revenues come from outside the Las Vegas Strip and Downtown Las Vegas, and said it remains optimistic about this business going into the fourth quarter.

"The unknown factor for next year is what impact the war on terrorism and the economic downturn may have on capital expenditures for our customers, which directly affects our product sales business segment," said Mikohn Chairman and Chief Executive David Thompson. "We are closely monitoring the situation and have contingency plans in place to implement if necessary."