Results down at Fitzgeralds

Monday, July 29, 2002 | 11:14 a.m.

Fitzgeralds Las Vegas generated net revenues of $12.6 million during the three-month period ended June 30, down from $13.6 million in the prior year's quarter, parent company Majestic Investor Holdings LLC reported today.

Majestic, controlled by Detroit businessman Don Barden, said the downtown Las Vegas property generated a cash flow loss of $11,000 during the quarter vs. cash flow of about $850,000 in the year-ago quarter.

The average number of slot machines in operation during the three-month period was 873 with an average win per slot per day of $95; hotel occupancy was 93.4 percent with an average daily rate of $34.

Majestic, owner of the Majestic Star riverboat in Gary, Ind., bought the Fitzgeralds casino properties in December 2001 in Las Vegas, Tunica, Miss., and Black Hawk, Colo., for $149 million plus assumed liabilities.

"The two core assets of Majestic Investor Holdings -- Tunica and Black Hawk -- continue to perform above expectations and we are pleased with their performance to date," Chief Financial Officer Michael Kelly said. "The Las Vegas property agreed to a new five-year contract with the Culinary Union on June 30 and continues to adjust staffing and marketing initiatives, which we believe will position the property for positive earnings growth beginning late third quarter, early fourth quarter of 2002."