Terrible’s, Fitzgeralds owners report improved earnings

Tuesday, May 7, 2002 | 11:13 a.m.

Las Vegas-based Herbst Gaming Inc. today reported a 12 percent increase in cash flow during the first quarter, an increase driven almost entirely by a strong quarter from its slot route operations.

The company, owner of the Terrible's hotel-casino near the Las Vegas Strip, posted cash flow of $10.1 million for the March 31 quarter. Revenues rose 7 percent to $61.5 million, while net income was up 208 percent to $1.6 million.

The company is one of the state's largest slot route operators, and cash flow from this business rose 21 percent to $8.2 million. Route revenues were up 8 percent to $44.9 million.

In addition to the off-Strip casino, Herbst also owns and operates two casinos in Pahrump and one in Henderson. Combined, the four casinos produced $3.9 million in cash flow, an increase of less than 1 percent. Casino revenues were up 6 percent to $18.4 million.

Meanwhile, downtown's Fitzgeralds hotel-casino turned profitable in the first quarter, though its performance lagged sister properties in Indiana, Mississippi and Colorado.

Fitzgeralds Las Vegas, controlled by Detroit investor Don Barden, posted $900,000 in cash flow for the quarter ending March 31. Barden's company, Majestic Investor Holdings, did not provide a year-ago comparison for cash flow, but said revenues at the property fell 8 percent to $13.1 million. Still, the property's performance improved over the cash flow loss of $225,000 posted during the 25 days Majestic owned the property in December.

Majestic acquired Fitzgeralds casinos in Las Vegas, Tunica, Miss., and Black Hawk, Colo., on Dec. 6 for $149 million.

The Tunica casino reported cash flow of $6.4 million. Revenues at the property were up 6 percent to $22.2 million. The Colorado casino, meanwhile, posted cash flow of $1.6 million, and revenues of $8 million, up 4 percent.

The combined properties produced $1 million in net income, the company said.

Barden's first casino property, the Majestic Star Casino in Gary, Ind., reported $7 million in cash flow, an increase of 5 percent. Net income was $1 million, compared to a loss of $77,000.

Revenues fell 3.5 percent to $30.2 million, but were more than offset by cost-cutting measures and declines in depreciation and amortization expenses.