Vegas company’s profit dips

Wednesday, Oct. 15, 2003 | 11:10 a.m.

Profit fell 4 percent at slot maker Alliance Gaming Corp. during its fiscal first quarter, primarily due to a $12.3 million charge for bank refinancing and early retirement of debt.

The charge consisted mainly of a $5 million prepayment penalty for the redemption of company bonds, a $7 million writeoff of deferred financing costs and $300,000 in fees and expenses. The company recorded a $4.8 million tax benefit as a result of the charges, however.

Earnings were $6 million, or 12 cents per share, compared to $6.3 million, or 13 cents per share, for the same period a year ago.

Excluding the refinancing charge, earnings from continuing operations were 20 cents per share compared to 13 cents in the prior year's quarter.

That compares to analysts' average expectation of 18 cents per share.

Revenue rose 31 percent, to $106.6 million, led by a 39 percent increase in revenue at the company's slot making unit.

Cash flow rose 34 percent, to $29.4 million, also led by a 42 percent increase at the Bally Gaming and Systems slot unit.