Gaming news briefs for May 5, 2004

Wednesday, May 5, 2004 | 11:05 a.m.

Vegas firm's profit soars

Las Vegas-based slot route and casino operator Herbst Gaming Inc. on Tuesday reported a 67 percent increase in first quarter profit to $5.5 million.

The company also reported a 25 percent increase in revenue to $92.6 million for the first quarter ended March 31 compared to the same quarter a year ago. That figure excludes promotional expenses. Including promotional costs of about $3 million, net revenue was $89.6 million, a 26 percent increase over a year ago.

Cash flow rose 29 percent to $17.9 million.

First quarter 2004 and 2003 results include the slot route assets acquired from Anchor Coin, a subsidiary of International Game Technology.

Revenue from slot route operations rose 28 percent to $69 million and revenue from casino operations rose 17 percent to $22.8 million.

The company owns one of the largest slot routes in Nevada, with machines in gas stations, grocery stores and other outlets. It also owns Terrible's Hotel Casino on Paradise Road in Las Vegas, Terrible's Town Casino in Henderson, Terrible's Casino in Searchlight and Terrible's Town Casino in Pahrump.

Firm completes financing for Coast purchase

Boyd Gaming Corp. has completed financing for its pending merger with Coast Casinos Inc., company officials said today.

The $1.3 billion deal must still face final approval from the Nevada Gaming Commission and state Gaming Control Board. The company is expected to meet with Nevada regulators next month.

The financing includes a $1.5 billion package consisting of a revolving line of credit and a term loan. Separately, the company raised $350 million in senior subordinated notes, or bonds.

The transaction means that Coast has effectively refinanced all of its outstanding debt and Boyd has refinanced some but not all of its debt, Boyd Gaming spokesman Rob Stillwell said.

Strategist named

Wynn Resorts Ltd. announced Tuesday that it has expanded its board of directors and appointed entrepreneur and Asian investor Kiril Sokoloff as its 11th director.

Sokoloff is the president of 13D Research Inc., an independent financial research firm he founded in 1983. 13D Research is focused on detecting changes that will impact businesses and investments anywhere in the world, Wynn Resorts said.

Sokoloff also is the founder and chairman of Bluespan, a company engaged in the research and production of wireless applications for consumer use. He is the founder and co-chairman of HC Search Co., a company involved in providing healthcare information to customers over the Internet.

Sokoloff, author of several investment books, also is well known as a pioneering foreign investor in Hong Kong and China.

"He opened an office in Hong Kong in 1992 and introduced many of the largest money management firms in the U.S. to the historic investment opportunity in Hong Kong/China," Wynn Resorts said.

BOISE, Idaho:

A group promoting an initiative to extend electronic gambling machines to small race tracks around the state has failed to gather enough signatures needed to put the issue on the ballot.

Officials with Idaho Racing Enterprises LLC said they did not have enough time to educate voters about the racino initiative.

ALLIANCE GAMING:

The stock of Las Vegas slot machine maker Alliance Gaming Corp. fell for a second consecutive day this morning. Alliance stock slipped 79 cents Tuesday amid general weakness in gaming stocks. The stock fell again this morning, trading down $1.36 at $23.02, after the stock was downgraded by Deutsche Bank to "hold" from "buy." The downgrade was based on competitive concerns.