Herbst reports gain

Wednesday, Nov. 3, 2004 | 8:41 a.m.

Profit at Herbst Gaming Inc. rose by about $7 million in the third quarter, the company reported Tuesday.

Herbst, which owns four Terrible's casinos across Las Vegas, Henderson and Pahrump, reported profit of $7.2 million compared with $352,000 in the third quarter of last year.

Revenue, including promotional expenses, increased 18 percent to $93.8 million and cash flow rose 44 percent to $18.2 million.

In July, Herbst announced plans to purchase three casinos -- one in Iowa and two in Missouri -- from Grace Entertainment Inc. for $287.5 million. The deal is expected to close in the first quarter of next year.

In October, the company extended its slot route contracts with Vons and Safeway supermarket chains to 2011. The extended contracts contain similar terms as the previous contracts, the company said. Herbst is one of the state's largest slot route operators.

Revenue from route operations rose 18 percent to $73.5 million. Revenue from casino operations rose percent to $22.4 million.

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