Company reports quarterly loss of $3 million

Tuesday, Aug. 16, 2005 | 10:56 a.m.

The owner of the former Wet 'n Wild waterpark site on the Strip reported a loss of $3 million in the second quarter compared with a profit of just over $800,000 a year ago.

Archon Corp. of Las Vegas attributed the loss to stock option grants to executives worth an estimated $3.9 million as well as a slight revenue decline at its primary asset, the Pioneer Hotel and Gambling Hall in Laughlin.

After a major shareholder complained about a plan to issue about $8 million in stock options to executives who are also family members, the company's board reduced the value of those options by about 75 percent.

Revenue at the Pioneer was $7.6 million in the second quarter compared with $7.9 million a year ago, a decline primarily attributed to competition from nearby casinos.

Company revenue was $11 million versus $11.1 million a year ago, including promotional expenses.

Archon has been attempting to sell or develop a major casino resort on the Wet 'n Wild parcel but gave little information on either plan in its earnings report.

"Management believes the recent revenue and expense trends in its Laughlin hotel/casino property may not change significantly over the next few years, but believes the opportunity to sell or develop its Las Vegas Strip property could greatly enhance the company's ability to generate future profitability," Archon said in the report.