Company reports profit

Tuesday, May 17, 2005 | 10:52 a.m.

The company that owns the site of the former Wet 'n Wild waterpark on the Strip swung to a profit in the first quarter ended March 31, earning $261,292 compared with a loss of $428,655 in the same period of 2004.

Archon Corp. reported revenue of $13.6 million, a decrease of 10 percent from a year earlier. Minus promotional costs, revenue was $12 million, down 7 percent.

The company generated lower revenue from its primary working asset, the Pioneer Hotel and Gambling Hall in Laughlin. That property continues to face competition from nearby casinos, Archon said. Earlier marketing initiatives haven't benefited the property and will need to be changed, it said.

The company said it has defaulted on a lender agreement because it has failed to maintain a minimum ratio of earnings to debt. That debt balance is about $12.3 million. The company said it intends to amend its lender agreement and doesn't expect to remain in default.

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