Thursday, April 29, 2010 | 4:13 p.m.
Gaming equipment supplier Bally Technologies Inc. of Las Vegas today said its revenue and profit fell during the last quarter.
With the recession limiting new orders by casinos for slot machines and casino management systems, Bally said it earned $20.6 million or 36 cents per share from continuing operations for its third quarter ended March 31, down from $27.1 million or 48 cents in the year-ago quarter.
Revenue fell from $196.8 million in the 2009 quarter to $190.6 million in the 2010 quarter.
The company took an impairment charge of $11.4 million, or 13 cents per share, during the quarter to write off its assets in Alabama.
Bally said it’s unclear if legalized gambling will continue there because of lawsuits and efforts by Alabama’s governor challenging the legality of charitable bingo. Also during the quarter, Bally agreed to sell its Rainbow Casino in Vicksburg, Miss., to Isle of Capri Casinos Inc. for $80 million.
Despite the difficult quarter, Bally today highlighted its strong financial position.
“Our balance sheet strength continues to improve as we further reduced our debt by $9 million, repurchased $13 million of our common stock, and increased cash by $11 million during the quarter,” Robert C. Caller, chief financial officer, said in a statement. “We are also pleased with our recent bank amendment, which raised $75 million in incremental undrawn revolver capacity and reduced pricing on our existing term and revolver by 50 basis points (half a percentage point). We believe this transaction was the first reduction in pricing to an existing bank facility in the U.S. gaming industry since the credit crisis began in 2008.”
Bally said unit sales of gaming devices in the March quarter totaled $69 million vs. $70 million last year. Unit sales actually increased, from 4,368 to 4,571, and were driven by increased international sales but were offset by fewer new openings and expansions.
Also today, Bally announced contracts to initially provide 3,600 games for Italy's new video-lottery program.
The deal includes systems technology called "CMP," which includes player tracking, bonusing, promotions and reporting tools.
Terms weren’t announced.
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