Thursday, May 13, 2010 | 3:17 p.m.
Herbst Gaming reported an $8 million profit during the first quarter of 2010 as the company cut costs in its slot and casino operations, according to a filing today with the Securities and Exchange Commission. The profit compares to a loss of about $33 million during the first quarter of 2009.
Total revenue declined 7.4 percent during the quarter from $171.7 million to $159 million. Costs and expenses decreased from $174.7 million to $150.7 million during the year-over-year period.
Revenue from slot route operations declined 11 percent to $48.2 million from $53.9 million. The company said the decrease was primarily due to the continued general economic weakness in Nevada. As of March 31, 2010, Herbst said it operated 6,100 slot machines.
Casino operations revenue accounted for 60 percent of total revenue. Total revenue derived from casino operations was $105 million for the first quarter of 2010, a 10 percent decrease from $117.1 million during the first quarter of 2009. The company said the decrease was due to the combined general economic weakness in Nevada and the impact of severe weather on its Midwest casino operations.
In Nevada, revenue from casino operations totaled $70.8 million during the first quarter of 2010, a 13 percent decrease from $81 million during the same period of 2009. Revenue at the company’s Southern Nevada casinos declined 16.3 percent. Northern Nevada casinos saw a revenue increase of 1 percent.
The company said its three Primm casinos accounted for $9.5 million of the revenue decline at its Nevada casinos.
Herbst Gaming operates 16 casinos in Nevada, Iowa and Missouri.
The company filed for Chapter 11 bankruptcy protection in March 2009.
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