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October 20, 2014

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Riviera loses $4.5 million, says bankruptcy possible

Riviera

A view of the Riviera on the Las Vegas Strip on Dec. 26, 2007. Launch slideshow »

Riviera Holdings Corp., owner of casinos in Las Vegas and Colorado, today said it lost $4.5 million as revenue fell in the first quarter.

The loss, amounting to 36 cents per share, compares to a loss in the year-ago quarter of $1 million or 8 cents per share.

Net revenue of $30.8 million was down from $34.7 million in the year-ago quarter.

Riviera today reiterated that it's in default on debt obligations and continues to negotiate with lenders to refinance or restructure its more than $227 million in debt. If it's unable to do so, it will likely file for Chapter 11 bankruptcy reorganization, Riviera said.

In the first quarter, revenue at the 2,075-room Riviera Las Vegas of $20.5 million was down from $24.4 million in the 2009 quarter. At the Riviera in Black Hawk, Colo., with 750 slot machines and a dozen gaming tables, revenue of $10.3 million was up from $10.2 million.

Amid tough competition on the Las Vegas Strip, Riviera said its room revenue there of $8.4 million tumbled 18.4 percent as the average daily room rate fell about 20 percent to $55.69. Room occupancy of 82.2 percent was up from 76.8 percent.

"We believe that due to a number of factors affecting consumers, including but not limited to a slowdown in global economies, contracting credit markets and reduced consumer spending, the outlook for the gaming and hospitality industries remains highly uncertain. Based on these adverse circumstances, we believe that the company will continue to experience lower than expected hotel occupancy rates and casino volumes," Riviera said in its quarterly report.

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