Despite revenues being negatively impacted by its casino operations in Lake Tahoe and Laughlin, Tropicana Entertainment Inc. reported a third-quarter profit today of $1.5 million.
The Las Vegas-based company posted revenues of $177.9 million in the third quarter, according to a regulatory filing. Net revenues for its properties in Nevada were $34.4 million, down 10.2 percent from the same period last year.
The company attributed the decline to a 16.8 percent drop in slot volumes.
Tropicana Entertainment, which is controlled by investor Carl Icahn, was the company that emerged earlier this year from the Tropicana Entertainment Holdings LLC bankruptcy. The Tropicana Las Vegas hotel was spun off as part of the bankruptcy and is not part of Tropicana Entertainment.
In Nevada, the company owns and operates the Tropicana and River Palms in Laughlin and the MontBleu Casino Resort & Spa in Lake Tahoe. Tropicana Entertainment also owns casinos in New Jersey, Indiana, Louisiana and Mississippi.
"Net revenues ... continue to be negatively impacted by the deterioration of casino revenue in the Laughlin and South Lake Tahoe markets resulting from the continuing economic slowdown and reduced consumer discretionary income," the company said in its filing with the Securities and Exchange Commission.
Occupancy at the Nevada properties improved by 2.3 percent to 71.3 percent, but the average daily rate declined 8.3 percent to $40, compared with the third quarter of 2009.
Overall, the company continued to be adversely impacted by the weak economic conditions and their imapct on the gaming industry.
"We believe our guests have reduced their discretionary spending as a result of uncertainty and instability relating to employment and the credit, investment and housing markets.," the company said in its filing.
Contact reporter Chris Sieroty at firstname.lastname@example.org or 702-477-3893.