Herbst Gaming reverses loss, but revenue drops in quarter
Bankrupt Herbst Gaming suffered a steep drop in revenue in the third quarter, though the company managed to turn an earlier loss into a small profit.
The company, which has 12 casinos in Nevada, including three properties in Primm and Terrible’s at Paradise and Flamingo roads, posted quarterly net income of $385,000 in the quarter ended Sept. 30, reversing a $22.4 million loss from a year earlier.
Revenue fell 14.1 percent to $168.7 million from $196.5 million.
Herbst also continued to see big drops in revenue from route operations, or money it makes managing slot machines inside bars, restaurants and other nongaming businesses. Route operations earned $47.5 million in the quarter, an 18.5 percent drop from $58.3 million a year ago. Casino operations were down 6.7 percent, from $122.8 million to $114.6 million. A 2006 ban on smoking in almost all public places besides casinos has hurt gaming revenue in the route-operating segment.
Herbst filed Chapter 11 bankruptcy protection in March. A U.S. bankruptcy judge has approved Herbst’s plan to hand over its operations to a group of lenders that hold $876.5 million in company debt.
Loss widens, revenue falls for Planet Hollywood Resort
Planet Hollywood Resort had lower revenue and bigger losses in the third quarter than a year earlier.
The company’s loss grew to $17.5 million in the third quarter ended Sept. 30, up 63.6 percent from $10.7 million a year ago.
Revenue fell 20.5 percent to $55.1 million from $69.3 million.
Planet Hollywood is privately owned, but must report its earnings to the Securities and Exchange Commission because of an $860 million term loan.
Solar-power projects secure key land-use approvals
Two solar-power projects proposed in northwest Arizona secured key land-use-related approvals during Monday’s meeting of the Mohave County Board of Supervisors.
Construction of both plants would start late next year if additional state and federal approvals are secured.
Mohave Sun Power LLC plans to build a 340-megawatt solar-power plant about 27 miles north of Kingman on a site Las Vegas developer Jim Rhodes once wanted to use for a master-planned community.
The company has an option to buy the site as it goes through development.
Project Director Greg Bartlett said about 1,500 workers will be employed during peak construction of the $2 billion Hualapai Valley Solar plant.
Meanwhile, a Spanish company, Albiasa Corp., plans to employ another 1,500 workers during peak construction of its $1 billion, 200-megawatt power plant about 40 miles southeast of Kingman.
A 100-member work force is projected for both plants, which company officials hope will be operating in 2013.
Caterpillar applies to open industrial loan company in LV
Caterpillar Inc., the Peoria, Ill.-based heavy-equipment maker, has filed an application with the Federal Deposit Insurance Corp. to open Power Capital Bank, an industrial loan company in Las Vegas.
A spokeswoman for Caterpillar didn’t return a call late Monday, but the manufacturer could use the ILC to make loans to customers buying its bulldozers, road graders and other heavy equipment.
Nevada has about 30 licensed industrial loan companies; it is one of six states that authorizes them.
Sen. Christopher Dodd, D-Conn., has proposed legislation that would require ILCs to restructure and become bank holding companies for financial operations.