Nevada casino companies see revenues slide

Several Nevada casino companies announced quarterly and year-end earnings Tuesday, the last day to accomplish the task.

Herbst Gaming, which filed a prepackaged Chapter 11 bankruptcy plan more than a week ago, said it lost $209.4 million in 2008, compared with a net loss of $127.2 million in 2007.

Herbst, which negotiated an agreement with the majority of its lenders covering $847 million in total debt, saw revenues from its 6,800-slot machine Nevada route operations decrease 33 percent in 2008 while revenues from its 15 casinos in Nevada, Iowa and Missouri increased less than 1 percent.

Route operations accounted for 29 percent ($243.7 million) of the company's total revenues, while the casinos ($474.2 million) accounted for 57 percent of the company's total revenues.

Meanwhile, Hooters Hotel announced Tuesday it plans to miss an interest payment due on its $141 million debt load.

The off-Strip property, which has a 30-day grace period to pay the note, hired Jefferies & Co. to "assist with the evaluation of the financial and strategic alternatives," according to a filing with the Securities and Exchange Commission.

Interest payments totaling $13.2 million in 2008 drove Hooters to post a $13.3 million loss for the year. The property posted a net loss of $8.2 million in the fourth quarter ended Dec. 31.

Hooters said revenues were $60 million in 2008, a 9.6 percent decrease compared with $66.5 million in 2007. Fourth-quarter revenues were $13.3 million, a 12.2 percent decline compared with $15.2 million in the same quarter of 2007.

The parent company of the Stratosphere saw revenues decline in 2008 due to lower visitor numbers and declining customer spending.

American Casino & Entertainment Properties posted a revenue decline of 4.5 percent for the year ended Dec. 31, to $424.4 million from $444.2 million in 2007.

Goldman Sachs affiliate Whitehall Street Real Estate Funds purchased the company, which includes the two Arizona Charlie's hotel-casinos and the Aquarius in Laughlin, from billionaire investor Carl Icahn in February 2008 for $1.2 billion.

The company posted a net loss of $31.4 million since the deal closed on Feb. 20, driven by $62.5 million in interest expenses mostly tied to a $1.1 billion term loan issued at the closing of the buyout.

Meanwhile, the Las Vegas Hilton, owned by Colony Capital, posted a net loss of $437,000 in 2008, driven by a sharp decrease in revenues, it was reported last week. Last year, the Las Vegas Hilton had a $2 million profit.

Revenues declined 5.5 percent to $280.4 million for the year ended Dec. 31 from $296.7 million.

Planet Hollywood Resort bucked Tuesday's trend of dour casino news by reporting a 7.6 percent increase in revenues over last year's numbers.

The property, formerly the Aladdin, grew revenues to $277.2 million from $257.6 million in 2007.

The company did post a loss of $45 million.

The number, however, was an improvement from the $75 million loss posted in 2007. The most recent loss was driven by a $57 million in interest expense mostly tied to the property's $885.6 million debt load.

Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871. Contact reporter Arnold M. Knightly at aknightly@reviewjournal.com or 702-477-3893.