101°F
weather icon Clear

Bankrupt Herbst Gaming posts small profit

Bankrupt Herbst Gaming suffered steep declines in revenue in the third quarter, though the company managed to turn an earlier loss into a small profit.

The company, whose 12 casinos in Nevada include three properties in Primm and Terrible’s at Paradise and Flamingo roads, took in revenue of $168.7 million in the quarter that ended Sept. 30. That’s down 16.5 percent from earnings of $196.5 million in the same quarter a year ago.

Herbst posted quarterly net income of $385,000, an improvement over the $22.4 million loss it experienced a year earlier.

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 in March. A U.S. bankruptcy judge has signed off on Herbst’s plan to hand over its operations to a group of lenders that hold $876.5 million in company debt.

Herbst employees told the Review-Journal on Nov. 9 that the company had laid off 200 workers in Primm.

Don't miss the big stories. Like us on Facebook.
THE LATEST
Sewage testing in Washington confirms rise in marijuana use

The research entailed driving to two sewage treatment plants that serve the 200,000 people of Tacoma, a city whose drug-use trends tend to mirror those of Seattle.

Regulators approve summertime Arizona power shut-off ban

State regulators on Thursday enacted emergency rules barring most Arizona electric utilities from disconnecting power to customers who are late on their bills from June 1 through Oct. 15, when soaring desert heat can be lethal.

 
10-year-old girl climbs Yosemite’s El Capitan

A 10-year-old Colorado girl scaled Yosemite National Park’s El Capitan and may have become the youngest person to climb one of the most celebrated and challenging peaks in the world.

Witness at Navy SEAL trial admits killing victim

A Navy SEAL called by prosecutors to testify at the murder trial of a colleague has acknowledged killing a wounded prisoner in Iraq in what he described as an act of mercy.

Trump vows veto as Senate rejects arms sales to Saudis

The Senate has voted to block the Trump administration from selling arms to Saudi Arabia, launching a new challenge to President Donald Trump’s alliance with the country amid rising tensions in the Middle East.