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Black Gaming cuts second-quarter loss

By ARNOLD M. KNIGHTLYLAS VEGAS REVIEW-JOURNAL
August 14, 2009 - 10:38 am
 

Financially troubled Black Gaming trimmed its second-quarter loss through cost saving measures that include continued pull back of operations at the company’s Oasis property, according to a Friday filing with the Securities and Exchange Commission.

The Mesquite-based company, which also operates the CasaBlanca and the Virgin River, is in default on $205.8 million in debt, but is continuing to discuss possible restructuring options with representatives of its debt holders and Wells Fargo Foothill.

Black Gaming posted a net loss of $4.8 million in the second quarter ended June 30, a 76 percent swing from the $20.3 million loss posted for the same time last year, according to a morning filing with the Securities and Exchange Commission.

The company’s six month net loss is $10 million, a sharp improvement from a $24.3 million loss posted through June last year.

Revenues fell 24.1 percent to $27.3 million in the quarter, down from $36 million last year. Revenues for the year have dropped 25.8 percent, to $55.3 million from $74.5 million.

Second-quarter cash flow, defined as earnings before interest, taxes, depreciation and amortization, improved to $4.6 million from a negative cash flow of $8.6 million in 2008. Cash flow the first six months is $9 million, a swing from $5.3 million in negative cash flow last year.

The Oasis currently operates with 16 slot machines, with the property’s 900-room hotel, recreational park and convention facilities are still available on an overflow basis.

The Oasis’ Palms Golf Course, gun club and time shares remain open.

Mesquite, a city of nearly 20,000, is located 80 miles northeast of Las Vegas on Interstate 15. The city has suffered steep declines in visitors the first six months of the year, posting a 28.2 percent decrease, a report by the Las Vegas Convention and Visitors Authority shows.

The company is majority owned by Chairman and Chief executive Officer Randy Black Sr.

 

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

 

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