Hooters Hotel and Casino continues to operate under default

Hooters Hotel and Casino continues to operate under default, expressing concern that the property that its cash on hand and expected cash flows may not be enough to cover financial obligations including debt payments, a Friday filing with the Securities and Exchange Commission shows.

Hooters’ loss increased to $5.38 million in the third quarter ended Sept. 30 from a loss of $5.26 million a year earlier.

The loss increases the property’s nine-month loss to $14.5 million from a loss of $5 million same time last year.

Quarterly revenues dropped 24.5 percent to $10.7 million from $14.2 million. Nine-month revenues fell 23.6 percent to $35.7 million from $46.8 million.

Casino revenues 33.1 percent in the quarter and room revenues dropped 26.2 percent.

Hooters has $144.5 million in long-term debt. The property failed to make $5.7 million in interest payments in April and October. Average daily room rates in the 696-room hotel dropped to $47 from $58 last year.

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