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Gaming Guru

Matthew Crowley
 

Hard Rock Reports Record Earnings

9 November 2005

The third quarter burned bright for Hard Rock Hotel Inc. as the company operating the Hard Rock Hotel posted record earnings. But Alliance Gaming, a Las Vegas slot maker, posted a quarterly loss, reversing year-earlier income.

Hard Rock Hotel Inc. can say it loves the nightlife. A $900,000 increase in revenue at its Body English nightclub at the Hard Rock Hotel helped the company post record net income for its third quarter ended Sept. 30. It was the company's third straight quarter with record net income.

In a statement Tuesday, Hard Rock Hotel Inc. said net income was $4.8 million for the quarter, up 41.1 percent from $3.4 million from a year earlier.

Revenue rose 17.4 percent, to $46.5 million from $39.6 million.

The company said a 2.5 percentage point increase in table games hold, a $23 increase in average daily hotel room rates and the revenue jump at Body English helped the results.

Adjusted cash flow, or earnings before interest, taxes, depreciation and amortization and loss on disposal of assets, rose to $12.6 million from $10.5 million.

Casino revenue rose 26 percent, to $17.9 million from $14.2 million. Table game drop was $79.2 million, up 12 percent from $70.7 million. Table game win rose 31.3 percent, to $13 million from $9.9 million.

In the question-and-answer session during the earning teleconference, Hard Rock Hotel President Kevin Kelley said the planned $1.7 billion W and $3 billion Las Ramblas condo-hotel projects on the Strip would probably be a boon to the Hard Rock Hotel.

"Adding potentially 5,000 to 7,000 rooms or condo residences that are filled with people in the upper income range has got to be a good thing for us," he said.

Hard Rock Hotel Inc. is planning its own $1 billion 1.5 million-square-foot hotel-condominium project on 24 acres adjacent to its Las Vegas hotel-casino. Kelley said demand for those units has been strong.

Alliance Gaming, meanwhile, said it had a net loss of $924,000, or 2 cents per share, for the three months ended Sept. 30, reversing net income of $42.3 million, or 81 cents per share, a year earlier.

Revenue fell 20.5 percent, to $120.7 million from $151.9 million.

For the fiscal year ended June 30, Alliance said it lost $25 million, or 49 cents per share, reversing earnings of $80.6 million, or $1.58 per share, in the previous 12-month period.

Twelve-month revenue rose 0.7 percent to $484 million from $480.4 million.

On an adjusted basis, the company had a fourth-quarter loss from continuing operations of $1 million, or 2 cents per share. For fiscal 2005, the company said it had a loss from continuing operations of $20.3 million, or 40 cents per share.

Alliance shares fell 45 cents, or 3.6 percent, Wednesday to close at $12.05 on the New York Stock Exchange.

Hard Rock Reports Record Earnings is republished from Online.CasinoCity.com.