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Archon Posts Loss for Q1 2002

18 February 2002

LAS VEGAS --The owner of the Pioneer hotel-casino in Laughlin posted a net loss for the quarter ending Dec. 31, despite increases in revenues and cash flow.

Archon Corp. of Las Vegas reported a loss of $1.8 million, or 28 cents per share, for the first quarter of its fiscal year. This compares to net income of $89.3 million, or $13.06 per share, in the year-ago period.

The year-ago quarter was boosted by a $137.2 million pre-tax gain from the sale of the Santa Fe hotel-casino in northwest Las Vegas to Station Casinos Inc. Archon also recorded a substantial increase in interest expenses, which rose from $483,000 a year ago to $4 million.

Top-line results improved, however. Revenues increased 24 percent to $12.4 million, cash flow more than doubled to $4.2 million, and operating income was $1.6 million, compared to an operating loss of $900,000.

Archon attributed these gains to $3.1 million in revenues generated by two commercial properties the company acquired on the East Coast in March 2001. However, the Pioneer's $1 million in cash flow was 32 percent below the year-ago quarter's levels.

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