The owner of the Hard Rock Hotel & Casino near the Las Vegas Strip bucked the recent trend of poor earnings reports, on Friday posting big increases in revenues and cash flow for the quarter ending Dec. 31.
The Hard Rock, in the meantime, is likely benefitting from a "Girls of the Hard Rock Casino" cover photo and inside photo package in April's Playboy magazine, which it calls the "Sex & Music" issue.
"Believing in the theory that the prettier the help, the happier the patrons, Hard Rock Hotel and Casino entrepreneur Peter Morton has hired NBA dancers, homecoming queens and aspiring actresses to sling drinks," Playboy said.
Hard Rock Hotel Inc. still posted a net loss of $3.1 million; however, this was decreased substantially from the $10.1 million loss reported a year ago. The company's shares aren't traded publicly.
The company reported net revenues of $27.8 million, up 16 percent from the year-ago period, while cash flow jumped 128 percent to $4.1 million. The hotel-casino reported healthy increases in casino, lodging and food and beverage revenues, offset slightly by a drop in retail revenues.
Casino revenues rose 31 percent to $12.3 million, driven by a 46 percent increase in table game revenue. Lodging revenues rose 5 percent to $6 million, as average daily root rates and hotel occupancy showed a "substantial" increase.
Food and beverage revenues increased 12 percent to $8.4 million, but retail revenues declined 11 percent to $2.4 million.
Morton, chairman and chief executive, said he expects continued strong results in 2001 "despite cyclical economic challenges." Morton said the Hard Rock plans an aggressive marketing campaign in 2001; special events this year marked the Playboy edition and included a Super Bowl party hosted by radio shock jock Howard Stern in January.
Meanwhile, Ameristar Casinos Inc. of Las Vegas began seeing the benefits of its acquisition of two Missouri riverboat casinos from Station Casinos Inc. in mid-December.
Ameristar reported net income before one-time charges of 4 cents a share, up from a net loss of 4 cents per share in the year-ago period. One-time charges, however, caused the company to report a loss of $5.7 million, or 27 cents per diluted share, compared to a loss of $748,000, or 4 cents per share, in the year-ago quarter. A one-time charge of $6.6 million after-tax, or 33 cents per share, was posted due to the refinancing of $245 million in long-term debt.
Net revenues rose 17.3 percent to $89.6 million, while cash flow increased 35.5 percent to $15.7 million.
Virtually all of the increase in revenues came from the former Station properties in Kansas City and St. Charles, Mo., which contributed $12.4 million in revenues and $2.2 million in cash flow in the 11 days Ameristar owned them during the quarter.
The Reserve, sold to Station in January in connection with the Missouri deal, showed substantial improvement during the quarter. The Henderson property posted cash flow of $1.7 million, up 134 percent from the year-ago quarter. The company's property in Jackpot, Nev., reported a 17.2 percent increase in cash flow, to $3 million.
Cash flow at Ameristar's Vicksburg, Miss., casino was flat, however, at $5.3 million, results the company blamed on construction disruption from an expansion of the property. At Council Bluffs, Iowa, cash flow fell 9.3 percent to $7.2 million, the result of disruption from an expansion project and severe winter weather conditions.
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