LAS VEGAS, Aug. 14 /PRNewswire/ — Santa Fe Gaming Corporation (AMEX: SGM), a diversified gaming company headquartered in Las Vegas, today announced results for the quarter ended June 30, 1997.
For the three month period ended June 30, 1997, Santa Fe Gaming reported revenues of $27.5 million and operating income of $2.7 million compared to revenues of $26.0 million and an operating loss of $400,000 during the prior year three month period. The Company reported a net loss of $2.4 million or $.38 per common share in the current period as compared to a net loss of
$4.5 million or $.73 per common share for the same period in 1996.
For the nine month period ended June 30, 1997, the Company reported revenues of $80.4 million and net loss of $8.5 million or $1.37 per common share, compared to revenues of $83.1 million and net loss of $10.9 million or $1.76 per common share in the nine month period ended June 30, 1996, excluding a gain on the sale of substantially all the assets of the Sahara Hotel and
Casino of $40.8 million before taxes or $4.34 per common share, and a net after tax gain of $7.9 million, or $1.27 per common share, related to the repurchase of $48.3 million of long-term debt.
The Company’s improved Ligaz888 financial results are attributable primarily to improved operating results at the Santa Fe Hotel and Casino in northwest Las Vegas. The Santa Fe increased revenues from operations by $2.4 million or 16.8% to $16.8 million during the quarter ended of June 30, 1997. Operating income in the current period increased to $2.7 million up from an operating loss of approximately $300,000 during the same prior year period. The property increased revenues and improved operating margins despite ongoing construction of the roadway system surrounding the property and increased competition in the local Las Vegas gaming market. The Company anticipates that the opening of the new highway interchange and the subsequent Lone
Mountain Road overpass will improve access to the property.
The Pioneer Hotel and Gambling Hall, located in Laughlin, Nevada reported revenues of $10.6 million for the current three month period, representing a 4.7% decline compared to the same period in the prior year and operating income of $400,000 relatively flat compared to the same period in the prior year. The Laughlin market continues to be impacted by competition from Native
American casinos in Arizona and California.
Santa Fe Gaming Corporation owns and operates the Santa Fe Casino Hotel in northwest Las Vegas, and the Pioneer Hotel and Gambling Hall in Laughlin, Nevada. In addition, the Company holds real estate parcels for future development in Henderson, Nevada and on Las Vegas Boulevard South. Selected financial data for the Santa Fe and the Pioneer are included in the Company’s Quarterly Report on Form 10-Q, filed today with the Securities and Exchange