Las Vegas-based casino operator Herbst Gaming LLC on Friday reported a profit in its first quarter as a standalone company.
The company, a lender-led group that took over the assets of the bankrupt Herbst Gaming Inc. late last year, said in its quarterly financial report it earned $3.9 million on net revenue of $158.8 million in the first quarter.
That compares to a profit of $8 million on net revenue of $159 million in the year-ago quarter by the predecessor company.
The numbers aren’t directly comparable since Herbst Gaming Inc. – in bankruptcy -- didn’t pay $32.5 million in interest it was obligated to pay in the 2010 quarter. The new company had interest expense of about $8.8 million in the 2011 quarter.
The new Herbst Gaming LLC said in Friday’s report that its biggest revenue generator, its complex of three hotel-casinos in Primm, south of Las Vegas, posted gross revenue of $51.4 million in the 2011 quarter, up from $48.2 million.
These properties continue to face intense competition for their Southern Nevada and Southern California customers.
Hotel occupancy at Primm was 51.6 percent in the first quarter, up from 42.3 percent. The average daily rate was $38.36, down from $39.46.
The company’s other casinos in Southern Nevada in Pahrump, Henderson, Searchlight and Las Vegas generated gross revenue of $20.3 million, down from $20.7 million.
The company said its Terrible’s casino in Las Vegas continued to face cautious consumer spending and posted a noticeable decline in spending per visitor as the city struggles with high foreclosures and unemployment.
The company also has properties in Northern Nevada and in Missouri and Iowa.
Its slot route in Nevada generated gross revenue of $46 million, down from $48.7 million, with the company citing the persistently high unemployment and foreclosures.