Business Briefs for August 2, 1998

A summary of the day's top financial news

Local

* PLANET HOLLYWOOD LV CASINO PLAN IS STILL ON -- Despite its July 21 decision to "evaluate and seek strategic alternatives," Planet Hollywood has no plans to back out of its joint venture with the Aladdin to build a $250 million, 1,000-room music-themed resort on the Las Vegas Strip. "We're still planning on doing that," Planet Hollywood spokesman Robert Weiner said. The resort, which will face Harmon Avenue towards the back of the Aladdin property, will be called The Sound Republic, Weiner said. The resort will re-brand and use the existing 7,000-seat performing arts theatre already on the property, and will build a new 1,000-person club inside The Sound Republic. Both venues will feature a full spectrum of music acts, Weiner said. The Sound Republic, scheduled to open in late 2000, will emphasize live entertainment, not memorabilia, Weiner said. Planet Hollywood's profits and share prices have fallen steadily over the past year as first-time customers failed to return for follow-up visits to its restaurants. The Orlando-based company is exploring alternatives including a stock re-purchase program, discussions with potential financial and strategic partners, "and other alternatives designed to maximize long-term stockholder value."

* BANK FINANCES LV REAL ESTATE, GAMING AND SMALL BUSINESS PROJECTS -- Bank of America said it provided American Nevada Corp. $45 million in financing for more development at its Corporate Center office park at Green Valley Parkway and Lake Mead. B of A also provided Juliet Properties with $10 million in financing for an apartment complex in the Spring Valley area at El Capitan and Nevso Drive. Other recent B of A loans: $25 million to Station Casinos Inc. for expansion projects and debt refinancing, $15 million to American West Homes for residential development and $500,000 to Syndee's Company for expansion of its Henderson doll-distributing business.

* UPSCALE SPA COMING TO THE VENETIAN -- Canyon Ranch, which calls itself one of the world's most elite health resorts, said it will open a SpaClub at the Venetian hotel-casino when the Strip resort is completed next April. The 63,000-square-foot spa and fitness club will be in a Venetian-style garden atop an 11-acre pool deck. It will have massage, skin care and body treatment rooms; gyms and weight rooms; a 40-foot rock climbing wall; movement therapy studios; therapeutic pools; a Canyon Ranch Cafe; beauty salon and medical-wellness center; and an indoor swimming pool for water aerobics classes and lap swimming. This will be the third Canyon Ranch spa, the others are in Arizona and Massachusetts.

* JACKPOT ENTERPRISES PROFIT DECLINES -- Slot route operator Jackpot Enterprises of Las Vegas earned $1.8 million, or 20 cents per share, on revenues of $23.4 million in the quarter ending June 30 -- down from $2.4 million, or 26 cents, on revenues of $24.4 million in the year-ago quarter. The quarter marked the end of a fiscal year in which Jackpot earned $7.2 million, or 79 cents per share, on revenues of $93 million, a slight decline from $7.8 million, or 84 cents earned on revenues of $91.9 million in fiscal 1997. EBITDA -- earnings before interest expense, income tax, depreciation, amortization -- was $3.8 million in the quarter, compared to $4.7 million one year ago. For the year EBITDA also declined, from $16.6 million in fiscal 1997 to $14.8 million in fiscal 1998. Though lower, Jackpot said its 1998 results were the second-best in its history. The company attributed the lower results to the loss of a major retail customer, increased location rents and lower revenues from existing operations.

To contact Sun Business Editor Steve Green, call 259-4083 or e-mail [email protected]

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