Thursday, May 4, 2000 | 10:25 a.m.
The owner and operator of the Hard Rock Hotel & Casino in Las Vegas reported $1.7 million in net income for the first three months of 2000, more than triple the net income produced in the year-ago quarter.
In the year-ago period, Hard Rock Hotel Inc. earned $500,000. Hard Rock attributed the powerful surge in earnings to the expansion project completed last May that added 318 rooms to the off-Strip property, as well as cost-controlling measures.
"Our performance over the past quarter was the strongest in the company's history," said Peter Morton, chairman and chief executive of Hard Rock. "The company has never been in a better position both financially and operationally and I am confident in our future prospects."
The increase in net income came despite a 70 percent in interest expenses, which totaled $4.5 million for the quarter.
During the quarter, revenues swelled 69 percent to $31.7 million, while operating cash flow rose 115 percent to $10 million. Casino revenues rose 74 percent to $15.6 million, while lodging revenues doubled to $6.7 million.
Separately, the company announced plans to issue $20 million in preferred stock this month. Proceeds will be used to pay down outstanding debt on the company's credit facility.
Hard Rock also announced Jim Bowen has joined the company as chief financial officer, replacing Tjeerd Brink. Bowen left the CFO's job at Lady Luck Gaming Corp. following that company's buyout by Isle of Capri Casinos Inc.
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