Quarterly earnings improve for LV gambling company

Fitzgeralds Gaming Corp. of Las Vegas reported significantly improved earnings for the quarter ending July 1.

The company reported net income applicable to shareholders of $5.61 million, or $1.02 per share. This compares to a net loss of $5.03 million, or 91 cents per share, in the year-ago period. This was attributed primarily to decreases in deprecation, amortization and interest costs, as Fitzgeralds is now operating under Chapter 11 bankruptcy protection.

Net revenues increased 4 percent to $53.88 million, while cash flow rose 1.1 percent to $8.87 million.

Cash flow at Fitzgeralds Las Vegas was down 21 percent to $840,000, but revenues increased 2 percent to $13.6 million and operating income rose 823 percent to $840,000.

Casino revenues were up 3 percent, but average daily room rates were down 4 percent during the quarter. This was offset partially by a 0.9 percentage point increase in occupancy, the company said.

Fitzgeralds Tunica (Miss.) reported the strongest quarter, with cash flow increasing 37 percent to $4.89 million. Fitzgeralds Reno was the weak spot, with cash flow down 38 percent to $1.36 million. Fitzgeralds blamed a weakened economy in the casino's target markets.

Detroit businessman Don Barden, who controls Majestic Star Casino of Gary, Ind., is buying three casinos from Fitzgeralds including its 638-room, downtown Las Vegas property.

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