Monday, March 31, 2003 | 9:55 a.m.
PDS Gaming Corp. of Las Vegas reported a loss from continuing operations of $624,000, or 16 cents per share for the fourth quarter or 2002 compared to net income before one-time items of $32,000, or 1 cent per share, for the same period a year earlier.
Including one-time charges, the company reported a net loss of $1.7 million in the fourth quarter compared to earnings of $52,000 for the fourth quarter of 2001. This translates into a loss of 44 cents per share compared to earnings of 1 cent per share a year earlier.
Revenue from continuing operations was $14.8 million for the fourth quarter, compared to $7 million for the prior year. The 2002 quarter included an early least termination and sale of the related equipment to the lessee that resulted in revenues of $8.6 million. Finance income declined to $1.2 million in the fourth quarter to $1.9 million a year earlier and operating lease rentals increased to $4.1 million to $2.6 million, reflecting a shift in the mix of the company's portfolio from notes and direct finance leases to operating leases.
Casino operations resulted in a pre-tax loss, before depreciation, of $211,000 in the fourth quarter compared to $118,000 a year ago. The loss reflects higher operating costs related to the expansion of its Reno casino to include food services and increasingly unfavorable conditions in the Reno casino market.
PDS Gaming offers financing and leasing arrangements for casino games and operates Rocky's Casino & Sports Bar in Reno. Management has an outstanding offer to take the company private.
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